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Never before has it been so possible to work and live anywhere you choose – worldwide. Thanks to the low cost of travel, some people’s ability to work most anywhere, and our ever-improving state of technology, becoming a digital nomad of sorts has become and ever increasingly attractive proposition.
The thing about being a digital nomad, however, is that it isn’t all island beaches and piña coladas. Making money while you play or relax is harder than you might think. This independent lifestyle requires planning. A big part of that planning is being able to support your new nomad lifestyle with the proper financing. The following is a condensed, easy to understand guide to help with that planning.
I’ve Got Places to Go!
There’s a ton of places that you’d like to see. And that’s good. You shouldn’t tie yourself down to just one destination. Make a list. Compare all the places on your list considering the following: leisure activities, economy, local culture, the overall environment, safety, fun, cost of travel, cost-of-living, weather, etc.
Speaking of the Cost-Of-Living
You’re going to need your calculator for this one. Each desired destination on your list will have a detailing of living costs. If you’re looking for adventure, add on a good 20% to each one, just to be safe. Here are a number of things to consider when analyzing the cost of living for any given area:
- Business costs
- Personal care/hygiene
- Healthcare and insurance
- Leisure and entertainment
- Utilities, etc.
- Drinks and food
- Costs that could be classified as miscellaneous
Other Things to Figure In
Taxes are going to be a big part of your finance considerations. Remember that there are likely taxes back home, if you own property, in addition to paying possible federal and state taxes. And you’ll need to figure in the taxes that will apply from the places where you visit/live/earn. Regarding purchases, there are very few things today that don’t have taxes included or tacked on.
Now it’s time to put together your monthly budget involving miscellaneous costs, costs from home, and taxes. To support your digital nomad lifestyle, this will be the basis for your necessary monthly income.
Possibly the Hardest Part
Making lists is easy compared to the next step. Just to be on the safe side, it would be wise to save up to six months of expenses ahead of time (certainly no less than three months) before you travel. You may not find work immediately when you reach your new adventurous destination. You will sleep better at night knowing that you have a little bit of a financial cushion.
And speaking of your new destination, what is your moneymaking plan? Working from your computer means that you can pick up and move most anywhere, taking your work with you. Make sure, particularly in the case of a time zone change, that you let your clients know of your move. If you can’t just pick up and go with a computer-based job, however, it is best to scope out the employment situation before you actually travel to your destination.
Make sure that if an exchange rate applies, you have a full understanding of the new currency and how it relates to the currency you’ve been using all your life. Will you be doing all of your banking via the Internet? Will you have a physical bank in your new town/city/village through which you can conduct specific transactions?
And what’s going to happen if you need money? At Sharemoney.com, we offer a fast, easy, secure, and affordable way to transfer money from the United States to other countries. In just a few minutes time, money can be transferred from the United States to the foreign city of your choice, and picked up at a bank or other cash pickup location. That’s one less worry for today’s digital nomad.
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