Pros and Cons of Becoming a Digital Nomad - One Year Review
A year ago, I became fully nomadic and started my around-the-world journey of living in cities with the biggest digital nomad communities. In the past year, I’ve traveled to 6 continents and spend over a month in 7 nomad hubs each: Bali, Lisbon, Barcelona, Playa Del Carmen, Medellin, Buenos Aires and Split.
So I thought I could share my perspective on the pros and cons of the nomadic lifestyle, based on my own experiences and observations, in order to help you decide whether the digital nomad life is for you. Whether you're considering embarking on this adventure or simply curious about the lifestyle, read on to gain insights into this nomadic way of living.
Let’s start with the pros.
1). Location Freedom: You’ll no longer be confined to living in one place only.
Human are creative animals. Life can become quite mundane when you live in one place for too long, and life is also too short to live in one place only. The ability to work and travel at the same time will allow you to live life on your own terms, creating a fulfilling and enriching lifestyle that blends work, travel, and personal development.
Traveling the world is often quoted as the number one bucket list, and there are hardly people who wouldn’t want to do so given the appropriate means and possibilities. Once you establish the digital nomad lifestyle, you get to finally realize your dream and indulge in diverse experiences, from trying local cuisines to engaging in unique activities.
Picture waking up in a new city every few months, exploring the cobblestone streets of an ancient European town, indulging in delectable local cuisine, and immersing yourself in diverse cultures. How cool would it be to be able to live in a few different places throughout the year!
2). Time Freedom: You’ll have more flexibility to create your own schedule.
Unless you work for a company that has very defined work hours, you’ll have more freedom to choose your own schedule, work at your own pace, and create your own work-life balance. This means you can structure your time in a way that suits your preferences, whether it's working from a coffee shop in the morning, exploring a new city in the afternoon, or taking a day off to relax and rejuvenate.
This flexibility allows you to design a lifestyle that aligns with your personal values and priorities, providing a sense of freedom and autonomy that can be incredibly rewarding.
3). Geographic Arbitrage: You’ll likely save significantly with a lower cost of living
This is especially true if you are from cities with high cost of livings. By choosing to live in countries with a lower cost of living, you can enjoy a higher quality of life. For instance, opting for a cozy apartment in a quaint town in Southeast Asia or Latin America could cost a fraction of what it would in a major Western city. Rent, groceries, transportation, and dining out are often much more affordable in other countries.
Additionally, the flexibility to move to a new location once the cost of living increases in one place can allow you to continue your global adventure while keeping your expenses in check.
4). Tax Optimization: You’ll have more choices to set up an optimized structure with low-tax countries
Digital nomads, who have the freedom to work and travel in different countries, can take advantage of various strategies to save on taxes. Firstly, they can explore countries with favorable tax regimes, such as those with low or no income tax rates for foreign workers. By establishing residency in these countries, digital nomads can legally reduce their tax burden.
Secondly, digital nomads can often claim deductions for business-related expenses, such as travel costs, equipment, and home office expenses, as these are considered legitimate business expenses.
Lastly, taking advantage of tax treaties between countries can also help digital nomads minimize their tax liability by avoiding double taxation on their income.
5). Personal Growth: You’ll meet a ton of inspiring people with interesting stories
As you travel and work in different locations, you have the chance to connect with professionals from diverse industries and backgrounds. You can participate in local networking events, join coworking spaces, and engage in online communities for digital nomads, opening doors to new collaborations, partnerships, and business opportunities. The exposure to different cultures, people, and perspectives nurtures creativity, sparks inspiration, and fuels personal and professional growth.
Cons of the Digital Nomad Lifestyle
Living the life of a digital nomad can be an exhilarating adventure, but it's not all sunshine and rainbows. Along with the many advantages, there are also some downsides to consider when embarking on this unique lifestyle.
1). Social Misunderstanding: You may face judgement from family, friends and strangers
Because this is a lifestyle that disrupts the traditional way of living in our history, you might find yourself misunderstood by your family and friends. Traditional societal norms and expectations often revolve around having a stable job, a permanent residence, a predictable routine, and an established family.
However, the digital nomad lifestyle challenges these norms as it involves constantly moving and working remotely from different locations around the world. This can lead to misunderstandings and misconceptions from others who may view it as unconventional or selfish.
You might face criticism or skepticism from those who do not understand the unique benefits and opportunities that come with this lifestyle, such as flexibility, independence, and cultural immersion. This lack of societal understanding may result in digital nomads feeling unsupported or judged, which can be a downside of this lifestyle choice.
2). Travel Fatigue: You may get tired of travel planning
While frequent travel may sound exciting, it can also be physically and mentally exhausting. You might find yourself always looking for the next accommodation and flight, navigating new environments, and overcoming language barriers can be overwhelming at times. The frequent change and lack of stability can disrupt your routine, impact your productivity, and increase stress levels.
But I think it’s a better problem to have than feeling stuck, and I recommend slowing down and staying at a place longer.
3). Safety Concerns: You probably won’t feel as safe as in your home country
As a digital nomad, you may find yourself in unfamiliar places where you may not have access to the same level of healthcare or safety standards as in your home country. Health and safety concerns such as language barriers, different medical practices, and varying levels of infrastructure and security can pose challenges. That’s why I have purchased a nomad insurance from day 1. While many traditional travel insurance companies do not have appropriate coverage for nomads, SafetyWing, a Y-Combinator raised company, designs their products based on nomads’ unique needs. They also have Remote Health services to take care your long-term healthcare needs as a nomad.
You can also read my blog How to Solo Travel Safely where I shared some practical tips about how to stay safe on the road.
4). Distractions: Frequent location changes can sidetrack yourself.
Working from different locations with varying levels of distractions, internet connectivity issues, and lack of a dedicated workspace can impact your ability to focus and be productive.
Staying disciplined, setting clear work goals, and establishing a routine that supports your work productivity can be critical to ensure that you can meet your work commitments while enjoying the freedom of being a digital nomad.
Final words
As a digital nomad, the world becomes your playground, and you have the freedom to live and work in different countries, chasing your dreams while experiencing the beauty of the world.
From bustling Asian metropolises to charming South American towns, the digital nomad lifestyle is a captivating adventure, offering a unique blend of work, travel, and cultural enrichment. It's a life where each day brings new experiences, and every destination becomes your temporary home, creating memories that will last a lifetime.
Overall, I believe the pros of becoming a digital nomad outweigh the cons once you manage to establish this lifestyle, but I understand that different people have different outlook and priorities for life. No matter whether you choose to become a digital nomad, hope you find a path to your dream life.
