Living abroad is no longer just a strategy to stretch retirement savings. It has become a lifestyle choice for remote workers looking for adventure, cultural exposure, and a way to accelerate their wealth building.
Traveling isn’t traditionally associated with saving money. We may think of spending a luxurious week at a resort in Hawaii, or a fun-filled week at Disney World with the family. We have to save money to travel in this way.
Digital nomads have found an alternative path to travel. They leverage their location-independence, or freedom from showing up at an office every day, to select cheaper destinations to live and visit. Or at least the financially savvy digital nomad will elect to leverage this powerful tool in building their wealth. It is, of course, possible to spend every last paycheck sent while traveling as a digital nomad.
How Can Real Estate Investing Create More Opportunity For Digital Nomads
Every digital nomad eventually faces the reality that constantly traveling while also trying to get work done is a tough balance to maintain. Most co-work space conversations surround what exciting adventures are on the horizon – not on exciting work projects.
Digital nomads quickly discover that having passive income and a growing base of appreciating assets would support their travel dreams more than trying to squeeze in 40+ hours of work in beautiful destinations.
While traditional real estate investing in residential properties often requires investors to be physically present, passively investing in real estate syndications allows digital nomads to grow their wealth, build passive income streams, and even provide tax benefits that put travel dollars back in their pockets.
How Can Digital Nomads Build Wealth Faster
The traveling remote worker actually has a few advantages when it comes to investing passively in real estate. By leveraging these aspects of the digital nomad lifestyle, it could be possible to reach that full financial independence even sooner than you would if you were to live and work in a single location.
Leverage The Power Of Lower Cost Of Living
Digital nomads can leverage the power of saving more by living in countries with a significantly lower cost of living. Remote workers receiving an income from a company in America may find that they can save more than half of their paychecks each month while living in countries where the cost of a home or apartment is a fraction of that in America. Along with that may be lowered costs for groceries and transportation.
By saving more every month and investing that into real estate early, wealth building becomes exponentially easier. Opting to spend even just a few years living in a country with minimal expenses could accelerate the growth of their real estate portfolio, shaving years off their timeline to financial independence.
Invest Where It Makes Sense, Not Where You Live
Passive investing in real estate syndications also allows digital nomads to invest in real estate projects from anywhere in the world. They can invest in a project in a different city or even a different country without having to physically be there. This provides them with the flexibility to work and travel on their own terms without the hassles of maintaining a property or hosting potential tenants a vacant rental.
This freedom allows digital nomads to invest in the best markets rather than the one where they live. They can live in places where it may be cost prohibitive to purchase a rental property, but put their money to work in markets where cash flow is steady and reliable.
Scale Quicker To Find More Freedom Faster
Passive real estate investing allows digital nomads to scale their investments without having to actively manage multiple properties. They can invest in multiple syndications or funds, and the income generated from these investments can be reinvested to grow their portfolio further.
Add in an accelerated savings rate and scaling a real estate portfolio of passive investments can quickly lead to freedom from having to work.
Conclusion
Digital nomads can benefit from passive investing because they know the value of having passive income to live life on their own terms. They’ve already taken the step toward living a life full of travel and adventure, which is a major hurdle to overcome in designing a life of intention. Adding in real estate investing and they could quickly find more freedom and security to live their ideal travel life.
