Digital Nomad life: How to save money

But seriously, how does a digital nomad life can save you money?

Digital nomadism — do we do it for the money? N— well, yes. When it comes to taxes, definitely. But of course, it is true that no price can be put on memories and adventures. And enjoying a digital nomad life doesn’t always revolve around saving money. Anyway, let’s leave the sentimentality aside for now and get back to the good stuff. Let’s face it: even if you choose the remote work lifestyle to find yourself and money doesn’t mean much to you, the financial benefits of becoming a digital nomad are undoubtedly the cherry on top.

Digital Nomad: A Life on the Move

Right before the digital nomad life became mainstream — back when vegans were left to survive on nothing but rice, quinoa, veggies and beans, and the world seemed a bit more normal — my life was anything but ordinary. You see, I wasn’t raised on a clock like most people. Instead, I was raised on a compass. (Too cheesy?)

From the time I was two years old, I’ve been moving (sorry, it continues). A new city, a new country, a new culture, a new way of living, new friends — this is what my normal as a nomad looked like. That early exposure to change wired my brain to be adaptable and curious about the world. So when remote work exploded, and suddenly the idea of living anywhere became not just a possibility but a reality, I embraced it wholeheartedly and started writing.

But let’s talk about the money. How much does being a digital nomad actually save you?

Digital Nomad Life: 6 Financial Perks

How does a digital nomad life can save you money? By swapping fancy office rent for beach views and smart budgeting. Here’s how they make it happen!

Low-Cost Living

A major advantage of digital nomadism is the opportunity to live in countries with low living expenses while earning in a high-value currency.

Look no further than Thailand, Mexico or Vietnam, where rent, food, and transportation cost a fraction of what you would pay in cities like New York or London.

For example: Renting an apartment in Chiang Mai, Thailand? About $300–$500 a month. Enjoying delicious street food? $2 a meal. Compare that to your $2,500 rent bill in a major Western city.

No Long-Term Contracts

The traditional life often ties people down with long leases, utility bills, and year-long subscriptions. As a digital nomad, you can skip all that and save money. Sites like Airbnb, Couch-surfing, and Co. make it easy to stay flexible without getting stuck in high costs.

Transportation Expenses

Without a daily commute, a car of your own is unnecessary. Besides, new places or neighborhoods are better explored on foot or by bike. Plus, you always have the option of renting a car or relying on Uber. Of course, public transportation should not be forgotten, although it’s best to think about how safe it is for you to take that bus/train when you need to, and if it’s reliable.

Living abroad can often mean ditching expensive flights. Think of your first one-way ticket as an investment that gets you to the corner of the world you want to start your travels in.

For example, if you’re in Southeast Asia, you can fly from Bali (Indonesia) to Phuket (Thailand) for as little as $65 – and that’s not even the early bird discount.

Creative Tax Strategies

Tax advantages are a thing too, and they’re a lot of fun. Depending on your home country and residency status, it’s possible to save money in tax havens or countries with favorable tax regimes – or simply enjoy the benefits of nomadism. (Be sure to consult a professional in this regard!)

Save on your health insurance and more

If you are generally fit, have no major health problems, want a reliable health insurance for emergencies and don’t want to miss occasional check-ups — but you’re tired of being crushed by high health bills every month and losing a large portion of your income to taxes — then maybe you should consider switching to the digital nomad side.

Less Materialism

Not convinced that you can live a life out of a suitcase or backpack? I believe in you. Opting for a lifestyle like that forces you to be minimalist. With no room for unnecessary junk, you don’t waste money on pointless clutter. Instead, you spend it on experiences, like surfing lessons or city tours. Or you put it in your piggy bank and start investing.

Digital Nomad Life: Trade-offs that aren’t for everyone

Even a digital nomad life is not always perfect. It would be unfair to create the impression that working remotely from all corners of the world is all rainbows and sunshine, without mentioning the challenges. Living the digital nomad life does come with some hidden costs, both financial and emotional.

Healthcare Costs

Yes, I mentioned earlier that one of the benefits of a digital nomad life is saving money on health insurance, but of course, that depends on how much you had to pay for it in the first place. In my previous life as a German Freelancer, I paid a high price for health insurance, and it’s likely that many European freelancers experience the same. However, if you are the exception, the costs for a good health insurance can be quite high, depending on your needs and compared to previous payments.

Lack of Stability

If you’re drawn to a digital nomad life, a lack of stability is probably not something that typically scares you. But there are some things about finances and an unstable life that should not be ignored.

(Maybe you are worried about instability, in which case I can only say: try to earn a sum of money that you can rely on every month. At least enough to live well and always be able to buy a return ticket home at all times. I know that as a freelancer or entrepreneur, it’s challenging to make a fixed amount of money—especially at the beginning—but if a lack of stability makes you uncomfortable, getting your finances on track is step one)

Short and sweet:

No, the digital nomadic life is not all sunshine and rainbows. Being without a permanent home is pretty unstable, and flexibility can be a disadvantage if you don’t make wise plans ahead.

If you’re not planning on spending the majority of your life as a digital nomad in cheap countries, then at least stay in one place (with that I mean accommodation) for a month to save money with monthly discounts, which are available on Airbnb for example.

Remember that it won’t save you money if you end up staying in a bunch of different places in a short amount of time. Especially in big cities, hopping from place to place can really add up to your bill, especially if you don’t want to stay in a hostel.

Yes, being a digital nomad comes with a high level of flexibility, but flexibility has its price.

Unpredictable Expenses

Well, not everything they say about the digital nomad life and its unpredictability is true. But you know what? Life happens, sometimes you have to leave your place that you booked on Airbnb, HousingAnywhere or Co. earlier because of unforeseeable issues without any refund. Sometimes you have to take a last-minute flight or pay an extra visa fee because you miscalculated the 90 days (maybe that happened to me, I was 19, leave me alone).

Always make sure your vaccination card is up-to-date. Is a booster due? Then you have to pay up if your health insurance doesn’t cover it.

That being said, be prepared for unexpected costs. Yes, even though this blog is all about saving money as a digital nomad, money shouldn’t be on your mind 24/7. I’m not saying you should be crunching numbers at every opportunity, just be prepared for the unexpected.

Ahhh, don’t get discouraged now. Yes, you can and will enjoy a digital nomad life. The freedom and adventure definitely outweigh the downsides and in the end, the real currency isn’t dollars or euros – it’s the ability to live life on your own terms, baby.

Digital Nomad life: The numbers

Now, for the juicy part — Digital Nomad life: The actual numbers. Let’s create a fictional person.

Meet Ettiene: A Digital Nomad in action

Ettiene is a digital nomad. In his previous life, he was a freelance writer. He has no residence and thus is not required to pay taxes anywhere.

He doesn’t have to pay income tax or VAT on his income of €50,000, so he can keep his money and doesn’t have to hand over €4,150 every quarter. Overall, Etienne spends as a digital nomad €955 per year on a €50,000 income. What a life, right?

How does he do it?

Ettiene pays €50 per month for health insurance (instead of the nearly €860 he had to pay in his home country) which covers him if something goes wrong, like car accidents and other stuff that involves pain — but we hope never happens.

Ettiene travels alone, without pets or friends (he’s happy nonetheless) and so he takes a few precautions. Like a good adult, he has personal liability insurance for €55 per year.

To ensure that his belongings are safe, too, and that no robber can take away his zest for life, aka his laptop, he takes out electronics insurance for an additional €60 per year.

To stay in touch with family and friends around the world, he has a prepaid SIM card that costs him €20 per month.

For bank accounts, he doesn’t pay anything, since he chose the basic plans. (For someone who wants to go Premium, additional costs will arise).

Please note: Costs will increase if a medical check-up, professional teeth cleaning or similar is done. Etienne was lucky and had no toothache or other problems. But if he had, he would have had to pay €50 for each treatment out of pocket. With the rest covered by his insurance.

Pursuing a remote work lifestyle can be a transformative experience. It offers the physical freedom to explore new cultures and environments. (Plus significant financial benefits.) From relocating to countries with lower costs of living to cutting out daily commuting expenses and rethinking material consumption. The opportunities to save money are vast.

With mindful spending habits and smart use of the benefits of digital nomadism, you can achieve a balanced, fulfilling lifestyle. Aligning with both your personal and financial goals, just like Etienne.

If you’ve got questions, I might have got answers — contact me and let’s connect!