Becoming a Digital Nomad: A Guide to Location-Independent Living and Remote Work ?

Have you ever wondered what it would be like to pack up everything, go to a foreign country and work as a digital nomad? I’m sure most of us have daydreamed this very thought on a crowded subway while contemplating the fact that one benefit of wearing masks in public is that you can’t smell your armpit, which is way too close to your face.

We’ve all looked out the window at work and thought about how nice it would be to spend some time in a summer cabin by a fjord, take some time for yourself, go for a walk in nature and just get away from it all. It sounds like a great idea, but how are you supposed to pay for it all?

In today's world, the way we are connected has allowed people to work in different ways. Most of us have already experienced working remotely or in a hybrid model, and the way we do our jobs will continue to change.

The opportunity to embark on an international adventure is easier than you think. If you have a skill that can be practiced online, you may be able to become a digital nomad. But what exactly does that mean? How can you do it? What do you need to look out for? Read on to find out all this and more.

What is a digital nomad?

So what exactly is a digital nomad? The term sounds a bit like a race of people in a post-apocalyptic sci-fi movie, but it has its roots firmly planted in reality. A digital nomad is basically any type of worker who can do their job from pretty much anywhere in the world.

Digital nomads can be contract workers, freelancers, remote workers or even people with a part-time job who take advantage of the gig economy. The main difference between digital nomads and the rest of us is that they are not tied to a specific location to earn a living.

There are many reasons why people are drawn to this type of work. Maybe they prefer to work in a different time zone; maybe this type of work allows them to have a better work-life balance, or maybe they are avid travelers and need a job they can do anywhere in the world.

What are the steps to becoming a digital nomad?

A man with a cup of coffee works remotely on a laptop

There isn’t really an "A+B=C" approach to becoming a digital nomad. There are many different paths you can take, and each has its own pros and cons and rough guidelines to follow. However, there are some tips that can help you on your way if you choose to live the life of a digital nomad.

Embrace remote working

Perhaps the most important thing you need to do if you want to set out on the path to becoming a successful digital nomad is to embrace the world of remote working. Not only does this mean getting used to working on a laptop in a coffee shop, but it also means taking a close look at your lifestyle and finances.

As mentioned earlier, the biggest advantage of the digital nomad lifestyle is the ability to travel. If you want to take advantage of this, you need to cut unnecessary costs out of your life.

A "For Rent" sign in the window of an apartment

If you own the home you live in, you may need to rent it out or set up an Airbnb profile to ensure you always have some income to pay the mortgage. If you are renting, it might be a good idea to sign a shorter lease. You should also think about additional expenses such as gym memberships or movie or theater subscriptions. If you live in one place all the time, these things are very useful, but if you travel a lot, they become unnecessary expenses.

It might also be a good idea to get rid of things like a car, a motorcycle or other things that are not used but continue to cost money. The best thing you can do with these items is to turn them into cash.

It’s also a good idea to pay off as much debt as possible, especially high-interest loans or credit cards. If you take care of these financial concerns before embarking on the digital nomad adventure, you are less likely to run into hiccups that eat away at your savings.

The main mantra you need to get used to is that you should prepare to travel as light as possible. That means minimal possessions and minimal financial commitments. So take a look at the things in your life that don’t bring you joy and give them a Marie Kondo makeover.

Join a digital nomad community

Just because you do not work in a traditional structure doesn’t mean you have to do everything on your own. You’re not the first person to take the digital nomad path, and you won’t be the last.

The people who have done it before you have learned a lot, and sharing with them will give you access to a wealth of information. They’ve learned things so you don’t have to, and in many cases there are communities and forums for digital nomads all over the internet. From Facebook to Reddit, you can ask questions and get tips on where to stop by.

If you are starting to navigate the life of a digital nomad, joining a community of like-minded people can be a lifesaver

Identify your core competencies

One of the most important steps if you want to become a digital nomad is probably to look at your individual skills and figure out how you can best utilize them. You need to ask yourself: "What am I really good at?" "How can I market this?" "How much should I charge?

There could be a number of things you can do, or just one. The main point is that you need to figure out your core competencies so you can figure out how to sell them to potential clients.

Ideally, you should focus on work that can be done with a laptop and an internet connection. Some of the most common skills sought online include graphic design, data entry, software development, troubleshooting, writing, copy editing, movie editing and language teaching.

Sign up with the Swapp agency

One of the most difficult tasks when you have decided to enter the world of self-employment is finding clients. It can be difficult to attract the attention of companies that would benefit from your skills, and sometimes it’s even harder to weed out the ones you don’t really want to work with.

One way to get around this difficult stage is to sign up with a company like Swapp Agency. Swapp is a company founded on the concept of matching skilled freelancers and independent contractors with companies that need their skills.

One of the main benefits of signing up with Swapp is that you are immediately connected with reputable companies looking for the exact services you offer. You don’t have to worry about whether the potential client on the other end of the email will take the piss; you will simply be connected with those who need and value your work.

Build your personal brand

After you have been freelancing for a while, you can start thinking about how to make your business as profitable as possible. This may mean focusing on a particular area of expertise or even broadening out to attract more clients. Maintaining a website, updating your LinkedIn profile and sending out samples of your work to potential clients are all good ways to continue building your name and business.

If you want to maintain your business, it’s important that you find ways to attract some long-term clients. These can be your ‘bread and butter’ . Long-term clients create a steady stream of income through regular work, allowing you to focus on the quality of your work rather than spending your days fishing for a sale.

One of the most important pieces of advice I can give you when starting out as a digital nomad is to pay attention to emails, messages and deadlines. One of the main reasons companies are reluctant to use the services of freelancers is that they sometimes feel they are out of the loop or have to wait too long for a response.

Just like in the regular working world, you can be great at what you do, but if you’re not easy to work with, people will just find someone else. Successful freelancers work on time and communicate effectively with their clients.

Develop your business

As your digital nomad business grows, it’s important to look for ways to work smarter. This could mean diversifying your customer reach; it could mean offering incentives to customers who sign long-term contracts.

If you are enterprising, you could also take on more work by outsourcing some of the work to other freelancers you know and trust.

Decide on your goal

As a digital nomad, this might actually be the most difficult first decision you will ever make. The possibilities are endless, and it can be easy to get overwhelmed by choice, but there are a few things to consider that might help you narrow it down a little.

Firstly, you need to know why you’re doing this. If you want to spend more time exploring the outdoors, then staying in Berlin might not be the best first choice for you. You also need to make sure you have realistic ideas of what you need to make it work and your budget.

You can easily live comfortably in Thailand for around US $15,000 a year, but in many parts of Western Europe that might not even be enough for three months. You should choose a place that meets as many criteria as possible, both figuratively and literally, and remember: if you do not like it there, you can just go somewhere else.

Think about how you want to live

This is a piece of the digital nomad puzzle that many people do not think about until the last minute, if at all. We all have different needs when it comes to our living situation, and even if you embark on an adventure, you may soon feel like you have made the biggest mistake of your life if your home does not suit you.

The type of accommodation you prefer is important. You should also find out how easy it is to find a place to live. If you only want to stay somewhere for a short time, couch surfing or Airbnbmight be a good option. However, if you’re planning a six-month stay, a shared apartment might be a better choice.

There are also many websites and networks that match travelers with like-minded people who want to swap apartments or houses for short periods of time.

Whatever you decide, the important thing is that you take the opportunity to have new experiences and find out what’s right for you - on your own terms.

Create a plan and follow it

Goals are important for every professional. You may no longer work for just one boss or even just in one industry, but it’s a good idea to have an idea of where you want to go.

Once you’ve made the decision to work as a digital nomad, take some time to consider all of the above and set a realistic time to set off. From then on, it's easiest to work backwards, set yourself deadlines and stick to them.

Take the time to research the rules, regulations and cultural customs of the place or places you want to operate from. Make sure you know what rights you have as a foreigner and freelancer, and set out a plan of action in case something goes wrong.

Your plan may change or vary depending on how you and your business evolve, but if you have a plan from the start, you have already set yourself up for success. This way you get into the habit of sticking to plans and deadlines, which is essential in self-employment.

Taxes for digital nomads

There is not a single person in the world who wants to think about taxes (well, maybe tax consultants). It’s a necessary part of life that none of us can escape, and as a digital nomad it’s incredibly important to know exactly what you owe and which country you need to pay it to.

Not every country has the same tax rules for foreign citizens and for their own citizens living abroad. For example, most Americans must file a tax return with the U.S. government even if they live abroad. In other countries, you must pay your taxes to the country where you spend more than 180 days per year.

The safest way to make sure you are doing everything right is to first research what taxes you have to pay in your home country when you’re abroad. Then find out about the regulations in your destination country before you move there. It may be worth using the services of a professional tax advisor if you live abroad. It may be an expense you’re not used to paying, but it’s worth factoring into your business budget, if only for peace of mind.

Banking for digital nomads

There are few things that come close to the feeling of being paid for a job you’re good at, and doing it from anywhere in the world is even better, but receiving funds can be a challenge when other countries are involved.

Most bank accounts offer the ability to receive funds from international payers, but this does have some drawbacks. There can be long processing times, international transaction fees often apply, and in some cases the day of the week the money was transferred can make a big difference to what actually ends up in your account.

Not all of us are getting paid in Bitcoin, so what are the other options?

Of course, the easiest would be to open a bank account in the same country as your customer, but that’s just not practical if you offer services in multiple countries. Many digital nomads use online services like Paypal to receive payments. If you are not from a country where this is possible, there are other services like Wise that are available in more countries.

How can the Swapp Agency can help connect employers with remote workers ?

If you’re reading this and you’re actually an employer, Swapp can also help you find remote workers and digital nomads that fit your needs. Swapp prides itself on having access to an incredible network of freelancers across a variety of industries.

The Swapp database has been carefully cultivated to ensure that only the most qualified individuals are connected with Swapp’s clients.

Swapp is also able to operate as an Employer of Record in Iceland, which means that Swapp can assist you with pretty much every step of the process. If you are looking to embark on a project or expand your business to the land of fire and ice, Swapp is here for you.

From HR to onboarding, payroll to project management and everything in between, Swapp can get involved as much as you need to get your business off to a great start in a new market.

Conclusion

Setting off on an adventure as a digital nomad is an achievable goal for anyone with a reasonable level of marketable skills and an internet connection. If you plan it right, it can easily become an incredible time of learning and exploration, but it could also become a permanent way of life.

The world is your oyster, so what are you waiting for? Hit the road and experience the world as a digital nomad.