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- I lived in Costa Rica and traveled the world for five years for less than it cost to live in the United States.
- I didn't have a car, and thanks to work exchanges, my fixed costs were a fraction of what I spent in the United States.
- My mindset was also different: I didn't feel the need to spend money to have fun like I do at home.
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I was a digital nomad from 2015 to 2020, with a home base in Costa Rica. I regularly spend hundreds, sometimes thousands, of dollars less each month than I do now that I live in the United States. And it wasn't just because I lived in affordable places.
Even though I spent a lot less in places like Mexico and Central America, my cost of living was even lower when I spent a few months traveling in Europe or Asia.
I had almost no bills while living abroad and it seemed easier to keep the rent low. But the mindset I had while living abroad is what really helped me save: I didn't feel the need to spend money to have fun.
My fixed costs were 2 to 3 times lower when I traveled
When I returned to the United States, to my hometown of Portland, Oregon, my fixed costs skyrocketed. I've spent between $1,000 (with a roommate) and $1,700 on rent since returning in 2020.
I lived in various parts of Costa Rica, where I paid between $300 and $600 a month to rent furnished homes I found through word of mouth. I've found the best deals on housing by booking a cheap hotel or hostel for a week and waiting until I arrive in a new place to look for rentals in person.
The most I spent on accommodation while traveling was around $800, the month I traveled through Japan and Vietnam and stayed in a mix of hostels and capsule hotels ranging from $5 to $10 per night in Vietnam and $15 to $50 per night in Japan.
To keep housing costs low, I did a lot of what we call “slow travel.” I tried to spend at least a month in each place rather than going to different places every few days. You can get better deals by renting a furnished house or apartment for a few months. Even Airbnb hosts often offer a significant discount if you're willing to stay at least a month, especially in the off-season.
I also had significantly fewer bills and no debt while living abroad. Utilities and internet were always included in the short term rentals I stayed in. I didn't own a car for most of my time abroad, which allowed me to get rid of car payments and car insurance. I could also afford to pay out of pocket for medical and dental treatment in Costa Rica, so I opted for a cheap travel insurance plan instead of American health insurance.
I did job swaps in more expensive fields to save money
I also subsidized my housing costs in more expensive neighborhoods by doing work exchanges for room and board that I found through Workaway International. You can browse the website to find select hosts around the world who are looking for “volunteers” to help them on their farms, in their hotels, and more, and they will offer free accommodation and sometimes meals in exchange for part. working time.
I actually went to Costa Rica to do a work exchange at a sustainable ranch for a few months, but ended up staying there for five years. It was the perfect introduction to a new country I was considering moving to. I got to know the locals, learned more of the language, and gained a better understanding of the culture before fully settling in.
During the summer I spent traveling around Europe, I offset the cost of staying in different cities every few nights by doing a work exchange during one of the three months. I stayed and ate for free at a vineyard in a small medieval town in Tuscany owned by a sommelier. In the morning, I would spend an hour or two cleaning the owner's natural pool and weeding her garden, then another hour or two helping her build a website for her wine tours.
I had free afternoons, evenings and weekends to do my own work and explore the area. My expenses for this month were minimal and I learned a lot about wine production and Italian culture from my host, who even taught me a few family recipes.
I spent a summer in New York thanks to a work exchange that I found on this same site. I traveled around town doing in-home pet sitting assignments for a few New Yorkers who owned a pet sitting business. In exchange, I got free housing all summer and a food stipend, and had plenty of time to do my own work.
I didn't feel the need to spend money on fun while living abroad
I found it much easier to fill my days with fun, free activities while living abroad.
In the United States, I often feel the need to buy tickets to a show, search for upcoming events, or go out to eat out of boredom. But when you live in a new country, there are so many new things and challenges in daily life that you rarely get bored.
I could walk around a new city and admire its unique and unfamiliar architecture or take a hike in the forest and marvel at all the plants and wildlife I had never seen back home and feel satisfied. Basic exchanges at the grocery store or trying to figure out which bus to take allowed me to practice a new language and learn new things, and that seemed like enough entertainment.
Taking road trips in the United States pushes me back into that traveler mindset. Over the past two summers, I've taken month-long road trips to various national parks and cities, car-camped at free or low-cost places along the way, and spent less for these trips than at home.
The traveler mindset I had while living abroad encouraged me to explore, get creative, and have fun in the simplest activities. It is possible to have this mindset in the United States if I strive to approach my own country as a visitor.