If you’ve ever dreamed of dropping everything and going nomad, then listen up. Digital nomads, also known as digital vagabonds or location-independent workers are people who have the ability to work from anywhere. Thanks to the rise of smartphones, wifi, and a number of other supporting technologies, it’s now possible for people to live and work from almost any location.
There are thousands of digital nomads roaming the globe at this very moment. So if the sound of working from anywhere in the world excites you, read on to discover how you could become one too!
Why has the digital nomad lifestyle gained popularity??
The key catalyst that created this ideal way of making an income is the FIRE movement. The FIRE movement; known as Financially Independent Retire Early, is a movement that encourages its member to invest as early and heavily as possible in order to retire early. It typically recommends members find ways to make money passively or without having the need to be onsite. Emphasizing the opportunity cost you waste the end day for not trying to find ways to set yourself up for early retirement.
Being able to work remotely is one of the most liberating feelings in the world. When you’re able to work anywhere, you have the opportunity to live a more adventurous, fulfilling, and financially rewarding life. There are tons of reasons why people become digital nomads. Some do so to explore the world, others do so to earn more money, and many do so to do both.
How to become a digital nomad
If you’re serious about becoming a digital nomad, it’s important that you start planning for it as early as possible. You’re going to need to save and invest a lot of money, learn a skill that can be done remotely, and line up work before you even leave. So how do you go about doing that?
My Struggling journey to becoming a digital nomad
I believe I have somewhat of the ability to help you with that. As of December 2022, I now make 100% of my income online and am able to travel around the world to earn as I travel. As a 25-year-old guy who never graduated with a degree, I found that quite an achievement.
While it has not been easy, it was definitely worthwhile. In order to prep me for the digital nomad lifestyle, I sacrifice 4 years of a life that I could be spending enjoying. However, I understood the long-term vision and invested every penny I could into myself and the stock market.
At 24 years old, I grew my net worth to over $100,000 and now own a finance website sharing personal finance and side enterprises. Apart from that, I made a reputation for myself as an SEO specialist and professional content writer in the Internet world. I sell my services to people on multiple platforms such as Fiverr, Upwork, and LinkedIn.
In under 1 year, HustleVentureSG has posted over 120 posts and gained over 20,000 viewers and 10,000 followers on all 6 different social platforms. The stable income from my recurring clients allows me to travel all around the world.
7 Steps to becoming a digital nomad
Before you say I quit my full-time job, planning ahead is essential if you want to become a successful digital nomad. Here are 7 steps I have planned for myself that I believe could help you become a successful digital nomad:
1) Create an emergency fund
An emergency fund is a safety net for yourself in case you ever got into an accident or are in need of immediate expenses. Typically, financial advisors recommend 3 to 6 months of emergency monthly expenses. But if you plan to be a digital nomad, there are times when you won’t be able to log in to the internet to withdraw cash. So in my opinion, digital nomads should aim to have at least 1 year of emergency funds and have no bad interest debt.
2) Invest in yourself
This step is by far the most underrated skill. With the rise of digital technology, learning anything can be as simple as googling the questions you are looking for answers to. The problem most people don’t understand is that they don’t know what they should be investing themselves in. So I will give you some examples to do your own research:
- How to escape the rat race
- How to make money while sleeping
- What 7 types of FIRE movement should I choose from
- Why I want to be a digital nomad
- How can I make money online
3) Learn how to use money efficiently
There are two laws when it comes to money.
if you don’t need it, don’t buy it. If you don’t use it, sell it
Warren Buffet
If you plan to become a digital nomad as soon as possible, you have to make money work for you. Investing your money into the money-generating asset is crucial in order to make money while you sleep. That can be from the S&P500 index fund or owning real estate to renting it out to tenants.
4) Create a business
In order for you to make money, you have to create a business. It doesn’t have to be a big corporation, just one that allows you to create a brand for yourself. It is important for an individual to start their own company for themselves because personal branding is what sells.
If you are working for a company and you are an expert in a certain subject, you are not the one being rewarded. The company that employs you gets the benefit of praise for being good management. This means that your skills will not be reflected at all compared to creating your own business.
This is why you have to start a business ASAP to escape the rat race
5) Find ways you can add value and sell that
Now here comes the challenging but most exciting part about transitioning to being a digital nomad. It is self-realization that you can make money by selling your service. I remembered the first time I made my first decent income from the internet which is selling a pet boarding service. Although it pays well, I wanted to truly make money online.
Here’s the crazy part many people don’t get, the customer you have online is significantly greater than just a single location. What people don’t value here may differ from the rest of the world. So try to provide a service online to see if it works.
So I found content writing to be my preferred way of making money(which is $50 for 500 words) and can now live comfortably with it. If you want to know how you can make a full-time income online, be sure to check out this article.
6) automate that work
As your business and investments grow, you will need to find ways to reduce the number of hours spent on low-level work. That’s where automation comes in.
The end goal is to work less than a full-time job and to be able to truly make passive income from.
7) Diversify risk and build cashflow
Now you are in the final stage where your business is making a decent income and your investment allows you to work from anywhere. Good for you.
You have found financial stability, which is quite an achievement. That’s also when you will need to turn down the risk.
It can be as simple as hiring a manager for your business or investing more into dividend-paying assets to generate income cash flow.
3 ways to make money online for Nomad
There are tons of ways that you can make money online as a digital nomad. However, in the context of a digital nomad, I will only be sharing how one can make money and travel at the same time.
Stock market
Almost every millennium and Gen Z are now investing in the stock market. The stock market is a great way to invest your money because it requires little upfront capital and it is liquid. On average, the S&P500 grows on average 10% per annum so it is no surprise that investors are living every spare cash they have into this investment.
Product Selling
Are you looking to make money online? Selling products is one of the best ways to do it. With an e-commerce business, you can reach customers from around the world and make money from the comfort of your own home. You don’t even need a physical store – you can sell products online and ship them directly to customers. From digital products like software and eBooks to physical products like fashion accessories and homeware, there’s a wide range of products you can sell.
Plus, you don’t need to be a tech expert – you can use platforms like Shopify, Etsy, and Amazon to set up your store and start selling quickly. With minimal overhead costs and high-profit margins, it’s a great way to make money as a digital nomad or an online business. So if you’re looking to make money online, product selling is definitely something to consider.
service provider
A service provider business is by far the easiest way for you to get started with starting a business. By selling your ability to provide a service, customers need to be willing to pay you at the agreed-upon price. If you found yourself being able to scale the business because of high demand and make a full-time income from it. Keep it up and make sure to be able to automate the work.
Conclusion
If you’re interested in becoming a digital nomad, you’ll need to start planning for it right now. You should start saving money, learning a skill that can be done remotely, and lining up work before you even leave. There are tons of benefits to becoming a digital nomad, such as the fact that you can travel while earning an income. Although there are a few things you’ll need to think about before becoming a digital nomad, once you do, it’ll be one of the best decisions you ever make.
