Do you have what it takes to become a digital nomad? How do you set yourself up for success as a digital nomad?
Is the digital nomad lifestyle the right path for you? As the year is ending, it’s probably time that you reflect on your accomplishments in 2019. You’re probably entering an epiphany or a sudden life crisis and want to start on a clean state in 2020. You’ve come across the concept of what a digital nomad is and are curious on how to become one.
Well, you’ve come to the right place because I’m going to break down the anatomy of what a digital nomad is. What is a digital nomad? What do digital nomads do? What are the best cities for digital nomads?
If you’re extremely curious on how people have the ability to travel 24/7, you’re most likely looking at the life of a digital nomad. But let me tell you that although people’s lives look glamorous on social media, I promise you that it was probably not easy for all those nomads to make that jump.
What is a Digital Nomad?
Before I go in depth of breaking down the lifestyle of a digital, let’s define digital nomad. As there are countless of angles to view what a digital nomad is, know that they all have one thing in common. They want to be able to spend months or years traveling abroad. Digital nomads are remote workers who make a living online while traveling to different locations. They rely heavily on WiFi or mobile hotspots to do work wherever they are in the world.
You can often find digital nomads in co-working spaces, coffee shops, hotels, shopping centers, and of course at airports. See the van life trending on social media? Digital nomads also work out of recreational vehicles as well. Wherever there is reliable WiFi will you find digital nomads whipping out their wireless devices, such as laptops, smart phones and tablets.
Now that you know what a digital nomad is, you should consider a few things. But before getting into it, let’s start off with the first step on becoming a digital nomad.
7 Things to Consider Before Becoming a Digital Nomad
Although the thought of starting a life new sounds exciting, you want to be able to set yourself for the worst possible. Even before I wanted to even become a digital nomad, the world somehow knew to set me up for the best and worst. Every one of these factors have allowed me to sail smoothly as I am currently embarking on my digital nomadic journey.
1. Pick up a Financial Advisor
I don’t care how old you are. Start young. If you are serious about money management, I need you to pick up a financial advisor. What if you’re not ready to make that commitment yet? I felt the same. Trust me. But I really looked long term at the goals I wanted to accomplish at the end of the year. And after I broke down the steps I needed to take in order to reach my goals, the only viable solution was to pick up a financial advisor.
Having Michael Adelante from Northwestern Mutual as my financial advisor was the best decision I’ve ever made in my life. He really took the time and the steps needed to allow me to be financially successfully. Especially as a recent digital nomad with no consistent income coming in, I worry a lot less about my finances.
But what if you’re worried that you can’t afford your sessions because you’re fresh out of college? You don’t need to worry at all. Why? All Michael Adelante wants is to educate and help others manage their money, so he offers his services 100% free. And if you’re like me and love free stuff, why in the world would you be ignoring this opportunity? Don’t believe that his services are free? Reach out to him via email or LinkedIn and ask him yourself!
Once you’ve set up your meeting up with Michael, start educating yourself and learn about personal finance. Prior to my first meeting with Michael, I started reading Rich Dad Poor Dad by Robert Kiyosaki. This book not only opened up my eyes to the secrets of money, but it also educated me on the concepts of money that schools choose not to teach you.
After the first few sessions with Michael, I’ve already been able to diversify my money into different streams. And from everything I’ve ever learned from Michael, here are the reasons why you want to diversify your money.
2. Why You Should Diversify Your Money
The thought of leaving your entire life behind you to follow your dreams with absolutely no income sounds intimidating. So before pulling the trigger, make sure that you have your money diversified. Have some sort of back up just in case the worst happens to you, such as someone robbing you. I know it sounds scary, but it happens!
What can you do to diversify your money safely? Which platforms can you use that will allow your money to collect interest over time?
3. Always Wanted to Invest in the Stock Market?
I have my money distributed into different platforms. I didn’t have a lot of money saved up, but I was feeling a little spontaneous. I did my research and invested some of my money in a Robinhood account. Robinhood is a friendly, commission-free investment platforms that is ideal for risky investors like me and you who want to trade stocks, options and exchange-traded funds.
4. Enroll in Your Company’s 401(k) plan
Congratulations! You landed your dream 9-5 day job and you’re thrown at with all these benefits. You’re considering what to opt in and out of, enrolling into a 401(k) being one of them.
But you just started your job and you’re thinking if you really need to start considering retirement now? Yes. You’ll save yourself a headache a few years down the road and will realize why retirement savings matter. Once retirement hits a few decades down the road, you will thank yourself for sacrificing part of your materialistic spend for retirement.
An amazing benefit to opting into a 401(k) program with your employer is your employers match. Your employer matching contribution means that your employer contributes a portion of what you put into the plan. Their contribution is based on the percentage of your contribution, as these matches have a cap.
To put into perspective, in 2020, you can contribute up to a maximum of $19,500 into your 401(k). If you are 50 years or older, the employee catch-up contribution limit will go up to $6,500.
My overall point is to tell you that you are receiving free money. If an employer is going to match a percentage amount of what you’re contributing in your 401(k), what’s stopping you from taking the offer?
5. Open up an IRA account
You might be a young, single professional who hasn’t even considered looking into opening an IRA account. Well, let me tell you that there are a lot of tax-advantages as a way for you to save for retirement. As there are several types of IRA accounts available, I chose to open up a Roth IRA account with Vanguard.
A Roth IRA account protects your savings from taxes, and in my opinion is the better choice for young professionals like me and you. If you’re starting off your corporate career, you’re probably going to be placed in a lower tax bracket, which promises a couple of decades of tax-free earnings and growth. Once you’re 59 & 1/2 years old and have a Roth IRA under your name, withdrawals are tax and penalty free.
6. Being Whole Life Insured
After the financial crisis in 2008, more people wanted financial stability. Whole Life Insurance provides not only the accumulation of cash value, but it is also used when you need it.
What this really means is that as you’re paying your monthly insurance premiums, you can borrow against or cash out your investments throughout your life. At the end of the day, you can withdraw a high percentage of the amount of money you put into your life insurance, but you have to follow the rules associated with your payments. If not, just keep in mind that you could be owing a lot in taxes.
7. Make Sure That You Are Health Insured
As a resident within the United States, you want to make sure that you are legally health insured. If not, you’ll get fined. So if you decide to leave your life behind and don’t have any health insurance, how can you afford Health Insurance?
Ever since I’ve been unemployed, I’ve applied for Medicaid and got approved for 2020. Especially when you’re on the road, you don’t know what could potentially happen to you. You need to go to the doctors because you’re sick, or you need go get immunization shots because you want to visit certain parts of the world. And of course, emergency visits because the worst can potentially happen to you.
So now that you’ve set yourself up for success in becoming a digital nomad, here’s an important question to ask yourself…
How to Become a Digital Nomad?
Are you someone who loves to travel? Curious on exploring the depths of the world? Want some change in your life? Want to make money in your sleep? If you answered yes to all these questions, then becoming a digital nomad is the right path for you. Follow your gut and take that leap of faith to follow your dreams. Start setting yourself up for the most successful path to long term success. This ranges anywhere from financials to mindset to networking to local traveling.
As there is no one exact way of becoming a digital nomad, here are some ways you may want to consider this lifestyle.
3 Best Digital Nomad Jobs
1. Start a Blog
If you have the patience for long term, sustainable growth, plan out the next few months of your life and start a blog. As you’re preparing for the next steps of your life, one of your greatest assets will be your blog. Not good at writing? That’s fine! Start practice writing and push out content as often as you can.
Writing used to be my weakest suit growing up, but have worked hard at getting better at its craft. Yes, it look years to get to where I am now, but read more on how I started my writing journey.
>> Read More: How I Started My Writing Journey
Start journaling, writing posts on social media, ghost write for others, and love getting critiqued. The more you work on anything, the better you’ll get. You might not be tech savvy? Learn web design and coding. With the help of Sifen HQ, not only have I learned how to become savvy with WordPress, but I’ve also learned a little bit of back end coding. It was a win win situation, and now I’m able to touch hundreds of hearts through my blog.
2. Provide Professional Services and Join Gigs
Through the power of the internet, there are countless of ways to make money online. There are services like Fiverr and Upwork where you can offer your services other others. These are great platforms for you to put yourself out there and to even practice your skill sets.
3. Become an Expert at Social Media Marketing
Living in the 21st century, you know how much power there is to social media marketing. I’m sorry but if you’re trying to grow a brand, a business, or even yourself, you need to be or know someone to be social media savvy.
Without knowing how to digital market your brand or services, you will land way behind your competitors. Consumers love to intake content through the media, so why wouldn’t you want to take advantage of the hours they spend on their mobile devices?
How Entrepreneurship Will Only Help You Become a Digital Nomad
The jump of creating a total shift in lifestyle doesn’t come easily. As a digital nomad, you are venturing out into the unknown and choose to experience total risk. It’s not a path that everyone can take, but what will help is learning the basics of entrepreneurship.
Many believe that entrepreneurs are people who run an independent business. People who create LLC’s and takes on financial risks in order to do so. I disagree. Yes, there are entrepreneurs who definitely run their own businesses and choose to live an independent lifestyle, but there is so much more to that.
In my eyes, entrepreneurs are people who see problems and want to fix the problem. It doesn’t necessarily have to be business problems, but it can range from personal to relational problems. If someone is actively looking to make a shift in themselves, humanity or society, I label them as entrepreneurs.
As you’re considering taking the leap to become a digital nomad, you’re exuding the entrepreneur in you. You are not totally fulfilled in your current life and want to live out to be the best version of yourself. If you feel exactly this, I believe that you have the potential to become a digital nomad.
So… Should You Take the Leap and Consider Becoming a Digital Nomad?
If your current lifestyle matched up with any of the points listed above, I totally think you should consider becoming a digital again. Again, the digital nomadic lifestyle is definitely not for everyone but if you’re feeling the adventure in you, experiencing struggle and the unknown is pretty fun.
Everyday feels like a weekend, but you have to work hard like it’s a weekday. You learn to hustle your way through life and start to adapt to the vibes and culture of each city. Most importantly, you have total life freedom and will have more time to do the things you love.
With your entrepreneurial spirit, you have all the power to create your own schedule. You come across meeting some of the coolest people in the world, who might even become your lifelong friends.
My Overall Experience Being a Digital Nomad
All the reasons listed above are the reasons why I decided to become a digital nomad. The reasons listed above are the methods I took that helped me take the biggest jump of my life. Of course it wasn’t easy for me to take initial step but because I wanted this lifestyle so badly, I did everything in my power to make it happen.
I still don’t have my life figured out, but all I know is that I took the right steps. The right steps to create my dreams turn into reality and I couldn’t have been happier. Being a digital nomad has only been a recent dream of mine, yet timing couldn’t have lined in a better sequence.
Through travel, I’ve been able to find my purpose in life. I’ve learned to be super vulnerable on social media and share my past experiences, both good and bad. I’ve learned to find ways to try and convince you to travel more often, and I couldn’t have been happier.
Mom, dad, I’m sorry but I have no desire to go back home anytime soon. But I’m sure that when the time is right, I’ll be home in no time.
So what are you waiting for? This world is your oyster. You make the call. The new year is approaching. What do you wish you did differently in 2019? How will you make 2020 your year? The digital nomad lifestyle is poking right at you. All you need to do is take the first step and set up your goals. After that? You make the call.
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