The number of people shunning the regular office based 9-5 to become a digital nomad is rising and at CashLady we full support the remote working lifestyle.
In the US alone 4.8 million workers describe themselves as digital nomads, with nearly a third of those surveyed saying they planned on it in the next 2-3 years according to Forbes.
It’s certainly an appealing lifestyle when you consider many workers are turning to personal loans for the expense of living in the UK’s major cities, as is highlighted in our high-cost short term credit city index.
Digital nomads travel the world and soak up new experiences, all while working freelance or running their own business online.
Ready to swap your office desk for a sun lounger?
Read on for three financial steps to take if you want to be a digital nomad.
#1 Calculate what it’s going to cost to become a digital nomad
First up in getting your finances ready is figuring out what it’s going to cost if you want to become a digital nomad.
There are going to be expenses to cover before you leave for your first destination.
You’ll also need to consider your ongoing costs when you get there. Perhaps consider working this out in a planner which you can keep with you along the way.
One-off costs for becoming a digital nomad
Price up your flight tickets, travel insurance, luggage, vaccinations and any technology, such as a laptop or camera, that you’ll need for running your business on the go.
Then research your living costs when you get there.
Ongoing costs for becoming a digital nomad
Accommodation is probably going to be the biggest cost, so look up rents in your chosen destination.
The great news is that if you live in London and are moving to somewhere like Bangkok then you’re likely to save significant money on your rent.
You’ll also need to factor in other living costs, such as food, travel, socialising and costs of connecting to the internet or sharing a workspace with other like-minded digital nomads.
Don’t forget about emergency expenses too.
You’ll want some extra cash saved for the unexpected, like getting sick and being unable to work for a while or having to take an unplanned trip home.
#2 Start saving for your new digital nomad lifestyle
Now that you know what it’s going to cost to become a digital nomad, it’s time to start saving.
Finding your feet in a new place could take some time so having enough cash will help alleviate any additional stresses or worries.
You’ll also want to ensure that you have enough money saved that will cover you should business take a while to take off.
Ideally, aim to have six months of money saved so, create a budget now to help figure out what you should be saving.
Figure out your current regular incomings and outgoings and what you can sacrifice, such as that luxury gym membership or Netflix subscription.
Remember that you’re saving for your amazing new digital nomad lifestyle.
What you can save now could seriously help you later on when you’re in a new country.
#3 Get rid of what you no longer need
A large appeal of the digital nomad lifestyle is being agile and freeing yourself from the trappings of too much stuff.
That could be a mortgage or simply too many belongings.
Getting rid of what you no longer need will also serve multiple purposes.
You’ll have fewer things to take with you on your travels or store while you’re away, plus you can make some extra cash to add to your savings pot.
Selling your stuff to become a digital nomad
Appraise everything that you own and think about what you no longer want or need and then get to selling it.
What to sell
If you’re having trouble letting go of your belongings, or don’t know where to start then read The Life-changing Magic of Tidying by Marie Kondo.
Rope in a couple of friends to help you and remember that streamlining your life is all part of the journey.
How you’re going to sell it
Now that you’ve whittled down your belongings, it’s time to try and earn some cash from them.
Local selling sites like Gumtree are excellent for selling larger items, such as furniture because buyers can come and pick it up.
For smaller items consider sites like eBay and look up car boot sales in your local area.