How To Travel Full-Time Without Going Broke
Written by
G. Brian Davis
Edited by
Gary Dudak
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I’ve lived abroad for ten years — and spent far less money than my previous living expenses back in the U.S.
As you explore the idea of traveling full-time, try these tips from full-time digital nomads.
Build Multiple Income Streams
The greatest hurdle to living as a digital nomad is location-independent income.
Chris Oberman, long-term expat and travel blogger at Moving Jack, recommended creating multiple streams of income. “If you’re going to work abroad, don’t bet on one horse,” he said. It’s not a good experience to lose your only source of income in a foreign country.
In addition to launching a travel blog, Oberman has worked as a consultant, taught English, produced electronic music and promoted stage performers.
Corritta Lewis has lived as a digital nomad for five years and documented her family’s travels through “It’s a Family Thing” and also ditched her job to do the same work as a consultant. “That switch allowed us to go from $80,000 to over $200,000 a year in income,” she explained.
Start With These 3 Regions
In my experience, three regions in the world offer the best combination of affordability, safety and quality of life. Start by checking out Latin America, Southern and Eastern Europe and Southeast Asia.
“I lived on my savings while traveling in Latin America and working on my travel blog ‘Solo Nomad Journeys,'” explained Isabella Biava. “I was living quite a frugal life while doing occasional freelance work as a content creator.”
Live Like a Local
Don’t expect to save much money living like a tourist, even in the regions above. Caitriona Maria has lived in Southern Europe and Southeast Asia as a digital nomad and founded “The Facts Institute” along the way.
“I try to avoid tourist traps and live like a local,” she said. “Ask where other digital nomads and workers are living and how to negotiate the best rates. When you find somewhere affordable to rent in a good location near a co-working space and other amenities, that’s half the battle.”
Practice Slow Travel
Digital nomad Marina Guastavino launched the “Directo” travel browser extension while traveling full-time.
“Staying put in the same place for at least a month or two allows me to get to know the cities, but also gives me the headspace I need to work and concentrate on other things,” Guastavino explained. “Moving less often means less money spent on flights and trains, getting better deals on longer-term stays and really getting to know a place.”
Score Free Accommodations
Who says you have to pay for hotels, Airbnbs or even long-term apartments?
Try housesitting to stay for free at upscale homes, usually in exchange for caring for pets while the owners are traveling. Check out TrustedHousesitters.com or MindMyHouse.com to get a feel for it.
Alternatively, you can look into home exchanges or even volunteer opportunities that provide free accommodations.
Buy International Health Insurance
You still need health insurance, but you don’t necessarily need to pay for expensive U.S. health insurance.
“One of the biggest ways to transfer financial risk when living the digital nomad lifestyle is by purchasing an international health insurance plan that will pay for illness, injury and transport,” said Andrew Jernigan, founder of travel insurance company Insured Nomads. “Some policies even pay for trip interruptions and delays, as well as relocation if there is political unrest, terrorism or a pandemic or natural disaster.”
Avoid Taxes (Legally)
If you spend most of the year living overseas, you may qualify for the foreign earned income exclusion. Your first $130,000 is income tax-free ($260,000 for married couples) — read more at IRS.gov.
You can qualify for it in one of two ways. You can either physically spend at least 330 days in the year outside the U.S. or you can qualify with long-term legal residency in another country.
That said, Seven Corners CEO Jeremy Murchland pointed out that you could owe taxes in your host country. “Talk to a tax expert before you leave so that you can budget for these payments or choose a more tax-friendly destination altogether,” he explained.
You can live overseas on a fraction of the cost of most U.S. cities — if you get strategic about it. Choose your destinations well, live like a local and find ways of ditching any U.S. bills like housing, car payments and U.S. health insurance while you’re off on your adventure.
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