Digital Nomads: What It Is, How It Works, and Real-Life Examples

Digital nomads are people who lead a location-independent lifestyle, using technology to perform their jobs remotely. They are not tied to a specific workplace or office and can work from various locations. This lifestyle is made possible by technological advancements like content management software, affordable Wi-Fi access, smartphones, and Voice-over-Internet Protocol (VoIP) for communication. The rise of the gig economy has also contributed to the growth of digital nomadism.

The term “digital nomad” was coined in 1997 in the book “The Digital Nomad” by Tsugio Makimoto and David Manners. They predicted a future where technology would enable employees to work from anywhere. In the 21st century, digital nomads use laptops, social media, and mobile phones to work. They enjoy the freedom to choose their work and living locations, spending months in various places, thanks to the availability of short-term accommodations and office-sharing platforms.

While the digital nomadic lifestyle offers freedom and adventure, it also has downsides. Work opportunities may not always align with an individual’s skills or pay well. Maintaining this lifestyle often requires hard work for potentially less income compared to traditional office jobs. To make it sustainable, having a source of passive income alongside contract work is beneficial.

According to a 2020 Gallup poll, a significant number of U.S. remote workers expressed a desire to continue working remotely even after the pandemic’s end.

Digital nomads come from various age groups and work in knowledge-based industries such as marketing, design, IT, writing, media, tutoring, and consulting. According to a 2020 study by MBO Partners, there were 10.9 million digital nomads in the U.S., with an additional 19 million Americans considering this lifestyle. Digital nomads can be remote employees or knowledge process outsourcing workers. While most freelancers and telecommuters are technically digital nomads, the term is most commonly associated with people who live or travel while working.

Outsite, an online community for digital nomads, reports an average member age of 35, with many being single or divorced.

Many digital nomads eventually transition to a more stationary work environment. The client network they build during their nomadic phase often facilitates this transition into full-time freelancing. Strategic choices in location can leverage currency and cost-of-living differences, allowing digital nomads to make their income go further. Some choose to settle down after starting a family, while others continue their nomadic lifestyle with their families, joining like-minded travelers with children.

The concept of digital nomadism gained momentum in early 2020 when the pandemic led to lockdowns and remote work. This period witnessed a 50% increase in the digital nomad population compared to 2019. However, increased competition for resources and border closures forced some digital nomads to return home.

Families also embrace the digital nomad lifestyle, with parents working remotely and often documenting their adventures through blogs or writing. Some opt for homeschooling or virtual classrooms for their children.

As remote work opportunities continue to expand, the digital nomadic lifestyle is poised for growth. The freedom to set one’s hours, work in diverse environments, and explore the world are appealing aspects of this lifestyle. However, achieving success as a digital nomad requires hard work, effective planning, budgeting, and networking skills.

Earnings as a digital nomad vary depending on the type of work and whether it’s done remotely or in a traditional office. According to a 2018 survey from FlexJobs, 40% of digital nomads make $50,000 or more, while 60% earn less than $50,000 annually.

Jobs in fields like computer programming, when performed remotely, can yield higher salaries. However, income as a digital nomad depends on factors such as job type, full-time or freelance status, and industry.

Several websites cater to remote job seekers, including We Work Remotely, FlexJobs, LinkedIn, and Stack Overflow, which is particularly suitable for web developers and IT professionals.

While precise figures are challenging to obtain, MBO Partners reported approximately 10.9 million digital workers in the U.S. in 2020, the most recent available data.

The global population of digital nomads likely numbers in the millions, with one study suggesting there are 4.8 million worldwide digital nomads, and 17 million more aspire to embrace this lifestyle in the future.