Thinking of becoming a digital nomad?
Living and working remotely around the world has never been more accessible.
But here’s the problem…
Actually becoming a digital nomad is something most people never do.
Only 7-9% of people that identify as “digital nomads” according to MBO Partners ever take action. Everyone else just remains an “armchair nomad.”
The good news is that building a sustainable digital nomad lifestyle doesn’t require luck or hoping for the right opportunity.
It requires strategy.
The following guide will cover the essentials of putting the nomad lifestyle into practice. These are the core topics that every prospective nomad should be familiar with:
- The common mistakes most aspiring nomads make.
- How to setup your location-independent income.
- How to manage any remaining assets you own before going nomad.
- How to build a sustainable foundation for your remote work.
- How to travel in a way that’s actually sustainable over the long-term.
Why Most Aspiring Digital Nomads Fail
Here’s a stat that might surprise you…
The number of American digital nomads has now grown to 18.1 million, a 147% increase since 2019. That’s a full 11% of the entire U.S. workforce now identifying as digital nomads.
So what separates the successful from the armchair nomads?
Preparation.
Nomad life looks easy and glamorous online. But nobody talks about the hard work that goes into preparing to become a digital nomad. People start dreaming about the idea but neglect to make the lifestyle sustainable in the long-term.
Nomads need an exit strategy when they start. They need to sort out finances, create remote income streams, plan for asset management, and understand the process when handling property sales or any other important details before becoming a digital nomad. There’s no “getting away from it all” if you don’t deal with assets before leaving.
Successful digital nomads think of the transition as a business decision, not a vacation.
How to Set Up Your Location-Independent Income
If there’s one foundational aspect of every successful digital nomad, it’s this:
A steady income that isn’t location dependent.
It’s an obvious point, but a lot of people skip this part entirely. They’re so busy dreaming about the lifestyle that they assume income will “work itself out” once they start traveling.
Wrong.
Digital nomads need at least one of the following sources of location-independent income before going anywhere. This can take the form of:
- Traditional remote employment with a company
- Freelance work with recurring clients
- An online business generating passive income
- Consulting, coaching, or other skill services
Approximately 79% of digital nomads surveyed report high levels of satisfaction with their job and lifestyle. Being location independent is great, but nomads first need to build financial stability.
The lifestyle becomes a stressful nightmare quickly if income isn’t secured first.
How to Manage Assets Before You Go
There’s one of the most common mistakes that aspiring nomads make…
Failing to deal with all of their assets before leaving.
Aspiring digital nomads often fail to think of the practical consequences of leaving behind physical possessions and property. This “baggage” just makes remote life much more complicated than it has to be.
Take a look at all of these essential asset management tasks:
- Housing: Sell, rent, or sublet your home
- Vehicles: Sell or arrange for long-term storage
- Personal possessions: Downsize and simplify
- Bank accounts: Switch to online-friendly versions
- Insurance: Switch to international policies
Digital nomads that last are the ones that ruthlessly simplify before leaving. Every asset that’s left behind turns into a headache for remote management across time zones.
Can you focus on building a sustainable lifestyle if you have to chase down tenant payments 8,000 miles away? Hardly.
How to Build a Remote Work Foundation
The technical setup is important in more ways than many people realize.
Digital nomads rely on technology to earn an income. If technical infrastructure isn’t set up correctly, that income is at risk. Digital nomads need to “fail fast” with technical setup and then hone the system that works.
Here are the essential technical setup details:
- Reliable laptop + backup power options
- VPN software for secure connections
- Cloud storage for all important data
- Communication tools that work internationally
- Time zone management tools
Of course, tools are only one part of the equation.
Building a digital nomad lifestyle also requires strong work habits. The remote work “foundation” is creating habits that translate to productivity anywhere. Cafes, coworking spaces, airports, and hotel rooms. These are all the types of environments that remote workers need to learn to work in.
This takes practice. Nomads may be working fewer than 40 hours per week on average, but the actual time working needs to be highly focused.
How to Choose Your First Destinations Wisely
Digital nomad “locations” matter much more than most people assume.
Smart remote workers research their destinations for practical reasons, not just cool photos. The most important criteria to assess include:
- Cost of living: Stretch the income
- Internet reliability: Remote work requires good internet
- Time zone compatibility: Syncing up with clients
- Visa requirements: Check local rules
- General safety: Peace of mind
You’ll find reasons why digital nomad hotspots like Thailand, Portugal, and Mexico keep growing. They all score well on these important factors.
Nomads are trending towards the “slomading” approach. Instead of constantly hopping to new locations, they’re staying in places for an average of 5.7 weeks. Sustainability requires some stability.
The burnout from constant travel is real. Smart digital nomads know that a slower pace has its advantages.
How to Build Community on the Road
This next point is one that most people don’t expect to hear…
Loneliness is the biggest challenge that digital nomads face.
Working remotely for a living looks and sounds so glamorous online. In practice, it can be a surprisingly isolating existence without making an effort to build community.
Successful long-term digital nomads all take the time to:
- Join local coworking spaces with social events
- Attend digital nomad meetups
- Engage in online nomad communities
- Travel with other remote workers or meet them
Nomads need to be intentional about the social and community aspects of the lifestyle. It’s not an optional part of sustainability. Mental health and nomad life are inextricably linked.
Nomads burn out more from loneliness than the work itself.
Financial Planning for the Long-Term
Thinking short-term finances has destroyed more nomad dreams than almost anything else.
People think they’re “living in the moment” by blowing through their savings and enjoying the “freedom.” But reality comes knocking sooner or later.
Successful nomads pay attention to these financial basics:
- Emergency fund of 6+ months
- Contributions to retirement
- International health insurance
- Tax obligations clearly understood
- Development of multiple income streams
Nomads are in it for the long-term. The goal isn’t surviving as a digital nomad for one year. It’s about creating a lifestyle that can continue indefinitely.
Long-term thinking requires taking your finances seriously, not treating it like a vacation budget.
Wrapping Everything Up
As you can see, the nomad lifestyle doesn’t have to be unattainable.
There are around 18.1 million Americans currently living it and enjoying it.
But they didn’t just buy a plane ticket and head off to Thailand. They did the work. They prepared for the transition.
Building a sustainable digital nomad lifestyle requires the following in practice:
- Establishing reliable location-independent income
- Managing or eliminating existing assets back home
- Setting up a remote work infrastructure
- Choosing destinations that are sustainable and strategic
- Building community intentionally on the road
- Planning and budgeting finances for the long-term
Are you ready to become a digital nomad?
Then start with the foundation. Get the income solidified. Handle the logistics and details. Then take the plunge.
It’s absolutely possible. It just requires doing the work most people won’t bother with.