For starters, digital nomads live the nomadic lifestyle.
Digital nomads aren’t location-rigid, as they work remotely and use various forms of technology to efficiently carry out their jobs from wherever they are in the world.
A digital nomad is a remote worker who travels to different places. It is important to note that digital nomads are not the same as remote workers. Unlike remote workers tied to working only from home, digital nomads often set their base in a coffee shop, a public library or a park. Anything goes as far as the work gets adequately done, even traveling and working abroad.
The term “digital nomad” was coined from a book called The Digital Nomad, authored by Tsugio Makimoto and David Manners in 1997. A digital nomad may work anywhere, from cafes, beaches and even hotel rooms, as they aren’t tied down to office work.
The pandemic events in 2020 saw a giant spurt in the number of individuals who work remotely. Over two years after the pandemic, the trend of remote jobs has come to stay, as many have taken up being full-time digital nomads.
The freedom to choose where to live and work is part of the many benefits of being a digital nomad. Fields such as marketing, IT, content writing, media and consulting can now be performed remotely and still have desirable results.
4 Ways Life Will Change for a Digital Nomad
With present-day technology, a digital nomad can comfortably attend a meeting with colleagues in Costa Rica from a restaurant in South Thailand (which, according to research, is becoming the hotbed for digital nomads across the world).
No doubt, the idea of traveling around the world without affecting one’s job is basked with a lot of appeals.
But, what kind of changes awaits the life of a digital nomad?
1. Taxes
Digital nomads will more than likely see changes in the way they file their taxes, depending on the regulatory practices in the countries they are in. In countries like the UK, any money made there is immediately subject to income tax.
In the U.S., all citizens and holders of green cards must file a document called a U.S. Federal Tax Return—regardless of where they live or work.
It begs the question, “can digital nomads get out of paying taxes, especially when they no longer live in that country?”
That can only happen if they renounce their citizenship.
In most cases, even if a digital nomad intends to completely renounce their citizenship and stop paying taxes to the government of that country, certain countries like the US, Canada and Eritrea, amongst others, require the payment of exit taxes which might be incredibly substantial.
Despite the change in taxes, digital nomads aren’t deterred.
2. Culture
A digital nomad deciding to move abroad to another country is thrilled with the prospects of meeting new experiences, friends and having a new environment. But, what most people aren’t expecting is the culture shock that comes with visiting a new country.
From the language barrier and startling differences in food, a digital nomad might start feeling stressed, anxious and even battle a wave of homesickness.
What are the best ways to be adequately prepared for a culture shock?
- Proficiently learn the basics of the languages before traveling.
- Build a network online with local digital nomads there.
- Make it a duty to understand more about your country.
3. Keeping a Regular Flow of Income
Digital nomads earn money from freelancing or engaging in remote jobs
While few are lucky to get sustainable clientele who do not mind their nomadic lifestyle, some resort to scouring for new clients, which puts a hamper on income coming in.
Insufficient lack of funds has influenced the decision of several nomads to go back to their everyday life as the nomadic life is quite expensive to practice.
4. Balancing Work and Personal Life
The tendency to mix up personal and work life is higher for digital nomads. This is primarily because digital nomads carry their jobs everywhere they go, unlike 9-5ers who work in the office.
Digital nomads, however, may opt to work outside of regular business hours. They may even work during holidays and when on vacation.
Knowing how to strike a balance is very important to living a healthy life and adjusting to the changes that being a digital nomad brings.
Summary
From what you can see, digital nomads earn a living by working online while living in different locations based on their choosing instead of from a particular site.
According to a recent survey, many people have embraced the digital nomadic lifestyle so that they’re even renouncing their U.S. citizenship.
Because their job or career is entirely remote, digital nomads can decide to travel around the world; so far, there is access to the internet and technology enough to get the job done.
Yes, living and working from nearly anywhere opens up a million possibilities for people.
But, it is equally essential to be fully aware of the pros and cons of the decision to be a digital nomad.
