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?
Always always always have enough resources to get home if shit really turns south.
That was about it for me.10k euros
$30k cushion in high yield savings account
Solid. That should get you by for 2 years in a pinch. Very nice.
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.
I do the same.
I’m riding at four months right now.
25/m here with $320k in savings and a six figure contract income from long term clients. It definitly affords me a lot of peace of mind, even if I lost work, it would probably be a while until I really get nervous. Although I do really value saving and keeping a positive cash flow at all times.
I’m curious, is all of that $320k in a savings account or are you including money you have in investment accounts?
I consider both, as all are easy access and I could take it out at any time if I needed to. But I’d reach for my standard savings accounts first.
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.
I wouldn’t do it if I was net negative.
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.
6 months of living with my current expenses
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.
I try to keep 6 figures in various ETFs
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
And here I am with $1k
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.