Digital nomad



So what exactly is a digital nomad?

I have been asked to explain what I am up to with this nomad malarkey after having attended The January 2019 Nomad Summit in Chiang Mai, Thailand. A quick summary, is that a digital nomad is someone that earns their living from the internet usually from a laptop whilst being location independent.

So you're telling me that I can work on a beach in a sunny location and make money while sipping cocktails and going to yoga classes.

The short answer is yes and no. On the whole, most don't immediately become digital nomads. What's required is a skill or an internet business which has often taken some time to build in order to have enough income to be able to live this nomadic lifestyle.

In reality, many aspiring nomad's, myself included, start with accumulated savings, rental income or selling stuff no longer needed. This financial buffer gives you time to breathe and work on your new business without the need for an immediate income. The freedom this has given me personally cannot be underestimated.

There are different types of digital nomads.

The Freelancer

Freelancers are people that offer their services on an ad-hoc hourly, short-term contract or project basis to a company or individual, often including other nomads.

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The types of work undertaken include: graphic design, copy-writing, affiliate & content marketing, SEO optimization, UX and UI design, lead generation, social media marketing, online translation, online langauge teaching, virtual assistant - (be careful with this one as the Philippines has this nailed in terms of performance and pricing), transcribing, proofreading, website & app development and stock/foreign exchange day traders.

Freelancing is probably the most popular entry into a nomadic life as it means you are simply using a current skill to give yourself a more independent lifestyle. Time zones can be a challenge however, so choose your clients carefully otherwise 3am conference calls will be your reality.

Many if not most freelancers are looking to get away from exchanging their time to earn money and instead create a business that creates a long term passive income.

The Solopreneur

I would currently put myself into this category, creating lean businesses with systems in place that do not require a large team of people to manage the day-to-day operations.

As a solopreneur, I need to manage all aspects of the business including: research, product & service design, website creation, branding, marketing and sales. Everything is down to me, yes there are elements that can be outsourced but only once you have a clear vision of the direction you wish to take your business or brand.

Example businesses include, eBay/Amazon drop-shipping shops, online courses, ebooks and publishing. Many if not most of these businesses will give you a passive income once you have put in the initial effort to set them up. These businesses are similar to a franchise operation in that they are designed to run smoothly with an absentee owner.

The Entrepreneur

The next Richard Branson or Elon Musk is what some nomad's aspire to. This potentially carries the biggest risk, but also reward. In reality, I suspect none will make it as the odds of anyone reaching this level are extremely low even in western countries with access to the huge array of resources.

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To build an empire takes high level nurturing and development of network connections. Whilst I have met people working in start-ups or looking to create the next big app....I would imagine the best result they could achieve is not having to work again......not a bad situation at all.

That being said, achieving the title of entrepreneur is probably one of the most fulfilling in terms of creativity.

The Employee

This may seem a contradiction but there are many employees of companies that are able to work on the road for much of their year. Forward thinking companies are beginning to see that clocking in is not an indicator of effort or productivity.

The company doe not require as much office space and other infrastructure elements and can see the benefits brought to the table of having happy employees that appreciate flexibility. The employee benefits with job security as well as structure......clearly, this is a win-win situation for all.

The I.T. industry seems to be well represented as remote employees can easily manage computer infrastructure from a distance. The list of jobs is pretty endless, many if not most office jobs which entail using a computer can be done remotely with a good internet connection and this includes having live team video conference calls too.

A recent report showed that 41% of digital nomads belong to Generation X, like myself. 27% are Gen Z/Millennials and 32% are the baby boomer generation.

Interestingly, 35% of digital nomads work directly for a company on a full time basis as an employee. Freelancers and business owners represent 28% and 18% respectively.

Beach Life.....Really?

Yes it's possible to run your business from a laptop on the beach but the reality is somewhat more difficult. Even in the shade you need a laptop with a very very bright screen (400+ nits) to be able to get any work done and let's not explore the damage that sand and seawater can do to a laptop.

If you are working to any sort of deadline, the distractions of being on a beach will probably mean missing some deadlines for anyone but the strictest of personality types.

Most nomads will need a quiet area to carry on any form of productive work. It can sometimes be hard to track down good wi-fi which is a nomad's most important resource. Searching for either a co-working space, a quiet coffee shop, library or the common area of a hostel/hotel becomes a daily chore.

Other Considerations

So is it really just a bunch of roses as you and others describe?.....of course not. There are some realities which are the same at home or abroad and challenges which are solely attributable to being abroad. Let's not forget that for every social media post with a beautiful photo, there are more moments with less inspiring realities.

Finally, you should be careful not to compete in a field where foreign digital nomads from countries with lower prices can outbid you as is often the case with many online outsourced design platforms. Ideally earn a decent western salary and spend it in a lower cost country......this is the nomad philosophy.

Choices

Ultimately being a digital nomad is being in the fortunate position to make choices on how to exactly live your life. Often these choices mean simplifying aspects of your life to reduce your monthly expenses which by default grants you instant freedom.

You can live a decent western lifestyle of posh coffees and eating out every day in South East Asia for around £800 per month staying in hostels. If you are interested in longer-term accommodation, you can rent a small apartment and live for around £1,000 per month.

These figures include everything: rent, utilities, internet, travel insurance, eating out most of the time, gym, transport etc. I hope you can see that this is easily accessible to everyone.

Further cost of living research can be done at the Numbeo website. Alternatively, here is a cost comparison between London vs. Chiang Mai in Thailand, which is an option I am considering for myself in the future. Finally Nomadlist has a beautifully simple interface with similar information.

Locations

Digital nomads tend to locate themselves either where the cost of living is very cheap and the internet connection fast or where they get to indulge in their favourite past time.

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Many chose to make a beach town their home as their interests are aligned with outdoor activities such as surfing. The more disciplined wanting fewer distractions tend to head toward inland locations.

Digital Nomad Hotspots

The barriers that used to exist are no longer valid due to the power of the internet giving everyone the freedom to choose. We are able to connect to networks, software platforms, people and communities from pretty much anywhere in the world with just a smart phone.

Get yourself a decent laptop and things get interesting. You can now edit 4K video giving you the option to film and sell high quality travel footage or edit footage for others.....video is still an exploding medium.

If you really want to work independently and travel in the future, take some positive steps today. Start to work towards your goals by creating a foundation of reducing your monthly expenses, saving money, selling things you don't really use anymore and begin to piece together a plan.

We each have unique skills and talents to create a new reality for ourselves in the present, it just takes a change of mind-set to start on a new path.

As a conclusion, consider where you want to get to. I'm 53 as I write this article and my future is coming together, after a few years of traveling I'm sure I will work out the remainder.

I remind myself that there is no pressure as the only person that could apply it, is myself, and I simply don't do that. I simply let the universe unfold as it does but am mindful of ideas and opportunities as they manifest and come my way.

I wish you all the best with your chosen journey.

HOMEPAGE

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If you have any comments, questions or just want to say hello.....let's chat

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