The Cost of Becoming a Digital Nomad
The allure of exploring new cultures, escaping the 9-5 grind, and having the freedom to work from anywhere has led many to embrace the digital nomad lifestyle. But what does it cost to be a digital nomad family?
Here, I will delve into the costs and considerations of living location independently as a family, providing insights into how to make this dream a reality. It’s important to note that the locations you travel or move to will have many costs. The actual cost for you and your location-independent family will require specific research. But this is a good guide to get you started and help you know what to look for.
The Basics of Digital Nomad Cost
Embarking on a nomadic lifestyle involves more than just a laptop and a dream. Initial setup costs include securing the right gear to join digital nomad communities. Every month, families must consider expenses such as accommodation, food, healthcare, and education, which can vary dramatically depending on the destination.
What are your business costs currently? They will likely stay the same. However, if you are running a web-based business like I do, you will need to consider the cost of the Internet and do some research. In America, we consistently paid around $50 a month, and while there are inexpensive internet options in Mexico, some places will require reliable satellite internet like StarLink, which is more expensive! Also, import and export fees will need to be considered if your business involves inventory.
Choosing Your Destination based on Cost
The cost of living is a crucial factor for some digital nomad families. Some regions offer a high quality of life at a lower cost, making them hotspots for nomads. One thing I think many people don’t realize until the relocate is that an affordable cost of living is quite relative. We relocated to Ensenada (for education reasons) from one of the lowest-cost-of-living states in the U.S. (Alabama) and experienced frequent sticker shock!
Coming from Alabama, we cannot maintain the same lifestyle here that we did in the U.S. Although Costco is here, we shop more at local markets. We’ve cut out most processed convenience foods for meat and veggie-rich options. Eating in restaurants is cheaper here, but fuel is much higher. We traded four bedrooms for a small two-bedroom house here. In contrast, tourist hot spots like Puerto Vallarta, Chapala, and Playa Del Carmen are all even more expensive than Ensenada! However, there are many hidden gems throughout Mexico that are much more affordable and we look forward to relocating to them!
Check out the country you plan to visit beforehand and don’t be afraid to look outside of expat communities. You will likely still find beautiful places and people in more affordable settings!
Digital Nomad Accommodation Costs
Housing is often the most significant monthly expense for digital nomad families. One of the most unique parts of renting a home in a different country is learning how different the culture is. In the United States, many of us go to realtors or giant websites like Zillow to find available housing. In other countries, it can be difficult to find housing online! Facebook Marketplace is a good option in Mexico, but most rentals are found on roadside signs or through word of mouth. This means your best bet for locating long-term rentals might come from renting an Airbnb short-term while you look.
In the Ensenada area, small, family houses consistently rent out for 15’000-20’000 pesos (approximately $1200 currently.)
Daily Living Costs
Daily expenses can add up, from groceries to transportation. Will you be able to bring your vehicle where you are traveling? It’s essential to look into importation laws in depth. We brought our family vehicle to Mexico, anticipating no issues with importation, and learned that the VIN was not eligible and the vehicle could not be imported. You might find it easiest to purchase a vehicle where you are going if necessary.
Additionally, purchasing foods in bulk, while quite common in America, is not feasible in many other countries. Smaller kitchens and refrigerators are more common. We have also found, at least in this area, that meat does not stay fresh as long, so we tend to do grocery refreshes 3-4 times per week as opposed to once every week or two before we relocated. Depending on the country you are in, you may find that convenience foods are often more expensive as well.
Healthcare and Insurance
Navigating healthcare and insurance has significant variables as well! Travelers insurance can be enough to address catastrophic emergencies in most cases. But what if you are medically complex and need extra healthcare throughout the year? In Mexico, healthcare costs are generally lower, but Mexico also provides options to temporary or permanent residents to pay a small fee to maintain public health insurance. Many other countries offer additional healthcare insurance options to foreign nationals for small fees.
Education and Childcare
Choosing between private education abroad and homeschooling is a significant decision for digital nomad families, each with its own set of pros and cons. Private education offers structured learning environments, exposure to diverse cultures, and opportunities for children to develop language skills. However, it can be costly and may require families to settle in one location longer.
On the other hand, homeschooling provides flexibility, allowing families to travel without disrupting the educational process. It enables personalized learning tailored to a child’s pace and interests but demands a considerable time commitment from parents and may limit social interactions with peers. Balancing the cost implications with educational quality and lifestyle flexibility is crucial for digital nomads navigating the complexities of raising children while exploring the globe.
Travel and Relocation Expenses
Frequent travel and relocations are part of the nomadic lifestyle. It’s easy to estimate the cost of items like plane tickets etc… But what about things like home furnishings, or storage units for items you want to keep – but not travel with?
We opted to purchase a shed and keep it on family property. We weren’t sure what we were in for, but were pleasantly surprised to find that furnished housing is much more common in Mexico than in the U.S. I highly recommend not tethering yourself to expensive furnishings and instead enjoying the freedom of relocating with just a suitcase or two!
Visas and Legal Considerations
Understanding visa requirements and managing tax obligations are crucial for nomadic families. You need to research visa requirements for the country you are visiting as they can vary widely from one location to the next. Digital Nomad Costs can skyrocket if you don’t understand immigration laws for the country you are moving to or visiting. You might need to relocate every few weeks or months to maintain legal status. Mexico typically issues visitor visas for 180 days upon arrival. They also have very flexible laws surrounding temporary and permanent residency. So consulting with a lawyer about these things if you plan to stay in a country longer than your visa allows is very important!
Budgeting and Financial Management
Creating and sticking to a budget is essential for a long-term nomadic lifestyle. The first important factor to sustaining a nomadic lifestyle is creating a reliable income. This is why I recommend starting your own website and flipping websites for regular income. This is the most location-independent wok I have ever found personally and while it takes time to build, it provides significant stability that traditional employment can’t for a digital nomad family.
It is hard to create monthly budgets at first when you relocate, so I recommend starting with weekly budgets, then after two months, evaluating costs per month to create a monthly budget that will keep you on track. Cash-based budgeting is still very practical in many Latin American countries as cards are frequently not accepted.
Digital Nomad Cost – A Real Life Example
I am a visual learner and find that I need to see real numbers to understand a post like this one. Below, I share our monthly cost of living as a family of 6 who is also pregnant with twins. A few noteworthy mentions: our rental housing is much lower due to personal relationships with our landlords. However, home maintenance is not always included in rentals in Mexico.
The cost below covers the monthly costs specific to living here. It does not dissect additional things we have needed to maintain outside of the U.S. or any extras such as Netflix memberships, and I also don’t include my web business costs as those are subjective.
Conclusion
Living as a digital nomad family offers unparalleled freedom and rich experiences. With careful planning and budget management, embracing this lifestyle is possible – even for families! Sign up to receive our free success planner below and start building the income you need to become a location independent family!
