Marcus Meurer, the administrator of the DNX Global, Digital Nomad event gets asked a lot of questions by the digital nomads. In this segment the question we wanted to answer is, “How much savings do we need to have before going on the road?”

The question is how much do you need? Maybe three to six months would be good. That is, if you want to have an offer. But, the lesser you have, the better because it forces you to start creating income right away. An offer can actually hurt you in the long run when you’re starting a business because you might start thinking that instead of working yourself out, you may want to live up with the 20,000 remaining in your pocket.

There is also another component which depends about the relationships you have. Let’s say there is someone who could pay you as a freelancer. You could have some kind of fallback. Even if you could be a marketer for the next three months, you would still go back to freelancing. So, it also depends on that. Would you go three months of savings without having relationships with people who can potentially give you a job? Or as a freelancer?

You have to make sure you have clients for recurring income, you ought to have some skills. You need to at least know some people. You should have that three month buffer or six month buffer. You got to have something going on, otherwise, it’s really scary. You always need that rescue money. Someone in your family dies, you need to fly home. You got to have Pilot’s Points. If you’re from the US, you will have Pilot’s points. With all these credit cards, you can easily turn out 200,000 points, a year that gives you four business class tickets to anywhere. A few of those are handy. You can always jump on the plane with that.

To summarize, here are the things that you should do to be on the road:

• You need to have 3 months of cash
• You need to have the skills to get more cash you needed and the time
• You need to have some Pilot’s points if something really bad happens  

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