The benefits of a digital nomad life are many and the lifestyle of the digital nomad has exploded as a result of the presence of technology that has made this way of life possible. As it currently stands, there are over 35 million digital nomads worldwide with more than half that number coming from the United States.
It’s been estimated that by 2035, a colossal one billion people will call themselves digital nomads—what’s even more surprising is that this prediction was put forth before the pandemic that sent most office workers scampering for the safety of their homes to work remotely. 1 It’s safe to say that the rise of the digital nomad has begun!
Digital nomads take on different forms ranging from plain backpackers, sleek jet setters and folks who spend their nomadic life in RV’s—how a nomad chooses to travel is based on their budgets and the lifestyles that they seek.
The lifestyle of a digital nomad often attracts many individuals because they feel suffocated by their daily 9-5 grind and want to seek something refreshing that will not tie them down, but rather afford them a lifestyle that is mobile—while of course, earning a living.
What Are the Benefits of Being a Digital Nomad? (Pros of Being a Digital Nomad)
Choosing to become a digital nomad is an allure than many individuals have due to the sense of freedom that the lifestyle presents, the new experiences that the life allows someone to have, and even its affordability.
1. Ability To Travel Constantly Giving a Sense of Freedom & Flexibility
This is the most profound impact that a digital nomad lifestyle affords a person. It is what makes many people gravitate towards trying to have the ability to make money but still be on the road. Since digital nomads are not pinned to an office or a particular location, they can choose to live in one country for a while, and move on to the next without having much impact on their capacity to generate income.
Travelling has been proven by studies to be a stress reducer and generally increases the overall wellbeing of individuals, especially when compared to those that stay at home. 2
It is this quality of digital nomadism that not only makes the lifestyle appealing, but is allowing this employment niche to explosively grow at break necking speeds.
2. Affordable Way of Living
Since digital nomads can pretty much choose to live anywhere on Earth for short periods of time, many of them typically opt to live in areas with lower standards of living. This is especially true for popular digital nomad destinations such as Thailand, Mexico and Bali (Indonesia) and several of these countries now offer a digital nomad visa.
Most nomads have income levels from developed nations and are compensated in U.S dollars or Euros. This allows them to live in foreign countries at a fraction of the cost that they do back home. As an example, in the vibrant coastal city of Chiang Mai in Thailand, digital nomads can expect to survive on US $1,000 per month and still enjoy a good standard of living.
With such low living standards, digital nomads can enjoy their travel experience even more and enjoy a better lifestyle than they would in their native countries. Living in foreign countries with lower standards of living will also allow digital nomads to save up, work less and even pay up debt such as student loans and be on their way to achieving financial independence.
Use this Cost of Living Calculator (Index) to make a decision on the best location to move based on your budget! 3
3. Increases Creativity and Learning
Digital nomads are continually exposed to new cultures, locational challenges and settings. This forces them to constantly adapt and solve any challenges that come their way as can be expected from not being in a static setting such as being in one location. Digital nomads have to deal with new transportation systems, banking, different language barriers and meeting new people—all these factors allow them to develop professionally and personally.
One of the best benefits of a digital nomad life will lead them to have experiences that will enable them to develop into well-rounded individuals with improved self-identity who are aware and conscious of the world that surrounds them. 4
When a stable pattern such as the one that involves staying in one location is disrupted, people will tend to think on their feet and adapt—pattern disruptions will lead to innovation and enhanced creativity.
4. Meeting New People & Exploring New Cultures (Making New Connections)
As a result of traveling more than their office based counterparts, digital nomads have a chance of meeting different people from several cultures. The people they meet on their journeys will perhaps have a better understanding of them in certain aspects more than the friends they have at home.
This is because they are sharing an ‘experience’ and people met in this way very often become like family in relatively short periods of time.
Living amongst different cultures allows digital nomads to learn and appreciate different cultures of the world. The lifestyle affords them a chance to experience components of their culture such as food, clothing or even social functions which makes them learn more about themselves in the greater context.
Research has shown that students who study abroad have positive gains such as having cross-cultural communication skills, improved self-confidence and increased international awareness. 5 The same applies to digital nomads.
5. An End to Tedious Commutes
One of the most dreaded aspects of a 9-5 grind happens at the end of the day when swarms of office workers have to get on the roads to make it back home after a long day’s work. This doubly applies to when coming into work since most people commute to work during rush hour which pre-exhausts them even before they have started their shift.
These commutes not only waste valuable time but are expensive since there is no reimbursement for the hours spent behind the wheel while traveling to and fro work.
Long commutes have adverse mental and physical health effects including heart disease and have a negative effect on productivity—almost 120 million of the total 150 million workers in the U.S. commute almost 30 minutes each way! 6
This gets expensive—the total opportunity cost for workers while commuting often exceeds their wages exceeding thousands of dollars for each average worker annually.
It’s no wonder that office workers are fighting tooth and nail to work remotely and thus enjoy the benefits of a digital nomad life.
6. Flexible Ability To Work
Most digital nomads can work within their own convenience at any time and anywhere even in their pajamas! All they need is their laptop, stable internet connection and a comfortable ergonomic chair. They can work at a beach, at a sunny café, coworking spaces or even at a quiet library—the possibilities are endless, making this lifestyle very captivating especially to an office worker cooked up in a dimly lit underground windowless office. The life of a digital nomad is truly a dream come true for many.
7. Pursuit of Hobbies & Leisure
Digital nomads have the opportunity to surf the best beaches, hike on beautiful trails or enjoy breathtaking scenery right from the comfort of their office. Each destination traveled brings with it new experiences.
While digital nomads have to work just as hard as their office counterparts logging in many computer hours, they have a chance to reset their batteries enjoying many hobbies in the different locations and countries they call home.
Since digital nomads are not tired down by long commutes and being in their chosen and favorite destination, they can easily pursue their hobbies at any time of the day, even in between working! Hobbies have been shown to provide several benefits including: 7
- Stress reduction and decreased depressions and anxiety
- Improved social connections
- Increased mental health
“People don’t want to be millionaires — they want to experience what they believe only millions can buy. “ — Timothy Ferris
8. No More Winters
Most of the popular digital congregations are clustered around warmer destinations and countries like those in South East Asia or South and Central America—however, some cold countries such as Norway do have a digital nomad visa in place.
Most digital nomads will typically have tropical climates as their first choices. While the winter has some perks such as skiing and being something of a magical experience—with snow on the outside and a nice warm fire going, it’s only a matter of time before it gets old.
Digital nomads can say goodbye to icy, freezing and dark months and head out to a vibrant coastal resort town rather than shoveling snow on the driveway.
Are There Are Any Drawbacks to Being a Digital Nomad? (Cons of Being a Digital Nomad)
For all its glamor and excitement and the numerous benefits of a digital nomad life, the lifestyle does have a few cons and drawbacks but many can be overcome and adapted to, especially when deciding to choose a location to live in. Some may affect certain people more than others—they include:
Isolation—Digital nomads do a lot of traveling, often by themselves which can make them feel lonely and isolated. Oftentimes, they may have partners and friends that they are traveling with but the warmth and closeness of family may be missing.
Since digital nomads are always on the move, they have to constantly build new relationships which further adds to the state of isolation. It is therefore advisable to maintain regular contact with loved ones.
No Stability—This is obviously one of the main apparent qualities of this lifestyle. Digital nomads often spend a few months at a location before moving on. They therefore don’t have roots as they would when fixed in one location. A lack of regular routine and habits may seem disorienting.
Feeling Homesick—Feeling homesick will vary from person to person, however some degree of missing one’s origins is completely normal. It wouldn’t hurt to return home from time to time to cure this before getting back on the road again.
Limited Amenities—There are particular amenities that people have grown accustomed to in their home location such as restaurants they frequently visit, fitness facilities or even shopping facilities. Digital nomads will often have this void.
Nevertheless, the world has become a global village—it is not uncommon to see an amenity in a foreign country such as a fast food chain like McDonalds or a gym that offers the same quality of equipment as one a digital nomad is used to at home.
Challenges That Face a Digital Nomad
Digital nomads are faced with several challenges with many of those connected with having a proper ecosystem that supports their lifestyle. These are mostly tied to having a proper framework to support the working part of the lifestyle and the amenities that maintain the lifestyle. Challenges include technological issues, financial restrictions and legal quagmires.
Technological Issues
Digital nomads are very dependent on technology to earn income while on the road. Top on the list is the ability to always stay connected to the internet to either run their businesses, stay linked to their employers and clients.
Depending on the remoteness or the level of WIFI infrastructure that is present in the location, this is the single most important challenge that digital nomads face—it also plays a pivotal role when choosing a locale to live in.
Fortunately, many parts of the world, even some remote ones do have some form of broadband internet connection. Digital nomads may also choose to tether their laptops to mobile hotspots from their mobile phones.
Many would-be nomads prefer to live in less urban environments which also tend to have inferior WIFI connections. The bottom line is that internet technology is still young the world over with about only 60% of the world’s population connected to it. That’s a far cry compared to the State of California which has an over 90% internet connectivity rate. 8
Language Barrier
Most digital nomads speak and conduct their work in English and many of the best digital nomad locations are located in countries where English is not the first language of choice. The challenge gets exacerbated for digital nomads that speak other languages than English such as German, French or Italian.
These will fare worse as they have a better chance in communicating in English in foreign countries than their own native tongues since English can be considered a global language. 9
English is spoken by about 1.5 billion people whether as natives or as a 2nd language and about 75% of the world’s population speak it. Some effort is therefore required by the digital nomad to learn bits of the native language or have some sort of electronic assistance.
Alternatively, choosing locations that are frequented by tourists means there is a good chance that the locals do speak English, albeit being broken.
Finding Ideal Living Arrangements
Nomads tend to live at locations for a few months, some may even stay for a year. Finding a good area to live that is close to amenities and cost effective can prove to be challenging especially when coupled with language barriers.
The good news is that there are resources from digital nomad communities that can help provide some guidance to would be digital nomads to help them get settled in. These are discussed in the last section.
Legal & Financial Restrictions
Since digital nomadism is still increasing in popularity around the world, things like tax laws and visa restrictions will differ from place to place. Since this is a new phenomenon that is gaining traction in the world, many countries are still grappling on how to treat digital nomads when it comes to taxation.
Often, digital nomads will not get taxed by their native countries when in a different country of residence—U.S. being one of the citizens that are not in this category. Some countries charge outrageous tax rates especially when considering the digital nomads are staying only short term.
This can prove to be very confusing and frustrating for digital nomads and even keep them away from certain destinations due to these ramifications.
Overcoming Digital Nomad Challenges
There are several communities that can help digital nomads overcome their challenges, whether related to language barriers, choosing the ideal destinations or finding the best living arrangements. They include Nomads List, Digitalnomadsworld and Digital Nomad Girls.
Nomads List—This is arguably the biggest nomad community and ranks different digital nomad locations. Members of Nomad List are able to chat with one another and even arrange meet ups in cities. There are also reviews about destinations from other digital nomads which can help with destination choices.
Digitalnomadsworld—Digitalnomadsworld is a great digital nomad community and even provides discounts for accommodations all across the world for those that are members and other perks.
Global Digital Nomad Network—Global Digital Nomad Network is a Facebook group with almost 50,000 members and provides an excellent platform to discuss everything that is digital nomad such as marketing hacks, the best digital nomad destinations and personal testimonials from established traveling entrepreneurs.
Digital Nomad Girls—This is a private Facebook group that is catered exclusively to female digital nomads. Female digital nomads obviously face unique challenges compared to their male counterparts. Digital Nomad Girls provides that bridge to help women connect with each other, inspire one another and navigate the digital nomad world.
Nomad Soulmates—As one can imagine, the life of a digital nomad can prove to be very lonely especially if someone is embarking on this journey on their own. Here comes Nomad Soulmates, a digital dating site tailored for digital nomads. The site brings together like minds that share similar lifestyles—they even have a fitting mantra, “Working and traveling is better when shared.”
All these communities should help anyone working remotely and wanting to live in a remote land make the best informed decision that will diminish their challenges.
Digital Nomad Life vs Settled Life: When To Make the Leap
Most people have a belief that they should be pegged down in one location most of their lives or even stuck in one country since their source of income will tend to lie in one location. They therefore lived structured lives that have no excitement and variations except for the occasional vacation—then it’s back to the grind.
But we all live once, and what’s more, we don’t remain forever young. For those that are looking to get more out of life than just the daily routine and want to travel the world, meet new people and live a life full of excitement, then they should make the leap and consider the digital nomad lifestyle as a real way to achieve this.
The digital nomad lifestyle has truly revolutionized the world of employment—individuals decide where they want to be, when they want to be there and finding a balance in between.
There is a famous quote by author Timothy Ferris in his book: The 4-Hour Workweek: Escape 9-5, Live Anywhere, and Join the New Rich that states: “People don’t want to be millionaires — they want to experience what they believe only millions can buy. “ 10
Stepping out of the comfort zone is a game changer and as the Latin proverb so proverbially states: “Fortune Favors the Bold”—while there may be some challenges and discomforts along the way, the benefits of a digital nomad life inevitably outweigh any cons.
References
[1] Shaun Busuttil, U. o. (2021, August 31). THE RISE OF THE DIGITAL NOMAD. Retrieved 2023, from https://pursuit.unimelb.edu.au/articles/the-rise-of-the-digital-nomad
[2] Atsushi Kawakubo, T. O. (2022, May 26). What Promotes the Happiness of Vacationers? A Focus on Vacation Experiences for Japanese People During Winter Vacation. Retrieved 2023, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9199897/
[3] Antonio, T. U. (2023). Cost of Living Calculator. Retrieved 2023, from https://careercenter.utsa.edu/resources/cost-of-living-index/
[4] Tchounwou, P. B. (2021, March 7). The Impact of Cultural Immersion Experience on Identity Transformation Process. Retrieved 2023, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7967506/
[5] CHRISTINE S. LEE, D. J. (2012). On the Cognitive Benefits of Cultural Experience: Exploring the Relationship. Retrieved 2023, from https://education.ufl.edu/dtherriault/files/2013/03/Lee-Therriault-Linderholm-2012_CulturalExperienceCreativeThinking.pdf
[6] Lambert, L. (2021, March 30). Commuting Hurts Productivity and Your Best Talent Suffers Mos. Retrieved 2023, from https://hbswk.hbs.edu/item/commuting-kills-productivity-and-your-best-talent-suffers-most
[7] Parkhurst, E. (2021, October 25). How Hobbies Improve Mental Health. Retrieved 2023, from https://extension.usu.edu/mentalhealth/articles/how-hobbies-improve-mental-health
[8] Mackovich-Rodriguez, R. (2021, March 30). California surpasses 90% internet connectivity, but low-income households still lack access. Retrieved 2023, from https://news.usc.edu/183952/california-internet-access-usc-survey-broadband-connectivity/
[9] Ashqi Mohamadaid, S. R. (2019). Can English considered to be a Global language? Retrieved 2023, from https://files.eric.ed.gov/fulltext/ED608887.pdf
[10] Ferris, T. (2009, December 15). The 4-Hour Workweek : Escape 9-5, Live Anywhere, and Join the New Rich. Retrieved 2023, from https://www.academia.edu/16759286/The_4-Hour_Workweek