The digital nomad lifestyle is a dream come true for many plucky, young adventurers who simply want the freedom to work from anywhere, set their own schedule and see the world. Take it from us, it is wonderful and I for one cannot ever imagine going back to the static, 9 – 5 grindathon.
But as with any lifestyle choice, there are trade-offs. Relationships can be hard to sustain, getting health care can be challenging and transient lifestyles tend to make it rather difficult to plan for the future. In fact one of the single biggest trade-offs with the DN lifestyle is that it doesn’t really seem to have all that assured of a future at all….
And then there is the complete lack of a pension plan. Or at least the absence of a traditional pension plan.
Unlike employees who benefit from company-backed retirement plans, digital nomads must take full responsibility for their financial future. The good news though? With smart investing, you can build a substantial portfolio over the next 20 years—one that could in fact far surpass the returns of a traditional pension.
Let’s dive in Amigo.
Photo: Will Hatton
The Broke Backpacker is supported by you. Clicking through our links may earn us a small affiliate commission, and that's what allows us to keep producing free content 🙂 Learn more.
Pssstttt – In case you are reading this on a sneaky work toilet break and don’t have time to take the whole thing in before you (hopefully wipe..) and flush, we recommend you start investing for retirement today with Echo Trade.
Sign Up Today and get Started with their 14 day Free plan.
Will You Get a Pension?
Many of the digital nomads I meet are young and think they will live forever. Well, they won’t. I have been at this for 10 years now and regret to have to tell you that time is real and one day you too will not be able to sleep the night without getting up at least twice to take a leak.
If you are a DN who is approaching 30, you need to start thinking about retirement. So start with this question;
“Will you get a pension when you reach 65 or 70”?
Some of you may have some form of private pension or family trust fund in which case you can stop reading. Some of you may be working as a digital nomad for ‘proper’ companies and they may have enrolled in you (but do check this).
Image: Nic Hilditch-Short
Meanwhile some of you may think that you will get some form of state pension from your native country. However if I were you I would not take this for granted. Firstly because there is a very real chance that spending so much time on the road will one day disqualify you but also because there is a very real risk that all of our social security apparatus will have completely collapsed in the next 20 – 40 years. Now there is a happy thought eh?
A new country, a new contract, a new piece of plastic – booooring. Instead, buy an eSIM!
Jetpac eSIMs work just like an app: you download it, pick your plan, and BOOM! You’re connected the minute you land. It’s that easy.
Read about how e-Sims work or click below to see one of the top eSIM providers on the market and ditch the plastic.
Grab an eSIM!Why Investing Can Be Better Than Pensions
While pensions tend to provide a sense of security, they come with limitations. First of all, as we have said, traditional pensions are often tied to employment, meaning you need to work for a company for decades to fully benefit. Bah!
They also depend on government regulations, employer contributions, and economic stability—factors that are all out of your or my control. Investing, on the other hand, offers complete autonomy.
Photo: @joemiddlehurst
You get to decide how much to contribute, what assets to invest in, and how aggressively to grow your wealth. Over time, a well-managed investment portfolio can outpace the returns of a pension, giving you more flexibility and potentially a much larger nest egg in retirement.
With the right strategy, you’re not just saving—you’re actively growing your money on your own terms. What’s not to love?
Why Investing Early (and Consistently) Matters
While it may seem overwhelming to many lay people like us, in truth Investing isn’t just for Wall Street professionals or finance gurus. In fact it’s one of the best ways to grow your wealth over time, and the earlier you start, the better. Thanks to the power of compound interest, small, regular investments can turn into significant assets in the long run.
As Warren Buffett wisely put it: “The best time to plant a tree was 20 years ago. The second-best time is now.” The same applies to investing. The sooner you start, the more time your money has to grow into a giant oak tree.
We’ve tested countless backpacks over the years, but there’s one that has always been the best and remains the best buy for adventurers: the broke backpacker-approved Osprey Aether and Ariel series.
Want more deetz on why these packs are so damn perfect? Then read our comprehensive review for the inside scoop!
View on OspreyWhat is Investing, and How Does it Work?
Before we go any further, let’s just take a moment to get back to absolute basics and explain what exactly investing is.
At its core, investing just means putting your money into assets that have the potential to increase in value over time. Unlike saving, which keeps your money stagnant (and often loses value due to inflation), investing allows your wealth to grow.
There are different types of investments to consider:
- Stocks: Buying shares in a company means you own a small part of that business. If the company grows, so does the value of your shares. You often get dividends too which you can use to buy even more shares in the company.
- Bonds: These are essentially loans you give to governments or corporations, which pay you back with interest.
- Index Funds & ETFs: These track entire markets (like the S&P 500), meaning you are effectively buying micro-stocks in hundreds of companies, offering diversification and lower risk.
- Real Estate: Buying property can be a great long-term investment, especially if you rent it out and re-invest in something more property. However you do need capital to get started and it can be hands on.
- Cryptocurrency: A high-risk, high-reward option that has gained popularity among digital nomads. Note that Crypto is not considered a sensible investment by the traditional investment industry.
Our GREATEST Travel Secrets…
Pop your email here & get the original Broke Backpacker Bible for FREE.
Investing Doesn’t Have to Be Confusing or Expensive
One of the biggest barriers to investing is the perception that it’s complicated and expensive. The conspiracy theorist in me does wonder whether this perception is deliberately perpetrated to keep the common man from getting rich but that’s a whole other debate!
Image: Nic Hilditch-Short
Furthermore, traditional brokerage firms often require large initial investments or charge high fees. But thanks to technology, investing has become more accessible and democratic than ever.
Apps and platforms now allow regular Joes and Jans and digital nomads to start investing with minimal capital, automate their portfolios, and track their progress from anywhere in the world.
If you are ready to start your journey, then I suggest getting the Echo Trade App and signing up for the 14 day free trial.
The Best Investment Apps for Digital Nomads
There are well over 100 investment or investment flavoured apps available today. Let’s look at our top 5 Investment apps us Digital Nomads making money on the road.
Echo Trade: A Simple, Smart Way to Invest
One of the most user-friendly investment platforms for digital nomads is Echo Trade. Here’s why it stands out:
- How It Works: Echo Trade uses AI-driven automation to help users build diversified portfolios. You choose your investment goals, risk level, and time horizon, and the app takes care of the rest.
- Costs: Low fees compared to traditional investment platforms, with no hidden charges.
- Who Can Use It: Ideal for beginners and experienced investors alike, available in multiple countries.
- Getting Started: Simply sign up, link your bank account, and start investing with as little as $10.
Other Great Investment Apps for Digital Nomads
- Wealthfront & Betterment – Robo-advisors that manage your investments based on your goals.
- eToro – A great platform for trading stocks, crypto, and ETFs, with a social investing component.
- Interactive Brokers – Best for digital nomads who want access to global markets.
- Revolut & N26 – Banking apps that also offer investing features.
FAQs About Investing for Digital Nomads
The investing world doesn’t have to be complicated or expensive. Here’s a few of the most commonly asked questions about investing for digital nomads.
Getting Insured BEFORE You Hit the Road
Unfortunately, things can go wrong when you least expect it. This is why good travel insurance is essential before you embark on your adventure.
Month to month payments, no lock-in contracts, and no itineraries required: that’s the exact kind of insurance digital nomads and long-term traveller types need. Cover yo’ pretty little self while you live the DREAM!
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to work! Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.
Final Thoughts: Invest Now, Thank Yourself Later
As a digital nomad, you’re already living life on your own terms. Why not take the same proactive approach to your financial future? Investing may seem daunting at first, but with the right tools, it’s never been easier to get started.
To borrow another gem from Warren Buffett: “Do not save what is left after spending, but spend what is left after saving.” Make investing a priority today, and in 20 years, you’ll be glad you did.
- Stay savvy and protect your money while on the move.
- Deepen your understanding of how travel foreign exchange works to ensure you make informed decisions every step of the way.
- Broke backpackers, gear up with our budget travel guide!
- Thinking big? Discover the true cost of travelling the world before you kick-off the adventure.
Buy Us a Coffee!
A couple of you lovely readers suggested we set up a tip jar for direct support as an alternative to booking through our links. So we created one!
You can now buy The Broke Backpacker a coffee. If you like and use our content to plan your trips, it’s a much appreciated way to show appreciation 🙂
