Digital nomads are a growing community of remote workers who also travels around the world. As more people contemplate the idea of leading a digital nomad lifestyle, the question of “how to become a digital nomad” is surfacing more regularly in online groups for digital nomads or remote workers.
A common answer you will find amongst these Q&A threads is the clarification that digital nomadism is a lifestyle and not an occupation. Since digital nomad is a lifestyle, it varies across people, and there is no one specific way to become a digital nomad.
Nonetheless, there are some areas that you should take into account which would help make the transition smoother. Here are some tips for becoming a digital nomad.
How To Make Money As A Digital Nomad?
The question of ‘how do I become a digital nomad?’ often boils down to ‘how do I make money on the road’ for most people. While there are many considerations in becoming a digital nomad, this is probably the most practical and unforgiving one.
In some sense, digital = make money online, nomad = travel around the world.
There have been suggestions that the mental approach of thinking, “How do I become a digital nomad?” is not a good starting point. Instead, it might be better to think in terms of “How do I make sustainable income remotely?” The digital nomad lifestyle then becomes an option upon achieving that.
After all digital nomads = work + travel. Remote work is a cornerstone of becoming a digital nomad. Travel is quite straightforward; you buy a ticket and fly out. On the other hand, building a successful career or business on the road is not as simple. It can even be tougher than building a career back home. However, if you are not earning sustainably while on the road, you are simply a long term traveler burning through your savings.
Jobs for Digital Nomads
The good news is that there are many ways to make money as a digital nomad. Some of the common occupations are:
Here is a list of popular jobs for digital nomads and the platforms to find remote jobs and freelancing projects. Remote working has really taken a significant step forward amidst the covid pandemic. I am pretty sure the range of jobs that can be done remotely will continue to grow.
Finances For Digital Nomads
In the same realm, finance is also an essential element in life. This applies to everyone, not just for digital nomads. Nonetheless, banking for digital nomads tends to be slightly more complicated due to having to handle multiple currencies and payment channels.
Personal finance for digital nomads and travelers
Traveling around the world also means having to deal with various currencies. The idea is to save as much from currency conversions and transaction fees as possible. This means figuring out the best credit card or channels for you to get the best exchange and cash withdrawal rates. Different countries and banks will have varying options, so look out for what cards are available to you.
Business Finances for remote workers and entrepreneurs
On the business front, digital nomads must figure out how to receive and disburse payments to different stakeholders. If you are a freelancer or entrepreneur, you might have clients and employees from all over the world. In essence, you need to figure out the best way to perform transactions with the least fees and allow you access to the global market where relevant
Recommendations
Here are some international fintech companies or e-wallet options you should definitely consider:
Wise
Wise (formerly Transferwise) has worked best for me with great exchange rates and low fees. You can set up a foreign bank account, making it the ideal choice to convert and send funds across different platforms. With that, it also has a multi-currency e-wallet. Depending on your country, you might even have the option of getting a debit card for spending.
Revolut
Revolut provides a multi-currency e-wallet for you to hold multiple currencies. The exchange rate is also excellent here, compared to the usual bank cards. You also get a limited amount of free overseas ATM withdrawal, depending on your plan. It comes with a debit card for spending and cash withdrawal. You can top up the account anytime by hooking it up to a bank account or another bank card.
Western Union
Western Union (WU) is the more “old school” method of sending money to someone or yourself in a different currency. This is an established method but not too convenient since the money needs to be picked up in a physical location. I mainly used WU in Argentina, where they offer a much better exchange rate than any other channels. This is due to a rare case where there are two exchange rates in the Argentine market. If you are visiting Argentina and want to know more, read the guide here.
Paypal and Payoneer
These are the familiar powerhouses that have been around before most of the new fintech companies came into the scene. The main advantage of these platforms is the commonality of it. Since they have been around for a long time, they also have better international coverage. This makes them the easy, standard way to transact with other parties and platforms. However, the exchange rates on these platforms are comparatively bad as that is where the platform makes some cut of their revenue. Nonetheless, they are definitely good to have for all purposes.
Other popular options that are limited to specific nationalities are
N26, Azimo, Chase Sapphire Reserve Card
Insurance For Digital Nomads
Everyone wants to go have fun and assume things will just be great. However, accidents happen, and unfortunate things that are out of your control can take place. The key here is to make sure you are protected.
Figure out the level of coverage and protection that you need. This varies across individuals depending on your needs, lifestyle, and whether you have dependents. Everyone has their own combination that suits them.
I know this is the boring, practical stuff that no one wants to deal with, but make no mistake, it is necessary. I have had the bad experience of having my room in Peru broken into and lost a bunch of important stuff in the process. Luckily, my insurance covered part of the loss.
Two popular insurance providers among the nomad community are Safetywing and WorldNomads. They allow you to buy insurance coverage from anywhere in the world at any time. Simply purchase for any period necessary. There is no duration limit or criteria on where you must start or end your trip, like traditional travel insurance. I use WorldNomads for travel insurance and SafetyWing for extra health insurance when needed.
I have also used IMG Global for broader travel insurance coverage when I do more adventurous activities like traveling to Antarctica. Cigna Global is another option for international health insurance if you are looking to get a more established company.
Internet For Digital Nomads
Digital Nomads are suckers for fast and stable Internet. After all, that is what makes the lifestyle possible. Many traveling mates often wonder why I am always talking about Internet speed.
Many travelers will feel that the lack of Internet forces them to be disconnected, enabling them to enjoy the moment. However, I often find the opposite scenario to be true. Having a reliable internet connection gives me peace of mind because I know I can handle work duties anytime. I can stay for as long as I need/want and enjoy the place without much planning. I don’t have to limit myself to specific days worrying that I have to get to another place with stable Internet for work.
Important: I always get my Airbnb host to run an internet speed test where possible to get an accurate idea of the internet speed. For many countries, the internet plan does not equate to the actual internet speed. This means that when they sign up for a 100mbps plan, it doesn’t necessarily mean the Internet will be 100mbps for various reasons. Therefore, it is always safer to get them to run a speed test for you where possible.
For hostels, I tend to rely more on user reviews/ratings. There is a specific WiFi category in the ratings for booking.com, which is useful. However, it is never the best reference since most travelers don’t require high-speed Internet for work. Nonetheless, I rarely go for any hostels below an 8.0 rating unless the place is really great for other reasons (or WiFi just sucks in that particular area, which is common for some more remote towns.)
Mobile Internet for Digital Nomads
The cheapest way to get mobile Internet is usually to get a local SIM card in the country you are in. However, this might not be the most convenient option, particularly if you are just visiting for 1-2 days but still wants to be connected on the go.
For that, you can look at different international SIM options. Services like Skyroam (NOMADS code for 10% off) and SurfRoam provides you with an international SIM Card or a portable hotspot device where you can manage and activate your internet usage via a mobile app.
eSIM technology is also increasingly available; many carriers and international SIM providers like Airalo now offer this option. eSIM allows you to get mobile data internationally, even without a sim card.
These are all convenient and great options to have as a backup. In fact, such services are getting cheaper (already cheaper for some countries where local internet costs are high), and I foresee them to become my go-to internet option subsequently.
Where To Go For Digital Nomads
Now that you are ready to go, where do you go? Everyone has a different style of traveling and dream location. Go where your heart (and internet :p) follows! That is what worked for me.
However, I have noticed many queries on this topic, particularly for first-time nomads. If you are new to traveling solo or nervous about it, many find comfort in being around a community that resonates with them.
With the growth of the digital nomad movement, nomad hubs have sprouted across the globe. These are cities where many nomads gather because of various favorable factors. These can include low cost of living, proximity to beaches, flexible visa requirements, etc.
Here are the top digital nomad hubs in recent years. Nomad hubs usually have active nomad or expat communities and at least decent infrastructure catering to digital nomads. They can be good starting points before venturing to somewhere more remote.
Overcoming Loneliness
Despite all the fun moments you see nomads have on their social media, loneliness is a common issue for many digital nomads. This is particularly true for extroverts or nomads who hang out with friends regularly back home. Constantly being on the road or changing to new places makes it harder to build deep relationships, which is why many nomads might feel a loss of connection. Here are some tips to building relations and meeting people while on the road.
Regardless, a useful and straightforward way to start getting connected to the community is to join some nomad Facebook groups. Here are a few sizeable ones where you can get more insights.
Visas for Digital Nomads
Visas have always been a practical consideration for traveling. This becomes even more evident for long term stays or travels. Digital nomads tend to enter a country via the default tourist visa since it is most convenient. However, tourist visas usually stretch between 30-90 days in many countries.
This gave birth to the term “Visa Run,” where nomads go in and out of a country every few months to renew their tourist visas. If you like to stay in one place for an extended period without dealing with visa issues, here is a piece of great news for you!
With the covid pandemic, many countries have come up with new digital nomad visas or are in the process of doing so. They hope to attract long term visitors to their country to boost tourism. Here are countries that offer digital nomad visas or visas suitable for the digital nomad lifestyle.
Do take note that different countries have different requirements for their nomad visa (such as minimum income)
Finding Accommodations For Digital Nomads
Apartments or Private Rooms
Airbnb is my main go-to for finding accommodations when I’m staying for long. Particularly for more than 2 weeks in one place. Airbnb typically won’t have the best prices over local real estate groups or platforms. This is simply because of platform fees, and it is usually “made for foreigners.”, thus higher prices.
What makes Airbnb a good option is the extra layer of protection it provides when shit hits the fan. If the accommodation doesn’t turn out as expected, you can ask for refunds or get Airbnb’s help to resolve the issue.
I always use Airbnb first before arriving at a destination. Subsequently, once you have settled in and decide to stay longer, you can also negotiate a rental with your host offline. Alternatively, find new places on local rental platforms where you can check out the apartment before renting. I never recommend putting down a long term rent without even seeing the place.
Hostels and Hotels
Other platforms I regularly use for all sorts of accommodations, from hostels to hotels, are Agoda and Booking.com. They have a wide range of selection and good customer service.
Tip: If you are from a country where Shopback is present (e.g., Singapore, Malaysia, Australia, Taiwan, Philippines being some of them), great news! Shopback gives you an additional cashback rebate over your purchases on Booking.com and Agoda (it’s usually 6% and goes up to 12% on some promotional periods). I have accumulated a lot of savings through Shopback. If you are not a user yet, sign up here to get a S$5 sign up bonus. For other countries, you might want to explore cashback/rebate platforms in your country.
Hostelworld is the platform that I commonly use for finding hostels. They usually have more hostel options since that is what the platform focuses on. You can compare the prices between the platforms to see what works best for you.
Coliving
Coliving options are getting increasingly popular, particularly with the growth of digital nomad communities. I foresee more of these popping up as they are a pillar in building a nomad hub ecosystem. Coliving accommodations often combine living and co-working spaces to form a cohesive living area. One of the main objectives is to create a like-minded community. Coliving.com is a useful platform to start your search for coliving spaces.
Other Logistics for Digital Nomads
Reduce Location And Physical Dependence
As much as possible, try to make all your accounts such as banking, telecom accounts, etc. to be accessible remotely. You don’t want to be halfway around the world and then realized you have to handle paperwork back home. There are bound to some processes that are still old school and can only be done offline, but make sure you at least have access to the accounts you need regularly.
Packing Light
As much as people travel differently, we also pack differently. The main idea here is just not to overpack. There are actually many things that we can always find somewhere else. If you’re a first-time nomad and tend to overpack for travels in general, try to scrutinize your packing list multiple times. I like to keep myself within 2 bags (one large backpack and one day pack). Despite packing minimally, I noticed I still have things that I barely use in my backpack.
You will be surprised how you can live well with just what is in your backpack. Today’s society is just filled with clutter from consumerism.
Try to prioritize things that you really need but hard to find or are much more expensive elsewhere. Your travel lifestyle will affect your packing list. If you are anticipating many outdoor activities, you might want to pack a tent and sleeping bag. Whereas renting these gears on occasional trips might make more sense for a nomad who is usually in cities.
Cloud Storage
It goes without saying that having cloud storage to access your information from anywhere is essential for a remote nomad. Make sure you back up important things to your cloud, including your travel photos and videos. My hard disk was one of the items stolen from me, so boy was I glad that I had backed up my travel photos to the cloud.
You also want to store a copy of your passport and important documents encrypted online just in case you lose the original copies while traveling. I also keep a hardcopy photocopy of my travel documents.
Virtual Private Network (VPN)
VPNs provide better security when using public WiFi and give you access to common websites you use where they might be banned in some countries (e.g., in China, you are not able to access a lot of websites unless you have a VPN). Find out more about benefits of VPNs for travel, but NordVPN is a popular option that we use.
For other resources for your travels and digital nomad journey, check out the nomad resource list, where you can also get discounts, promotions for some of them.
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