Working and living anywhere.
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Do you dream of traveling the world with little more than your laptop? Digital nomads, who travel relentlessly and work from ever-changing locations, are doing just that. The digital nomad lifestyleâenabled by worldwide Internet connectivity and more flexible work arrangementsâhas been enticing a growing pool of workers.
Although such a lifestyle may seem like the best of all worlds, itâs not for everyone. If youâre thinking about going remote and staying on the move, weigh the pros and cons. And remember that some jobs are more suited to the digital nomad lifestyle than others.
Key Points
- Digital nomads work remotely in often-changing locations.
- Constant travel creates unique opportunities and unpredictable challenges.
- Being a digital nomad doesnât have to break the bank, but it does require planning.
A digital nomad, in the simplest terms, is a person who travels continuously while leveraging digital technology to work from anywhere. Digital nomadism can redefine your relationship with work, leisure, other humans, and yourselfâwhich is why many digital nomads regard it as a lifestyle.
Digital nomads can be grouped in a few different creative ways:
- Slomad. Thatâs a digital nomad who travels slowly, staying put for months or years before changing locations.
- Nomadpreneur. Short for nomad/entrepreneur, itâs someone who runs one or more businesses while traveling.
- Digital settler. Although hardly nomadic, digital settlersâwho prefer to set up digital shop in just one or a few geographiesâdeserve an honorable mention because they migrate (sometimes quite far) from their native homes.
To some degree, the rise of digital nomadism signals a shift in societal expectations around lifestyle freedom and work. Many digital nomads are self employed and/or donât need to conform to the traditional nine-to-five schedule or in-person collaboration. Digital nomads are proving that technology empowers talented individuals to forge unconventional paths.
Pros and cons of the digital nomad lifestyle
Feeling enamored by the idea of digital nomadism? Mixing work with travel can be fulfilling, but the drawbacks are also important to consider.
Pros:
- Travel flexibility. The freedom to travel is usually the biggest perk for digital nomads. You can choose your itinerary and pace, and travel extensively without taking vacation timeâfor years or decades, if you like.
- Geo-arbitrage. Lower your cost of living by choosing affordable locales. Then intensify your financial power by earning in a strong currency (such as the U.S. dollar or British pound) and spending in the weaker ones (popular choices include locales in Southeast Asia and the Caribbean).
- Network expansion. Meet people around the world to build a diverse international network, both professionally and personally.
Cons:
- Your expenses are highly variable. Changing locations continually means continual changes to your living expenses. Plenty of hidden fees, such as for visas and international banking, are also associated with travel.
- Salaried roles may be out of reach. Your eligibility for stable, salaried roles at traditional companies is limited as a digital nomad. Time zone differences may further constrain your professional work opportunities.
- Financial planning can be difficult. Variable income from non-salaried roles and variable living and travel expenses may significantly complicate your financial planning. Cross-border tax obligations can add further, potentially distressing, complexity.
- High-speed Internet is never guaranteed. Fast Internet is vital for many digital nomads, but accurately assessing Internet performance and reliable connectivity can be difficult before arriving at a destination.
Want to put yourself on solid financial footing? Start with two simple steps: make a budget, and live within it.
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How to choose where to travel
Part of the fun for digital nomads is choosing the next destination. You might be craving time on the beach, or perhaps youâre targeting a city with particular features and amenities.
The choice of destination is yours, but how should you choose? Infrastructure, safety, health care options, cost of living, recreation, and culture are all potentially deciding factors:
- Infrastructure. Physical and digital infrastructure are both crucial to consider. How stable is the power supply? How robust is the Internet? Evaluate where you can buy your groceries and access your cash.
- Safety. Staying safe is paramount for digital nomads. Pay attention to political stability, crime rates, health risks, and the degree to which travelers are welcome.
- Health care. Whereâs the nearest hospital? Does the region support medical clinics? Consider too the availability of emergency services and health insurance.
- Cost of living. Travel can be expensiveâbut you can cut costs by prioritizing affordable locations. Research the cost of living, especially housing, food, and transportation prices.
- Recreation. How will you spend your free time? Pinpoint the cultural attractions, outdoor activities, nightlife options, or other entertainment that are drawing you to this destination.
- Culture. Consider any language barriers, important cultural norms, hospitality practices, and opportunities to socialize with locals and travelers.
Affordability is critical
You may be fixated on exploring the worldâbut your long-term financial health still matters. Offset your travel costs and even achieve important financial goals by avoiding high-cost regions and spending frugally.
5 beginner mistakes for digital nomads
Ease your transition into a digital nomad lifestyle by learning from those whoâve ventured before you. With a thoughtful approach, you can avoid mostâif not allâof these five beginner mistakes.
1. Overspending. Itâs easy to spend too much on travel expenses. The costs of transportation, entertainment, accommodations, and food can accumulate quicklyâwhich is why setting (and sticking with) a reasonable budget is crucial.
A major way to limit your expenses is by traveling slowly. Relocate infrequently to minimize your transportation costs and likely also increase your work productivity.
2. Lacking a robust financial plan. Emergencies can happen anywhere, but emergencies while traveling can have a greater impact. You need a financially sound emergency plan in addition to an emergency fund that covers three to six monthsâ worth of expenses.
3. Disregarding travel perks. Travel rewards programs and the associated cost savings can be lucrative for digital nomads. You can also prioritize travel-friendly banks that waive international transaction fees.
4. Booking insufficient accommodations. Experienced remote workers know to confirm Internet speeds before they arrive at their next temporary home. It can be challenging to predict your satisfaction with rented accommodations, which is why short-term rental periods should precede any long-term commitments.
5. Not reflecting on your digital nomad lifestyle. Is digital nomadism aligned with your most important goals, both personally and professionally? Pursuing a frenetic pace of travel can feel pointless if you donât allocate time to deeply reflect.
Should you become a digital nomad? Only you can answer that question for yourself. If you already have a remote job (such as a social media influencer or self-employed agency with a flexible work schedule) and can work from anywhere, then choosing to incorporate travel might be an easy decision.
Continue exploring the digital nomad lifestyle by joining online communities, connecting with current nomads, and asking plenty of questions. Dream about everywhere you want to go, and then take steps to responsibly make your itinerary happen.
This article was most recently revised and updated by Allie Grace GarnettThis article was most recently revised and updated by Doug Ashburn
