“Digital nomad” has become a favorite buzzword over the past several years, thanks to the burgeoning trend of remote working and the universal desire to travel. But what exactly is a digital nomad? And can you become one if you have the right business?
What Is a Digital Nomad?
First, let’s define what a digital nomad is—and how it relates to business. A digital nomad is someone with the potential to work practically anywhere in the world, because their business or their profession allows them to accomplish their responsibilities using only digital devices and an internet connection. As the name suggests, digital nomads often drift from place to place, traveling around the world while working to satisfy their wanderlust while maintaining a decent income.
Advantages and Disadvantages
There are many advantages to being a digital nomad:
- Travel potential. Nearly half of young people would rather spend money traveling the world than buying a house, reflecting an era where travel is a top priority for our population. Being a digital nomad gives you the opportunity to travel without compromising your career or income.
- Flexibility. Your profession as a digital nomad gives you the ultimate level of flexibility. You aren’t tied to an office, or any other location, nor are you likely to be tied to specific working hours. This flexible lifestyle leads to less stress overall.
- Autonomy. Digital nomads have more autonomy over their work, since they can make decisions for their business, choose how and when they work, and choose where and when they travel. And according to the latest research, autonomy may be the biggest overall contributor to worker happiness.
However, there are some disadvantages to consider as well:
- Cost efficiency. It’s possible to travel on the cheap, but more often, you’ll find cost barriers jumping from country to country. You’ll need a reliably consistent and significant income if you want to afford this kind of lifestyle.
- Accessibility. Being a digital nomad doesn’t work for every career or every professional. Some businesses require a physical presence, and others can fall apart if you don’t have the right mindset to manage them.
- Stability and predictability. If you’re traveling to other countries, stability and predictability may interfere with your ability to work. For example, you may have trouble finding a convenient location with an internet connection, or language barriers may make it difficult for you to find an office for the day.
How to Get Started
If you’re convinced living the life of a digital nomad is right for you, there are some steps you can take to establish a career conducive to that lifestyle:
- Develop the right skillset. Being your own boss and working remotely gives you a lot of freedom—but not everyone can handle that freedom efficiently. Before you decide to become a digital nomad, spend some time perfecting skills like time management, working without supervision, and setting and achieving goals.
- Start your own business. While it’s possible to be a digital nomad within an existing profession or industry, it’s much easier to be one when you start your own business; this is because you’ll be subject to fewer rules and restrictions, and you’ll get to establish the environment in which you want to work. Before you do that, of course, you’ll have to come up with a business plan for which being a digital nomad is feasible, like a drop-shipping company or a business that provides purely digital goods and services.
- Build up emergency savings. The last thing you want is to be stuck in a hotel without internet access, or trapped in a country with no easy way to get out. Accordingly, it’s a good idea to build up your emergency savings before you start traveling. Accumulate a few thousand dollars so you can more easily bail yourself out of a bad situation.
- Establish redundant ways to work. If you’re not working, you won’t be generating revenue—which means you won’t be able to support your digital nomad lifestyle. That’s why it’s important to establish multiple redundant ways to work, such as bringing a mobile hotspot with you in case you aren’t able to find an available connection.
- Have an endgame. Most people aren’t cut out to be digital nomads forever. It’s wise to come up with an endgame for yourself, and a long-term plan for how to manage this lifestyle. For example, how long do you plan to do this? What will you do after your first several years?
Being a digital nomad isn’t right for everyone, but it can be a rewarding and exciting way to build a career. As long as you’re familiar with the advantages and disadvantages going in, and you have a plan to compensate for them, you can make this setup work in your favor.