As we’ve reported before, embarking on a digital nomad lifestyle, where you get to work and live abroad, offers the chance for an unparalleled freedom, adventure, and a whole new existence. Often a much healthier and more stress-free one at that. But sustaining that kind of lifestyle isn’t easy. In fact, to do it right requires careful research, planning, and diligence.
To help you navigate and manage living and working overseas, we’ve prepared a useful guide to building and maintaining the nomadic lifestyle you always dreamed of.
1. Plan for Financial Longevity
Create Diversified Income Streams
Relying on a single income source can be precarious for digital nomads. We recommend diversifying your income streams as much as you can, which not only provides better financial stability, but also cushions against unforeseen economic downturns.
Consider the following steps:
- Freelancing and remote employment: Engage in freelance projects or secure remote positions in fields like writing, programming, or consulting.
- Passive income: Invest in assets that generate regular income, such as rental properties or dividend-yielding stocks.
- Online businesses: Launch ventures like e-commerce stores or digital products to create additional revenue streams.
“It can be easier to ‘overspend’ as a digital nomad,” says financial advisor Eric Simonson, who emphasizes the importance of budgeting for nomads. “Since you don’t have a consistent routine, budgeting becomes a much bigger priority.”
Budgeting for Nomads
You may imagine the digital nomad lifestyle as footloose and fancy free, and that can certainly be the reality, but it’s essential to create and adhere to a realistic budget so you don’t run into any unforeseen issues down the road. Steps to effective budgeting include:
- Research the cost of living: Before relocating, investigate the living expenses in prospective destinations. Websites like Numbeo and Expatistan offer detailed cost analyses for you to easily explore and incorporate into your plan.
- Expense tracking: Utilize budgeting apps like TravelSpend and Tripcoin to monitor your spending habits, which will help ensure your spending aligns with your financial goals. Regular reviews of those habits will help identify and rectify overspending.
Smart Banking & Taxes
Navigating international banking and taxation can be complex. To streamline these processes, we suggest:
- Maintain U.S.-based accounts: For American nomads, retaining U.S. bank accounts ensures compliance with tax laws and facilitates seamless financial transactions.
- Research and understand your tax obligations: Familiarize yourself with both home country and host country tax regulations to avoid legal complications. Consulting a tax professional is advisable.
Invest in an Emergency Fund
It’s a good idea to also create an emergency fund that acts as a financial safety net during unforeseen events. Additionally, you might consider:
- Contributing to a regular savings account: Aim to save a portion of your income consistently, building a cushion for emergencies.
- Invest wisely: Explore investment opportunities that align with your risk tolerance and financial goals, such as stocks, bonds, or mutual funds.
2. Finding Stability on the Move
Slow Travel vs. Fast Travel
Adopting a slow travel approach to digital nomadism—that is, spending extended periods in one location—offers several benefits:
- Cost Efficiency: Longer stays often result in discounted accommodation rates and reduced transportation costs.
- Deeper Cultural Immersion: Extended time in one place allows for meaningful engagement with local communities and cultures.

Co-Living & Co-Working Spaces
The flip side to having the freedom to do what you want where you want is to be untethered to anyone or any place. That can be ideal for some, but it can also lead to feelings of isolation and loneliness. To curb these feelings and enhance your productivity, we recommend you explore:
- Co-Living Spaces: These offer affordable accommodation options and foster community among like-minded individuals.
- Co-Working Spaces: Access to reliable internet and a structured work environment can boost efficiency.
Read more like this: Co-Living in Crete
Maintaining a Routine
Establishing a daily routine for both work and play provides much needed structure amidst constant change. We suggest:
- Set Specific Work Hours: Define clear working periods to maintain work-life balance.
- Incorporate Exercise: Regular physical activity promotes mental and physical well-being.
3. Healthcare & Insurance for Nomads
Best Global Health Insurance Options
The good news for global digital nomads is that many countries enjoy considerably better health coverage than the United States, but sometimes the itinerant lifestyle doesn’t allow nonresidents to obtain such benefits. Luckily, there are new forms of coverage targeted directly to this emerging lifestyle, including the following insurers:
- SafetyWing: Offers affordable plans tailored for digital nomads, covering medical expenses and emergencies.
- Genki: Provides extensive coverage with the flexibility to choose any licensed healthcare provider worldwide.
- Allianz Partners: Their Flexicare plan caters to nomads, offering short-term international health insurance.
Accessing Medical Care Abroad
To ensure seamless access to healthcare:
- Research Local Healthcare Facilities: Familiarize yourself with nearby hospitals and clinics in your current location.
- Carry Necessary Documentation: Keep digital and physical copies of health insurance cards and medical records.

Mental Health & Avoiding Burnout
Traveling can be stressful and exhausting enough. Add the element of finding and maintaining steady work, establishing community, and securing housing—among other facets of daily life—and the romance of being a digital nomad can quickly turn into a complex and trying experience. Which means prioritizing your mental and physical well-being is crucial. We recommend:
- Regular Social Interaction: Engage with local communities or fellow nomads to combat loneliness.
- Mindfulness Practices: Incorporate activities like meditation or yoga into your routine to manage stress.
4. Staying Legally Compliant
Digital Nomad Visas
As we’ve mentioned, the world is changing fast, quickly becoming more of a global village, and there is no better time to embark on digital nomadism. In fact, today several countries even offer visas specifically for digital nomads. They include:
- Portugal: Provides a D8 visa for non-EU citizens, promoting an influx of digital nomads.
- New Zealand: Recently relaxed visa regulations to permit tourists to work remotely while visiting.
Work Regulations & Legal Considerations
Obviously as a digital nomad, you could be traveling from any number of foreign countries, many of which have different laws and customs than your original home. But it’s still vital to still respect, obey, and comply with the local laws of your host country.
- Understand Local Laws: Research work regulations and ensure adherence to avoid legal issues.
- Consult Legal Experts: Seek advice from professionals familiar with international work laws.
Residency & Second Passports
If, after you’ve experienced the ups and downs of travel and building a life abroad you decide you want to continue that lifestyle, particularly if you’ve grown fond of a specific country, obtaining a residency or a second passport can offer additional benefits:
- Residency Programs: Some countries offer residency to digital nomads who meet specific financial criteria.
- Second Citizenship: Investing in citizenship-by-investment programs can provide greater travel flexibility.
Read more like this: Why Securing Your Second Residency Is Crucial to Your Escape Plan
5. Maintaining Relationships & Community
How to Build a Social Life on the Road
Travel is one thing, but finding and building “home” is quite another. Making personal connections with other individuals and groups of people, building community, enhances the nomadic experience, but even mores the human one. To start building your community abroad, we suggest you consider attending local events and participating in community gatherings, like workshops, language classes, or other social interactions.
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