How to become a digital nomad

The share of workers who primarily work from home rose sharply during the COVID-19 pandemic, from 10% worldwide in 2019 to 20% in 2021 and 28% in 2023. Even as some US companies have attempted to institute return-to-office policies, workers have pushed back. In the US, the percentage of companies offering flexible remote work policies actually increased in 2023, from 51% at the start of the year to 62% in November. And as global work culture shifts more and more toward recognizing that the office is wherever the wifi is, becoming a digital nomad is an achievable goal for an increasing number of workers worldwide.

A digital nomad is someone who works remotely but, instead of working from home, uses the internet to explore far-flung locales across the globe, working from anywhere with a reliable internet connection. The allure of blending work with travel has captivated the imaginations of many, leading to a growing community of professionals who refuse to choose between their careers and wanderlust. 

If you’re wondering how to become a digital nomad, you’re in the right place. Read on to learn more about the tools, skills, and lifestyle adjustments it takes to thrive in this modern work paradigm.

Pros and cons of being a digital nomad

Thinking about taking the plunge into the digital nomad lifestyle? Before you pack your bags and hit the road, it's worth taking a moment to really consider what this lifestyle entails. Being a digital nomad isn't just about snapping Insta-worthy shots from a beach in Bali (though that's definitely a perk)—it's a complete shift in how you live and work. Ready to figure out if this path is for you? Let’s explore some of the pros and cons.

Pros of being a digital nomad

Embracing the digital nomad lifestyle unlocks a world of opportunities and perks that many only dream of. Below, we’ll dive into the benefits that make this way of living so appealing.

Location independence

Imagine swapping your cubicle for a cozy cafe in Paris, a beachfront in Bali, or a bustling coworking space in Tokyo. As a digital nomad, your work location is no longer fixed. You have the freedom to choose where you live and work, as long as there's reliable internet. This level of location independence means you're no longer tied to a specific city or country; the entire world becomes your potential office space.

Flexible schedule

One of the most significant advantages of the digital nomad lifestyle is the ability to set your own work schedule. Whether you’re an early bird or a night owl, you get to decide when you're most productive and tailor your work hours to fit your personal preferences. This flexibility allows for an unparalleled work-life balance, giving you the freedom to explore your surroundings, indulge in hobbies, or simply take a midday break to enjoy a leisurely lunch.

Ability to travel

Being a digital nomad isn't just about working remotely; it's about integrating travel into your everyday life. You have the unique opportunity to explore new destinations, experience different cultures, and satisfy your wanderlust, all while staying on top of your professional responsibilities. This continuous journey not only feeds your soul but also inspires creativity and broadens your perspective.

Better quality of life—for a lower cost of living

Many digital nomads find that they can achieve a better quality of life with a lower cost of living by choosing their destinations wisely. Countries with a lower cost of living allow you to enjoy a more comfortable lifestyle while saving money. Imagine living in a tropical paradise, enjoying fresh, local cuisine, and engaging in activities you love, all without breaking the bank.

New experiences, cultures, and people

The digital nomad lifestyle offers endless opportunities to immerse yourself in new cultures, meet people from all walks of life, and collect once-in-a-lifetime experiences. Each new destination is a chance to learn, grow, and connect with the world in a way that's simply not possible when you're tied to one location. This constant exposure to diverse cultures not only enriches your personal life but also enhances your professional skills by fostering adaptability, open-mindedness, and global awareness.

Embracing the digital nomad life means more than just a change in your work schedule; it's a transformative journey that challenges the traditional notions of work and leisure, offering a more balanced and fulfilling way of life. Through the lens of different cultures and experiences, digital nomads redefine what it means to live and work in the 21st century.

Cons of being a digital nomad

While the digital nomad life is filled with adventure and freedom, it's not without its challenges. Understanding the downsides is crucial for anyone considering this lifestyle.

Less stability

The allure of constant travel and flexible work locations comes with a trade-off: less stability. The digital nomad life can often mean not knowing where you'll be living in a few months or how reliable your next internet connection will be. This lack of stability can be thrilling for some but stressful for others. It requires a significant amount of planning and adaptability to manage the uncertainty inherent in this lifestyle.

Difficulty being productive

Though working from a beach sounds idyllic, it can be hard work to maintain focus. The very elements that make the digital nomad lifestyle appealing—new environments, flexible schedules, the constant lure of exploration—can also be serious distractions. Productivity may suffer as you navigate time zones, hunt for coworking spaces, or simply struggle to resist the call of your latest beautiful destination.

Location limitations

Despite the dream of working from anywhere, the reality is that some locations are better suited to the digital nomad life than others. Factors such as internet connectivity, availability of coworking spaces, and even the local attitude toward remote workers can vary widely. Certain destinations may also have visa restrictions that limit how long you can stay, posing a challenge for those seeking longer-term stays.

Tax complications

The digital nomad life can turn tax time into a complicated affair. Depending on your home country and where you choose to work, you may face complex tax situations—including obligations in multiple countries. Understanding and complying with these varied requirements can be daunting and often requires professional advice to ensure you're not inadvertently breaking any laws.

Loneliness

Perhaps one of the most significant downsides of the digital nomad lifestyle is the potential for loneliness. Constantly moving from place to place can make it challenging to form lasting relationships or find a community. While digital nomads often thrive on meeting new people, the transient nature of their interactions can lead to feelings of isolation. Combating loneliness requires effort to build and maintain connections, both locally and with fellow nomads on the road.

How to become a digital nomad: Step-by-step

Becoming a digital nomad involves careful planning, preparation, and a willingness to adapt. Whether you’re drawn to the freedom of setting your own schedule, the thrill of exploring new cultures, or the desire to break free from the traditional 9-to-5, the steps below will help you make the transition as smooth as possible so your digital nomad journey is successful and sustainable.

Step 1: Identify or gain marketable skills

Becoming a digital nomad requires having skills that are in demand in the digital marketplace. Whether you're starting from scratch or looking to enhance your skill set, identifying or gaining marketable skills is one of the first steps to take. Here are some tips:

• Assess your current skills: Are you a whiz at social media, a skilled graphic designer, or do you have a knack for writing? Many professions lend themselves well to remote work, but some are more in demand in the digital nomad community.
• Gain new skills: If your current skill set doesn't lend itself to remote work or if you're simply interested in expanding your opportunities, it's time to acquire new skills. The demand for skills such as software development, web development, and graphic design is ever-growing. Roles such as virtual assistants and social media managers also offer ample opportunities for remote work.
• Take an online course: Thanks to the internet, learning new skills has never been easier. Online courses and platforms offer a wide range of learning opportunities, from coding bootcamps to design workshops. These resources can help you gain the skills you need to launch a successful remote career.
• Consider passive income and side hustles: In addition to traditional employment or freelance work, consider exploring ways to generate passive income or start a side hustle. Having multiple income streams for digital nomads can provide financial stability and flexibility. From creating digital products to affiliate marketing, there are numerous ways to build a passive income that can complement your lifestyle.

Once you've identified or gained your marketable skills, the next step is putting them to use. Build a strong portfolio to showcase your work and don't be afraid to market yourself through social media and professional networks. The goal is to create a sustainable career that allows you to live and work anywhere in the world.

Step 2: Get a remote job (or start a business or freelance)

If you don’t already have a remote job, the next step is to think about how you’ll support yourself as a digital nomad. You may be able to talk to your current employer about letting you work remotely if your role allows for it. But if you need to find a remote-friendly position, you have many options in the digital age.

Finding a full-time digital nomad job

If you want the stability of a full-time job with the flexibility of the digital nomad lifestyle, there are plenty of opportunities. Employers are increasingly open to remote work, offering traditionally office-based positions to digital nomads. You can look for full-time roles on:

• Job boards: Websites like FlexJobs and Remote.co specialize in remote and flexible job listings across a variety of industries.
• LinkedIn: Utilize LinkedIn for networking and job searching. Many companies post remote job opportunities on their LinkedIn pages, and the platform's job search feature allows you to filter positions by "remote."

Freelancing and gigs

Freelancing gives you even more flexibility, allowing you to choose your clients, projects, and work hours. It's an ideal option for those who have marketable skills and prefer to work on a project basis. You can find freelance work:

• On platforms like Upwork or Fiverr: These platforms connect freelancers with clients looking for professional services in writing, design, web development, and more. Upwork is a great place to start building your freelance career.
• Facebook groups and online forums: Join digital nomad and remote work groups on platforms like Facebook. These communities are invaluable for networking, sharing tips, and finding job opportunities.
• By word of mouth: See if anyone in your professional network needs gig work that can be done remotely, such as graphic design, writing, or social media management. Engage with fellow digital nomads, attend remote work conferences, and connect with professionals in your field through online events.

Starting an online business

For entrepreneurial workers, starting an online business can be a rewarding path. Whether it's an e-commerce store, a consulting service, or a digital product, owning a business gives you control over your income and the freedom to work from anywhere.

Getting a remote job, starting a freelance career, or launching an online business are all viable paths to becoming a digital nomad. Each option requires different levels of commitment and preparation, but they all offer the potential for a fulfilling and flexible lifestyle.

Step 3: Pare down your belongings and expenses

Transitioning to a digital nomad lifestyle isn't just about where you work—it's also about adopting a leaner, more intentional approach to both your possessions and your finances. 

As you prepare to take the leap, the next step is to declutter and simplify your life—physically and financially. In order to leave your home base behind and travel long-term, you need to be able to fit everything you’re taking with you in a few suitcases at most. And if you still have more belongings that you’re keeping but leaving behind, you’ll need a plan to store them while you’re on the road. The less stuff you have, the easier and cheaper it’ll be to store it while you travel. 

Now, onto your finances. Simplifying your financial life means setting a budget that aligns with your nomadic lifestyle. Long-term travel can be unpredictable (including unexpected expenses). Eliminating or reducing as many unnecessary expenses from your budget as possible before you hit the road can help set you up for success.

Step 4: Decide what kind of lifestyle you want

It's crucial to think about the kind of life you want to lead as you venture into the digital nomad world. This isn't just about picking a spot on the map; it's about figuring out what kind of day-to-day existence will make you leap out of bed in the morning, laptop in hand, ready to conquer the world.

Here are some things to consider when thinking about your ideal digital nomad lifestyle:

• The perfect backdrop: Do bustling cities with their coworking spaces and vibrant nightlife call your name? Or are you more about the laid-back vibe of a seaside town, where the rhythm of the waves sets the pace of your workday? Your preference here will be crucial in deciding where you head to and how you plan your finances.
• Finding your community: Think about how much company you like when you work. Some folks love solitude, finding their groove in quiet corners of the world. Others are all about building networks, sharing desks in coworking spaces, and diving into the local expat community for work connections and a solid social life. Knowing what kind of interaction you crave will help you pick places that best suit your vibe.
• Setting your budget: The lifestyle you're dreaming of will shape your budget—different places and vibes require different incomes. Making sure you've got enough money to live your best life without eating into your savings is key.

While nailing down your ideal lifestyle is great, remember the digital nomad life is all about flexibility. Your tastes might change as you hop from one adventure to the next. What feels right now might shift as you discover new places and experiences.

Step 5: Choose your first destination

Now, it’s time to choose where to go first. This step involves carefully considering legal, safety, and lifestyle factors to help ensure a smooth transition into your new way of living. Here are some tips:

• Choose somewhere you can legally go: First things first, you need to identify destinations where you're legally allowed to stay and work. This involves a bit of homework to understand visa requirements, work permits, and any restrictions that might apply to digital nomads. Countries with digital nomad visas (like Costa Rica, Spain, Portugal, Canada, and others) or those that offer extended tourist visas are great starting points. Make sure your passport is current, and consider any other potential legal hurdles you might face at your chosen destination.
• Choose somewhere you’ll be safe: Choose a location that's known for being secure and welcoming to foreigners. Research the political stability, crime rates, and general safety advice for potential destinations. Websites and forums for expats and digital nomads can offer invaluable insights into what life is really like on the ground. If you’re a person of color, a solo woman, or a member of the LGBTQ+ community, you may need to take extra safety precautions in certain places.
• Choose somewhere that matches the lifestyle you want: Finally, think back to the lifestyle you chose in the step before this one. Consider factors like climate, language, local culture, and the availability of amenities that match your lifestyle needs. It's also worth thinking about the cost of living and whether the destination supports your budget and work requirements.

Step 6: Make travel preparations

With your first destination chosen, it’s time to tackle the nuts and bolts of getting ready for your departure. Proper preparation is key to a smooth transition into the digital nomad lifestyle—but there’s a lot to do to get ready. Here's a checklist that can help.

Get your documents in order

Start by gathering and organizing all necessary documents:

• Your passport. Make sure your passport has plenty of validity left—some countries require it to be valid for at least six months upon entry.
• Any necessary visas, work permits, and other travel documents or identification
• Your driver’s license
• Your social security card
• Your medical records, including copies of prescriptions for any medications you take
• Insurance information

Also, keep digital copies of these documents in secure online storage as backup.

Sort out last-minute logistics

Some other items to check off before you leave include:

• Getting a VPN to protect your online activity when using public wifi networks and access region-restricted content
• Getting a hotspot or data plan to ensure you have internet access when and where you need it
• Setting up a virtual mailbox to scan and email your mail to you
• Consulting with a tax professional to understand your tax obligations as a digital nomad
• Deciding what to do with your lease, furniture, pets, and other responsibilities. You might sublet your apartment, sell or store your furniture, and arrange for pet care. 

Get health insurance coverage that will work worldwide

Securing comprehensive health insurance that covers you internationally is non-negotiable. Look for policies designed for digital nomads or long-term travelers, which offer flexibility and wide coverage, including in your chosen destination. Travel insurance is also crucial, offering protection against trip cancellations, lost luggage, and more.

Figure out how you’ll get paid internationally

You need a reliable way to access your funds and get paid while abroad. Many digital nomads opt for a credit card that offers travel rewards and no foreign transaction fees. Consider setting up multiple banking options to have backups in case of fraud, lost cards, or another emergency.

And when it comes to getting paid while you travel, you can use bank transfers, virtual bank accounts, international transfer services (like Western Union), or Rippling. Rippling allows you to get paid internationally as an employee or a contractor. Your employer can use Rippling to pay all domestic and international workers in the same pay run—including employees and independent contractors—in their chosen currencies, with no conversion fees or exchange rates required. Companies can even automate their international payments with Rippling.

Book your flights, accommodations, and workspaces

Finally, it’s time to book your flights and accommodations. Platforms like Airbnb and hostels are popular among digital nomads for their flexibility and community. Also, consider joining a coworking space in your new location to find a productive work environment and potentially meet fellow nomads.

Making these travel preparations requires attention to detail, but it’s all part of the journey. With these tasks out of the way, you can focus on the adventures and opportunities that await.

Step 7: Consider joining a digital nomad group or hub

As we mentioned earlier, loneliness can be a common part of the digital nomad lifestyle. To combat it, you may consider joining a digital nomad group or hub for part or all of your travels. This can provide you with support, networking opportunities, and friendships that make navigating this lifestyle much more rewarding.

Digital nomad groups and hubs exist both online and offline. Online platforms like Facebook groups, forums, and dedicated digital nomad websites are great places to start. These resources can connect you with others, provide tips on destinations, and even offer job leads. Offline, look for coworking spaces and cafes popular among digital nomads in your chosen city. Many of these places host events, meetups, and networking opportunities. Formal groups like Work Wanderers, Hacker Paradise, and WifiTribe organize trips for digital nomads, offering built-in community—and taking some of the planning and logistics off your plate in the process.

Is becoming a digital nomad right for you?

Becoming a digital nomad offers an enticing blend of work and wanderlust, presenting a unique opportunity to explore the world while earning a living. From the freedom of choosing your work environment to the thrill of immersing yourself in new cultures, the digital nomad lifestyle is rich with rewards. However, it also demands a high degree of flexibility, resilience, and independence. The steps to becoming a digital nomad involve meticulous planning, from acquiring marketable skills to making travel preparations and finding a community that supports your lifestyle.

If you're drawn to the idea of designing a life that combines the flexibility of remote work with the richness of travel, then taking the leap into digital nomadism could be a rewarding decision. Remember, it's about finding a balance that works for you.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.