What’s your comfort threshold for your savings account when digital nomading as a freelancer?vWhat number do you begin to really stress when it’s below?
I’d say that one should start stressing out as soon as you stop putting money into your savings. I think that being a digital nomad should be a sustainable life, not a holiday.
6 months of living with my current expenses
My savings account goes up not down. Build a business or something that will set you up financially.
But when I was beginning, I had like $20K in savings and I would have probably been worried if it dropped below $10K
I try to keep 6 figures in various ETFs
Always always always have enough resources to get home if shit really turns south.
That was about it for me.I have a comfortable enough social safety net that I’m okay running it a bit lower depending on context (like going over the threshold to visit family for holidays or meet investment goals). Obviously, need to pay that back, but I haven’t really needed it yet either.
If I actually went negative, I have access to other money.
Right now I’m a bit low due to some delayed invoice payments from clients, a recent surgery, and flights and other costs related to the Holidays.
I wouldn’t do like a year, that seems way too much, unless your work is very unstable and you have no social safety net.
3 months is comfortable.
I have regular clients so I am lucky. I would freak out if I had nothing lined up.
I currently have 2 years worth of living in savings because it’s the requirement for my current European visa.
I think it all depends on your own personal circumstances.
If it’s not consistently growing over time, rather than depleting, you’re doing it wrong. Stop spending more than you make.
25+ years of SEA level living expenses in income generating assets. But I am super OC about having a safety parachute in case it all goes down the drain.
When I was freelancing, every two weeks id swap from losing sleep because I thought I’d go broke and then losing sleep because I had too much work
I am currently luxuriating in the brief shadow between the files I sent in last night, and the feedback I’ll have to work on tomorrow morning. lol
True. This is because trading your time for money sucks and is difficult.
What’s the solution ?
Charge more
Double entendre, brilliant.
I can relate. I’m living this right now.
Lol as you should be. It’s either or. So you’d always live this, wouldn’t you?
Yep. Been a freelancer for 3 years and that’s the freelancer way: “feast or famine.” When it’s going well, I’ve made five figures in one month. When it’s not? I’ve sat on the toilet and cried while envisioning panhandling in Central Park.
But I try and keep $20k in a high yield savings account for big emergencies and $10k in another savings account that’s easily accessible
I also have two IRAs I can cash out if shit starts to look REALLY bad. But by that point I’ll just go home.
I measure by number of months I can keep doing whatever I’m doing with zero income. That is, if all of my clients cancelled on the same day and refused to pay me anything they owe.
Six months is what I like to have. Two months makes me uncomfortable.
good god, some of these back up numbers are insane! ranging from 3 months - to 1 year, to $70k!
I dont freelance, but i do have a steady predictable income coming in every month…so I guess my number is, as long as that monthly forecast and 2 month buffer remains the same, then im staying abroad.
10k euros
$30k cushion in high yield savings account
Solid. That should get you by for 2 years in a pinch. Very nice.
That’s a great question. For me personally, it’s when I have less than 4 months living expenses in my savings. That’s just a safe threshold I like to stick to. That way, I know I have a little bit of breathing room should work slow down.