The digital nomad lifestyle truly amazes us. It is dreamt of by many people. But often our dreams remain only a dream as we don’t get sufficient money to afford them. Is digital nomadism also one of those dreams of many people? Let’s find out how much it takes to maintain a digital nomad lifestyle.
Understanding the Basics:
Before we jump into the financial essentials of this dream lifestyle, it’s important to understand the essence of digital nomadism. Digital nomads are location-independent individuals who leverage technology and their skills which can be offered remotely to clients while travelling the globe.
However, financial planning is essential for this kind of lifestyle. It’s important to understand what it takes to embrace the flexibility and freedom of this lifestyle.
Cost Of Living:
The major cost is the cost of living. As digital nomads keep travelling around the world, it becomes crucial to plan your trip according to the cost of living of the place. For instance, If you are planning to travel to Tokyo or London, you will need more money to survive there as compared to residing in small and less-urbanized places or cities.
Researching and planning accordingly helps in maintaining a better lifestyle. Calculating the costs like healthcare, accommodation, food, transport, and leisure activities gives a clear idea of whether the place is something you can afford or not. According to the Nomad list,
The cost of living in Budapest, Hungary is $2,292 per month.
In Bangkok, Thailand it is around $1400.
Tokyo, Japan costs around $2,848.
In Chiang Mai, Thailand it is around $1008.
Remote Working Opportunities:
Securing remote jobs is a part of financial planning and budgeting. Researching the demand, job security, earning potential and work opportunities helps estimate whether the particular skillset you acquire will be good to provide you with your dream earnings or not.
How Can You Effectively Budget And Financially Plan Your Journey:
Financial planning and budgeting beforehand become a must when you choose to explore the digital nomad lifestyle. You can start by calculating your monthly expenses based on the cost of living in the destination you choose to travel to.
An important tip is to always estimate some extra amount in your budget to manage any curveballs.
Also, a digital nomad has an inconsistent income stream that’s why it becomes even more important to create an emergency fund so that you can rely on that in times of insufficient income and don’t become hand-to-mouth, all of a sudden. Having savings to cover the expense of 3-4 months after setting aside your regular income provides good financial security during uncertain times.
Balance Between Income And Expenses:
You know you will maintain your dream lifestyle without any problem when your income surpasses your expense account. Having surplus money should always be your goal. This is not just for a digital nomad but for anyone and everyone.
Look for the ways you can maximize your wealth and multiply your income streams. Explore different careers (eg: freelancing, remote working, or entrepreneurship). At the same time, staying mindful of your spending habits and prioritizing the major and inevitable expenses can help preserve your values and long-term goals.
Conclusion:
Digital nomadism is a dream of many but to enjoy the dream you need careful financial planning and management. By understanding the cost of living, looking for remote work opportunities, doing budget effectively, and balancing income with expenses you can go forward and enjoy digital nomadism with confidence.
Remember, the real success lies in finding the right balance between work, travel and finances. If you find this, endless opportunities are awaiting you.
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