A Small Safety Fund

When you don’t have any money, everything stresses you out. Any unexpected crisis will lead to financial chaos.

 

What will you do if…

 

1. You lose or break your phone or laptop… or they’re stolen.

2. You lose your passport.

3. You need to fly home.

4. You overstay a visa and need to pay a fine.

5. You’re bitten by a snake (like me!) and can’t pay your hospital bill.

 

If virtually anything happens that you weren’t planning on… you’re in trouble. I lived like that but that’s no way to live.

 

That’s why you need a small savings fund. A little money saved away to fix a crisis.

 

How much?

 

Initially, it really doesn’t matter. $50 will help relieve the worst emotional stress. $500 can get you out of most crises. The benefits of a safety fund are felt right away, not just once you save enough to retire on.

 

Having a few thousand dollars in savings is best, but you do not need that to begin with.

 

Here’s why having a small safety fund is such a good use of your money.

 

You don’t need to save enough for every single crisis.

 

You just need to save enough for any one crisis.

 

Once you have $2,000 in your safety fund, you can buy a new phone or a new laptop or get a new passport or fly home or pay an unexpected hospital bill. So… you don’t worry about any of these things anymore!

 

If you’re hit with any single crisis, or maybe 2 at the same time, you know you can handle it.

 

In this way, a relatively small sum of money decreases stress about the multitude of things you worried about when you had no money saved up.

 

Especially as a digital nomad, in new and unknown environments every week or month, a safety fund that travels with you is as valuable for your sanity as your laptop is for your work.

 

In addition to the crisis-averting power of a safety fund, the money is also available if a potential breakthrough opportunity falls in your lap. With resources, you can take action when unexpected opportunities arise, too.

 

How To Build Up A Safety/Opportunity Fund

 

First, start saving anything that you can. Even if it’s just $1/day… put it away somewhere. Even if you need to take it out and start over at $0 again, you’re still better off having the money available.

 

Second, set a reasonable goal for your fund. Begin by saving $100. Then, double it to $200. It gets easier.

 

Third, try to not take the money out. This is the most difficult part because you’ll be tempted to spend it on… anything. By leaving the money there you are buying something more valuable; peace of mind.

 

Fourth, stop worrying about money so much. You’ll still worry, but a lot less. Rather than looking side-to-side for the next crisis to avoid, look straight ahead at your next breakthrough opportunity.