Is a nomadic lifestyle economically possible? That is the most common question I get when I tell people that I am a nomad. To help answer it, I’ve analysed my finances down to the last red penny. Just remember that these are my numbers. You should expect your mileage to vary!
I set the starting date of my financial analysis to August 1, 2011. That is shortly after I received my last paycheck from my old job. The end date is the last day of July, exactly a year later. This is my new financial year. After each such year, I’ll share with you how I’m doing. (Hopefully, next year will be a brighter report than today’s!)
Let’s first look at my expenditures. In one year, I’ve spent £12,129$19,707129 279 kr. That breaks down to £33$54352 kr per day or £1,011$1,64310 776 kr per month. This is everything that I’ve spent, including food, rent, travel cost and a sliver of fun. (OK, I’ve had tons of fun this year!)
Flights account for 11% of my total expenditures at £1,348$2,19014 368 kr. This number would be a lot higher if it wasn’t for my airline patron allowing me to fly on cheap stand-by tickets.
Rent accounts for 19% at £2,363$3,83925 187 kr. This would be a lot more if it wasn’t for the many generous people hosting me rent-free, sometimes for several weeks. (See the Thank You page to see who these saints are.)
Discounting rent and flights and my daily expenditures are £23$37245 kr/day, which I think is pretty good. I’ve cut back on things like the cinema, eating out and buying crap I don’t need and can’t carry. Eventually, I’d like to raise my living standards, but it’s not like I’ve been suffering this year.
I figured that the life of a nomad would take some getting used to, and I was correct. There were several physical, mental and emotional problems to solve in this first nomadic year of mine. In order to focus on these issues, I gave myself permission to live off my savings and wait with establishing ways to earn money. I’ve done a few simply web-design jobs, but my earnings have been modest indeed.
My total income for the year was £2,980$4,84231 763 kr, which breaks down to £8$1385 kr per day or £248$4032 643 kr per month. Actual money earned through jobs done was £2,061$3,34921 968 kr or 69%. The rest, £917$1,4909 774 kr or 31%, is passive income from interest and donations.
My net money flow for the year was a negative £9,149$14,86597 516 kr (£25$41266 kr/day or £762$1,2388 122 kr/month). I am bleeding money, but the blood flow is slow enough that I can go on for a while longer. However, in order to make my nomadic life sustainable, I will have to start earning money. Starting today, my next focus is to establish a new geo-independent career! Stay tuned!