How to Travel Cheap and Live Lavishly as a Digital Nomad

I’ve been a full-time "digital nomad" for the last 3 years, with my first taste of this lifestyle back in 2018.

Over time, I’ve learned that a "lavish" lifestyle is possible while spending significantly less than what I'd pay in the US.

If you're ever thinking about traveling while you work remotely, I wrote my best advice to help you navigate this lifestyle a little more smoothly (and cheaply).

*Some of the links on this blog are affiliate links. This means that if you make a purchase through these links, I may earn a small commission—at no extra cost to you. I only recommend products or services I personally use or believe in, and your support helps keep this blog running. Thank you!

Choose a place with a low cost of living (COL)

You hit the global jackpot if you make USD, CAD, Euros, or an equivalent currency.

No seriously.

Making $20K USD a year puts you in the top 10% of earners in the world.

This salary won't last that long if you stay in the US. But you can live a comfortable life in most places around the world. 

It’s just a matter of choosing where you want to go. 

I chose Mexico because I love the culture, language, and the people. My friends have chosen other countries across Latin America (LATAM) like Colombia. Some others live in Southeast Asia (SEA) like Thailand or Vietnam.

This principle extends beyond “cheap countries.” Did you know the average yearly salary in Spain is €27,000? Spaniards make it work. You can too.

How to find cheap rent

Avoid Airbnb and Hotels whenever you can. It’s way too expensive nowadays.

Instead, Facebook groups can be used to find housing at half the cost. Search "[CITY] Housing" or "[CITY] Rentals" and you'll find a bunch of existing groups.

You can even message an Airbnb host to book accommodations off the app (although this is technically not allowed, I've done it plenty of times).

There’s always a risk of getting scammed, so use common sense. 

• Check out their profile. 
• Do a phone screen. 
• Text and see if they’re responsive and professional. 

I’ve done this 20+ times now and fortunately, nothing bad has happened to me. But there is always a risk, so proceed with caution.

Stay for longer periods like weeks or months to negotiate a better deal. While short-term rentals can be lucrative, some landlords prefer to have someone stable and will even offer a better deal if you're there longer.

Search for accommodations in advance so you have better options for both the price and quality of the place.

Be open to sharing spaces. You don’t have to stay in a hostel, but be comfortable with potentially sharing a space to cut costs. I do this often when I want to optimize for location, like living in the city center.

Volunteer or do some kind of energy exchange in exchange for accommodation. Hostels are famous for offering this service. I recommend doing this if you’re hopping across multiple cities/countries.  

Most importantly, ask friends if they know of anything available. I met a German friend in Poland who had a room in Madrid available for my exact travel dates. Really random, but things like this somehow work for me all the time.

I used to hate social media but there’s a huge benefit to having an active profile and posting a story of where you’re going to be. I shamelessly ask friends if they know of any available rooms or 1BR studios in their local area, which has secured me accommodation with amazing people (and deals).

How to fly on the cheap

Learn the game of credit card points (it's stupid easy)

I’ve been using the CHASE Sapphire Preferred card for 10 years and I love it.

• Huge welcome bonus that gives you a free roundtrip ticket internationally
• I earn at least one free flight every year through points, naturally
• No foreign transaction fees when I buy stuff abroad
• $50 Hotel credit every year
• $10 Doordash credit every month (choose items at your local 7/11 for pick-up)

There are more benefits but I mainly use these. All for $99 a year. It’s the only card I recommend for both casual and avid travelers. 

The thing I’ve seen that holds people back from venturing into the points game is that they assume they need to take out a million cards and have a full-time job tracking all their spending and blah blah blah. 

There’s a range. You can be super intense, or just do it casually like me.

I just use my card like I normally would and over time, I accumulate all the points and benefits. 

Just don't go into credit card debt or overspend on stuff you don't need and you will win the exchange, not the credit card companies.

Only in the last year, I’ve ventured into getting CHASE’s Business Unlimited cards to utilize their welcome bonuses. Once I spend $6K to earn 60K points, I stop using the card. Since it has no annual fees, it's a no-brainer.

If a card does have annual fees, make sure the benefits are worth it.

I've had the CHASE Sapphire Reserve but the benefits really don’t justify the high annual fees. Same for AMEX cards.

There are a million websites about this topic but if you want my personal experience, just message me!

Book flights in advance

Google Flights will tell you the sweet spot of when to optimally book your flights for the best value.

But honestly the biggest “hack” is to have flexible dates so that you can go with the wind of the flight pricing gods. 

Also pro tip: booking one-ways can be cheaper than booking a return flight. Plus they're more flexible to change if your plans change.

Find creative routes

Since my family is from California and I live in Mexico, I fly from Mexico City to Tijuana and cross the border into the US using Cross Border Express (CBX).

This takes more time than flying internationally. But I save $100 minimum every time I do this. Since I go to Mexico a few times a year, these savings add up!

If you want to go to Buenos Aires, it may be cheaper to go to Peru first. Some flights may be cheaper out of New York or Miami than your home airport. So get creative!

Recently I saw a roundtrip flight from Puerto Escondido, Oaxaca to Toronto for $1,100. Really expensive. So I looked up PXM -> Mexico City -> Toronto and the total came out to be $850. Still too expensive.

I looked up PXM -> Guadalajara -> Toronto and because of some good timing with budget airlines, the total came out to be $420. This worked out for me because I had been meaning to visit my friends in GDL anyway! 

Bonus: Get Global Entry

It costs ~$100 for 5 years and you skip the U.S. customs line every time you come home. This saves me a minimum of 30 minutes every time, but oftentimes hours when the lines get super long.

After a long flight back home, the last thing you want to do is wait another hour in line going through customs. So Global Entry is 100% worth it.

If you don’t fly internationally much, TSA pre-check is cool for domestic flights. Both are some of the best investments I’ve made as a nomad. 

What to bring on your travels

Pack light

I go everywhere with a backpack and a carry-on luggage. It’s easier to move around. You save on baggage fees. And it forces you to simplify your life dramatically. 

Here are my recommendations for some must-have travel items:

• Briggs & Riley Carry-On - I used to use cheap luggage all my life but since I travel quite a bit, upgrading to a BIFL (Buy it For Life) luggage was worth the splurge. B&R has the best reviews online and has a lifetime warranty.
• Unbound Merino - The highest-quality clothes you can wear to look good, stay fresh, and pack super light. I have their underwear, shirts, jackets, and pants. Plus I'm friends with the founders and they're amazing guys.
• Passport holder - Keeps your passport safe and holds all the different travel cards I carry with me
• Vitamin holder - Compact way to carry your vitamins instead of bringing individual bottles
• Liquid container holder - Buy your beauty and cleaning products in bulk and refill them
• Sunblock - High-quality, natural face sunblock that I’ve tested that turns your face pastel white the least...
• Reusable water bottle - I like Nalgene because it’s light
• Portable charger and battery pack - Self-explanatory
• Universal travel adapter - A must when you’re traveling to different countries
• TSA lock - Useful when you’re staying in shared accommodations or going to gyms
• Sleep mask - I love this brand over the other random Amazon masks I've tried
• Ear plugs - I can't find the exact model that I bought but I use one for sleep and another one for dance (the same ones you wear to concerts)
• Cross-body day bag - Keep your items in front of your body as you explore the city. I use one that I bought from Mexico but this one from North Face looks promising

Things I used to carry but they’re no longer worth it:

• Packing Cubes - Not needed unless maybe you’re using checked luggage
• Roost laptop travel stand with Bluetooth keyboard - Too clunky and took up too much space. Get a decent-sized laptop and that should be fine. 
• Running pouch - This was to protect your valuables under your shirt but it’s overkill. 
• Books - I love physical books. But it's impractical to carry all the time.

How to withdraw local currency without getting scammed

Before you travel, sign up for a debit card with no ATM fees. I use the Charles Schwab Debit Card (choose Investor Checking account) as a U.S. citizen.

Once you’re at the ATM, remember one thing.

ALWAYS DECLINE THEIR CONVERSION RATE. 

There’s this thing called Dynamic Currency Conversion (DCC) that’s a legal, but super shady way to scam you. 

Say I’m withdrawing $5,000 pesos in Mexico. They show me their conversion rate of $1 USD = $18 pesos. They ask me if I want to accept or decline the conversion. 

You want to decline. Because the better rate is NOT what they’re offering. 

It's kind of weird to hit a red button that says "decline" as you're withdrawing money. But trust me. Once you do, money will start coming out anyway.

After the withdrawal, I checked my bank account and saw the rate they used after I declined was $1 USD = $20 pesos. 

Better than the one the ATM offered me.

The way they designed this is fishy... because it's natural to click the green button "accept" to move the transaction forward. But knowing this can save you money, especially when you're withdrawing large amounts of cash.

How to call while abroad

Check your local phone plan to see what countries they’re compatible with. T-Mobile loves Mexico and has free calls and data plans, so I'm good there.

When I traveled to Europe, I used an eSIM with Airalo to have internet right away once I landed. 

I used to have ROGERS Canada and they charged an outrageous $15/day. So definitely get an eSIM or if you want to complicate your life, you can get a local SIM card once you’re in the country. 

Is travel insurance worth it?

Yes. I’m a young and healthy guy. I thought I’d be fine without it until I somehow ended up in the hospital and had to pay thousands of medical fees (both stories are uneventful, but I learned from my mistakes).

I used to use SafetyWing but I found a better (more expensive) version called Genki World that I like.

I haven’t had to submit claims yet but after reading Reddit reviews, Genki seems to have a better reputation for filing and accepting claims, so I switched over to them. 

Getting medical care overseas

The best way to save money on your health is prevention. 

My doctor is kind of useless in the US, especially on my basic self-employed health care plan. I go out of insurance to use Function Health to get a complete overview of my health.

They run 100+ tests to give you the right data and advice to make concrete lifestyle changes. It’s expensive, but 100% worth it for the amount of tests they run and reports they give afterward. 

I'll write a proper review of Function Health after my follow-up tests in a few months, or likely after doing it again for Year 2.

For dental work, I do everything in Mexico. The care is excellent and much less than what you'd pay in the US with dental insurance.

You can also get a free vision test at many optometrists overseas when you buy a pair of glasses (also way cheaper). 

I buy my medication in Mexico. Claritin in the US or Canada can cost $50 for 100 tablets. In Mexico, I pay ~$10 for 100 tablets. My friend even buys diabetes medicine for his mom at Mexican pharmacies because it's a fraction of the cost.

I get massages for $40/hour (it would be even cheaper in Thailand), something I never had the luxury to do in the States. My friend in Argentina sees a therapist there at a great rate (he knows Spanish though). 

Medical tourism isn't new. Border states have been doing this with Mexico for ages. There are videos of getting full-body health checkups in Turkey for $750 USD.

Beyond these services, you need to take good care of your body because it is EXPENSIVE to be sick or injured.

Do the basics, consistently.

• Put on sunblock
• Lift heavy things
• Get your heart rate up
• Brush and floss consistently
• Sleep and wake up at the same time 
• Wash your hands thoroughly and frequently
• Be mindful as you move your body in unknown territories

I feel like an old man for the last tip. I literally hold on to railings and brace my core as I walk downstairs.

I look overly cautious and paranoid... But I know that one casual slip-up can twist my ankle and put me out of commission. 

In short, take care of yo body.

How to get around a new city

Use public transportation, bike, or walk to places. 

An annual pass for the city bikes in Mexico City is $30. So I walk/bike everywhere. And if I need to use public transportation, it’s only 6 pesos (30 cents). 

Avoid taxis. They’re known to scam tourists and I generally find them to be less safe. Ubers are better because at least you have a record of the driver and ride history. 

To save more money, use the ride-share and delivery apps that locals use.

The best way to save money before your trip

I don’t look at costs in terms of dollar amounts now. I look at prices in terms of travel.

• Do I want this $100 pair of shoes? Or do I want two months of unlimited Muay Thai classes?
• Do I want this $200 jacket? Or do I want to spend an extra week in Mexico?
• Do I really need that $500 watch? Or do I want to buy a roundtrip ticket to Spain? 

This framing helps me curb my spending.

At the same time, traveling so much has made me allergic to buying new stuff. Because I know that I’ll have to lug it around or have it collect dust at home.

So unless I really want something, I have no desire to buy new physical stuff.

Bonus: Digital Nomad Taxes for U.S. Citizens

This section is for those who are full-time travelers and want to optimize their U.S. taxes (look up the equivalent for your country of origin).

If you live abroad, you may qualify for significant tax benefits. The biggest three are:

1. Foreign Earned Income Tax Exclusion (FEIE) - the most popular
2. Foreign Housing Exclusion
3. Foreign Tax Credit

Basically if certain requirements are met, you may be exempt from paying up to taxes on foreign-based income on amounts as high as $126,500 (from tax year 2024).

The Physical Presence Test requires you to be out of the U.S. for 330 full days during any 12-month period (it doesn't have to just be in the calendar year). This is the most common pathway for FEIE.

This article explains more details. It's a huge hassle to do it on your own. I've tried a few tax services over the years (because I also lived in Canada for 3 years too) so if you want their contacts, just message me.

I'm trying this out for the first time this year. I know, I'm late to the game, but that's why I'm sharing this with you so you can apply this earlier.

If you're a full-time traveler like me, you can also consider changing your residency to a tax-free state. The state with the least requirements is South Dakota–spend 1 night there every 5 years and you qualify. More info on how to do this logistically
here.

*None of this is legal or tax advice. Do your own research and follow the advice of trusted professionals.

Good luck with your next travel adventures. Thanks for reading. Let me know your thoughts when you DM me @mrtampham.