Why Digital Nomads Should Pay Attention to Costs of Living Indexes
Have you ever wondered why countries such as Switzerland and Germany never rank particularly high on the list of the favorite digital nomad destinations? It is unquestionable that these nations have a plethora of beautiful cities and locations with tremendous natural scenery, all while being very safe. So, what is the downside?
As some of you might have guessed it, the problems can be found in the costs of living, which are through the roof here. Basically, in order to live here, you are simply forced to earn large sums of money, as the everyday costs put a huge strain on one’s budget. What are some of the determining factors upon which we can rank cities on the famous costs of living index? That’s what we’re about to find out.
Housing options are oftentimes the most important thing
It’s a simple fact that the amount of money in your pocket is not the thing that determines the buying power. A much more important factor is what you can do with the cash you earn. One of the major factors is certainly the amount of money digital nomads are forced to dish out on a monthly basis, due to rent. For instance, just a single monthly rent in New York would be enough to cover for a full year of living elsewhere on the planet.
Naturally, certain places such as Austin still rank rather high on most costs of living index lists, even though the rent isn’t exactly cheap in this part of Texas. The reasoning behind it can be found in the fact that the average income in Austin is also quite a bit higher compared to its rival cities. Additionally, housing costs are only one part of the whole equation. This serves as a perfect introduction to our next point.
Every day costs of food, energy and clothing
Mundane things like costs of food and clothes are something that most nomads pay great attention to. To be honest, while these things really do vary from one situation to another, it’s really not the thing that will make such a huge difference.
Besides the price of rent, which take up most of one’s budget, the costs of energy can be the next biggest factor. This is especially true in areas with extreme climates, where the energy expenditure is proportionally larger. Most of the popular budget calculators include this factor, but don’t be lazy and explore the forums a little bit as well, as some of the data may not be 100% accurate.
Healthcare costs can also vary greatly among different nations
We wish nothing but the best of health to all of our readers, but we also have to be realistic here for a second. Most of the digital nomads who spend huge portions of the year away from home, are bound to at least catch a few colds here and there.
Naturally, there are a lot of insurance options for digital nomads that include the healthcare, but what happens when the insurance simply refuses to cover for all of your expenses? That is why healthcare takes up an important spot on the list of factors that help determine the costs of living.
Do not forget about the transportation costs
Depending on your location of choice, public transport may present a huge factor in the costs of living department. Digital nomads who love to work from secluded small villages in the middle of nowhere won’t have a problem with this, but let’s face the facts, this only presents a small number of people.
Most nomads still take busy urban centers as their destination of choice, due to the desire to feel a different culture and mingle with other people who elected to live in this lifestyle. While well-developed countries, such as Japan, have an impeccable transport system, some other, less fortunate nations are forced to charge huge sums of money for their transportation services. To make matters worse, they oftentimes aren’t even reliable, but that’s a topic for another day. The most important thing for you, as a digital nomad, is to remember to take these costs into consideration.
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