If you think the nomadic lifestyle is not for the risk-averse, too expensive, or only for those willing to sacrifice comfort and stability you're not alone. The traditional 9-to-5 job lures people into a false sense of reliability because you always know exactly when and how much you'll be paid. However, relying on only one source of income creates a single point of failure, which should make you extremely uncomfortable. One missed paycheck away from disaster is risky, and don't let anyone gaslight you into believing it's not because it's common.
A nomadic lifestyle doesn't have to be completely out of reach if you become a baddie on budget and lose the mindset that the 9-to-5 grind is the only way to make reliable money. I'm spilling the tea 🍵 on everything I know about the cost of living as a nomad, including consequential considerations, potential pitfalls, and all my strategies for living your best baddie life abroad on a budget.
What is a Nomadic Lifestyle?
A nomadic lifestyle is about the freedom to be on your own time. Nomads can work hard but play harder anywhere in the world. You're free to be on a beach in Thailand or a co-working cafe in Bali (since all roads lead to Bail) as long as that's where you want to play when the work is done. Freedom to be... means, where you be, is up to you.
Here are a few principles to keep the freedom as free and funky as possible:
- less is more: be minimalist to avoid the highway robbery known as baggage fees
- don't be a fuddy-duddy: be open-minded enough to #TNT 🧨 (try new things)
- challenge accepted: be comfortable with change to navigate the unknown without fear
Perhaps the most important principle nomads adopt is to value experiences over material possessions. Having a $300 Fugu meal with my best friend in Tokyo is worth way more than a $350 Oled Nintendo Switch that comes with 5 free games, and this is coming from an avid gamer and pursuer of free stuff.
Living nomadic start-up costs
If you fail to prepare you are preparing to fail
If you are serious about living a nomadic lifestyle, it's important to be prepared and budget for the initial expenses. You don't have to have the latest and greatest tech and travel gear it is important to consider what you need vs what you want. If you're looking for a minimalist digital nomad packing list to help you get started check out Minimalist 33 and Me and other #minimalist notes.
Factors that Influence the Cost of Living Nomadic
The cost of living nomadic is not the same for everyone. Your cost will depend on a few important factors: where abroad you decide to work (and play), the lifestyle required (to live your best life), and how frequently you get itchy feet (to travel).
1. Cost of living abroad
There's always gonna be exciting $#!+ to do somewhere in the world, the hard part is deciding how much you wanna spend to do it. And smart budgeting will play a part in helping you make the best decision on that. It comes down to finding a balance between a location where living is cheap, and playing is even cheaper.
If you research the cheapest places to live (& work) abroad for digital nomads, Thailand, Vietnam, and Bail will be at the top. And for good reason, the monthly expenses in Southeast Asia are considerably more affordable than in Western countries. Let's take a look at the cost breakdown of a month in Ho Chi Minh City (Vietnam) and a month in LA (North America)
Ho Chi Minh City Expenses | Cost |
---|---|
Fund$ (total) | $1075 + int’l flight $867 |
Accommodation | $450 |
Passage (flights/public transit/rentals etc.) | $100 |
FAT (groceries, restaurants) | $300 |
Activities (entertainment/exploration) | $100 |
Productivity (insurance/WiFi/SIM) | $125 |
Locations like Europe and North America require a more substantial budget. In major cities like Los Angeles or London, the monthly expenses almost double or triple that of the rural locations and can easily exceed $3,000.
LA Expenses | Cost |
---|---|
Fund$ (total) | $3718 + domestic flight $99 |
Accommodation | $2019 |
Passage (flights/public transit/rentals, etc.) | $313 |
FAT (groceries/restaurants) | $715 |
Activities (entertainment/exploration) | $500 |
Productivity (insurance/WiFi/SIM) | $171 |
2. Lifestyle requirements
Every nomad has things they can't live their best baddie life without, which leads to different expenses. For instance, I prefer a more luxurious travel style, opting for higher-end accommodations and unique experiences (this baddie requires an en suite bathroom 💅). On the other hand, some choose more budget-friendly options like hostels or couch surfing.
note If you spend more on your lifestyle requirements, you might have to cut back on where or how frequently you travel. Backpackers tend to travel quickly and spend less on cheap short stays, while slowmads travel slowly and spend more on comfortable long stays.
3. Travel frequency
Generally, the more frequently you travel, the higher your expenses will be in the long run; all those frequent flights add up.
note If you are a frequent flier make sure you're using travel credit cards & points efficiently.
Living nomadic maintenance costs
The nomadic lifestyle, just like any other lifestyle, has various ongoing expenses needed to maintain it, which fall into 5 main categories:
1. Accommodation
This depends on your lifestyle requirements (are you team hotel or hostel all the way?), the season and the location make it difficult to give an exact dollar amount. Unless you're sleeping on your friend's couch, it wouldn't be a bad idea to budget at least 50%, of your overall expenses for this one.
2. Transportation
If you're in countries where public transit is widespread and readily accessible or you're an introvert your transportation expenses should be relatively low if you plan your travels during the off-peak season you'll save even more.
3. Food
This one can be pretty expensive for my fellow foodies. 🤤 To save money, look for accommodations with kitchen access or book cooking classes to learn new recipes from the locals and dine in sometimes instead of always eating out at restaurants.
4. Productivity
Stay productive and nomad on. Your productivity expenses should be relatively inexpensive a portable wi-fi hotspot subscription, co-working space fees, VPN subscription, and local SIM/eSIM usage fees won't vary too much from location to location but are necessary so don't forget to budget for them.
Travel Insurance
I add any renters, health, vehicle, and travel insurance expenses under the productivity category, insurance is an important but often overlooked expense because you don't think about it until you need it. It's wise to ensure that you, as a nomad, are adequately covered for any range of unexpected scenarios.
5. Activity
This one also depends on your lifestyle requirements (are you an introvert or outgoing?) and the location. It won't matter how outgoing you are if you're staying in bum-fracking nowhere land, because there won't be $#!+ to do. So if you're trying to save some money, stay in a tiny town.
3 cost-saving strategies
These strategies will help you budget your #fund$ efficiently, ensuring you can live the lifestyle as long as you want to.
1. Embrace slowmadism
Slow down, make deeper connections, and savor the flavor of each new place. Take advantage of discounts for extended rental bookings, avoid tourist traps because you're not in a rush, and dive deep into the local markets; take the time to live like a local.
2. Intercountry hop instead of intercontinental hop
Unless you're on a world tour and have to complete it ASAP. Take more time to explore each region in depth instead of rushing from continent to continent. Slower travel results in a richer cultural experience, and reduces frequent flier fatigue and intercontinental flight costs.
3. Use expense-tracking apps
Why track your expenses the hard way? Using an expense-tracking app to budget is more efficient and is less human error-prone than relying on pen and paper to make financial calculations. Plus many of them are free to use.
Is living nomadic for you?
If you made it this far, I'm sure you'll live a nomadic lifestyle in no time. Just don't forget to budget for the lifestyle required to live your best baddie life.