Dreaming of the freedom of remote working, but the lure of the big city is eating into your savings? Don’t panic, because with a little strategy you can have both: the flexibility of the remote job and the path to the 1 million mark!
Tip #1: Find the golden mean – city life vs. cost of living
Sure, Berlin, London or New York sound cool, but as a digital nomad you can also live in cheaper cities and save heaps of money. Find the balance between high income and low cost of living.
Tip #2: Optimize your tax strategy
Weigh up whether it is worth itemizing your expenses or whether it is better to take the standard deduction. If you have high expenses for medical costs or donations, the itemized list can be worthwhile, but it also means more paperwork.
Now it’s getting serious: How to accelerate your way to a million!
Tip #3: Sell online courses – your knowledge is cash
You will learn a lot on your journey to the million. Pack your knowledge into online courses and help others to avoid your mistakes. Whether fitness, nutrition or stock trading – your expert knowledge is in demand!
Tip #4: Learn to code – program your way to success
Python, Javascript – the world of programming is your friend! Learn to code and program useful tools. Perhaps your industry needs exactly your digitized solution? Sell your program to your old company or offer it online.
Tip #5: Become a consultant – your insider knowledge is worth its weight in gold
Are you an expert in your sector? Perfect! Become a sought-after consultant and share your knowledge for a fee. Use your network on LinkedIn and help companies solve their problems. Consultants generally earn more than employees, as they are free to organize their time as they wish.
Tip #6: Buying and renting out real estate – make your money work for you
Real estate is a classic path to wealth. But beware! You will hardly make any profit in the first 5 years. The highlight is the long-term increase in value. So don’t wait too long to buy, it’s best to start in up-and-coming neighborhoods with good infrastructure.
Tip #7: Invest in the stock market/crypto market – even on a small budget
Every cent counts! You can also enter the stock market or the crypto market with 50 euros a month. Index funds and ETFs are good entry-level products as they spread the risk. Apps like Robin Hood or Charles Schwab make getting started child’s play. Check your investments regularly and learn new strategies.
Tip #8: Use compound interest – your money works for you
The sooner you start investing, the better! Your money grows exponentially due to compound interest. Make regular deposits and use compound interest to your advantage. Choose investments with higher interest rates, but also pay attention to your perception of risk.
Tip #9: Take advantage of tax benefits – let the state pay too
Payments into certain retirement savings accounts are often tax-deductible. Use this state support to build up assets more quickly. This allows you to invest more and benefit from compound interest.
Bonus tip: postpone dependency – the million first!
Starting a family is great, but can slow down your path to a million. Be aware that you will have to make sacrifices: less free time, reduced standard of living, etc. If you have a family, perhaps prioritize your financial independence first.
With discipline, hard work and the right strategies, you can significantly shorten your path to a million. Start today and live your dream of a free life and financial independence!
