As a digital nomad, you gain the advantage of freedom, both in terms of income sources and your living situation.

But whether you’re working on a park bench in Central Park or a coastal café in Spain, you’ll need to be mindful of your long-range savings plan.

After all, at some point you’ll want to retire. But you won’t necessarily have a company-initiated savings plan to help that process come to fruition.

Fortunately, the best strategies can help build a financial foundation that lets you retire comfortably in any location. Read on to learn more!

Accounting for Income Variability

For digital nomads, income inconsistency is a reality. Some months you may have a steady stream of clients paying you for your design or consulting services, for instance. The next month, your client list may be thinner. Consequently, one of the biggest challenges that digital nomads face is accounting for uneven cash flow as they build retirement savings.

Make sure to keep your living expenses and retirement savings in two different accounts. You can consider automatically siphoning off a percentage of your monthly income to go toward retirement. This could be 10% or 20%, depending on your other living expenses. With an automatic deposit each month, you won’t be tempted to treat that money as spending money. You’ll also introduce some consistency to your savings, even if your monthly income varies.

Exploring Retirement Investment Options

As a digital nomad, you won’t necessarily have a 401(k) investment account through an employer. That means you’ll need to set up an individual account to start growing your nest egg. You’ll also need to be aware that you’re responsible for adhering to U.S. laws regarding taxes.

Roth IRAs are among the most popular individual accounts. You’ll contribute your money after taxes, meaning that anything you take out in retirement won’t be subject to taxes. Think of this as a benefit to your future self. Traditional IRAs, by contrast, will come with taxes when you withdraw from them in retirement. But, on the front end, you’ll trim your taxable income in the present. Be aware that you’ll have contribution limits every year, and you’ll face fees if you take money out early.

Other options include a solo 401(k), which can be a viable option if you work alone. And if you want the comfort that comes with having a tangible investment, investing in a Gold IRA can make a lot of sense. You can invest in anything from real estate to precious metals, providing portfolio diversification and a hedge against inflation. In any case, choose custodians that won’t charge big fees that cut into your returns.

Understanding the Risks

Digital nomads typically have experience with several different currencies. As a result, that increases the risk for impacts from inflation that could affect your retirement account. In other words, if you’re earning money in one country but the currency is not valued as highly in a country where you plan to retire, you could have less money at your disposal.

Your best bet is to maintain some savings in U.S. dollars. Keep your risk lower by including ETFs and index funds as part of your investment strategy, as well. And, as always, maintain a budget so you’re regularly funneling money into these accounts. Budget tracking apps can help keep you accountable and avoid overspending. Similarly, retirement calculators can help you project your monthly income once retired. Set an alert on your calendar to review your accounts each month or quarter to make sure you’re on track for retirement saving goals.

Be Prepared for Retirement

When you’re a digital nomad, you’ll have the freedom to work when and where you choose. Yes, this freedom can be liberating and allow you to carve out a well-traveled life. But you don’t want to forget about your future retirement. You’ll need to be proactive about adding money to a retirement account and accounting for uneven monthly incomes. Plan on automating contributions and opting for a diverse portfolio of funds to minimize risks that come with inflation and other economic factors. When you’re wise with your dollars, you’ll lay the groundwork for a stable and meaningful retirement.