Investments begin quite early in life, and for good reason. Everyone could use some money, or some form of it to lean back on. Whether it be financial security or a roof over your head, investment caters to a number of needs. As a nomad, our investments may be different but they are still needed. Here are a few ways to invest money:
Private Provident Fund: A PPF could be incredibly useful in terms of long term investments. Ferreting away a little amount of money every month will give you a reasonable chunk at the end of 15 years. You could reinvest this money if you like, or perhaps spend it on that trip that you’ve always wanted to take.
Insurance: Travel insurance is a no-brainer while travelling. Losing your luggage is a very real possibility while travelling and while airlines might try to help you recover your luggage, there are many cases of travellers having to let go of any hope that it might be found.
Mediclaim: Medical insurance is extremely important for travellers. With medical expenses hitting the roof these days, one should take extra care while travelling. A good mediclaim ensures that you are financially covered in case any accident befalls you or at the very least, takes care of your hospitalisation charges.
Mutual funds: Investing in mutual funds is also a good option. With the option of selling your funds at any time, you can have an amount of cash when you need it the most. You also have the choice of reinvesting it.
Recurring Deposits: A short term recurring deposit saving scheme is an ideal way to keep your travel plans going. With even a small amount of monthly savings each year, you will always be financially ready at the beginning of the next one. Plus you can choose the period of investment time according to your convenience.
Property: Depending on the degree of your nomadicness, investing in a house may or may not be useful. Many nomads feel the need of a home base, or freelancers with an unsteady income may need a roof over their head at some point. However, if you are a total nomad with no plans of pitching your tent in one place and get a reasonable monthly salary, it makes no sense to buy property. You will likely need to take a loan and pay it off over a number of years, all the while not even living in the house.
No matter what your profession is, it is imperative to understand that money is important in the world. While nomads understand that the true value of life is in the experiences you collect, the world ultimately does run on money. Since nomads are free from financial constraints like rent and bills, it is never too late to begin thinking about sensibly managing money.