How Digital Nomads Do Personal Finance

Besides leaving friends and family behind, the fear of financial insecurity is probably the number one problem for Digital Nomads. With no steady income on a monthly basis, is it really a smart idea to pursue this lifestyle?

In my mind, absolutely! There are several things you can do to put yourself in the best position possible, and in this article, we will point out some of the advantages to this lifestyle.

You don’t have to invest in material goods

Most Digital Nomads take on a minimalist way of life for a reason; it’s much easier that way. Having to carry a ton of luggage from one airport to another will drain your energy in no time. Furthermore, people who are used to traveling this way can kiss the low cost flights goodbye, or at least be prepared to pay extra fees due to weight of their bags.

With a minimalist approach, you can avoid that altogether. From a financial standpoint, you’ll also notice your budget increasing in no time, as you’ll stop wasting your hard earned cash on the stuff you don’t actually need.

Tie up loose ends before you leave

Contrary to popular belief, packing your bags and jumping on the first plane won’t make your problems go away. This is especially true when it comes to financial responsibilities. In case you owe that tax money, don’t even think for a second that you’ll be able to escape the trouble. If anything, this can only escalate the situation even further.

Don’t get us wrong, we aren’t calling you criminals over here, but people tend to forget all about these things, and once they realize it, they’ve already put themselves in a terrible position. Just in case, go through your financial records once again before hitting the road.

Ask the locals for advice

Ok, so you’ve just landed in a foreign country you know nothing about, and you realize that you’re starving. What’s the first thing you’re gonna do? Hit up the closes restaurant and eat everything in your sight, probably. There’s nothing wrong with this situation, but if you allow it to happen too often, your wallet will suffer.

What you can do instead is talk to the locals. Ask them for directions to a nearby market, or is there a certain restaurant they’d like to recommend. This will save you a couple of bucks, but also, the quality of the food you consume will likely improve big time. Not only that, but locals can give you hints about the best ways to get across town, or places you should visit next. If you’re pretty shy, perhaps you can hit the forums and get your advice there. It works both ways.

Decrease costs of living

In case you’re traveling alone, and you payed attention to the first piece of advice we gave out, chances are you won’t need a ton of space. By renting out a smaller apartment, you’ll save up some money, and the bills won’t be too bad either.

When it comes to location, there are two factors you should consider. Is there a specific area you’d like to live in the most, and how expensive is it. If the costs of living are too steep, and the public transportation is cheap and reliable, perhaps you need to look elsewhere. Only a few hours of exploring can save you a lot of money.

Find the bank that suits your needs

If you’re happy with your current credit card in the U.S. it doesn’t mean that the situation will remain the same once you cross the border. Trust me, although the differences between credit cards may seem irrelevant to the naked eye, these costs can mount up pretty quickly. Some cards are specifically designed for travelers, with many reward programs included. Not only that, but foreign transaction fees are also a thing to consider. Luckily, there are a lot of articles written on the topic, so I’m sure you’ll make the right decision!