These days, more and more professionals are embracing the life of a digital nomad. This is because many companies now allow different work setups, like hybrid and completely online work arrangements. With such an opportunity, you can work from anywhere you wish and enjoy a healthy balance between work and personal life. This also benefits companies since they can now cut costs on the building and other resources needed for an onsite operation.
Many are aspiring to become digital nomads. However, this lifestyle comes with modifications to your personal and financial values and habits. To help you navigate the necessary adjustments, here’s a guide we have prepared for you.
As a frequent traveler, you can’t avoid injuries and illnesses while on the road. Get health insurance to ensure you won’t face financial struggles as you deal with these concerns. Not all insurance policies offer claims reimbursement or overseas coverage in the United States. In addition, if you visit different countries, you must know that some places require patients to foot the bill for their care, while others feature free social services for visitors.
If you buy health insurance in the US, check if they cover claims reimbursement even if you are not in the country. Moreover, research if the country you’re visiting covers medical care for tourists. If you don’t have any policy presently, many reputable online credit services offer personal loans with no credit check, so you won’t have to tug money out of your pocket during emergencies.
Your job will fund your nomad lifestyle, so choose the best one that suits you. There are plenty of things to consider when seeking a job. Whether you want to be self-employed or secure a permanent or seasonal job, you must ensure it aligns with your skillset and interest and supports your lifestyle.
Besides these, ensure your salary can suffice your daily needs and still have a portion dedicated to personal savings. A nomadic lifestyle is a minimalist way of living. Regardless of how much you earn, it’s all about getting satisfied with what you receive and assuring you have savings to rely on when things get rough in your journey.
In picking between becoming self-employed and selecting seasonal or permanent jobs, assessing your preference as a traveler is essential. If you want more flexibility with your planned route, it would be preferable to be your own boss. You can teach lessons from one place to another, use your photography skills to create a gallery of professional shots for websites, or build an ecommerce business, among many other jobs.
For permanent jobs, you may enjoy flexibility with where you can work, but the schedule is often fixed. Examples of jobs you can apply for are the following: content writing, tutoring services, IT and remote computer jobs, and sales/customer service, among many others.
Lastly, if you work for seasonal jobs, you can’t rely on a steady income since you will be working only for a specific period. Moreover, you have limited options since there are only a few job openings for this work setup. You may work as a seasonal employee at a restaurant, sell products and services as a direct marketing employee, or work part-time or full-time in the retail market.
For guaranteed coverage while traveling, consider getting travel insurance so you won’t have to worry about emergency medical treatment overseas. Traditional travel insurance covers lost luggage, delayed flights, missed travel connections, rental car insurance, and accidental death or dismemberment.
To ensure you can benefit from your travel insurance coverage, shop for policies that offer financial coverage eligible in the place you’re traveling to, as well as for the activities you’ll be doing. Lastly, check if the travel insurance covers pandemic-related cancellations to get the most out of what you have paid.
The majority of credit and debit cards levy foreign transaction fees. Travel credit cards waive these fees, so frequent travelers like those who follow a nomadic lifestyle should get one for themselves. Before using it in a different country, check your bank’s network and fee schedules to avoid paying hefty foreign ATM withdrawal fees.
As an American citizen, you must pay taxes and submit returns even if you work abroad permanently or temporarily. In many countries, you’ll also be required to pay taxes if you are earning money inside their territory, even if you are not working for a local business or you’re not a citizen of the country.
To avoid getting charged large amounts of penalties, you may work with a tax expert to ensure you don’t miss any tax payments.
As companies become more open about modern work arrangements, more and more workers enjoy the freedom of working from anywhere around the globe. As you embrace a nomadic lifestyle while you earn, you must be aware of the financial cost of such flexibility. Considering all of the factors and tips mentioned in this guide, we hope you continue to seek opportunities from one place to another as you live a minimalist life.