Over the past decade, the rise of technology and a growing desire for a better work-life balance have given birth to two new ways of life: becoming a digital nomad or an expat. Both lifestyles offer the freedom to travel and work from anywhere in the world, but there are key differences between the two. In this article, we will explore the differences between digital nomads and expats, the advantages and disadvantages of each lifestyle, and provide tips on how to choose which path is right for you.
What is a Digital Nomad?
A digital nomad is someone who is location-independent and has the freedom to work from anywhere in the world. They can be freelancers, entrepreneurs, or remote workers, performing their jobs through laptops, smartphones, and the internet. This lifestyle allows them to travel and work concurrently, spending extended periods of time in foreign countries and experiencing new cultures.
What is an Expat?
An expat, short for “expatriate,” is a person who decides to live abroad permanently or for an extended period. They generally relocate to a foreign country to work, study, or to enjoy a change in lifestyle. Expats are often retirees looking for a change, professionals seeking international work experiences, or people looking for a better quality of life. They must be prepared to thrive in a foreign country and adjust to diverse cultures, customs, attitudes, and languages.
Key Differences Between Digital Nomads and Expats
The primary difference between digital nomads and expats is their purpose. Digital nomads prioritize travel and flexibility, whereas expats prioritize a permanent or lengthy relocation abroad for work or lifestyle reasons.
Digital nomads are often individuals who require a mobile lifestyle that allows them to live and work from anywhere in the world. They may want to stay for a few weeks or months and then move on to the next destination, seeking adventure and new experiences. An example of a digital nomad is a freelance writer who works remotely and is constantly traveling from place to place.
Expats, on the other hand, usually have a more defined plan for their lives abroad. They may have been hired by a foreign company to work for a certain period or have relocated on their own accord to start a new life outside their home countries. They seek a new way of life and a deeper cultural immersion experience.
Length of Stay
Digital nomads have more flexibility and can travel either for a short period or a long time. They might move on to the next location within weeks or months, while expats tend to live in a foreign country for an extended period, with some even relocating permanently.
Digital nomads tend to stay in one location for an average of 3-6 months. They work for a few hours daily and then spend the rest of their time exploring the local areas, socializing, and experiencing new cultures. They are keen on mingling with fellow travelers and hence stick to a transient lifestyle.
Expats may choose to live abroad for a minimum of two years or more, and most of them have a fixed itinerary during their stay. They tend to settle down in one place, blending seamlessly with the local community and creating ties within their adopted community. They have a more consistent work schedule and usually return home regularly for vacation or to visit family.
Digital nomads are known as remote workers and are their own bosses. They are required to research and adhere to local visa regulations when entering new countries, but there are no restrictions similar to those faced by traditional expats.
Expats, on the other hand, require a long-term visa, residency permit, or work visa. Before leaving their home countries and embarking on their new life abroad, expats must understand the visa requirements, registration fees, and other legalities of the host country.
Digital nomads get paid for being productive and creative, so they enjoy freedom and flexibility. They can work on their own terms and are not bound by office hours or a regular work schedule. They have a healthy work-life balance and can explore new places during off-work hours.
Expats, in contrast, are usually employed by a company or take up long-term self-employment opportunities. They maintain a more structured lifestyle, including regular office hours and schedules, and receive a predictable income.
Digital nomads tend to immerse themselves in personal connections at the destination while traveling, working, and socializing with other digital nomads or locals. With this mentality, they maintain a way of staying connected to other cultures while enjoying a mobile work lifestyle.
Expats, on the other hand, have to blend in with the foreign culture for a long time. They must learn to speak the local language, develop friendships with locals, and have a deeper appreciation of the host culture. They may have to cope with the stresses of culture shock, which requires time to adapt to a new culture.
Cost of Living
Digital nomads tend to be conscious of their budgets and are mindful of their spending habits. They typically choose affordable living options, such as hostels or shared apartments or living expenses covered by their clients or companies. Their accommodation, transportation, and food are prioritized in terms of affordability.
Expats may have a more stable and predictable monthly living expense. They can enjoy a better standard of living because they are able to afford a higher quality of accommodation, health care, and other meaningful expenditures.
Advantages of Being a Digital Nomad
- Flexibility: Being a digital nomad affords the luxury of having complete control over your schedule. They are free to work on their own terms and can travel whenever they want or need to.
- Variety: They have the opportunity to experience a new country, culture or customs and can interact with new people. They have the flexibility to leave when they are ready or to spend a more extended period, depending on their preferences.
- New experiences: Digital nomads can enjoy new, exciting situations and can gain valuable experience and insights. Their happy-go-lucky lifestyle can make them more open and receptive to change, new ideas, and creative thinking.
- Higher income: Remote work enables digital nomads to earn higher pay than a regular job. They can work multiple jobs, tailor their work to match their skills, and charge premium rates for their work.
- Creative and professional growth: Constantly working on different projects from new locations, they hone their skills and develop their expertise. They can become experts in various areas, ranging from social media marketing to web design, making them more valuable prospects in the job market.
Disadvantages of Being a Digital Nomad
- Lack of stability: Digital nomads have instability on the one hand, such as lack of access to a permanent community, lower income security, and frequent travel engagements.
- Always on the move: Traveling and working as a digital nomad can affect work-life balance. They need to have the discipline to work consistently and choose accommodations conducive to work that may result in non-stop travel.
- Loneliness: For individuals who are looking for deep and meaningful relationships, digital nomadism may lead to a feeling of isolateness as it can be challenging to maintain long-term friendships and romantic relationships.
- High costs associated with travel: While digital nomads can be conservative with their budgets, traveling from place to place can be expensive. High airline ticket prices and accommodation costs can add up and ruin their financial plan.
Advantages of Being an Expat
- Deeper cultural immersion: For expats, the cultural experience is unmatched. By living in the place for an extended period, they get to merge with the local community, learn the nuances of the local language, and embrace the customs and traditions of the destination.
- Long-term stability: Though this is subjective, expats arguably have a more consistent lifestyle than digital nomads. They have the predictability of a regular income and a scheduled work environment.
- Better social networks: Through work and personal relationships, expats can build richer and more meaningful connections with fellow foreigners and locals. These relationships can enrich a person’s experience and make the transition to a foreign country smoother.
- Enhanced career opportunities: When expats relocate to pursue career-oriented moves, the new opportunity could be the stepping stone to a bigger future. They have a chance to gain the company-specific insights, develop new skills and to gain varied perspectives based on their engagement.
Disadvantages of Being an Expat
- Culture shock: This is a common effect on any traveler who has to move to another country. It takes time to adapt to a new culture and can result in experiences such as language barrier, disorientation.
- Homesickness: For those who have to move far away from family, homesickness is a challenge. The sense of familiarity can be relinquished in a new environment, and this could heighten feelings of isolation.
- Language barrier: If the destination’s language is different from your mother tongue, communication could suffer, and basic tasks could become a challenge.
- Legal barriers: Obtaining and maintaining legal status can come with bureaucracy and costs. There may be frequent paperwork updates, and financial commitments for visas, work permits, and residency permits.
How to Choose Your Path
To select the right path between digital nomad and expatism, a series of factors have to be taken into account.
- Personality: It is essential to understand your traits, preferences and lifestyle. A socialite may find digital nomadism too transient and too temporary, while an introvert may struggle with the socializing inherent in being an expat.
- Career trajectory: While digital nomads enjoy flexibility and variety, expats can enjoy a more predictable earnings stream and career progression.
- Budgeting priorities: Digital nomads travel and work on a budget, while expats can enjoy a stable and predictable monthly living expense.
- Intentions: Digital nomads are mobile, while expats are based. If you want to explore different places for the foreseeable future, then digital nomadism may be the route to choose. However, if your preference is to have a stable base, then expatism may be more ideal for you.
Deciding whether to become a digital nomad or an expat is a personal choice, with each having its unique strengths and weaknesses. The decision lies solely with you and depends on your priorities, lifestyle preferences, and aspirations. By considering factors such as career goals, personal preferences, and budget, you should be able to choose a path that complements your life priorities.