The world today has digital nomads; you will see posts of people with their laptops working at a beach, a café, or on a train. These people often work remotely and travel while working. Most of them will work from places such as hotel rooms, coffee shops, recreational vehicles, libraries, and anywhere with an internet connection because they are commonly online workers.
A digital nomad could be traveling within their country or to foreign countries. With all that travel, comes the issue of finances and spending. Digital nomads will often find themselves overspending, if not careful. However, wherever you are, it is possible to save money. Since you are working online while traveling, it is only proper that you remain on the good side of finance lest you remain broke even while making money.
Here are some money-saving tips every digital nomad and aspiring digital nomad should consider.
Contents
1. Always Look For Cheap Accommodation
Source: medium
In every place, you will find cheap accommodation available such as hostels, which are usually inexpensive compared to hotels. You can also find accommodation where there is a kitchen, and you can cook your food to avoid eating out on restaurants, something that can be costly. You can also share accommodation with other people. There are sites where people offer their homes to travelers at a low price. There are also affordable hotels if none of the other options appeal to you. You can look them up and find them when you visit that country or location.
2. Use Cash
Source: unbridled
Using a debit or credit card for buying things when traveling can result in high costs. Debit and credit cards prevent you from knowing the amount of money you are spending. End month, you will be shocked at how much you have spent because your credit card bill will be on the higher end, and your bank account statement will be on the lower side. The best option, therefore, is using cash. Using actual cash will keep you conscious of your spending habits, and you will keep track of every amount you spend. This will make you spend money on only the basics and keep you from buying non-essential things such as chocolate bars, magazines, and other irrelevant things that will help dwindle your cash.
Related: 11 unique ways to save money when shopping
3. Look For Cheap Transportation
Source: getmotopress
Transport is one of the things that will dent your budget when traveling. Find cheap transportation, which will help you move around from location to location. Public transport is usually a money saver in most instances. Any cities around the world have a good metro system that could help you save a lot on transport costs. Consider rail or bus because they are cheap and cost-effective in most cases. You can also use options for cycling which are available in most cities and are more reasonable.
4. Keep A Budget
Source: goldvoice
It is important to keep a record of the financial transactions that you make. Having a budget is a great way of tracking your spending. You will always have a plan on what to spend your money on and know exactly where your money is going. There are smartphone apps that will help you create the ideal budget. Having a budget will prevent you from impulse buying or going on a spending spree during your travels. With your budget in place, you will not need to call home for additional funds. You will not need to borrow to help pay for a plane ticket back home because you will have enough funds to have a lovely travel experience while doing what you love.
5. Make Use Of Cashback Apps
Source: hipa
Sometimes it’s too late. The damage is done, you’ve gone over your budget, and you will get straight next month. But there is hope yet! Using free apps, such as paribus (learn more here), you can still get money back in your bank after your purchase. These apps use tracking software to detect if the price of your purchase has dropped after you bought it. It will then negotiate on your behalf for a refund, or of course, you could send your original back in and buy again at the new cheaper price. For the price of free, it’s definitely worth a go.
6. Have Long-term Savings and Emergency Funds
Source: medium
Every digital nomad needs an emergency fund, and you should have it in place even before you hit the road. The best emergency fund should cover three to six months of your basic expenses. It is always advisable to have this emergency fund accessible to enable you to withdraw the money immediately as soon as you need it. For the digital nomads who have been working for sometimes, it is also advisable to set up a retirement fund. Consult your financial consultant for the best retirement plan for you.
7. Have Multiple Income Sources
Source: arcido
If you want to be a successful digital nomad who works and makes enough to travel and save ensure that you have multiple jobs. Don’t rely on a single skill because for you to sustain a life of extensive travel, you will need the money and lots of it. Many online platforms offer various opportunities for making money. Consider these opportunities to increase your monthly income and have enough to save because the world is big, and if you are going to travel and work around the world, you are going to need money.
8. Do An Inventory Of Your Items
Source: business2community
It is important to do an inventory check on your items to avoid unnecessary purchases along the way. Check that you have every item. It is better to repurchase your items home and have everything before you leave. This will help you resist the urge to buy things just because they are trending or have a great bargain. Have a good phone, for example, because you don’t need a new one because it is on offer and you have a perfectly working phone. Resist the urge to reward yourself with unnecessary purchases, instead reward yourself by saving.
9. Travel To Affordable Places First
Source: christineseibold
Consider destinations that are affordable first to save on your travels. Consider a place like Southeast Asia, which is a top destination for digital nomads and with good reasons. Look for destinations that are culturally diverse, full of beautiful sights, and, most importantly, the ones with low living costs. A destination that suits your budget will help you meet your travel goals. Forget the exotic places first because most affordable destinations will always offer you one of the best digital nomad experiences you have ever imagined.
The digital nomad lifestyle comes with its freedoms. However, the freedom that comes requires discipline and a foolproof plan to save money and avoid any financial mishaps. Simply calculating your monthly costs is not all; you will also have to establish an estimate of how much you will spend before you set foot outside your home’s door. The above saving tips should also guide you towards making the best financial decisions as a digital nomad.
