Switching to teleworking and becoming independent is a life decision. It's a real change for some. The task is simpler for those who already have a suitable job, such as Web professions (design, development, SEO, etc.). Either way, it's an important decision you're going to make.
It is therefore important to prepare yourself well to begin this exciting new stage in your life. One of the first things to do is to analyze the financial side. In fact, it is the main obstacle that risks preventing you from pursuing your dream... We will therefore dissect the subject to help you move forward!
What is the ideal budget for a digital nomad?
There is no ideal budget for becoming a teleworker. In reality, there are factors that must be taken into account when making an accurate estimate. The first element to examine is the income you receive. How much do you earn as a freelancer in France? Will the amount you currently receive allow you to live and work comfortably elsewhere?
The three main expenses of a digital nomad
To answer these questions, you must take into consideration the main expenses that you will have to honor.
Housing
First of all, there is accommodation and type of accommodation. If you are going to opt for a rental, you can start by share it with other nomadic workers. Plus, it will be stimulating to chat with them and share their experience! It is necessary to predict, on average, 700 euros on this level.
Food
Feeding yourself is the other big challenge you have to face as a remote worker. If you plan to eat kebabs, hamburgers or pizza every day, you're not off the hook. Not only will it weigh on you at the financial level, but this will negatively impact your health. Eating well helps you stay healthy. Moreover, healthy foods boost your brain power. You will therefore be more productive. Think about it.
Your activities and outings
By becoming a teleworker, you will not work all the time. You have to think about having fun and getting a change of scenery. Also, you must allocate a sufficient budget for your outings and for practicing your favorite activities. It is not a question of breaking the bank by paying for a trip to Thailand every month, but of allowing yourself to breathe and take your mind off things to get back to work in great shape.
Other expenses to pay as a digital nomad
In addition to food and accommodation, you will have to meet other equally essential expenses.
Internet connection
The first thing you need to do is Internet and telephone subscription. This is surely one of your essential work tools. Without an Internet connection and a telephone, you will not be able to communicate with your customers and colleagues.
Banking and insurance
Financial services also matter. You will need to open an account in a bank in order to receive your income or salary and make online payments (purchase of software, Internet services, etc.). The main fees to pay in a bank relate to maintaining the account or the bank card.
The insurance
Health, home and car insurance if you have a car... It is essential to have one to protect your back in the event of unforeseen circumstances.
Purchasing equipment
As a nomadic worker, gadgets and electronic products constitute your main work tools, just like the telephone and Internet subscription we were talking about. To carry out your tasks in good conditions, you must obtain good equipment: computer, smartphone…
Don't forget about depreciation
Your hardware needs to be good enough for you to do your job. Don't forget to amortize its cost. This way, when it becomes obsolete in a few years, you will have enough money to renew it.
Find out about your destination
The different points that we have just examined relate to your main fixed and variable costs. You must establish accurate estimates to avoid unpleasant surprises. On the other hand, it is imperative to remember to find out about your destination and the living conditions for a nomadic worker there.
Cost of living, connectivity…: conditions of digital nomads
Not all countries are made for a nomadic worker. To get started, find out about the cost of living : does your income allow you to cope? There are reference sites that can help you find this information.
This is the case of Nomad List. In the search bar you can enter your destination. You will get information about security, network quality, cost of living… To find out about accommodation, you can take a look at Airbnb. You will then have an overall idea of the rents.
Ask other digital nomads
One last thing to prepare yourself well: if you have friends who are nomadic workers, do not hesitate to ask them for advice, particularly on the required budget and the working conditions in the country or region where they are located.
They will speak to you with knowledge of the facts and will even be able to guide you regarding possible administrative procedures required for teleworking in a given country.