Kristin M. Wilson

Article / Updated 08-03-2023

A digital nomad job is one that you can do from anywhere while traveling. Here are five examples of the main ways that digital nomads make a living: Remote employment: being a salaried part-time or full-time employee Freelancing: doing independent, contract work for other people or companies Online business: any type of business you can do on the Internet, from starting a small business to building a large company or founding a startup Passive income: living on income from investments or automated income streams Multiple income streams: a hybrid model in which you combine two or more jobs to generate multiple revenue streams The average person spends 90,000 hours of their life working. Make sure it’s doing something that you like! You can apply your skills in different ways to earn an online income. For example, if you work in the marketing field, you could apply for a remote job as a marketing manager, become a freelance marketing consultant, create a digital marketing or advertising agency, or become an affiliate marketer. If you work in video production, you could work remotely for a company, offer services as a freelance video editor, start your own film production business, or earn passive income from YouTube videos. You can also work in two areas as a YouTuber who freelances on the side. Erin Carey, a former government employee in Australia, didn’t have any online business experience when she decided to work for herself. However, she had a background in communication. So, she decided to use her writing skills to start a travel blog, which eventually led her to create a public relations agency for travelers. Carey is now able to sail the world full time with her husband and two children while working remotely from their sailboat. Like Erin, you can transition from a traditional job to entrepreneurship. Or you can transfer skills you’ve developed in a past job to a remote job or freelancing option. Becoming a remote employee Since the COVID-19 pandemic, remote workers have surpassed online freelancers in becoming the biggest segment of the digital nomad population. The graph below shows how many digital nomads in the United States work independently versus for a company. According to a University of Chicago study, 37 percent of U.S. jobs can be performed remotely. In the post-COVID-19 era, that number is expected to continue increasing. Commercial real estate firm, CRBE, estimates that 87 percent of large companies plan to adopt a hybrid work model in the future, up from 40 percent in 2018. Remote jobs are available in almost every industry, including: Accounting and finance Administrative Business development Consulting Creative: writing and design Customer service Education and training Engineering Human resources Information technology Legal Managerial Marketing and advertising Medicine and health Project management Public relations Sales Software and programming Sports Web and app development Although there’s a perception that you have to be tech-savvy to get a remote job, that’s not necessarily true. Most companies operate using tools you’re already probably familiar with, such as email, messaging apps, and good ‘ol Zoom. Many job boards have a “non-technical jobs” category or search filter. NoDesk and RemoteOK are two examples. A remote job skill or job title can also be done in a freelancing capacity or as the basis for an online business. The fastest-growing remote careers According to FlexJobs, these were the top ten fastest-growing remote career fields in 2021: Virtual Administration HR & Recruiting Nonprofits SEO & SEM Bookkeeping Marketing Call Centers Bilingual/Translation Social Media Management Writing Freelancing your way to freedom If you want control over your time and income, consider freelancing. In 2021, one in three U.S. workers (nearly 53 million people), were freelancing, with freelancers making up 47 percent of remote workers. According to Pieter Levels, the founder of Nomad List, there may be as many as 1 billion digital nomad freelancers and independent workers worldwide by 2035. Freelancing is arguably one of the fastest ways to start earning an online income because it’s very versatile with low barriers to entry. You can technically become a freelancer today. All you have to do is choose a service to offer or a problem to solve and announce to the world that you’re available for hire. Setting up a freelancing profile online takes a matter of minutes. Popular websites where you can offer freelancing services include: Fiverr, LinkedIn, PeoplePerHour, Simply Hired, Toptal, Upwork, and ZipRecruiter. Declaring yourself a freelancer doesn’t mean you’ll become a millionaire overnight, of course. As with anything, it takes time to grow your database of clients and build your income. However, it’s one of the most common routes to becoming a digital nomad. Freelancing offers a host of benefits, with flexibility being at the forefront. You have control over your time and schedule, how much you charge, the services you offer, and which types of clients you work with. You could potentially earn more money freelancing than you do in an office job. According to Upwork, 44 percent of freelancers earn more working independently than they did as salaried employees. Check with your accountant or tax advisor about which type of business structure you should set up (if any). Ask them if registering a business entity or working as a sole proprietor would be better for you and get help filing your taxes, if needed. Popular freelancing categories include: Accounting and finance Artificial intelligence (AI) Coaching and consulting Computer and information technology (IT) Customer service and virtual assistance Engineering Graphic design and web development Human resources and recruiting Legal and administrative Music and audio production Photography and videography Sales and marketing Social media management Software development Writing and editing There are some downsides to freelancing, however. Freelancers’ incomes typically fluctuate from month to month. They don’t receive the same benefits or compensation packages that many full-time employees enjoy. Also, freelancers typically pay out of pocket for health care, fund their own retirement accounts, and pay self-employment taxes. Then there’s the hustle factor. Freelancers often need to balance their workloads with managing administrative tasks and finding new clients at the same time. Loneliness can also take a toll when you work for yourself.

Article / Updated 11-10-2022

Listen to the article:Download audio At a basic level, a digital nomad is someone who can work from anywhere using the Internet or other technology. Not all nomads work, however. Some live on income from pensions, investments, and other recurring revenue streams they can access remotely. Digital technology has all but erased borders for business and communication. Just as a remote company doesn’t have a physical office or central headquarters, a digital nomad doesn’t necessarily have a fixed place of residence. Your home can be wherever you are (or wherever you find Wi-Fi). Digital nomads have all types of different jobs. They can work for themselves or someone else. They can work part time, full time, or on a contract basis. They can even stop working if they develop ways to live off automated or passive income streams. Digital nomads can include: Home-based remote workers who can technically live anywhere but choose to remain in one city or country. Partially nomadic people who keep a home base and travel part time. Fully nomadic people who don’t have a fixed address. They may have sold everything they own or keep a storage unit and travel year round or without an end date. Temporary nomads who are fully or partially nomadic sometimes and static sometimes. Some folks also live like nomads for a few months or years before returning to a traditional lifestyle. The table below provides some detail about the different types of digital nomads. Type of Nomad Description Remote Employees People who work remotely on a salary for a company or organization. Online Freelancers Self-employed, independent contractors who offer services on an hourly, per-project, or other basis. Online Business Owners Entrepreneurs, startup founders, and anyone who runs a virtual business of any size. Influencers and Content Creators People who earn a living through social media, publishing online content, and leveraging their personal brand. Passive Income Entrepreneurs & Investors People who have achieved financial freedom through investment income or automated income streams. A nomad by many names The term, digital nomad, has become a buzzword. But, as with gender or sexual orientation, digital nomads can choose to identify with another term or kick labels to the curb altogether. Other ways to self-identify under the digital nomad umbrella include: Digital freelancer Digital entrepreneur Expat (or techpat) Location-independent professional Nomadic professional Online entrepreneur or solopreneur Online professional Perpetual traveler Professional wanderer Remote employee Remote worker Technomad Wandering professional These are just a few examples of the many ways that people choose to describe their lifestyles. Remoteness is a sliding scale. Just as there are hybrid organizations, there are also hybrid nomads. You can combine different types of jobs and income streams to create a lifestyle that suits you. Who’s adopting the nomad lifestyle? In this section, I dig deeper into digital nomad demographics. You find out where digital nomads are from, what they do for work, how old they are, and how much they earn. An overview of the U.S. digital nomad population is shown in the figure below. Do you see yourself represented here? Generations: Z, Millennials, X, Baby Boomers You might think that a digital nomad lifestyle is more suited to younger generations, but research shows that people of all ages dabble in digital nomadism. One Facebook groups study calculated the average age of digital nomads to be 40 years old, with the oldest nomad in the study being 72. In 2021, Millennials made up the largest segment of digital nomads, with 44 percent, followed by Gen X, Gen Z, and Baby Boomers. Although only 12 percent of digital nomads were Baby Boomers in 2021, according to MBO and FlexJobs, they made up a third of the population two years earlier. Researchers believe this decrease was temporarily attributed to COVID-19 concerns in high-risk groups. People from many parts of the world Although most of the data on digital nomad demographics comes from U.S.-based research, the digital nomad population is global. A survey of English-speaking nomads in Facebook groups recognized nomads from at least 39 countries. In a 2018 Fiverr survey of Anywhere Workers, 57 percent of respondents were from the United States, with the rest representing countries such as Kenya, Myanmar, Slovakia, Canada, Colombia, Romania, Venezuela, Indonesia, Australia, India, and the Philippines. To estimate how many digital nomads there are worldwide, it’s assumed that a certain percent of independent contractors and remote workers alike will experiment with a nomadic lifestyle at times. In the most comprehensive report on digital nomads to date, MBO Partners found that 15.5 million Americans (or 10 percent of the U.S. workforce) described themselves as digital nomads. The number of U.S. digital nomads increased by 20 percent during 2019–2021, as the world adopted remote work on a mass scale. The United States wasn’t the only country with people working from home, of course. In 2021, China’s flexible work population reached 200 million people. The government has since released a five-year “Digital Economy Development Plan,” encouraging citizens to seek Internet-based employment. Currently, only 11 million Chinese identify as digital nomads. But if 10 percent of the Chinese workforce went nomadic, that would be 140 million people! Other countries have taken similar measures to encourage remote work. In 2019, Costa Rican president, Carlos Alvarado, passed a work-from-home law regulating telecommuting for the first time. The following year, Chile’s government passed a Distance Working and Teleworking law. And in 2021, Ireland passed the Right to Request Remote Work Bill in an effort to normalize flexible working in Irish society. Governments from Angola to Belgium and beyond have passed or announced some form of remote working legislation for their citizens. That’s on top of the 40 plus countries offering remote work and digital nomad visas for foreigners. The more remote work is regulated throughout the world, the more companies will adapt to such legislation, freeing millions of people from the office in the process. Meandering men and wandering women The reported male to female ratio of digital nomads has varied widely over the years. In the Anywhere Workers study, 63 percent of respondents were men and 37 percent were women. However, FlexJobs estimates that 70 percent of digital nomads are women. And the 2021 survey among digital nomad Facebook groups uncovered an even split of 49.81 percent females and 50.19 percent males. Folks at every career stage Digital nomads span all generations, industries, backgrounds, and careers. From the present day and beyond, many high school and college grads will never step foot into an office. They may be the first generation to start their careers as nomadic workers from day one. The digital nomad lifestyle doesn’t discriminate, however. Plenty of people transition to digital nomadism mid-career or in retirement. Employees from an assortment of industries Nomads come in an array of fields. The one thing nomads have in common is that they can do their jobs online or earn an online income. The rest is up to you! Some of the most common industries where you’ll find nomads include (according to MBO Partners): 19 percent Information Technology 10 percent Creative Fields 9 percent Education and Training 8 percent Coaching and Consulting 8 percent Research 8 percent Sales, Marketing, and Public Relations 8 percent Accounting and Finance 30 percent Other Fields The have-lots-of-money, the have-some-money, and the have-little-money sets Because digital nomads represent a diversified mix of the global population, their income is as varied as their job titles. Although Fiverr found that more than half of “anywhere workers” were freelancers in 2018, the ratio of salaried to self-employed nomads is evening out. MBO’s research suggests that the number of salaried nomads tripled between 2019 and 2021, with many remote employees being “high earners.” 44 percent reported earning at least $75,000. Previously, Fiverr’s Anywhere Workers study found that 57 percent of nomads earned less than $50,000 per year, with 10 percent earning $100,000 or more. That number could be on the rise, though. FlexJobs asserts that 18 percent of nomads make six figures or more, with 22 percent making between $50–100,000. Remote working women tend to earn less than men, though, with more than one study finding that “the gender pay gap has no borders,” according to Fiver’s Anywhere Workers study. Either way, there’s no limit on how much money you can make in the digital nomad lifestyle, especially when you combine multiple income streams. You can also save a lot, too. Many remote workers engage in geo-arbitrage, earning a high income while living in rural areas or developing countries with a low cost of living. Fortunately, freedom doesn’t have to cost a lot. 21 percent of nomads earn less than $25,000 per year, according to MBO Partners. But regardless of how much money digital nomads make, 85 percent are happy at work and 79 percent are satisfied with their income. It just goes to show that money doesn’t necessarily buy happiness — so long as it buys the ability to travel!

Article / Updated 11-10-2022

Listen to the article:Download audio I believe that the digital nomad lifestyle can be right for everyone. After all, who doesn’t want the ability to do what they want, when they want? A better question might be to ask yourself how nomadic you want to be and for how long. Becoming a digital nomad doesn’t need to be an extreme decision where you quit your job, sell your stuff, and book a ticket to Bali the same day. Your version of location independence can follow one of the examples in this book, or it can be something you design. But, for now, here are some of the pros and cons to help you decide. Exploring the potential benefits Becoming a digital nomad could be the best thing since sliced bread. These are some of the benefits: Community: Imagine if your friendship circle included thousands of people from 200 countries — that’s possible when you travel the world. Cost savings: Digital nomads can save money in many ways, such as lowering their cost of living and increasing their savings rate through geo-arbitrage (earning in a strong economy while living in a low-cost area), buying fewer material things, and changing their tax base. Creativity and innovation: Immersing yourself in new cultures and places is a good way to gain inspiration in your work. Researchers have found a correlation between travel and increased innovation. Earning potential: Many digital nomads use their newfound freedom, flexibility, and time to build multiple income streams. Many salaried digital nomads are high earners, while freelancers can earn more working for themselves than for an employer. Family: Tim Urban, of the website Wait But Why, calculates that by the time you turn 18, you’ve already used up 98 percent of your time spent with family. But when you’re a digital nomad, you don’t have to wait until the holidays to see your loved ones. You can visit them anytime! Nomad parents can also spend more time with their children when traveling together and doing homeschool or remote learning. Freedom: As mentioned, freedom of all shapes and sizes is the top reason people want to become digital nomads. You have micro freedoms, such as how to spend every minute of the day. And you have macro freedoms, such as changing your country of residence, taxation, or citizenship. Fulfillment: Digital nomads are happy campers! According to MBO Partners, 85 percent of digital nomads report being happy and satisfied in their lifestyles. Up to 90 percent say they will never go back to a traditional office job. Fun: Being a digital nomad is really fun. Whatever you like to do, you can do more of it when you live a digital nomad lifestyle. Health and wellness: With more time and control over your workplace, schedule, and environment, you can make healthier choices as a digital nomad. Eliminating your commute also reduces stress and increases well-being. Network: Digital nomads have more opportunities to meet people from different cultures, backgrounds, and industries compared to when they worked in one place. Productivity and focus: Researchers agree that remote workers suffer from fewer distractions compared to working in an office. Time: Digital nomads can save up to 3,000 hours per year that were previously spent on commuting, meetings, office distractions, and household chores. Travel: Undoubtedly, one of the biggest draws of the digital nomad lifestyle is being able to travel. Imagine being able to work with a view of the Eiffel Tower. That’s possible when you can work from anywhere! Recognizing the potential drawbacks Every decision in life has pros and cons. (Even eating cupcakes.) For all the benefits of a location-independent lifestyle, there are some downsides: Burnout: Although the majority of digital nomads are happy and satisfied with their lifestyles, remote work and travel burnout is still a thing. Dating and relationships: Living nomadically can complicate relationships, whether you’re single and dating or living with your significant other. Friendships and partnerships at home may suffer the longer you’re away. And, although you may meet more people while traveling, you might not see them again. Being unsettled: Not having a fixed home can wear on you over time. If you’re planning to be a temporary nomad, this isn’t much of a concern. But many long-term nomads eventually find somewhere to settle so they have more stability and community. Loneliness: Everyone experiences loneliness sometimes, whether you’re a nomad or not. But traveling alone and working alone can make you feel even lonelier at times. In a Fiverr study, 30 percent of respondents said lack of community and human connection were their biggest struggles. Productivity and motivation: Many digital nomads are self-motivated, with only 7 percent of “anywhere workers” citing motivation as a challenge. However, it’s still a factor, especially when combined with occasional loneliness and isolation from working alone. Risk of failure: Failing in business in a foreign place can be a scary prospect, especially if you don’t know the culture well or have a local support system. It’s important to keep a stash of emergency savings in case you end up between jobs or need to cut your adventure short and fly home. Uncertainty: Uncertainty is the flipside of the excitement and the adventure of a nomadic lifestyle. There’s a fine line between living outside of your comfort zone and living in anxiety. Manage uncertainty by being as prepared and organized as possible.

Cheat Sheet / Updated 10-20-2022

There’s never been a better time to go remote! Living a life you’ve always dreamt of is well within reach when you become a digital nomad. If you’ve been thinking about trading your traditional job for a life of freedom and location independence, check out this cheat sheet with tips to help you get started.