Being a digital nomad can be an expensive lifestyle. Not only do you have to pay for accommodation and living expenses like anywhere else but you also pay for travel and additional administration like visas. But how can you afford all this? Here are a few tried and tested hacks on how to live more affordably as a digital nomad.
Save money before you set out
One of the best ways to make sure you always have some money on hand is to save up for your trip in advance. Even if you can’t save up a lot, having any sort of rainy-day fund can help you get through a time with fewer clients and commissions or it can help you pay for an unexpected deposit or expense. Every bit can help too, so don’t be afraid that you can’t save up if you don’t make a lot of money. Your savings shouldn’t be used to pay for the whole trip - that’s what your work is for.
ATMs and banks
One of the worst ways to lose money is due to bad bank plans and needless ATM withdrawal charges. When you move to your desired location, one of the first things you should do is to see what local banking options are on offer. This can greatly cut down on domestic bank payments as well as entirely rid you of ATM withdrawal fees.
Alternatively, before your trip, you can sign up for banks like Schwab Bank or Transferwise Borderless, or any other bank in the country of your origin that has a comprehensive international plan. Minimizing bank fees can save you hundreds of euros down the line.
Accommodation
Finding more affordable accommodation is one of the best ways to save money since rent is usually about a third of our expenses. Some digital nomads make the mistake of staying in short-term rentals for months on end. This can be a huge drain on your wallet. Long-term, or better yet, mid-term rentals are much more economically viable and hassle-free. You should look for them on sites like Flatio since the mid-term rentals offer a great price for steady living. Or you can look for coliving options. Many coliving spaces split the costs of flats into rooms and on top of that, you will get a chance to work and network with other nomads.
Stay on top of your spending
It is very easy to lose track of how much you spend even in your home country, but somehow, keeping track of how much you spend in a foreign currency is always that much more difficult. This is why tracking your spending can be really important. See if you can’t save up by buying locally sourced food. Also, ask your friends or expat groups where to go for affordable lunches and drinks. Budgeting can be difficult but seeing what you spend the most money on and finding ways to lessen it can be a good way to make life more affordable.
Live like a local, not a tourist
One of the biggest traps for digital nomads is living on expat advice alone. Instead of getting a local bank account, a local SIM card, finding a mid-term rental from a local renter, and eating food that is easily affordable in their new home many digital nomads opt for a largely mediated experience. This can mean anything from eating in expensive restaurants where local pubs would cook just as well for less, working in expensive coworking spaces, paying for expensive healthcare insurance, and so on. Whenever you get advice from anyone, ask yourself how people in your new home deal with this exact same problem.
