How to Overcome the Fear of Unstable Income as a Digital Nomad

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The fear of unstable income was my biggest stumbling block when planning to become a digital nomad. I felt stuck in my office job, and I was paid on the same day every month. Transitioning into an unregular income felt unsettling.

I get it; the fear is very real, and when you’re traveling from one country to another, you do not want to be in a situation where you’re struggling financially and penny-pinching, as this ruins the experience.

Layoffs happen. Companies restructure. Entire industries shift overnight, especially with the drastic growth of Artificial Intelligence.

Let’s be honest, though; these scenarios happen even when you’re stuck in one place – they aren’t just issues of being a digital nomad, but they are more problematic if you don’t have enough money to get home.

Let’s tackle it head-on, and learn how to overcome the fear of unstable income as a Digital Nomad in your 50s.

Here’s how you can create financial stability so you can travel without constantly worrying about money.

Changing Your Mindset

If you’re used to receiving a steady income every month, the idea of an irregular income can feel terrifying. Let’s take a step back, though.

What’s more secure—relying on one employer for your entire income or having multiple ways to make money? Which is riskier, staying in a job with no flexibility in your work schedule or learning to generate revenue in a way you have more control over?

Many digital nomads, including myself, don’t rely on just one income source. While I have a remote job, I also run a coaching business to help job seekers find remote work.

In the past, I also freelanced while working on a part-time contract.

Instead of relying on a single employer, I created multiple income streams, which made me more financially stable in the long run. Remember that security doesn’t come from a single income; it comes from having skills that allow you to earn money differently, no matter where you live.

Let’s be realistic here, though. This is not an easy goal to achieve. It has taken me 10 years to reach the point where I have 2 or 3 income-generating routes. It does not happen overnight.

Building a Financial Cushion

While working in the office, the best decision you can make is to create a financial cushion. For two years, I cleared debt and saved money by working overtime and freelancing evenings and weekends. You have to make sacrifices; this cannot be stressed enough.

I suggest saving 6 to 12 months of living expenses. As I indicated in my blog post on making money as a digital nomad, it’s a good idea to budget and calculate how much you will need to save to live comfortably until you generate regular income.

Building a freelance career or finding a remote job that allows you to work and travel will take time. This cushion will allow you to experience what it is like to be a digital nomad.

My comfort cushion was the cost of living for 8 months, and I saved £16,000 ($20,000), which worked out at around £2,000 ($2600) a month. Thankfully, after 6 months, I secured a full-time remote job so I could continue to live the digital nomad lifestyle.

If saving that much feels overwhelming, start by cutting unnecessary expenses. Are there any subscriptions or direct debits that could be canceled? Look through your outgoings and find areas to save money.

Reduce your spending while earning a regular income, and put that extra money into your comfort cushion.

Begin working on remote income sources while still employed. Take on freelance projects or apply for remote jobs before you officially quit. The goal is to start making money online while you still have the security of your current salary.

Had I not saved money for 8 months’ living expenses, I would not have quit my job, and I would still be miserable working in an office and living in my home city of Leeds.

The fear had to be dealt with head-on.

Creating Stable Income Streams

I write this section with gritted teeth because stable income streams are incredibly difficult to achieve. Yes, you could land a contract or a remote job, and these are the most stable ways to bring in an income, but you’re relying heavily on the company to continue to employ you.

To add an extra income stream, you need to look at other ways to make money. As a realist, I suggest forgetting dropshipping and affiliate marketing and focus on providing services for small businesses and companies based on your skills and experience.

This could be coaching clients, consulting companies, or offering freelancing services to a small group of small businesses. While it takes time, these income streams are more achievable, and you are more likely to earn a stable income.

Preparing for Worst-Case Scenarios

The fear of unstable income only has power over you if you don’t have a plan for the worst-case scenario. So, what’s the worst that could happen if you quit your office job to become a digital nomad and your remote income doesn’t work out?

Would you need to pick up a part-time remote job?
Go back to freelancing temporarily?
Find a job in your home country before trying again?

None of these are catastrophic—they’re just temporary adjustments.

One way to prepare is to keep an emergency savings fund.

Save a percentage of your income in this fund every month. I save 10-15% of my monthly income to a shares ISA, which means I can save up to £20,000 every month tax-free.

If I lose my remote job tomorrow, I have enough money in my savings to live the digital nomad lifestyle for at least three years, which is plenty of time to find a new job or start freelancing.

Having a financial cushion and emergency fund has made me stress much less about money. I can live a comfortable life, and while I have a part-time contract, looking at other ways to make money means that I can save more for the future and not rely on one company.