While the digital nomad lifestyle is undoubtedly within reach for plenty of people, it actually takes a huge amount of planning to be successful.

So you have taken the big leap of quitting your job and being a digital nomad? Or, are you on the road currently and are looking for ways to save up for your future trips? Whichever of these two situations you may be in, one thing you should know or have already figured out by now is that leading a nomadic life or working from anywhere is not all that easy. Especially when it comes to money! Here is my article about why i became a digital nomad.

As a digital nomad, you are essentially a freelancer, but with the exception that you do not have a fixed base. Along with managing your irregular income, the added challenge in living and working as a digital nomad is to save enough money to keep travelling and sustaining this lifestyle.Read more about our recent article about Digital nomadism.

With just a little bit of planning and tracking, you can still live the dream life of combining work and your passion to travel the world.

So how can you make sure that you save enough money to be carefree while on the road?

Consider these questions:

  • Are you a freelancer working on temporary online projects in a foreign country?
  • Do you travel from country to country, doing temporary work to satiate your wanderlust?
  • Is your Internet-enabled laptop your main tool for earning money?

You may not have heard the term digital nomad, but if you answered ‘Yes’ to any of the above questions, you already are one. According to some estimates, the number of freelance workers is on the rise globally, but more so in developed countries. A number of factors are responsible for this growing trend, but one of the most important factors is the pervasiveness of the Internet.

In fact, the ubiquity of the Internet offers a range of work opportunities, which allows digital nomads to earn from almost anywhere. Thus, you can be a digital nomad and live a borderless life as long as you have a reliable Internet connection, a sense of adventure and a love for travelling.

In this article, we attempt to explain who a digital nomad is and provide practical advice to help you on your journey to becoming a successful digital nomad.

Firstly as you self, Is A Digital Nomad Lifestyle Suitable For You?

The lifestyle of a digital nomad may appeal to you in a vaguely romantic or utopian sense. Or you may be considering it because you are genuinely unhappy with your life or job. The freedom to travel, explore, set your own schedules, be your own boss, discover exotic destinations – all of these are good reasons to recommend the lifestyle of a digital nomad.

But if you are considering adopting a nomadic lifestyle yourself, remember that you will be giving up your current job and be turning your entire life upside down in order to live and work in another location. Make sure you do this with both eyes open and both feet firmly on the ground. Before you make any major decisions, first do a comprehensive 360-degree analysis of your past history, present lifestyle and future objectives. Steer clear of impulsiveness and do your homework!

Ask yourself these questions and answer them honestly:

  • What are my financial and personal goals in life?
  • What are my qualifications? What skills do I have to earn money and support myself financially as a digital nomad? What kind of jobs can I do?
  • What kind of jobs are available in the countries I plan to travel to? What kind of technology (especially Internet connectivity if your work will be computer-related) is available in these countries? Is the technology reliable? Expensive?
  • What are my income requirements? How much do I need to earn per day/week/month to live a comfortable nomadic life?
  • What is my risk appetite? How long can I survive without a regular income? Do I have enough to keep me going for a few months?
  • How should I schedule my work commitments with my travel plans? Remember that even freelancers are not exempted from deadlines!

The above questions are applicable to anyone considering the life of a digital nomad. However, it is usually easier to live a nomadic life (along with its associated instability) if you are single and without major familial responsibilities. However, if you have a partner/spouse and/or children, the decision to become a digital nomad is not so cut-and-dried. In such a case, you will also have to analyse your family situation by asking yourself some more tough questions:

  • Will my family live the nomadic life with me?
  • Will my partner work?
  • If no, how will I support the family on my single income?
  • If yes, what kind of work will he/she do? What skills does he/she have? What jobs are available to match his/her skills?

You must also consider your country of origin before you decide to pack it all in and become a digital nomad. If you hold a passport from a developed country like the USA, the UK, Canada or Australia, you may find it easier to move from country to country because these citizens are usually granted tourist/work/working holiday visas without much hassle. Also, digital nomads from these countries tend to find jobs more easily almost everywhere, especially if English is their first language.

The Bottomline

Before adopting the digital nomad lifestyle:

  • Ask yourself the hard questions about your current lifestyle and future aspirations
  • Consider your family situation
  • Consider your passport/visa situation

How To Manage Your Money As A Digital Nomad

Being a digital nomad can give you the freedom to live and work from wherever you want. However, the life of a digital nomad can be unstable at best and financially disastrous at worst. Also, achieving such a lifestyle is rarely a matter of luck or providence. It often requires a dose of reality, a heap of planning (rational, not emotional!) and a mountain of common sense.

At the same time, it is important to realise that even the most meticulous planner in the world is not immune to future disasters. However, for the most part, careful planning and rational analysis prior to embarking on this adventure will dramatically increase your chances of being a successful digital nomad. The key is to take calculated risks, not foolhardy ones.

Once you have done your reality check and decided that the lifestyle of a digital nomad is indeed for you, review the to-do list below. This checklist will help you manage your finances effectively so you can better understand what actions you need to take before you embark on your new adventure:

Build an emergency fund

This is actually a step for those who are yet to hit the road. Or, this is something you should get done before you begin your nomadic life. Because this is what will ensure that you don’t get stuck midway or go into debt during your journey.

Ideally, digital nomads are advised to have at least six months worth of living expenses before they set out on their adventures. If that sounds too much to you, try to build at least a fund to the tune of three months of living expenses.

This is extremely important because, without savings, it is easy to fall into the debt downward spiral.

Build a foolproof money system

Being a digital nomad brings with it a huge amount of freedom. But, with this freedom comes a lot of added responsibilities. You’ve to look out for yourself and that, too, not just at home, but around the globe.

As a digital nomad, we suggest that you have at least these two more essential savings accounts.

The expenses fund: If your emergency fund is more or less like a term deposit, think of this as your regular savings account. One of the first things to do when you start working is to have a separate salary (checking) account and a savings account.

Now divide your expenses into two categories: daily or recurring expenses and short-term expenses.

You get the drift, don’t you?

Your earnings will be credited to your checking account and you will use this account for your daily or recurring expenses like food, grocery, rent, transportation and so on. Your savings account will be used to save for short-term goals like travelling to your next destination and setting up shop there.

The retirement fund: It is common for freelancers and digital nomads to forget retirement savings altogether. Not saving for retirement means that you’d never stop working. Automate at least a small payment from each paycheck to an account that pays a high-interest and forget about it. Let it sit there and grow.

Clear Your Debts

A lifestyle change is stressful enough without the added worry of pending debts. Before you leave, get rid of your debts (student loans, mortgages, etc.) or at least minimize them as much as possible.

Calculate Your Nest Egg

If you have been working and saving for a few years, you probably have a nice nest egg built up by now. You might have to use up some of these savings to pay off your debts. Even so, the nest egg might keep you going until you find your financial sea legs in your new life. Make sure you have enough to cover critical expenses like food and accommodation for at least 3-6 months.

Make A Budget & Stick To It

In addition to #1 & #2 above, you should draw up a budget that includes an estimate of weekly and monthly expenses. Budget necessary expenses like food and accommodation but keep some money aside for emergencies as well (such as sudden hospitalisations). Making a budget is only half the battle. Keeping track of your expenses and comparing it to your estimates is equally important.

Keep Track Of Your Money

Your new lifestyle is likely to be extremely chaotic (at least at the beginning) and your finances even more so. Therefore, it’s very important to track your expenses and income and use this information in conjunction with your budget to stay financially healthy as a digital nomad.

So, practising moderation and knowing your priorities is important.

Most digital nomads try to live thriftily when they are not travelling. They choose the most affordable accommodation options, eat local produce, cook at home, work from cafes that provide free Wi-Fi and are always on the lookout for cheap travel deals.  

Once you have tracked your expenses for a month, compare this to your original budget and put aside the amount you saved into your short-term savings fund. If you find that you fell short of the allocated amount, it is a sign that you should revise your budget or take a look at your freelance rates.

Save on international bank fees

As you will be travelling and earning in different currencies, always take into account the exchange rate and inflation. The best way to make your money inflation-proof is to keep it bunched in different currencies. So, consider having your savings account in a strong currency which is known to fluctuate less often.

You could also use a service like TransferWise to hold your money in different currencies and send and accept payments in multiple currencies.

Create a budget

It might sound like a daunting task to plan your expenses in advance and allocate money to them, but trust us, this will make your life much easier and stress-free.

If you are just about to go to a new place, you may not be familiar with the cost of living there.

An easy way to arrive at an approximate figure for the cost of living is to multiply your rent by 3.

 This will give you an idea of how much you will need to just get by in the city. Remember that you should be earning enough to meet this amount and also have an excess to put aside as savings. So set your freelance or consulting rates accordingly.

If you find the idea of budgeting a whole month in advance overwhelming, you could create mini-budgets to start with.

Before you budget, put aside a percentage of your earnings to both your immediate savings fund and your long-term emergency fund.

This need not be a huge amount in the beginning, you could start with something even as small as $5 at first. But make sure you do put aside something every month. It is all about creating a habit of saving.

From what remains, allocate tentative amounts of money to each expense head you will be spending on in a month–say, rent, food, internet, transportation, weekend getaways, entertainment and so on.

Read about our recent article about the increase of digital nomads and remote workers

Find A Location-Independent Job Before You Travel

Although it is possible to find a job after you arrive at a new location, it’s definitely not easy. The pressure of managing multiple activities such as travelling/arranging accommodation/looking for a job and money worries will take the joy out of your new life. So, while you are still living at home with the security of a regular income, start looking for potential opportunities that are ideally location-independent and ongoing. Update your resume, make new contacts, look for potential clients and finalise a few jobs or projects that you can start after you land in your new place.

Buy Travel Insurance

In many situations, travel insurance can be a life-saver. Buy a policy that is valid for the entire duration of your trip and that covers emergencies such as loss of passport, illness, accidents, etc. Read the fine print to understand the rules and exceptions. And make sure that the insurance covers the country you are travelling to.

Figure Out Your Tax Situation

Check the tax rules in your home country and the country you are travelling to, to understand your tax liability in each. Depending on where you’re from and where you’re going, you may have to pay tax in either or both countries. Find out before you leave! Expatriates can be a good source of useful information in such matters.

Arrange Credit/Debit Cards That Don’t Cost The Earth In Transaction Fees

Many cards impose hefty international fees for purchases and ATM withdrawals. Shop around for a card that allows you to withdraw your cash and make international transactions without a heavy impact on your wallet.

Get An International Bank Account

Many regular banks require their customers to be resident of a particular country. Plus accessing your money from abroad can involve withdrawal fees, transaction fees and currency exchange fees – all of which can quickly add up. Shop around for international banks that offer online banking services for digital nomads in your home country and the adopted country. A few regular banks also offer good international options with inexpensive credit/debit cards that are widely accepted around the world. Do your research!

Use A Specialized Money Transfer Service Like TransferWise.

Fast and reliable,transferwise is cheaper than most banks – an ideal solution for digital nomads. Through transfer remittance service, you can access your money at a good rate across currencies and countries in Asia, Europe, North America and Oceania. transfer ensures that your new lifestyle is free of money worries, no matter where you’re!

In Conclusion


Making such a huge lifestyle change does not happen without its challenges. So, with a little planning and some discipline, you will soon be able to build a short-term as well as a long-term savings fund to help you sustain this wonderful lifestyle without fretting about your finances.  

Over to you

What are your tips and tricks for digital nomads to manage money? Share them with us in the comments section below. Read about our recent article about how to write a blog an make money.


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