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4 essential tips for becoming a grey nomad

4 essential tips for becoming a grey nomad

Are you dreaming of becoming a grey nomad? Or already planning a transition into the nomadic lifestyle for your retirement years? Becoming a grey nomad involves major changes that need careful planning. From getting on the same page as your partner to organising both the financial and practical aspects, here are some of the top tips to help you get started.

Align with your partner

If you’re travelling with a partner, it’s vital that you’re in agreement before transitioning into your new lifestyle. Getting on the same page as you’re planning may reduce the risk of emotional and financial stress.1

You’ll want to make sure your partner is at least as enthusiastic about your new lifestyle as you are, and happy to embrace the benefits as well as potential challenges of transitioning to a nomadic lifestyle. You’ll also want to check your partner has similar expectations as you do. For example, is he or she happy to live on a shoestring budget or expecting a luxurious life on your travels?

Talk over the financial, lifestyle, and change aspects with your partner and make sure you’re walking together every step of the way.

Outline your financial strategy

Don’t leave any part of your financial strategy to chance, as your financial plan and the budget with everyday details determines how you’ll be able to live your new lifestyle.

Long-term strategy

Plan for the long term. This may involve working part time as you wind down to retirement – to where (and how) you’ll be living after your travels. While you might be looking forward to transitioning to the carefree nomadic lifestyle, you’ll want to ensure you’re not worrying about whether your retirement nest egg will be enough after you stop travelling. Work with a financial planner, accountant, or any other expert if you need help working out tax optimisation, whether you’ll have enough, and how to best invest your money in retirement.

Income

Part of your financial strategy should include figuring out your income. After you stop working, will you have income from sources such as rent, pensions, annuities, dividends, or other means?

Budget

Work out how much everything will cost and what you can afford to spend as a grey nomad. Take into account all the essentials from food and travel costs to insurance, emergencies, vehicle maintenance, and entertainment. Whether you’re going to be travelling in a caravan or living in beach apartments as you explore, create a detailed budget. Without a budget, you could find your costs blowing out, so be clear about what you can afford to spend.2

Don’t forget about the practical how-tos

Work out the practical elements of your journeying before your trip to avoid headaches on the road.

Van travel

Travelling around Australia in a caravan or motorhome is a popular option among grey nomads, and if you’re interested in caravan travelling, you’ll want to get to know the types of caravans available, how to find and use caravan parks, and also caravan maintenance.3

Self-storage

What will happen to your belongings during your travels? Look into self-storage to ensure your property stays secure during your time away.4

Weather and seasons

Planning to travel during mild weather and seasons can significantly boost your experience and even help you avoid health issues like heat stress. Check the local weather before settling off on a destination.5

Managing risk on your travels

Have a backup plan for emergencies and make sure you maintain an emergency cash fund. Make sure to take out travel insurance to stay covered.

Plan for your return

Coming back is probably the last thing on your mind, but you won’t be a grey nomad forever and it’s crucial to have a plan for the end of your travels. Will you be coming back to a house you’ll be renting out, or should you downsize now so you’ll have extra money for your travels and have a smaller house to come back to? Will you be moving overseas after your travels?

After decades in the workforce, enjoying your golden years by spending some of them as a grey nomad might be one of the most fulfilling things you do. Make sure your partner is on the same page, and establish a comprehensive financial strategy that covers your daily budget as well as your long-term plans. Don’t leave anything to chance and make sure you’ve thought about all the practical factors of your travels. Finally, have an exit strategy planned, so you can return or bring your travels to an end without any hassle.

With 20 years of experience in providing cost-effective insurance solutions for Aussie seniors, Australian Seniors Insurance Agency can be your best risk-management partner on your grey nomad travels. Find out more about our seniors travel insurance, or contact our friendly team for more information.


References

  1. 3 Financial Considerations when preparing for a grey nomad lifestyleFinance Path
    https://www.financepath.com.au/blog/3-financial-considerations-when-preparing-for-a-grey-nomad-lifestyle
  2. Can you afford to be a grey nomad?news.com.au
    http://www.news.com.au/finance/superannuation/can-you-afford-to-be-a-grey-nomad/news-story/f8f412d4da6180d20ee06dbb20297208
  3. Grey Nomads – Fast FactsTourism Western Australia
    https://www.tourism.wa.gov.au/Publications Library/Research and reports/Caravan and Camping - Fast Facts - Grey Nomads.pdf
  4. Self storageThe Grey Nomads
    http://www.thegreynomads.com.au/planning/before-you-go/storage/
  5. Hot, humid and wet? It’s time to head northThe Grey Nomads
    http://www.thegreynomads.com.au/planning/before-you-go/hot-humid-and-wet-its-time-to-head-north/