A question was recently posed in one of the travel groups I’m in:
As far as living abroad, is it best to already have a stream of income to live on? And how valuable is the American dollar?
Ideally, you’ll want to protect yourself against surprises. If you can, you want to have one or more streams of income, whether active or passive plus savings.
It’s a good idea to have an amount of money (sometimes called “runway”) that will allow you to sustain yourself without stress so you can enjoy your journey.
Financial pressures will strongly influence when/where you choose to live and for how long. Give yourself the opportunity to make the best choice in choosing your new home.
The amount you need will vary depending on your risk tolerance and your ability to generate income via:
- Finding new clients for your business
- Finding a new job that allows location independence
- Launching a product/service that can generate sufficient income
In January 2016, I started my journey with a full-time job, a retainer client and, savings to cover a year of living expenses. In March of that year, I left the job and the client dropped the retainer contract in June.
Needless to say, without the savings, I would’ve been in trouble!!
Of course, I didn’t panic because I knew I could generate more income. That was largely due to the high demand in my field.
If your field has more competition, fewer opportunities, and/or lower pay, you’ll want to plan accordingly.
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