If you think that you need to be thrifty and cut down on your vacations, traveling, eating out and transportation to save some money, you might be very wrong. In fact, the exact opposite behavior could be the key to financial prosperity and work-life balance. The life of digital nomads could be the answer to long hours at the office, struggling with mortgage and loans and battling daily stress.
Before we go further, let’s say it from the beginning, this is not for everybody, it’s more a state of mind and a lifestyle, you need to commit completely, but it can be gratifying.
Should you be a digital nomad?
It’s not only about working on a tropical beach while sipping margaritas. It’s about your ability to provide a service which usually is rendered online and pays well enough to cover your current lodging and living costs, as well as any debt you might have at home, like student loans still pending.
You should take into consideration this option if you work from a computer providing services to clients. It could be anything from data entry, writing, design, accounting, advisory, programming or translations. In fact, for example, Wizz Accounting are an online accountant firm that provides accountants across the internet, meaning that you can use them to help run your business where ever you are in the world.
You could go to somewhere like Ecuador, the Philippines or even Eastern Europe to take advantage of the low-cost lifestyle, or you could just live in your van, as a tech-hippie with a vital connection to Wi-Fi.
How is this going to help me get out of debt?
Let’s start with the cost of living. Usually, it takes a toll on the budget since it’s not only the mortgage, it’s also maintenance, utility bills, and more. This can go as much as half of your income to have a roof above your head. Specialists advise that you shouldn’t spend more than a third of your income on housing. Therefore, if you can cut some of these costs by moving to a much cheaper country or living in a camper’s van, you might save some important amounts.
Use a living cost compare tool like Numbeo and try to find a place that makes you feel good, and its also dirt cheap. Not everyone enjoys tropical beaches. You could live in a medieval European town like Prague for half of what you’d pay in Austin, Texas or near the mountains, in Romania for even less.
All the money you save you could use to pay your loans even ten times faster and become debt-free in a matter of months or just a few years instead of decades.
Final Thoughts
Don’t sell everything and pack your bags hoping for the best. Take time to learn about the challenges of this lifestyle. Start small by domestic traveling and working in less conventional setting to check if you like it and can be productive. Make a slow transition to the new life, to prevent exhaustion and burnout. Secure at least 70% of your full capacity of work before even thinking about leaving home.
Talk to a lawyer and an accountant to see what the best options for you are. Make sure to lock down a good bank account like one from https://letmebank.com especially while traveling, either freelancing or setting up a business.
