During the last 4 years, I learn how to become a digital nomad. I learned it by practicing it, by running a remote company from all over the world, and by hiring employees that live this way.
This lifestyle of being a digital nomad is increasing in popularity and for good reasons. To start with, I get to travel and see the world while I work. I also have the flexibility to work from wherever I want, which gives me a lot of freedom. Additionally, I can make their own hours and set my own schedule. This is great for people who want more control over their lives.
In this article, I broke down the key components of being a digital nomad. I believe that after reading this article, you may not be ready right ahead to start wandering, but you will know for sure how to become a digital nomad and understand if it suits you.
Plan a head to become a digital nomad
Planning ahead is important when becoming a digital nomad. You want to make sure you have all your ducks in a row before making the leap and hitting the road. This means figuring out things like your budget, your work situation, and your living arrangements.
If you’re not currently working remotely, start brainstorming ways you can make this happen. Maybe there are projects you can take on from home or companies that would be open to letting you telecommute for a trial period. And if you don’t already have savings put away, start setting aside money so you can cover your costs during the transition.
Get the right tools and equipment
You need the right tools and equipment for digital nomads to be successful. This includes having a good internet connection, software that works well with your needs as an entrepreneur or freelancer working from home freelance worker, etc.
It goes without saying that as a digital nomad you must have the right computer for you. Also, all the extra gear needed for you to work, such as – Camera, microphone, tablet, or maybe even a drone. Add depending on your services.
Every digital nomad has its own tools and software, you can find the ones I personally use here – Tools for running my online businesses.
Open an online multi-currency bank account
Opening a multi-currency online bank account is a great way to keep your finances in order when you are a digital nomad. You can easily manage your money and make international transactions without any hassle.
There are many banks that offer multi-currency accounts, so be sure to do your research and find the best one for you. Make sure to read the terms and conditions carefully before opening an account, as some banks may have hidden fees or restrictions. Once you have opened an account, be sure to deposit enough money into it so that you can use it when needed. Having a multi-currency account will make traveling and working abroad much easier, so be sure to take advantage of this great financial tool!
I used PayPal for a long time, but the high fees were just not worth it. I used a few more solutions such as Payoneer, and even some unique debit solutions but they were still too expensive. Not to mention that they are all very limited when it comes to more exotic parts of the world.
About 2 years ago I discovered Wise online Banking. This is the real deal when it comes to being a digital nomad!
With more than 50 currencies around the world (and growing daily), a convenient debit card, and super low fees for converting currencies- for me this is an absolute winner. I have barely used my original bank account since I opened Wise.
You can read more about Wise here, in an article I made about Wise VS PayPal.
Learn the right skillset
In order to be a successful digital nomad, you need to have the right skillset. This includes knowing how and when technology is used as well as being able to work independently without much supervision from others. There are many online resources that can help you improve your skills in these areas, so be sure to take advantage of them.
Additionally, it’s important to be proactive and continuously look for new opportunities to grow your business. Finally, don’t be afraid to ask for help when you need it – there are plenty of people out there who are more than happy to offer their support.
In todays world the options really are limitless – you can learn everything for free and reach anyone you would like.
Make sure that you are learning a high-paying valuable skill, so you can market yourself appropriately. This is not a must but it defenitely helps to make a living as a nomad with a high paying skill. Good examples for high paying skills are:
Creating to a budget and sticking to it
As a digital nomad, one of the most important things you can do is create and stick to a budget. When your income is not tied to a specific location, it’s easy to let your spending get out of control. But by creating and sticking to a budget, you can make sure your money is going towards the things that are important to you.
There are a few different ways to create a budget as a digital nomad. One way is to track your expenses for a month and then create a budget based on that information. Another way is to estimate how much you need each month for living expenses and other costs, and then stick to that amount.
No matter which method you choose, there are some general tips for sticking to your budget. First, make sure you are aware of your spending patterns. Track where you are spending your money and see if there are any areas where you could cut back. For example, if you tend to spend a lot of money on eating out, try cooking more meals at home.
Second, create a plan and stick to it. When you know what you need to spend each month on essentials like rent, food, and transportation, it’s easier to stay within your budget. And finally, be flexible. There will always be unexpected expenses that come up, so allow yourself some leeway in your budget to account for these.
By creating and sticking to a budget as a digital nomad, you can make sure your money is going towards the things that are important to you. And that’s essential for living a happy and sustainable life while on the road.
Get yourself some travel insurance
One of the basic rules of how to become a digital nomad is – expect the unexpected. When you can’t expect it – prepare for it. you are always on the go and your possessions are always at risk. This is why it is important to invest in travel insurance. When you are traveling, you never know what could happen. A good policy can protect you from loss or damage to your belongings, as well as medical expenses if you get sick or injured while abroad.
Travel insurance can also provide peace of mind while you are on the road. If something goes wrong, such as a flight cancellation or a natural disaster, you will be able to get your money back for unused travel arrangements and receive help with finding new ones.
The cost of travel insurance varies depending on the length and destination of your trip, but it is usually worth the investment. To find the best policy for you, compare the rates of several different companies.
When you are a digital nomad, the mindset of being prepared for anything is crucial. Investing in travel insurance is one way to help ensure that your travels go smoothly.
Know how to deal with taxes
There are a few things to keep in mind when managing your taxes while living abroad. One of the most important is to stay aware of your tax residency status. Depending on your residency status, you may be subject to different tax rules and regulations. It is also important to understand the tax implications of any income or assets you have in foreign countries.
The best advice you can follow is to consult with a tax consultant before moving to a specific country. They will be able to help you understand the local tax laws and how they apply to you. They can also give you advice on how to structure your finances in a way that minimizes your tax liability.
Managing your taxes wisely when living abroad can help ensure that you stay in compliance with the law and avoid any costly fines or penalties. By following these simple tips, you can rest assured knowing that your taxes are taken care of.
Pack light and only the essentials
If you are a digital nomad, packing only the essentials is key. You don’t want to be weighed down by unnecessary items, especially when you will be constantly on the move. Personally, I found that stuff became really annoying, and for the last year, I lived only with a small suitcase of clothes, basic equipment, 2 pair of shoes and some hygiene products.
Here are some tips for packing light:
- Pack clothes that can be layered so that you can adjust to different weather conditions.
- Pack versatile items that can be worn multiple ways. For example, a scarf can be worn as a shawl, a belt, or a headband.
- Pack clothes that are easy to care for and don’t require special washing instructions.
- Pack basic toiletries and medicines that you will need. Try to pack travel-sized versions of your favorite items whenever.
- Pack small clothing, like socks and underwear inside your shoes to save suitcase real estate.
Be open minded about human behavior
One of the great things about being a digital nomad is that you can travel to new and exotic places without having to worry about what you’re going to do when you get there. However, it’s important to be prepared for a cultural shock, especially if this is your first time traveling to this destination.
Some of the things you can do to prepare for a cultural shock include doing some research on the country and its customs, learning some of the local language, and packing appropriate clothing and gear. You may also want to consider hiring a local guide or translator who can help you adjust to the new culture and surroundings.
If you’re traveling to a country where the culture is very different from your own, it’s important to be patient and respectful. Remember that the people in this country are not trying to be difficult – they just have a different way of doing things. Take the time to learn about their culture and customs, and you’ll be able to enjoy your stay much more.
What is the next step?
Now that you know how to become a digital nomad, what are your options?
You could find a remote job with an online company, or start your own business. There are also many online courses and programs that can help you learn the skills you need to be a successful digital nomad. Or, you could simply travel the world and take advantage of the many opportunities for work and learning that exist in different countries.
Whatever route you choose, just be sure to do your research and plan ahead. The life of a digital nomad is not for everyone, but it can be a very rewarding experience if you are prepared for it.