This is a part four of seven step mini blog post course about How to Become a Location Independent. If you haven’t yet checked the first three steps out, I’ll encourage you to do so now. You can find Step 1 of How to Become a Location Independent here.

Step #4: Location Independent Finances

This step is all about location independent finances. How much savings and income should you have that you might be able to survive being a location independent? In addition, we discuss the ratio between income versus the mandatory expenses.


Some people find it easy to save money while some others will struggle to do it their whole life. What makes saving money a vital point to escape from rat race then?

In order to save money, you have to first create personal surplus finances. Click To Tweet

That means you must spend less money you earn. For example, if your income is $2500 per month and your expenses are $2000 in 30 days period, you can save $500 per month. After one year, you’ve saved $6000. That would be a nice amount to add to the location independent finances. Moreover, it’s not even too difficult to do.

Of course, everybody has different situations in their life. You cannot always save that much money. But one thing you can definitely do is a plan and try to follow it as precisely as possible.

Location Independent Finances


Income part should be quite a straightforward what comes to the location independent finances. Whatever income you can generate from online businesses, freelancing, and entrepreneurship, will enable you to live a location independent life. You should always try to take advantage of internet whatever income model you are looking for.

The reason for this is obvious – you can connect to the internet from almost every part of the globe to manage your business.

Another huge possibility for income source is investing. There are countless ways to invest your surplus location independent finances. You can choose from real estates to stocks amongst many others. While real estates might give you more stable and predictable income, it also requires your physical attention.

Since we want to be and become location independent, stocks will give you more flexibility to move around. You must remember to check your online broker once in awhile, though.


Expenses are the alternative part of location independent finances. They will be a consequential part of your success of becoming a successful location independent person. You must be able to cut your expenses down.

Furthermore, you must make more money than your expenses are to get a positive, surplus finances for yourself. The easiest way to begin cutting your expenses down is to keep a precise budget about your spending habits. After month or two, you will be able to recognize where does your money flow. In addition, you can make the needed adjustments in order to get your finances in balance.

You should also take a close look what kind of variables are you using the money for – assets or liabilities. It’s very easy to figure out which one you’re spending the cash.

Assets put money in your pocket and liabilities take money out of your pocket. Click To Tweet

Why am I putting this matter under the Expenses section then? Usually, people have more liabilities than assets
simply because they don’t know the difference. That’s the main reason why people got to stay in the rat race and don’t get into the free, location independent finances. So watch out the liabilities such as expensive houses, cars and spending habits.

Budgeting is crucial

Budgeting is crucial

What is enough?

How much money is enough to enable you for living a location independent lifestyle, then? It is pretty simple: Your savings and income should exceed your expenses. Sure it would be best to have more income than expenses. That means you would be able to live wherever you want an unlimited amount of time. That should be the main goal.

Even if you wouldn’t get there in an instant, your savings should help you to get started. In the meantime, you’ll try to grow your income and reduce the expenses.

 UPDATE: Step 5 is live! You can find it behind this link.
How to Become a Location Independent - Step 5
How to Become Location Independent - Step 3