The Backpacker’s Digital Nomad Guide – The term ‘digital nomad’ appeared in a 1997 book by Tsugio Makimoto and David Manners, but it wasn’t widely used when I started my digital nomad journey in 2014. , because at that time there were still very few digital nomads who could share their experiences online.
If you’re one of those people who wants to know more about what being a digital nomad is and doesn’t know where to look, I want to be the person you wish you had met when you first started.
The Backpacker’s Digital Nomad Guide
In this guide, we’ll walk you through an introductory roadmap on how to become a digital nomad, along with important definitions, benefits, and challenges of the digital nomad lifestyle. Let’s jump right in!
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A digital nomad is a person who earns an income by working online, usually in a variety of locations. Many digital nomads prioritize frequent travel, often to international destinations.
Today, more than 35 million people worldwide identify as digital nomads, and that number is expected to continue to grow.
Digital nomads tend to rely on internet connections, communication tools, and online platforms to complete work remotely and are generally tech-savvy. But there are other concepts that are often confused with the digital nomad lifestyle. Let’s look at them one by one.
A remote worker is someone who works remotely 24/7, even from a home office. Remote workers may not be completely location independent. For example, your employer may require you to work from your registered workplace (e.g. your home).
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Digital nomads are effectively remote workers, but not all remote workers are digital nomads. In reality, remote work alone does not equate to a digital nomad lifestyle.
What sets digital nomads apart is their prioritization of travel and a generally community-minded mindset. Many digital nomads are forced to work harder for their communities by working in co-working spaces and attending nomad meetups. Overcoming feelings of isolation without a permanent home can be difficult. Remote workers who are not digital nomads may not face these challenges to the same degree.
Expats are people who have left their home country to settle in a new country either temporarily or permanently. Expats may or may not be remote workers or digital nomads. Some expats will work remotely or for themselves, while others will have local jobs in the country of their choice.
Many expats have long-term apartment leases or own property in the location where they settle, so the focus on minimalism may not be as high as it is for digital nomads.
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On the other hand, digital nomads may consider themselves expats, but some expats may not consider themselves digital nomads. This is because the focus of the latter group is less about travel and more about putting down roots in a specific place.
Expats generally focus on long-term relocation, while nomads move more frequently, but there is not necessarily a hard line drawn between the two in terms of time requirements.
Digital nomads engage in similar travel activities as tourists, but their travel style is significantly different.
Typically, tourists travel on short trips and do little or no work while traveling.
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For digital nomads who prioritize travel and work, travel is not just a vacation but a lifestyle. They usually work full or part time and tend to travel more slowly and frequently than tourists.
Digital nomads also tend to connect more with their local communities, support more local businesses, and form deeper relationships within their local communities due to their slower travel (though generally not to the same extent as expats).
While many tourists want to respect the local culture and learn a few basic phrases in the local language while traveling, digital nomads often take this a step further by enrolling in extended language learning, cooking, or dance classes. Tourists are looking for an escape from everyday life, but this is the daily life of digital nomads.
Backpackers are generally a more budget-conscious type of tourist, typically travel for longer periods of time and are often younger.
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Backpackers typically do not work while traveling and do not need to balance work and exploration in a long-term sustainable way like digital nomads. Backpackers can choose to volunteer to help local communities pay for their travel or build up some savings while digital nomads continue to travel and work.
There are countless benefits to the digital nomad lifestyle, and many nomads like me say they could never imagine going back to the office.
Let’s be honest, who doesn’t want to escape the constraints of a 9-5 subsidy and office culture? Freedom and flexibility are some of the top perks cited by many digital nomads.
Digital nomads like the ability to choose where they work, and many digital nomads also have a lot of flexibility in their working hours and how they plan their day. This is especially true for freelancers and entrepreneurs, although employees at remote-friendly companies can also have significant flexibility in their working hours.
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Digital nomads have significant exposure to personal growth opportunities. By continually immersing themselves in different cultures, digital nomads can easily broaden their perspectives on life and (if they’re open to it) challenge their comfort zones.
Depending on where a digital nomad comes from and where they travel, it may be possible to lower their cost of living. Geographic arbitrage is an umbrella term for choosing strategic locations that can help you grow your money further.
Some digital nomads choose an inexpensive place to live and then take short trips. This type of digital nomadism specifically blurs the lines between digital nomads and expats.
While there are many positive aspects to the digital nomad lifestyle, there are also some challenges that should not be underestimated.
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Most, if not all, digital nomads admit to feeling lonely and isolated at least once. In addition to normal work and life stresses and shifting content, being away from family, friends, and other existing support systems can be difficult on your mental health.
Some things that can help you deal with loneliness as a digital nomad include collaboration, online communities, and prioritizing social interactions.
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Many digital nomads are freelancers or entrepreneurs. This means their income is not as stable as working for a traditional company. The reality of freelancing means you’ll spend unpaid time looking for clients, and even when you do have clients, your work may not always be consistent. It’s a good idea to have a financial buffer.
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Those who choose this path are advised to start building their customer base and work on establishing multiple sources of income before committing to a nomadic lifestyle. Fortunately, there are many ways to make money online. You can find our dedicated guide below.
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Imagine arriving at a new destination you’ve been wanting to visit forever. It can be difficult to sit down and get work done. As a digital nomad, you need to be self-disciplined and set boundaries between work and leisure. This can be difficult even for experienced digital nomads.
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Even if you stop practicing self-discipline, productivity issues may still be issues that are out of your control. Your apartment’s Wi-Fi may not be as reliable as you hoped, and in some destinations, Wi-Fi in general, cell networks, and even the power grid may be less reliable.
If you do all but the most flexible jobs (and have the right mindset), a backup mobile hotspot is essential. If you’re concerned that your mobile hotspot may not be working properly, there are other internet options worth considering.
If you need more inspiration, read our dedicated guide on how to stay productive as a digital nomad.
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Finally, digital nomads must consider the legalities and tax implications of nomad travel. Most digital nomads travel on tourist visas, which usually do not explicitly allow them to work. Tourist visas usually also allow short-term stays. Some digital nomads are willing to operate in this gray area and stick to short stay times.
Other digital nomads look into work permit visas, but these are more expensive and more difficult to obtain. Taxes may be levied depending on the length of stay in a country.
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