The Internet has become one of the most useful tools that have ever been developed. In fact, many career paths are able to leverage the Internet to facilitate remote work for employees.
This has led to an increasing number of people becoming digital nomads, which are professionals who travel across the world while completing work from their laptops.
If you’re interested in getting started with the digital nomad lifestyle, there’s certain info that you need to keep in mind. Let’s take a look at all you need to know.
How to Start Making Money
As you might guess, the first detail that you’ll need to figure out before you jump into the digital nomad lifestyle is how you plan to make money. Fortunately, there’s a large number of different ways in which you can do so.
One of the most common is building up a solid base of freelance clients. For example, let’s assume that you work primarily as a graphic designer but also handle independent projects on the side.
As time goes on, you notice that you have more and more inquiries on a regular basis.
Eventually, you may reach a point where it becomes feasible for you to run your own business as a graphic designer. The same can be said with virtually any type of remote work, including writing, music production, or even programming.
So, ensure that you establish a reliable source of income before you leave. Otherwise, you might find yourself running out of money while in a foreign country without enough to get back home.
This is something you should strive to avoid at all costs.
Understand Your Financial Obligations
Many people are unaware of the fact that they are still obligated to pay US taxes even if they live abroad. Fortunately, however, there are steps that you can take in order to minimize the amount that you pay.
For example, claiming the Foreign Earned Income Exclusion will prevent you from having to pay taxes on the first $100,000 of income that you generate.
You also have the opportunity to start a company in a foreign country in order to circumvent tax obligations. Depending on your situation, it might be worth getting in touch with an accountant who specializes in helping digital nomads manage their finances.
Unless you are a legal resident of a particular country, you might have difficulty opening a bank account. For this reason, it’s recommended that you utilize some sort of online payment processor to help send and receive money.
PayPal, for example, is one that many digital nomads choose. It’s also highly beneficial to consistently utilize a travel credit card. There are plenty of options for travel credit cards available, each with its own rates, interest, benefits, and rewards programs. You should compare credit cards and review each one’s specs. Find one that suits you, your income, and your lifestyle and you will be all set to start earning rewards.
Not only do these cards come with minimal foreign transaction fees, but you can also take advantage of rewards in the form of free flights. For those who travel around every couple of months, this can end up saving you a substantial amount of money.
How to Handle Mail and Other Nuances
In the past, receiving mail while traveling abroad was often a problematic responsibility. Not only did you have to consistently change your mailing address as you travel, but people would sometimes encounter package seizures if they filled out their information incorrectly.
Today, however, there are plenty of mail services that you can sign up for.
These allow you to send packages to an established physical address and then pick it up from the facility when you have time. Additionally, many of them offer customers the chance to read their mail online before they receive it.
When it comes to accommodation, you aren’t limited to hotels or hostels. Many entrepreneurs take advantage of Air BnB rentals in order to have a bit more comfort and privacy.
In many cases, you will be able to secure a rental like this for far less money than a hotel room in the same immediate area.
Staying at a timeshare is also a viable option. It’s essential that you know how to spot a timeshare scam, however.
Regardless of where you go, it’s crucial to have an emergency plan in place. A large number of complications can occur while traveling abroad, including having your belongings stolen, civil unrest in the country you are staying in, etc.
Additionally, you may learn about an emergency that occurred back home that requires you to return as soon as possible. A death in the family is one of the most common.
What to Do Before Leaving
Before you leave, consider what you would like to have when you return. Sometimes, digital nomads are far too quick to sell all of their possessions before taking the leap.
Unfortunately, this lifestyle isn’t for everyone, and it’s not uncommon for people to return home to nothing. Depending on how your professional situation has played out by that point, you may even find yourself having to stay with a friend or family member while you get back on your feet.
If you have plenty of money saved up and your income is well-established, it’s recommended to sell what you don’t need. This could include personal belongings like furniture, your vehicle, or even your house.
Pursuing a Digital Nomad Lifestyle Can Be a Rewarding Experience
It is highly recommended that you keep the above information in mind. This will ensure that you are able to integrate the digital nomad lifestyle into your profession as seamlessly as possible.
Want to learn more about what we have to offer? Feel free to reach out to us today and see how we can help.