Many digital nomads work remotely while traveling. Some are independent contractors or entrepreneurs offering various services online.
They often use landing page templates to highlight their business, generate leads, and grow their customer base while exploring the world.
These people can work from anywhere, but their lifestyle is neither cheap nor hassle-free. On the contrary, it involves significant costs and can be mentally draining.
Constant travel means paying for short-term stays, spending days on the road, juggling visa requirements, and adjusting to different zones, all while trying to stay productive.
With that in mind, let’s break down the hidden costs of being a digital nomad.
The True Cost of Nomadic Living
In 2025, Dutch digital bank Bunk surveyed 4,729 digital nomads across six European countries to better understand the challenges they face. Most respondents admitted struggling with:
Work-life balance (15%)
Language barriers (12%)
Financial sustainability (11%)
Healthcare (11%)
Mental health (10%)
For instance, digital nomadism can lower your costs in areas like rent or dining, but it also introduces new expenses. Think visa fees, travel insurance, cultural fines, local taxes, data roaming charges, and higher rates for short-term housing.
Another aspect to consider is that travel insurance may not be enough. Not all policies cover dental work, pre-existing conditions, or eye checkups, which can result in unforeseen expenses. In some countries, such as Switzerland, you could pay thousands of dollars for a tooth extraction.
The freedom you can enjoy as a digital nomad is real, but so is the struggle behind the scenes. Here are a few key aspects you’ll want to factor in:
Accommodation costs: Airbnb used to be the go-to choice for digital nomads, but that's no longer the case. Its service fees have increased significantly in recent years, making it difficult to find affordable accommodation. Hotels and hostels can be expensive, too, and many restrict the duration of stays.
Daily living expenses: Food, local transportation, banking fees, SIM cards, and other small expenses can add up quickly, leaving you wondering where your money went. On top of that, currencies fluctuate, making budgeting difficult.
Lost productivity: Slow internet speeds, jet lag, and constant relocation can hamper productivity. Plus, you can’t expect the same level of productivity when you’re on the move, trying to explore new cities, see the sights, and soak it all in compared to working from a stable office setup.
Stress and burnout: Living as a digital nomad means chasing experiences while juggling work. While this sounds good in theory, it can easily lead to stress and burnout. The shorter you stay in one spot, the harder it gets to juggle work, sightseeing, and everyday tasks.
Mental health struggles: Maintaining meaningful relationships can be challenging when you're always on the road. You miss birthdays, lose touch with old friends, and often lack a support system. That's why many digital nomads struggle with feelings of loneliness and isolation, especially when traveling solo or for long periods.
The digital nomad lifestyle looks different for everyone, and so do the challenges that come with it. If you're ready to give it a try, test the waters for a few weeks before jumping all in.
This brings us to the next point…
Mastering Life as a Digital Nomad
Life as a digital nomad can be extremely rewarding if you know how to make the most out of it. The key is to define your priorities, then plan your budget and daily routine around them.
Need help to get started? Here are some strategies to keep costs low and mitigate some of the challenges that come with this lifestyle:
Plan Longer Stays
Many hosts on Airbnb and other platforms offer discounts for stays longer than 30 days. Not only is slow travel a great way to save money, but it also allows you to live like a local. You'll have more time to recover from jet lag, explore your surroundings, make friends, and do the things you love.
Slow travel also makes it easier to get into a routine. For example, you can plan for "work days" and "sightseeing days" or divide your time into blocks.
Seek Ways to Save on Accommodation
Accommodation is often the biggest expense for digital nomads, but you can cut costs without sacrificing comfort.
One solution is house or pet sitting, which can reduce your accommodation costs to zero. Register on online platforms like TrustedHousesitters, Nomador, Rover, or MindMyHouse to connect with homeowners in the cities where you plan to stay.
Alternatively, join digital nomad accommodation groups on Facebook, Reddit, and other social networks. Create a post to ask for recommendations or browse existing posts to see what’s available for rent.
Shop Like a Local
Eating out can be convenient at times, but for longer stays, nothing beats living (and dining) like a local. Visit the supermarkets in your area, try out street food, and explore the local cuisine. It's a fun and easy way to save money while discovering regional flavors.
This approach can also help you make friends and build authentic connections. Locals often avoid the places where tourists go, so you’ll likely find them in quieter neighborhoods, family-run cafés, or farmers’ markets.
Define Your Must-Haves
When you're traveling, it's tempting to cut corners to save money, like booking the cheapest accommodation. While there's nothing wrong with being frugal, you should have a list of non-negotiables.
An example is fast WiFi. If you work remotely, you need good internet connectivity to stay productive. In such cases, it's worth paying extra for a hotel room or private rental with high internet speed.
Think about your lifestyle and what makes you feel at ease. Whether it's a nearby gym, an en-suite bathroom, or a quick bus ride to the city, these small details matter.
Plan for the Unexpected
About 14% of the nomads surveyed by Bunq said they spent more than they planned. Things can go haywire when you least expect it, so it's important to be mentally and financially prepared. Make sure you have enough money in your bank account to cover:
Medical expenses, even with travel insurance
Stolen or broken gear (e.g., your laptop or smartphone)
Lost or delayed luggage
Last-minute flights
Extra mobile data
If possible, apply for a multi-currency card like Revolut, Wise, or Payoneer before hitting the road. This step alone could save you a small fortune in currency exchange fees.
Also, bring at least two debit or credit cards with you. If one gets lost, stolen, or frozen due to a suspicious transaction, you’ll still have access to your money. Keep them in separate places (e.g., one in your wallet and the other in a secure pouch) so you’re covered in case of emergencies. Depending on where you travel, you may need to have cash on hand, too.
As a final word, focus more on living and less on traveling. Being a digital nomad isn’t about moving from place to place. It’s about having the freedom to enjoy life on your terms and work from anywhere.
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