Make Money Online
I make money as a full-time WFH (Work From Home) programmer analyst. But WFH doesn't align with my goal of having the freedom to nomad so I plan to try various other methods for making money online, and will update this note with links to other notes on the topic.
Be intentional about where you go
Some destinations are more expensive than others, so go where your fund$ will go further.
- Vietnam: Known for its low cost of living, Vietnam offers a vibrant culture, delicious cuisine, and reliable internet in cities like Ho Chi Minh City and Hanoi.
- Thailand: A classic favorite among digital nomads, Thailand combines affordability with a high quality of life. Places like Chiang Mai and Bangkok are hotspots with strong expat communities.
- Indonesia (Bali): All roads lead to Bali is a paradise for digital nomads, offering a unique blend of beautiful landscapes, cultural richness, and a strong community of remote workers. Ubud and Canggu are particularly popular.
Create a Smart Budget Plan
Create a smart budget plan and stick to it. So you won't find yourself living the stuff of nightmares: running low on fund$ in a foreign country, without the resources to get to your next destination. We are NOT about living the 'begpacker' lifestyle. 🙅
Carefully choosing where you store your money, tracking your expenses, and following the rules of your smart budget plan are all key steps to living the dream abroad on a budget.
1. Banking
The most important consideration is the bank’s ability to serve you overseas.
- Does it have low or no ATM fees abroad?
- Does it have 24-hour human customer service?
- Does it have a robust mobile app? (can you easily review your account(s), receive push notifications for all transactions, and can you lock/unlock the card immediately)
- What if any fraud protection does it offer?
- Does it have low exchange rate fees?
- Can you earn interest on money in your account(s)?
2. Expense Tracking
Expense tracking apps offer a simple way to visualize where your fund$ are going and coming from.
- Is it free, pay once, or a subscription service?
- Does it allow you to connect your accounts? (bank, credit/debit card, investment accounts, retirement accounts, etc.)
- Does it allow personalization? (set savings goals, track income and bills, create customized spending categories)
- Is it safe to use? (financial information is sensitive so make sure you understand your account(s) and personal data is safe)
I liked using Mint for budgeting and expense tracking but since it shut down on 4/23/24, I'm not interested in transitioning to Intuit's Credit Karma.
Frustrated is a mild word for how I feel about being forced to transition to Credit Karma or lose all the data I've stored in my Mint account over the years. And here's the kicker, Inuit promises it will be a seamless transition, but (and this is a big @$$ but) Credit Karma will not offer actual budgeting. 🙄
So I've been looking for a better tool for managing my money. Until then I'll use good ol' free spreadsheets. If you know any good ones, please let me know.
3. Budget Rules
After deciding on an expense tracker, try out a few different budgeting plans to see which one best suits your lifestyle.
Zero-Sum rule
Your goal is to have exactly $0 in your account at the end of the month. After covering all your needs and wants, whatever is left over goes into savings.
note Be careful not to burn through your money before you have time to stash some of it away for your savings. 🤑
80-20 rule
- 80% for the present
- 20% for the future
50-30-20 rule
- 50% for your needs
- 30% for your wants
- 20% for your future
50-30-20 Rule Example
For this example, let's assume we have a minimum monthly budget of at least $1500 (after taxes) to travel comfortably in more budget-friendly countries.
50% for your Needs ($750/Month):
- Accommodation: $500 - should include fast WiFi
- Regular groceries: $200 - buy local and dine in more
- Passage: $50 - use public transit: bus, bike, walk
- Productivity: $0 - work in accommodation to save $$$
30% for your Wants ($450/Month):
- Adventure: $150 - choose free or low-cost activities
- FAT: $200 - splurge a little, wine & dine, you earned it
- Miscellaneous: $100 – TNT (Try New Things) You're in a new place after all
20% for your Future ($300/Month):
- future fund$: Set aside $$$ for a rainy day or purchasing assets.
I like that the 50-30-20 rule ensures all my needs are met, my wants are not overlooked, and my future fund$ will steadily grow. 🌱
Reduce spending on the essentials
Stay put Longer
Spending more time in one place has multiple benefits. It allows you to immerse yourself in the local culture and community deeply. Staying put also reduces travel costs and lets you discover hidden gems you can miss during shorter stays.
Plus, longer stays often mean better deals on extended-stay accommodation.
Research Accommodation
Your work environment as a digital nomad is pivotal to your success and happiness. When researching accommodation, look for places with fast, reliable Wi-Fi, a comfortable workspace, and a setting that aligns with your work needs.
Get Insurance
Insurance is essential for peace of mind. Investing in comprehensive health and travel insurance protects you from unexpected medical expenses and travel-related mishaps.
Save & Invest!
I can’t stress this enough: Investing in your future is key. Whether in stocks, retirement funds, or other investments, a portion of your budget should be dedicated to growing your future fund$. This is important for being able to enjoy a long-term fulfilling nomad experience.
Save $$$ on Accommodation
Accommodation expenses are probably the most expensive category in your budget. Finding more cost-effective accommodation means you could reallocate those savings to another expense like more FAT 🤤.
House/Pet Sitting
House/Pet sitting is an excellent way to save on accommodation costs. It involves looking after someone’s home (and often their pets) while they are away. In exchange, you get to stay in their home for free.
Volunteer travel
Many hostels and guesthouses offer free or discounted stays in exchange for a few hours of volunteer work each day. I've added Worldpackers to my TNT list, and I'll be sure to write a note on my experience with them.
Hostels/Sharehouses
They offer affordable rates, and opportunities to meet fellow travelers, and often include amenities like kitchens, where you can cook your meals to save even more.
Save $$$ on Transportation
Transportation expenses are probably the second most expensive category in your budget. Using a comparison tool, like SkyScanner is an easy way to cut flight costs.
Conclusion
So when they ask, “How can you afford to travel around the world constantly?”
You can answer because you:
- make money online
- be intentional about where you travel
- follow a smart budget plan