Discover the secrets to financially sustaining your adventures when on the move.

The digital nomad lifestyle is a dream for many people who seek adventure, flexibility, and the freedom to work from anywhere in the world. But with the freedom to travel comes the responsibility to budget and manage your finances effectively. Not only do you need to cover all your day-to-day expenses, but you also need to ensure that you have enough money set aside for emergencies and unexpected events. And that’s where travel insurance comes in.

Having spent over 6+ years living as a digital nomad, I have compiled a list of crucial steps for budgeting in order to sustain a full-time travelling lifestyle as a nomad.

Determine your Monthly Expenses

Before you embark on your digital nomad journey, it’s important to determine your monthly expenses. This includes everything from accommodation and transportation to food and entertainment. Keep in mind that some destinations may be more expensive than others, so it’s important to research and plan.

Once you have a good understanding of your monthly expenses, you can start budgeting accordingly. One way to do this is by using a budgeting app or spreadsheet to track your expenses and monitor your spending.

Prior to embarking on my nomadic lifestyle, I meticulously monitored my finances, accounting for every single expense from routine direct debits to daily expenditures (which I still do to this day, almost as a pleasurable habit). By doing so, I gained an understanding of my monthly expenses and how much I could potentially save. It’s hard to believe that five years down the line, I’m actually saving significantly more than I ever did living in one place, and the life experiences I’m gaining are far beyond anything I had ever imagined while residing in London, UK.

Establish a Budget for your Travel Expenses

As a seasoned digital nomad who slow travels, I know from experience that creating a clear travel budget is essential for maintaining financial sustainability while exploring new destinations. One tool I use to plan my trips is Numbeo, the world’s largest cost-of-living database, which allows me to compare expenses between different cities.

To establish a realistic travel budget, it’s important to consider all potential expenses, including transportation, accommodation, food, and entertainment costs. Researching the cost of living in each destination and comparing expenses can help identify the most affordable options. Keep in mind that living costs can vary significantly from one location to another, so it’s crucial to remain flexible and adjust the budget accordingly.

By setting a well-planned travel budget, you can travel worry-free, whether you’re exploring a new city or living in a remote village. Budgeting for your travel expenses can help you make the most out of your travels while staying financially responsible.

Look for Ways to Save Money

As a digital nomad, it’s important to be resourceful and seek out ways to save money during your travels. This can involve identifying affordable accommodation options which we’ll talk about shortly. Opting for public transportation over taxis and eating at local street food stalls instead of expensive restaurants are also great ways to save money while exploring new destinations.

Another way to save money is by taking advantage of local promotions, discounts, and special offers. Many cities offer free walking tours, museums, and cultural events that can enhance your travel experience without putting a strain on your budget. 

By being mindful of your expenses and seeking out cost-effective alternatives, you can extend the duration of your travels and immerse yourself in local cultures without worrying about overspending.

Use Travel-Friendly Banks and Rewards Programs

Using no-fee bank cards or rewards programs can be a great way to save money on your travel expenses. 

I use Revolut as my go-to bank because it offers the convenience of no foreign transaction fees, which means I don’t have to worry about extra charges eating into my travel budget. Additionally, with Revolut, I can easily exchange currencies at interbank rates, ensuring that I get the best deal for my money. Another advantage of using Revolut is that it offers a variety of features, such as budget tracking and instant spending notifications, that help me stay on top of my finances and avoid overspending.

American Express (AMEX) is another great option as they offer several rewards programs that can be redeemed for travel-related expenses such as flights, hotels, and car rentals. 

I’ve been a long-time user of AMEX and recently I was able to book a return trip from Madrid to Bogota for only £175 using points and a companion voucher! It wasn’t an easy process, but it was definitely worth it, especially for a big trip like that. 

Both Revolut & AMEX rewards have been a game-changer for my digital nomad lifestyle, helping me save money and stay financially organised while exploring new destinations. 

Disclaimer: these are the cards that work best for me, be mindful of your spending habits when signing up for a new credit card!

Find Affordable Accommodations

Accommodations can be one of the most significant expenses for digital nomads. However, there are ways to find affordable options. Consider staying in hostels, coliving, Airbnbs, or even house-sitting. 

Co-living spaces and hostels are the most cost-effective way to save money while travelling. In these types of accommodations, you can often get a private room with shared common areas and sometimes shared bathrooms. 

I am also signed up to the RemoteBase newsletter and make the most of their deals when booking an Airbnb. If you’re looking to stay somewhere for longer than one month then RemoteBase is the one for you. They share highly discounted long-stay Airbnb deals! 

Invest in Travel Insurance

According to a report by MBO Partners, the number of digital nomads with traditional jobs increased by 9% in 2022, growing from 10.2 million in 2021 to 11.1 million in 2022. And while the lifestyle can be liberating, it’s not without its risks. That’s why having travel insurance is crucial for digital nomads. Yet, many don’t realize the importance of travel insurance, and only a small percentage of nomads actually have it.

Travel insurance is an essential part of your financial planning as a digital nomad. It can protect you from a wide range of unexpected events, such as medical emergencies, trip cancellations, lost or stolen luggage, and more.

If you’re looking for a reliable travel insurance provider, I highly recommend using SafetyWing. SafetyWing is a travel medical insurance that was created by nomads for nomads. You can purchase a policy even if your trip has already started, and pause and resume coverage with flexibility. You’re covered in 185 countries and you don’t need to let them know about your itinerary in advance. Perfect for people like me who don’t know where they’ll be next month! Check out their website at https://safetywing.com/

Embrace Slow Travel

For me, slow travel means staying in a location for an extended period of time, typically 2-3 months or longer. By embracing slow travel, it allows me to save money and experience the local culture. 

Slow travel offers benefits like immersion in local cultures, reduced travel expenses, and minimized burnout. It allows for language learning and connecting with locals, leading to an authentic and fulfilling travel experience. 

Above all, slow travel allows digital nomads to save money on transport and accommodation costs, and avoid the stress and exhaustion of frequent travel. It also supports the local economy and promotes a sustainable and mindful approach to digital nomadism.

So that’s all, you’re ready to start budgeting and booking! What is stopping you right now?

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