As a digital nomad, you can travel to all kinds of different places and enjoy local experiences –– especially if you know how to budget your money properly. According to data from just a few years back, only about 41% of Americans keep a regular budget. That’s not ideal, but within familiar surroundings and a stable routine you might be able to get away with it. For digital nomads, however, careful budgeting is an absolute necessity that directly affects day-to-day experience. So if you want to live the digital nomad life –– working by the beach or living in your dream city –– here are some key budgeting tips that will help you thrive.
1. Consider your daily expenses when creating a budget
When you’re exploring a new place, it can be tempting to invest in a bunch of different experiences all at once. But you also have to make sure that you can properly allocate funds for your needs. To address an issue like this, a guide to budgeting on AskMoney recommends that you consider your lowest month’s income, especially if you’re doing freelancing work. Then, write down the costs of your fixed expenses per month, such as food, lodging, and transportation costs. Based on these data points, calculate your monthly budget according to that lowest month’s income. You can then begin to budge any remaining funds to put toward experiences you want to try while abroad.
2. Research the costs of living at your target destinations
Naturally, the higher the cost of living is at any given destination, the more difficult it becomes to stick to your budget. So, make sure that you can provide for your needs and have fun at the same time by doing proper research in advance. Look into the costs of living at each destination you consider as a next stop in your nomadic wanderings, and factor them into your budget before you make the move. You’ll find that your budgeting outlook can vary greatly depending on the destination at hand. For instance, working remotely in Croatia or Thailand (two popular destinations among digital nomads) will almost always involve a lower cost of living than moving to places like Switzerland or the Bahamas. That doesn’t mean you have to cross pricier destinations off your list altogether, but you’d be wise to budget in advance so that you know how much wiggle room you’ll have.
3. Cut costs by using co-working spaces
You can also strike the balance between work, tourism, and life by joining co-working spaces. You’ll be able to save on internet cafés and in some cases even rent, since some of these spaces have room for both working and sleeping. Case in point: Specialized work-life lodging Outsite allows professionals to accomplish the digital nomadic lifestyle abroad. This company’s establishments in Hawaii, Mexico, Portugal, Bali, and on the West Coast of the United States contain living and working spaces. That makes for highly desirable convenience (and cost-effectiveness) for digital nomads. Plus, as an added bonus, co-working spaces of this nature can also make it easier to meet new people abroad. As a nomad in a co-working habitat, you’ll have the advantages of working in a collaborative environment and living with individuals living similar lifestyles.
4. Live rent-free by house-sitting for locals
If your budget is tight, you can also save costs by house-sitting for locals in the area. To illustrate how this can work, a guide to using TrustedHousesitters states that you can now find lodging in Tokyo, Berlin, France, or Brooklyn simply by signing up as a house-sitter. During your stay, you’ll be asked to take care of a local’s pets, plants, and/or home. In exchange, of course, you can enjoy a place to stay all by yourself. Though you have to pay for the membership for the platform, you won’t have to worry about paying rent to the homeowners. This allows you to save big costs on rent.
5. Use public transportation to reduce travel costs
Transportation costs can take up much of your budget. While options like renting cars or taking taxis are often most convenient, they often take up a substantial portion of one’s budget while abroad. You can typically avoid this financial burden by using more public transportation –– which often gives you the chance to enjoy a little bit more of the local lifestyle, too! Trains and buses are safe bets, and are usually substantially cheaper than taxis. You can also use forms of transportation that are unique to a given area, such as tuk-tuks in Thailand or coco taxis in Cuba. These can ultimately become valuable parts of your experience, and over the course of weeks or months can save you substantial amounts of money.
Budgeting is a great skill that will ultimately help you to continue the digital nomad lifestyle as long as you wish to. Keep these tips in mind and you’ll be well on your way.
