Every digital nomad needs to read this
What's the story
The digital nomad lifestyle holds immense appeal, and for Indian professionals, it has never been more attainable.
However, juggling finances while bouncing around the globe can be a headache.
This article is your financial guru, guiding you through the maze of money management as an Indian digital nomad.
You can concentrate on your work and adventures, knowing your finances are smooth sailing.
Banking
Choose the right bank account
For digital nomads, accessing your moolah without paying a ton in fees is key.
Choose a bank with low or no foreign transaction fees and favorable currency exchange rates.
Some Indian banks offer travel-centric accounts, which can be advantageous.
Plus, you should open an account with an international bank with a vast ATM network worldwide.
Taxation
Understand tax obligations
Indian digital nomads need to pay special attention to understand their tax obligations.
Your global income becomes taxable in India unless you qualify as a non-resident by staying in India for fewer than one hundred eighty-two days in a financial year.
It's advisable to seek guidance from a tax professional to understand your tax liabilities and take advantage of double taxation avoidance agreements (DTAAs).
Investments
Keep your investments flexible
Investing as a digital nomad means you need flexibility. Choose investment options that let you handle and withdraw your money from anywhere globally.
Mutual funds and SIPs (Systematic Investment Plans) are favored by nomads for their flexibility and promising returns.
Be mindful of the T&Cs regarding withdrawals and redemptions, particularly when you're overseas.
Budgeting
Budget wisely across currencies
Keeping track of expenses in multiple currencies can be tricky but it's key to maintaining financial stability as a digital nomad.
Leverage budgeting apps with multi-currency capabilities to streamline tracking of your spending across various countries.
Maintain a safety net in your budget for unforeseen costs like healthcare or emergency travel.
Security
Protect your financial data online
Digital nomads frequently work from cafes and other public spaces, making them particularly vulnerable to hackers.
If you're a digital nomad, protect your financial data by ALWAYS using a VPN (Virtual Private Network) when accessing public Wi-Fi. VPNs encrypt your data, shielding sensitive information like bank account details from prying eyes.
Also, make it a habit to update your passwords frequently and use two-factor authentication whenever available.