Thinking of Becoming a Digital Nomad? Here Are 7 Things to Consider

The digital nomad lifestyle of traveling the world while working remotely has exploded in popularity over the last decade. Advances in technology now enable location-independent professionals to earn a good living with just a laptop and a Wi-Fi connection.

There are over 35 million digital nomads globally, including 16.9 million in the United States alone. The appeal is obvious — who wouldn’t enjoy the prospect of making money on the move as you wander through exotic locales? But before starting on this exciting path, there are some things you need to consider.

1.     Income Source

The viability of your nomadic aspirations depends on a steady income. Thoroughly assess viable remote work options aligned with your skills and interests before taking the plunge. Consider options such as:

• Full-time remote employment. Many tech, education, and marketing professionals have transitioned to remote roles, offering financial stability and a steady income stream.
• Location-independent small business. Ventures like dropshipping, affiliate marketing, or Software as a Service (SaaS) businesses enable entrepreneurs to generate income while on the move.
• Freelancing services. Writing, programming, consulting, and other freelance opportunities provide flexibility and autonomy.

Calculate your monthly overhead, factor in travel costs, and set aside at least six months of living expenses as a financial buffer before taking the nomadic leap.

2.     Legal Matters

For digital nomads, legal matters extend beyond the borders of their home country, encompassing a complex web of international laws and regulations. Understanding visa requirements, tax obligations, and local business laws is crucial to living this lifestyle legally and efficiently.

• Check the visa laws. Understand the visa requirements and tax laws for each country you plan to visit. Some countries offer specific visas for digital nomads, but regulations vary widely.
• Understand tax obligations. You might still have to pay taxes in your home country while abroad. Seeking professional advice from services like 1040 Abroad or Nomad Capitalist can untangle the complexities of international taxation.
• Ensure compliance. Pay attention to contractor and business regulations in the countries you visit. Adhering to local laws keeps you on the right side of legal matters.

Remember — claiming ignorance of the law won’t protect you. Stay informed, seek professional guidance, and safeguard your nomadic adventures from legal pitfalls.

3.     Health Insurance

For digital nomads, securing health insurance that offers comprehensive international coverage is crucial. Unlike standard travel insurance, which typically covers short-term trips and emergencies, digital nomads need a long-term plan that addresses common health issues from living abroad.

• Choose an expat policy. Look for policies specifically designed for expatriates or global citizens like SafetyWing and Genki. These plans often include a wider range of medical services, including routine check-ups, mental health support, and coverage for pre-existing conditions, which are essential for long-term health management.
• Consider the countries you’ll frequent. Ensure the insurance has a strong network of hospitals and doctors in those regions.
• Pay attention to the claims process. A plan allowing direct billing with hospitals worldwide is highly beneficial, reducing out-of-pocket expenses and administrative hassles.
• Evaluate the flexibility of the policy. As your itinerary changes, so will your insurance needs. Plans that allow for easy adjustments or temporary suspensions are ideal for the unpredictable lifestyle of a digital nomad.
• Don’t overlook customer support. 24/7 assistance in multiple languages can be invaluable in managing health emergencies in a foreign country.

4.     Cultural Adaptation

Navigating the diverse cultural landscapes you’ll encounter as a digital nomad requires a thoughtful approach to cultural adaptation. To seamlessly transition between destinations, make sure to:

• Research local etiquette norms. Understand cultural nuances regarding greetings, gestures, and appropriate behavior.
• Useful local phrases. Learn basic phrases in the local language to facilitate communication and show respect.
• Dress appropriately. Dressing in a culturally appropriate manner demonstrates respect for local customs and norms.
• Observe customs. Familiarize yourself with local customs to avoid unintentional offenses and foster positive interactions with locals.

5.     Networking and Community

The digital nomadic lifestyle, while liberating, can sometimes lead to a sense of isolation. Combating loneliness is crucial for maintaining mental well-being. Engage with the nomad community both locally and online by:

• Attending nomad meetups and events. Platforms like Couchsurfing, Meetup, and Eventbrite can connect you with fellow digital nomads and locals.
• Joining location-independent Facebook groups. Online communities provide a platform to share experiences, seek advice, and connect with like-minded individuals.
• Using community-oriented apps. Apps like NextDoor can help you discover local events and meetups and connect with people in your immediate vicinity.

6.     Emergency Planning

The nomadic lifestyle, while adventurous, requires meticulous preparation for unforeseen challenges. From medical emergencies to sudden changes in plans, having an emergency plan is essential. Here’s how you can prepare:

• Emergency funds. Build a financial buffer to cover unexpected contingencies such as medical emergencies, unexpected travel costs, or sudden changes in income.
• Know local emergency service contacts. Familiarize yourself with the local emergency services in each destination to respond swiftly to urgent situations.
• Evacuation plan. In case of catastrophes requiring a quick exit, have a predetermined evacuation plan.
• Embassy/consulate details. Keep details of the nearest embassy or consulate in each country you visit. This information is crucial in case of legal issues or emergencies.

7.     Equipment and Tools

The digital nomadic lifestyle heavily relies on technology, making the choice of tools and equipment critical for success. Investing in the right gear ensures a seamless mobile work-life. Consider the following essentials:

• Lightweight, long battery life laptop. For digital nomads, a laptop that combines a lightweight design with a long battery life is indispensable. These devices often feature efficient processors and high-resolution displays, catering to both work efficiency and entertainment needs while on the move.
• Smartphone or tablet. A smartphone or tablet is vital for digital nomads, serving as a communication hub and a backup internet source. Look for models that offer reliable connectivity, high-quality cameras for video conferencing, and ample storage for essential apps and documents.
• Noise-canceling headphones. Noise-canceling headphones are essential for digital nomads. They effectively minimize ambient noise in various environments — from bustling cafes to airport lounges — enhancing focus and productivity by creating a personal, distraction-free workspace wherever you are.
• Adapters and chargers. Carry versatile adapters to accommodate different outlets and ensure your devices stay charged. These accessories are essential for maintaining connectivity and productivity across different countries with varying power standards.
• Backup drives. Prevent data loss by regularly backing up essential files and documents. Reliable options offer substantial storage space, ensuring regular and secure backups of crucial files and documents. These portable drives provide peace of mind by protecting against unexpected data loss due to device failure or theft.

Begin Your Digital Nomad Adventure

Before you embark on your journey and explore the allure of digital nomadism, it’s essential to meticulously plan and consider all aspects of this lifestyle. However, with thorough preparation, you can flourish as a location-independent worker, achieving professional success while indulging in your passion for travel and adventure.