Just the thought of no longer having to commute to an office to spend 8 hours sitting at a desk is enough to ignite wanderlust in even the most content worker bee.
But while Instagram makes the digital nomad life look like all beaches and beautiful resorts, it’s so much more than that.
It’s taking full responsibility for your own finances and financial future.
You’ll lose your steady paycheck, your benefits, and the structure of having a boss and coworkers to report to. When work dries up or a contract ends unexpectedly, your money will run out and it will be up to you to replace it. If you aren’t feeling motivated to work, your bank account will suffer.
It can be a dangerous, unstable, and utterly terrifying position to find yourself in.
Whether you’ve already decided to leave the corporate world and start a life of adventure, or you’re still in the dreaming stage, there are a few things you’ll need to tackle before you take that leap.
Insurance
Unless you choose a full-time remote job that comes with benefits, there’s several things you’ll be giving up when you leave your office job to become a digital nomad.
Even though you’ll be free to travel as often as you’d like, you won’t get paid vacation. This means you’ll need to plan ahead to finish projects early and set aside money for the weeks you won’t be paid. Or, you’ll need to work while you travel.
You’ll lose your sick time. If you fall ill, you’ll either need to power through or face a loss of income. If you have projects do, you’ll have to hope that your clients understand that you’re ill and extend your deadline. Although you’d be amazed at how much easier it is to work while sick when your office is your couch and your uniform is your pajamas.
The most important benefit you’ll need to replace before you leave your corporate job is your insurance.
If you’re lucky, you may be able to get added to your spouse’s insurance. If you’re not married, you’ll need to find an alternative source of protection.
If your income is low enough, you may be able to get insurance through the Affordable Care Act. When your freelance career takes off, other insurance options include insurance through a faith-based healthcare sharing program or the Freelancer’s Union. You could also register as a small business and look into small business insurance programs.
You’ll need to research which option best fits your situation before you leave your job so that you won’t experience a lapse in coverage. While a few weeks or months may not seem like much, accidents happen, and they can leave you with a debt that could take you years to pay back.
A Savings Account
Insurance only prepares you for medical accidents. You’ll need a solid savings account for the rest.
If you aren’t wealthy or don’t have a spouse or partner to rely on, you’d be smart to line up a few freelance gigs before you leave your steady paycheck behind. But even that won’t be enough to ensure the future of your finances.
Businesses fold, which means contracts you have with them will come to a quick stop. The same will be true if they choose to hire an in-house writer, or if they simply decide they no longer need you.
Maybe you get sick and miss a few deadlines, and your client cancels their contracts with you. Or all of your jobs end at once, leaving you with no source of income.
Whatever the case, you’ll need that savings account to cover your rent and keep you fed.
More than a third of all Americans have no savings, while another third has less than $1,000 saved. You need to have enough saved to pay your rent and feed yourself for at least a month, if not longer. Even if you are able to land new gigs right away, it may take a while to get paid.
Plan for Retirement
If you’re in your 20’s or 30’s, you might not be overly worried about retirement right now. But even though becoming a digital nomad is a little like retiring early, you’ll likely want to stop working entirely at some point. Or you may be forced to stop working later in life.
Either way, you’ll need money.
Without a traditional job, you won’t have a 401k or someone reminding you to make contributions. Instead, you’ll need to make plans to set aside money or make investments to provide yourself with a healthy retirement account.
As a freelancer, you can still contribute to an IRA, which may be the easiest way to ensure you’ll have money to live on when you eventually leave the workforce.
Leaving the Corporate World Behind
Saying goodbye to your 9 to 5 is going to be scary. But trust me when I say that all of the obstacles you’ll face will be worth it.
I worry about periods without work or my lack of benefits from time to time. For me, those worries have never outweighed my love of not having to go to an office every day, my ability to travel as I choose, and the chance to be there for my family and friends, whenever they need me.
Need a little more inspiration? Check out the full story of how I stumbled into my digital nomad life and never looked back!
Want personalized help getting your freelance writing career set up? Drop your info below to receive my weekly newsletter and get tips and tricks to starting your own digital nomad journey, right to your inbox!
Cate Goes 