What Is A Digital Nomad? How To Become A Digital Nomad?

With 34% of remote employees working 4-5 days a week out of the office, the digital nomad lifestyle could sound like an exciting possibility if you’ve caught the travel bug and want to break free from the shackles of 9-5 life.

Scrolling through Instagram, you may often see images of individuals travelling across the globe, capturing photographs of their laptops against the backdrop of stunning Caribbean waters. Countries are now even rolling out digital nomad visas, inviting remote workers to reside within their borders.

How do you get started, though?  In this guide, we’ll walk you through the essential steps to transition into the digital nomad lifestyle.

What Is a Digital Nomad?

A digital nomad is an individual who either works remotely for a permanent employer or offers freelance services to multiple clients entirely online. This lifestyle allows you to work from any location globally, provided you have internet access.

Digital nomads usually work from various settings such as coffee shops, co-working spaces, hotels, or even while on the move.

Types Of Digital Nomads

Digital nomadism can take various forms, from freelancing and running online businesses to being employed by companies that allow remote work.

Here are some common types of digital nomads:

• Freelancers: These individuals offer services such as writing, graphic design, programming, and marketing on a project basis to various clients. Platforms such as Upwork and Fiverr are popular among freelancers seeking work.
• Remote Employees: Some digital nomads are employed full-time by companies that support remote work. These professionals perform their regular job duties from various locations without commuting to a fixed office.
• Entrepreneurs: Many digital nomads run their businesses online. This can range from eCommerce stores to consulting services, where all operations are managed digitally.
• Bloggers and Influencers: These digital nomads create content in various forms—blogs, social media posts, videos, and more—to engage an audience and often monetise through ads, sponsorships, and affiliate marketing. They travel to different locations to gather new content and experiences to share with their followers.
• Consultants: Consultants provide expert advice in specific fields such as business strategy, marketing, finance, and technology. They often work with multiple clients worldwide, conducting meetings and delivering services remotely through digital tools.
• Remote Educators: These professionals teach courses and conduct training sessions over the Internet. They might work for educational institutions or offer independent courses on platforms like Udemy or Coursera.
• Digital Creatives: This category includes artists, musicians, filmmakers, and other creative professionals who use digital tools to create and share their work. They might sell their creations online, work on commissions, or collaborate with other creatives around the globe.
• Tech Nomads: These digital nomads work in technology-related fields such as software development, cybersecurity, and IT support. Their skills are in high demand, and the nature of their work allows them to solve problems and build solutions from any location with an internet connection.

Digital Nomad vs Remote Worker

At first glance, the terms “digital nomad” and “remote worker” might seem interchangeable. Both involve performing work duties outside of a traditional office setting, often utilising technology to stay connected with their employers, clients, and colleagues.

However, there are distinct differences between the two, particularly when it comes to lifestyle and operational dynamics.

How to Become a Digital Nomad

If you’re someone who constantly dreams of travelling to new destinations and want to explore the world, the digital nomad lifestyle might be the perfect fit for you.

As of 2024, there are approximately 40 million digital nomads worldwide, with 17.3 million of them residing in the United States alone. This marks a 131% increase from pre-pandemic levels.

So, where do you begin? The following steps will guide you to kickstart your work-from-anywhere dream and become a digital nomad.

Identify if Being a Digital Nomad Is Right for You

Before you begin on the journey to becoming a digital nomad, you need to assess whether this lifestyle aligns with your personal and professional aspirations.

Evaluate Your Job Flexibility

Not every job can be performed remotely. Evaluate whether your current role or profession allows for remote work.

You might have the flexibility needed if you’re an entrepreneur, freelancer, or work in a digital field like marketing, software development, or writing.  On the other hand, if you are a surgeon or a construction worker, your work is naturally inflexible and unsuitable for a nomadic lifestyle.

If you’re employed, check if your employer supports remote work and is open to flexible arrangements. Some companies are more progressive in their remote work policies, while others may have strict requirements for in-office presence.

For example, CVS Health offers a fully remote work option for many roles, allowing their employees to work from home while maintaining their positions in the healthcare industry.

Assess Your Ability to Handle Loneliness and Isolation

Loneliness is the most prevalent and persistent issue that digital nomads face while working on the road. Being immersed in a completely different culture and unable to connect with locals due to language barriers can also feel alienating.

In fact, 50% of remote employees experienced loneliness at least once per week in 2022, while 19% say isolation is their #1 problem at work, and 70% feel that remote work has negatively impacted their social connections.

Reflect on your comfort level with being alone for extended periods. Are you someone who enjoys solitude, or do you thrive in social settings?

To combat loneliness, you would need to actively seek out and engage with digital nomad communities both online and offline. Platforms like Meetup, Internations, and Nomad List can help you find events and meetups for digital nomads.

Consider the Impact on Your Health and Well-being

Frequent travel can impact your physical health, especially if you have pre-existing conditions or past physical diseases. Consider how constant movement may affect your routine, including access to fitness facilities and healthy food options.

If you have specific health needs, make sure your destinations can accommodate them.

The World Health Organization (WHO) has noted that mental health issues can also arise from constant travel, particularly due to stress and the challenges of adjusting to new environments. Depression and anxiety are common among frequent travellers, with studies indicating that up to 30% of digital nomads report mental health challenges linked to their lifestyles.

If you are still considering seeking the nomadic lifestyle, it’s beneficial to have a support system in place, whether through online communities or local friends.

Secure Remote Work Opportunities

The first and most important step to working from anywhere is figuring out what kind of work you want to do. After all, you need to fund your adventures somehow, right?

Start by taking a good, hard look at your existing skill set. What are you good at? What do you enjoy doing?  Identify skills that you’re passionate about and that are also in high demand.

Do your research. Check out job boards, freelancing platforms, and industry reports to see what skills are trending. For example, if you’re a writer, look into content writing, copywriting, or even technical writing gigs. If you’re into design, you can explore opportunities in graphic design, UI/UX, or animation.

The goal is to match your skills with market needs, so you can maintain a steady income while enjoying the freedom of a nomadic lifestyle.

Types of Jobs Most Suited for Digital Nomads

Choose Your Destinations

You’ll be able to narrow down your destination options after you have a better understanding of the kinds of work that are available and what they might pay. In addition to considering the cost of living, look for nations that offer digital nomad visas, which frequently allow you to stay for a few months to a few years.

When possible, it’s advisable to pick a location with a lower cost of living to give yourself some breathing room while you’re developing your online earning potential.

Top Destinations for Digital Nomads

Test It Out

Once you’ve built a reliable income stream and selected your dream destination, you’re almost ready to go. However, this is often the moment when many aspiring nomads start to second-guess themselves and give up.  The idea of leaving behind the comfort and familiarity of home can start to feel overwhelming.

Start by testing out your newfound freedom and experiencing what it’s like to work from anywhere. Plan a few days or even a week away from home. Depending on how adventurous you’re feeling, this could be a local getaway or somewhere a bit further away.

This will give you a taste of the digital nomad lifestyle without the long-term commitment.

Keep in mind, this isn’t a vacation—work should remain your top priority. Choose a destination with reliable internet and stick to your regular work schedule, just from a different location.

Optimise Your Digital Workflow

Being a digital nomad, you need to stay efficient and organised, no matter where you are.

Here are some digital services that can help you optimise your workflow and ensure that your daily activities run smoothly, no matter where you are in the world.

Payment Methods and Banks

When working remotely, you’ll need to know how you’ll get paid. Common payment methods include bank transfers, Payoneer, PayPal, and Wise. Most of these options make it easy to withdraw your funds, although some might come with higher fees than others.

A business bank account is also important for doing business online. It’s simple to set up with most banks and offers more benefits than a personal account.

Banks like HSBC and Charles Schwab provide global services and can be ideal for digital nomads. For example, Charles Schwab refunds ATM fees worldwide, saving you a lot of money.

In some countries, opening a local bank account can also help avoid foreign transaction fees and access local services. Research the requirements and benefits of opening a local account in your chosen destinations.

VPNs

Using a Virtual Private Network (VPN) is essential for protecting your online privacy and ensuring secure internet access, especially when using public Wi-Fi networks. For example, by connecting to a public Wi-Fi network at an airport in Tokyo, your banking information will remain secure and private by using a VPN.

For expats, a VPN is important for maintaining access to essential services from their home country, such as online banking, streaming their favourite shows, or accessing health insurance portals. Expats often face geo-restrictions on various websites and streaming platforms.

A VPN for expats enables them to bypass these restrictions and enjoy uninterrupted access to their preferred content and services, maintaining a sense of normalcy while living abroad.

Accounting Software

Keeping track of your finances and managing taxes is important for a digital nomad. Accounting software can help you stay organised and ensure compliance with financial regulations.

You can use accounting software like QuickBooks, Xero, or FreshBooks to manage your finances. These platforms offer features like expense tracking, invoicing, and tax preparation.

For example, QuickBooks lets you connect your bank accounts, track expenses, and generate financial reports.

This softwares can also help you create and send professional invoices to your clients. Platforms like FreshBooks also offer payment processing, allowing clients to pay you directly through the invoice.

Manage Time Zones Effectively

Working across different time zones can be challenging. You can use tools like World Time Buddy or Timezone.io to track different time zones and schedule your meetings accordingly. These tools help you find suitable meeting times accommodating everyone’s time zones.

For example, World Time Buddy allows you to compare time zones and plan meetings with a few clicks.

Collect the necessary documents

Organise all your essential documents. As a digital nomad, you’ll be away from home for long stretches, so it’s crucial to have everything in order before you depart.

Start by gathering all essential documents, such as your passport, credit card, travel insurance, visas, and any other identification or financial records you’ll need. Make physical and digital copies of these documents.

This way, you’ll readily have backups if anything gets lost or stolen. Digital copies can be stored securely in cloud storage services like Google Drive or Dropbox, while physical copies should be kept in a separate, secure location in your luggage.

Passport and Visas

• Valid Passport: Ensure your passport is up-to-date and has at least six months of validity remaining from your planned return date. This is a common requirement for entry into many countries. If your passport is nearing expiration, renew it well in advance. It’s also wise to have multiple copies of your passport, both physical and digital, stored securely in case of loss or theft.
• Visas: Research the visa requirements for each country you plan to visit. Some countries offer visa-free or visa-on-arrival access, while others require you to apply for a visa in advance. Websites like iVisa or VisaHQ can assist you in determining the necessary visas and the application process. Each country has specific requirements, so read up on the documentation needed, the duration of stay permitted, and the process for extensions if necessary.
  Example: If you’re planning to work remotely from Thailand, you might consider the Special Tourist Visa (STV), which allows for a longer stay, or the Smart Visa, which is specifically designed for foreign professionals and entrepreneurs.

Work Permits and Remote Work Visas

• Remote Work Visas: Some countries offer specific visas for digital nomads. These visas often come with benefits like tax exemptions or easier legal requirements for remote work. Examples include the Barbados Welcome Stamp, Estonia’s Digital Nomad Visa, and Portugal’s D7 Visa. These visas often require proof of remote employment, a minimum income threshold, and health insurance.
  Example: Estonia’s Digital Nomad Visa requires applicants to show proof of remote work and earn at least €3,504 per month.

• Work Permits: Some countries require work permits in addition to visas to legally work from their territory. Work permits may involve additional paperwork and fees, so plan accordingly.

Health Insurance and Immunisation Records

• Health Insurance: Get comprehensive health insurance that covers you internationally, as some countries require proof of health insurance as a part of their visa application process.
  Example: SafetyWing offers a Nomad Insurance plan that covers medical expenses, including COVID-19 treatment, for digital nomads in over 180 countries.

• Immunisation Records: Depending on your destination, certain vaccinations may be required or recommended. Carry an up-to-date immunisation record and check the vaccination requirements on the CDC or WHO websites. It’s also a good idea to have a digital copy of your immunisation records for easy access.

Financial Documents

• Proof of Funds: Some countries require proof that you have sufficient funds to support yourself during your stay. This can include bank statements, pay stubs, or a letter from your employer. Ensure these documents are recent, usually within the last three months, and clearly show your financial stability.
  Example: The Barbados Welcome Stamp requires applicants to declare they earn at least $50,000 annually and provide proof of income.

• Banking Information: Make sure you have access to your bank accounts globally. Notify your bank of your travel plans to avoid any issues with accessing your funds abroad. Consider setting up online banking if you haven’t already, and look into international-friendly banks that offer low transaction fees.

Identification and Personal Documents

• Driver’s Licence: If you plan to drive in your destination country, check if your home country’s driver’s licence is valid there or if you need an International Driving Permit (IDP). An IDP translates your licence into multiple languages and is recognised in over 150 countries.
  Example: If you’re from the USA and planning to stay in Spain, you’ll need an IDP to drive legally.

• Copies of Important Documents: Make copies of your passport, visas, insurance policies, and other critical documents. Store these copies in a secure cloud storage service like Google Drive or Dropbox, and keep physical copies in a separate bag from the originals. This ensures you have access to your documentation even if something gets lost or stolen.

Build a Support Network

Your network is your lifeline, usually opening doors to top digital nomad positions or offering chances to expand your professional connections by assisting others.

Building relationships with other companies and individuals in your field takes time—so the sooner you begin, the better.

Connect with other professionals within the digital nomad community or your particular industry. As a freelance creative, identify various publications that could be a good match for your work.

Online Communities for Digital Nomads

FAQs

Aashish Pahwa

A startup consultant, digital marketer, traveller, and philomath. Aashish has worked with over 20 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.