Being a digital nomad is an ideal lifestyle for many who enjoy exploring the world. It can be exciting moving from place to place while making a living. If you're new to this lifestyle or are exploring becoming a digital nomad, it's essential to consider how your finances will change.
You want to take extra care to make decisions that make you feel financially secure in your daily life. Otherwise, you may feel added stress that can quickly make this alternative lifestyle choice less enjoyable. I'll share a few cheap living tips for digital nomads to help you prepare.
Pack light
By packing light, you can save money and make it easier to travel between destinations. No one likes paying checked bag fees, but many airlines charge them now. These additional fees can add up if you fly between destinations often. If you have yet to start your digital nomad adventure, it's wise to pack a simple wardrobe to stretch your travel budget further.
Get a credit card with no foreign transaction fees
If you plan to travel internationally as a digital nomad, you can save money by getting a credit card with no foreign transaction fees. Some credit card issuers charge 3% for every purchase made in another currency. The costs can add up quickly if you have a credit card that charges foreign transaction fees. That's why having a credit card without such fees is wise.
If you use your credit card for everyday purchases and spend $18,000 yearly on purchases in foreign currencies, you'll pay nearly $550 a year in extra fees. Budget-friendly digital nomads apply for travel credit cards without these fees. These credit cards can also provide valuable rewards and benefits that improve your travel experience.
Eat like a local
It can be exciting to try new foods when visiting new-to-you destinations. But if you go out to eat and drink for every meal, you can quickly deplete your checking account funds.
Digital nomads who eat like locals can better keep their spending in check. Consider buying fresh produce and other goods at farmer's markets, and get familiar with the grocery stores in your neighborhood. Preparing some of your meals at home can help you stay on budget.
Dining out sometimes is OK -- it's part of the travel experience. But always keep your budget in mind. Otherwise, you may spend more than anticipated. If you need help following and setting a budget, check out our list of the best budgeting apps.
Don't overpay for data or wifi
Many digital nomads need a reliable internet connection to do their work. If you plan to purchase wifi or use data on your mobile phone, ensure you're not overpaying. You'll likely overpay if you continue using your mobile phone plan from the United States while traveling abroad.
Airalo is one option for mobile data if you have a phone with e-sim capabilities. You can buy local e-sim packages to get access to more affordable data. You can also tether your laptop to your personal mobile phone hotspot through an e-sim package purchased through Airalo.
When looking at accommodation options, consider whether wifi is included if you plan to work from home. You can also explore other low-cost internet-access solutions, such as co-working spaces. But if you plan to use wifi a business provides, ensure you show your support, like buying coffee while working at a local coffee shop.
Social media groups are an excellent place to meet others with similar lifestyles. To keep your spending in check, you can join digital nomad groups to gather financial tips from experienced digital nomads. You can also join local groups to connect with people in your local community. Learning more about local activities, events, and businesses can help you make more informed spending decisions to keep more money in the bank.
Are you seeking additional financial tips to help you navigate the digital nomad lifestyle? Check out our personal finance resources.
FAQs
Embrace Home Sharing Platforms. One of the most significant expenses for digital nomads is accommodation. Traditional hotel stays are not only impersonal but can also quickly deplete your budget. This is where home-sharing sites come into play, offering more affordable and authentic living experiences.
How to live cheaply as a digital nomad? ›
Embrace Home Sharing Platforms. One of the most significant expenses for digital nomads is accommodation. Traditional hotel stays are not only impersonal but can also quickly deplete your budget. This is where home-sharing sites come into play, offering more affordable and authentic living experiences.
Where is the cheapest place to live in the world for digital nomads? ›
Countries in Southeast Asia, such as Bali, Indonesia, Thailand, and Vietnam, offer affordable living costs and vibrant digital nomad communities. These destinations not only provide low-cost accommodation but also boast fast internet speeds.
Is 30 too old to be digital nomad? ›
Although you might think digital nomads are all Generation Z, the reality is that you can become a digital nomad at any age, in your 30s, 40s or beyond. Even better, you have some big advantages that younger people don't enjoy — and that can get your remote working lifestyle off to a great start.
How do people afford nomadic lifestyles? ›
A temporary job or local seasonal employment may be all you need to keep your bank balance healthy. There are even websites that target people living full-time in an RV and looking for work.
What is the minimum income for digital nomad? ›
Most digital nomad visas have a minimum monthly or yearly income requirement to maintain visa status. The average minimum monthly income requirement is between $2,000 and $3,500. Some countries allow investment in local businesses or deposits in local bank accounts in place of the minimum income requirement.
How old is the average digital nomad? ›
Digital nomads are mostly younger people who work in a variety of fields in the knowledge economy, including marketing, design, information technology, writing, media, tutoring, and consultancy. Whilst most digital nomads are in their 20s, however the average age is 35.
What is the best state residency for digital nomads? ›
Texas, Tennessee, and South Dakota don't impose income taxes, making them financially appealing for digital nomads.
Where is the easiest place to be a digital nomad? ›
3. What is the easiest country to be a digital nomad?
- Portugal has affordable living, a welcoming digital nomad visa, and also excellent internet infrastructure.
- Georgia offers a one-year visa-free stay for many nationalities, besides a low cost of living and a growing digital nomad community.
Do Digital Nomads Have to Pay US Taxes? Yes, American digital nomads are required to file a US Federal Tax Return if they make over the minimum filing requirement—no matter where they live and if they're working remotely. The US is one of the few countries in the world that uses citizenship-based taxation.
Social Isolation and Loneliness: The lack of a physical workplace and established social circles can lead to feelings of isolation and loneliness for some digital nomads. Building online communities and actively seeking out social connections in new locations is crucial.
What are the problems with being a digital nomad? ›
Difficulties in maintaining a work-life balance, not finding the right destination, lack of social life, financial hardships, problems regarding your routine and mental health problems as well as access to healthcare can be considered as some of the most common challenges digital nomads face.
What internet speed do you need to be a digital nomad? ›
A connection of 25 Mbps or more will keep things running smoothly. Now, let's delve into some specific tasks that might require faster internet speeds: Video Conferencing: Video calls are the lifeblood of remote work.
What is passive income for nomads? ›
Blogging and Affiliate Marketing
Start a blog focused on your nomadic lifestyle or interests. With consistent quality content, you can monetize through affiliate marketing. Partner with brands that align with your audience, earning a commission for every sale made through your referral.
How to finance a nomadic lifestyle? ›
To do this, you'll need to figure out how long you plan to be a digital nomad, as well as how much money you'll need for living expenses. You'll also need to factor in the cost of travel. Once you have an idea of how much money you'll need, you can start to look into applying for a travel loan.
What ended the nomadic lifestyle? ›
Once the early men got their food through agriculture, they built shelter near these agricultural lands, and this eventually brought an end to their nomadic lifestyle.
How much does it cost to live as a digital nomad? ›
If you want to be a digital nomad for a month, or even longer, the cost of living can vary greatly based on your location and lifestyle. For some, your digital nomad budget per month may be less than $1,000 USD, while for others, it may exceed $5,000 USD monthly.
Where is the cheapest place for remote workers to live? ›
Atlanta Takes the Crown as 2024's Most Affordable City for Remote Workers, Closely Followed by Cary, NC & Seattle, WA.
Can you save money being a digital nomad? ›
You'll probably save quite a bit of money, plus you'll enjoy a level of cultural immersion you'd never get from simply patronizing restaurants. Being a digital nomad comes with a lot of perks. But it can also be ridiculously expensive, especially if you travel in high-cost-of-living countries.
