Cryptocurrency for digital nomads – update

The quest continues

My search for a way to buy crypto that doesn’t suck continues apace. Here’s an update of where I landed with the platforms I tried, and the degree to which each of them sucks:

*NB: 0/10 shall denote the suckiest and least useful.

 

Coinbase

Never replied to my most recent customer service query, 1 week ago. Did send me annoying auto-emails talking about what I should do with my shiny new (utterly non-functional) account.

Rating: 0/10,  maximal sucking, minimal utility.

 

Kraken

Never replied to my most recent customer service query, also exactly 1 week ago. Not trynna chase you guys to give you my business, bros. I get that their volumes are probably especially high lately, but still.

Rating: 1/10, account is equally useless but at least I didn’t get any annoyingly chirpy auto-emails about a service I can’t use.

 

Gemini

So, these guys actually verified me to the point where I could see about making a purchase. Exciting! Then it turns out they only accept fiat currency transfers via bank wire, which is prohibitively expensive for small purchases (my US bank charges me USD$25 per outgoing wire transfer).

Also, I dislike having to use a North American phone number every damn time I log in to my account. But I’d have overlooked that if they allowed a better option for funds transfer. I didn’t proceed with making a purchase.

Rating: 5/10, significantly less sucky than Coinbase or Kraken, but still not allowing me to do what I want, which is make purchases easily, with minimal hassles and minimal fees.

 

Bit Panda

The newcomer! I added these guys to my experiment following a suggestion from someone on one of the digital nomad communities I’m part of. They are more Europe-friendly, so yay! But, alas, their verification also sucks, so boo.

They offered this video-verification service, which was in German, but fine, Google Translate to the rescue. Only I waited on the other side of the video call for at least 10 minutes, and pinged a message to their help chat, before giving up altogether. Haven’t heard back from them since.

This was a disappointment, because it appears as though they allow normal funds transfers from euro-denominated accounts. And given that online transfers in Europe just generally suck a lot less than in the US, I was hopeful about that.

Rating: 4/10, I have to rank Bit Panda as sucking a bit more than Gemini, because at least I could get verified there. But I suspect for those who can get past that hurdle (surely some people have had better luck with their weird video service?) the payment options are a lot better. For those of us with euro banks, at least.

Bitstamp

Another new addition to the list, on the suggestion of a friendly commenter on the previous post. Want to send me any other suggestions? I’m clearly highly suggestible in this area.

I just submitted my verification documents, in a relatively pain-free process. Fingers crossed!

Rating: 5/10, tentatively hopeful. This is like going on an even marginally promising first date after a string of disasters. It’s not gonna take that much to be better than the last bunch, so use that to your advantage, Bitstamp. (“Well, it seems like he isn’t a racist, so there’s that!” Basically, don’t be a racist and you’re in with a chance, Bitstamp.)

 

So far, no purchases made

As I write this, Bitcoin has had a very bullish (and yet tumultuous) few days, looking to surpass $10,000 USD/BTC. But, as with all my investments, I don’t try to time the market. If/when I do make a purchase, it will be a small % of my net worth, and I’ll add to it over time as part of my overall portfolio.

And especially, as always, nothing here even remotely constitutes investment or tax advice. Do your due diligence and follow your own bright star. 

Cryptocurrency for the uninitiated

Part 1: Coinbase vs. Kraken vs. Gemini 

what sucks the least for digital nomads?

 

Google search: How do I buy Bitcoin?

 

Depending on the definition of the range of birth years, I may be considered a slightly ‘older’ Millennial (yuck and ugh to each of those terms, in that order). However, when I decided it was time to get into cryptocurrency investing, any questions I may have had about my membership in the oft-over-analysed generation were dispelled, as I turned to my perennial favourite solution to any unknown problem: the all-knowing oracle of Google. 

via GIPHY

 

Obviously cryptocurrencies are being talked to death right now, and I feel late to the party. But after hearing about crypto from yet another savvy client, I decided to jump in and get some firsthand experience myself. Digital nomads seem like we should be the ideal demographic for a borderless currency, and yet, as I would soon find out, the current platforms aren’t very nomad-friendly. And my go-to solution for all life’s mysteries wasn’t giving me any concrete answers.

 

As a Bitcoin newbie, who considers herself passably tech-literate but is far from a programmer, I actually found the current resources on crypto to be a bit lacklustre. What I found were mostly either overly skeptical or dumbed-down mainstream media articles seemingly aimed at an (*ahem* even) older generation, Subreddits getting way too far into the weeds, or overly enthusiastic guys selling something. Where was the nice, normal, “here’s how to do this” guide?

 

We the nomadic are used to things not really being designed for us, but I wasn’t even finding good resources for normal, settled people. This Business Insider piece was actually the closest to useful that I could find, and they seem to have A) decided not to write about the hassle-ridden identity verification step for some reason, and B) been doing it mostly for the lulz. Not all that helpful, tbh.

 

And they didn’t even mention the difference between a trading platform, like Coinbase, needed to buy crypto, and a wallet, which you need to store it! To a n00b like myself, it would have been useful to have a breakdown of exactly what one needs, and why.

 

So that’s what I’ll attempt here. I also didn’t set out to test so many trading platform options, but as fate would have it, many of them are painfully un-user-friendly, so necessity became the mother of experimentation. If Coinbase had sucked less, I might have just gone with them, and never thought to write about it at all.

 

As I blunder my way through this little experiment, I’ll note what I think nomads need to know and what to expect. As always, nothing written here is intended as nor should be interpreted as investment or tax advice. I am simply documenting my experience.

 

STEP ONE: How to buy crypto?

 

First attempt: Coinbase

The platform I’d heard the most about was Coinbase, so I started there. What they, and most other resources I found, didn’t spell out very well, is that you need a platform to purchase and/or trade crypto, and you need a wallet to safely store it. Coinbase is only the former.

 

But before I tackled the question of what kind of crypto wallet to use, I had to actually get my (digital) hands on some. I’d looked at the Coinbase app a few months ago, and decided it wasn’t robust enough to get started on, so I went to the desktop site.

 

And that’s where my problems began.

 

In retrospect, I wonder if the wifi on the train I was on when I signed up was using a UK IP address, since it was a train that goes from Dublin to Belfast (even though I was staying in the Republic). In any case, Coinbase somehow decided, without any input or prompting from me, that I was signing up for a UK account. 

 

You’d think that, as it was a brand new account, it would be easy enough to update the country from the wrong one they’d decided on, to one of my very own choosing. Let’s table for now the issue of which country even applies to the nomadic, but for better or worse, of all the possible countries theoretically available to me, the UK isn’t currently one of them.

 

Unfortunately, Coinbase requires you to use a form of ID to update the country on your account. But then when you use a form of ID not associated with the current country, it disallows that ID. I found myself stuck in a strange loop. It’s been as fun trying to explain that to their customer support team as you’d imagine.

 

I tried to troubleshoot on my own for an hour on Sunday, before contacting their customer support and getting an unhelpful word-vomit standard email reply restating all the things that also weren’t helpful on their FAQ section.

Unhelpful and overly wordy

After a few more back and forth emails, they said they’d get back to me 3 days ago and I haven’t heard anything since.

 

Second attempt: Kraken

While holding out a glimmer of hope for Coinbase, I turned to potential alternatives. Back to Google:

 

How to buy bitcoin not on Coinbase?

 

One of the first alternatives I saw pop up was Kraken. The initial signup process was much less shit than Coinbase, until I tried to verify there:

Again with the not-helpful

 

Um, ok, cool. Back to emailing support. When they got back to me, the reply was as puzzling as the strange loop of Coinbase:

By not resolving your issue, thereby your issue shall be resolved.

 

So, you’re aware this is an issue, and that this issue renders your service utterly unusable, and yet you’ve marked it as Solved? Explain. Show your work.

 

Third attempt: Gemini

Back to the Google hivemind. This time, Gemini bubbled up to the surface. It’s owned by the Winklevii, but I’ll try not to hold that against it.

 

Signup was ok. They needed a North American phone number, which I happen to have, even though it’s not convenient to use it when I’m outside North America. But they actually let me submit myself and my various bits and bobs for verification/scrutiny, and that’s where my saga currently lies.

 

So, to summarise, it’s taken nearly a week, 3 attempts, probably a dozen total emails back and forth with the various Zendesk support teams, and nary a bitcoin purchased.

 

Thoughts

 

One of the things these sites all had in common was an unquenchable need to know what country the user was tied to. Like, why are you so obsessed with me?

via GIPHY

 

But seriously, I personally have at least 3 countries I could theoretically choose from. All with valid forms of ID, active bank accounts, etc. Which one did they want me to pick? It actually wasn’t entirely clear at any point. I went with the approach of choosing the one that seemed the most expedient for each site.

 

None of them really explained in any satisfactory detail what the country association would be used for. Taxes, maybe? Payment options? But surely they can imagine a world in which a person has more payment options available to them than 1 debit card in 1 country?

 

From Coinbase’s FAQs

 

And what about someone who doesn’t happen to have a passport that matches a verifiable address? Can they buy bitcoin at all?

 

Maybe there are better sites out there that suck less. I’d be delighted to hear about them. For now, it seems like Gemini is my best bet, so I will post again if/when they verify my realness (status: realer than real) and allow me to make a purchase.

 

How about you? Have you ventured into cryptocurrency? I’d love to hear about how other location independent people have tackled the country/verification issue.

 

Airbnb strategies – Part 1: Hosting

I’ve been a longtime Airbnb user. Recently on Facebook, a memory popped up from 2011, when I posted about this “cool site I was trying out.” Yes, it was a simpler time. I don’t even know if the phrase “sharing economy” existed yet. Fast forward a few years, and there are probably relatively few seasoned travellers out there who haven’t given that “cool site” a try.

 

While Airbnb isn’t all sunshine and roses (check out Part 2 for a few recent experiences I’ve had to prove that point!), I think it has some key advantages that can support both your pursuit of financial independence, and your location independence, if you so choose. If you keep a few simple strategies in mind, it could speed up your progress to both, and expand your horizons once you get there.

 

As this is a chunky enough topic, I’m splitting it into two parts, for both hosts and guests (primarily guests of the semi-nomadic variety). First up, hosting, to get your side hustle income stream flowing:

 

PART 1

HOSTING

 

Airbnb can be an easy way to add a little side hustle income stream to your roster. There has been much written and said about renting out a spare bedroom on Airbnb, or using Airbnb instead of longer term rentals in an investment property (if you didn’t already know, Paula Pant of Afford Anything is an amazing resource for all things investment-property related).

 

What I don’t see discussed as often, and perhaps with good reason, is the potential of making a place that you yourself rent, available as an occasional Airbnb rental. I personally was too scared to try this while I lived in the US. It just felt like there were too many legal/regulatory risks.

Whether or not that fear was justified, for whatever reason it didn’t seem as risky in Dublin, and thus I began my hosting career almost exactly 1 year ago.

 

Tips for hosting in a rental

 

First, I’d say you should determine how annoyed your neighbours and landlord are likely to get, if at all. And obviously have a read through your lease to see if there’s anything explicitly prohibiting it.

 

I took the view that I’d have no qualms about having an out of town friend stay in my place while I was away, which wasn’t so different from what I’d be doing, since I was only going to rent it out when I was out of town travelling. And my building was a pretty relaxed place in general, with people mostly minding their own business. It seemed ideal.

 

*I’m aware that many cities, probably primarily in North America, but possibly increasingly around the world, local authorities are getting a bit tetchy about Airbnb. It’s a complex topic, and often an emotional one, so make your best assessment of both the legal and ethical implications, and proceed accordingly.

 

In Dublin, there’s a full blown housing crisis, and that has knock-on effects into the short term and hotel markets as well. I’ve been told it’s often difficult for visitors to find a hotel room for less than €200 a night, which is far beyond the budgets of many travellers. I’m generally in favour of increasing choice for both residents of a city, as well as visitors. So I was and am satisfied that making my otherwise-unused apartment available while I was away (at far, far less than €200/night, let me assure you!) was a net positive for everyone involved.

 

So, if the stars align and you decide to take the plunge, what are some tips for would-be Airbnb hosts?

 

  • Make check-in/out easy and low-touch for you and your guests

 

Checking in should not require an in-person meetup, if it’s at all possible to avoid it. For me this was essential because I was almost always going to be on a plane heading out of the country whenever my guests were arriving. As a guest, I knew how much I valued being able to check in and out at my leisure, without having to text and coordinate with someone and cater to their schedule.

 

My solution to this was to buy a key-safe lockbox, which I attach to a railing near my building’s front door. I always inform my guests of this in advance, and I send them pictures of its location in case they are checking in after dark, and just to allay any potential worries that they might have.

The one I use is here:

 

Overall, I’m delighted with that solution. I’ve very rarely had anyone who had any difficulty with locating or using the lock box, and I’ve never received any negative feedback because of it. Possible alternatives could be a local business that doesn’t mind giving a key to your guests, especially if you’re a regular customer or if you have some relationship with them. Or an obliging friend or neighbour who you don’t impose upon too heavily. I’ve stayed in places as a guest that did both, with varying degrees of success. I’d still suggest going for the fully remote solution where possible.

 

  • Set expectations

 

This is so important for both your sanity, and that of your guests. I try to emphasise that my place is small, and in an older building, and is also my main dwelling place, so people know what they’re getting. This doesn’t mean I’ve never had a complaint that the place is small, but at least I’d caveated that emptor, so I didn’t feel too badly about it.

 

I’d also let guests know in advance the situation regarding parking, wifi, how heat/hot water/garbage worked, and what they could expect in terms of linens and bathroom basics. I’d still sometimes get questions on all of those things, and more, but to the extent possible I made an effort to be very explicit about all the quirks and features of my place.

 

  • Anticipate questions

 

This ties in closely with the above, but I made sure to make a house manual on Airbnb for specific things that I knew were unique about my place, such as the switch for the hot water, or the highly sensitive smoke alarm that will go off if you leave the door open while taking a shower.

 

Another thing I did that I think worked well was to preemptively send a link to the exact coordinates of the location on Google Maps. I actually don’t know why more hosts don’t do this! Addresses are funny and are so different from one place to the next. And it’s so blindingly easy to drop a pin on Google Maps that Airbnb should actually make it mandatory.

 

  • Bonus: prepare for tax time!

 

One of the things people sometimes worry about related to becoming an Airbnb host is what to do in terms of taxes. Generally, income is income is income, and whatever jurisdiction you live in would like for you to report that income, please and thank you very much. But how exactly that looks will vary widely from place to place.

 

In Ireland, at least, Airbnb very helpfully reminded their hosts that our income had been reported to Irish Revenue, just in case it might’ve slipped some people’s minds. How thoughtful of them! Here’s the email I received:

To Airbnb’s credit, as you can see, they did provide some links to resources in case people had questions. And when it comes to taxes, I know firsthand that people always do. And that it’s almost never an especially easy or user-friendly process.

 

If you’re a new Airbnb host and wondering what to do about taxes, here are some first steps to consider:

  1. Keep record of your related expenses

    From supplies like sheets and towels for guest use only, to getting that second set of keys cut, to the lockbox itself, it helps to keep track of all these small expenses as you go. I stuck mine all in a simple spreadsheet.

  2. Determine how and when you’ll report it

    Be especially mindful in case there are any pre-filing registrations you need. For example, in Ireland, I needed to register for MyAccount, which I discovered entailed Revenue sending me a code in the post. So I was glad I didn’t wait until the last minute, as the Irish tax filing deadline is coming up on 31 October!

  3. What are your expenses when you don’t own the place yourself?

    This will vary depending what jurisdiction you’re in, but one approach that makes sense from an accounting perspective is to take a ratable portion of your monthly rent as a rental expense. 

    For example: My monthly rent was €850, so if I rented my place for 5 days in a month, I’d figure my expense for that month as follows

(850/30)*5= €141.67

You could reasonably treat your monthly wifi, heating/electricity, and even bin charges, in a similar fashion.

Be aware that if there is no specific guidance from Revenue where you live, you should have a sound basis for why you claimed the expenses you did.

 

  1. Seek out a professional

My general, and very high-level tips aside, if you haven’t reported rental income before, and if you have any doubts at all, you should definitely seek out a qualified professional. It’s almost always worth the expense, both in terms of peace of mind, and in the cost of your valuable time. Getting your reporting right the first time, and avoiding time consuming and potentially costly questions or corrections with the tax authorities in your location, is definitely the way to go.

If you have questions from a US perspective, I’d be happy to assist you. In my experience, US reporting is likely to be one of the trickiest, and adding rental income when you’ve previously been a simple W-2-only kinda gal or guy, might mean you’d benefit from a little initial guidance.

 

PITFALLS

 

Becoming an Airbnb host is a great way to generate a little side income, to fund your travels, and to help utilise a resource that might otherwise go unused. These are all good things, but there are some potential pitfalls. In my experience as a host, these are actually pretty minor and most importantly, rare.

 

  • Cleanliness/potential damage

 

The main concerns of most hosts would be the condition that guests leave their place in. I have to say, my expectations have been wildly exceeded in this regard. Of the 17 different bookings I’ve had, ranging from solo travellers, to couples, to, in one case, a young family with a 1 year old, no one has done more damage than a broken plate (which they kindly left a euro to compensate for!). And the extent of any “mess” to clean up has been a few stray crumbs.

 

Have I just been preternaturally lucky? Well, it’s possible, and it wouldn’t be the first time. But being an Airbnb host has actually cemented my belief in the general soundness of people. I feel like this concern shouldn’t be a dealbreaker for most would-be hosts.

 

  • Unexpected guest needs

 

This one might be a bit more of a wildcard. Again, my guests have been lovely. But I could certainly see a guest who had a lot of demands being difficult to manage from afar.

 

I have had people who had questions about things that I wasn’t always able to respond to immediately (usually due to being mid-flight), and my terrific guests have either figured it out themselves, or been wonderfully patient.

 

And then there was the time that, thankfully, I was in town, and I almost had to go assist a guest with the keysafe at 3 am, which I definitely would have done. In fact, I was somewhat tipsily attempting to hail a taxi when they rang to inform me they’d figured it out! So hosts should be prepared for that to happen on occasion.

 

  • Last minute cancellations

 

There’s not much you can do there, besides set a stricter cancellation policy and hope for the best. Airbnb do a good job of managing this on both sides.

 

So should you consider becoming an Airbnb host? I say yes, with some caveats:

 

  • Be aware of the impact on those around you, including any landlords, neighbours, housemates, etc

 

  • Educate yourself on the tax and legal implications

 

  • Be ready to be flexible and adaptable to guest needs

 

Opening your home to a traveller in need can be a wonderful experience. In Part 2, I’ll talk about the guest side of the equation, particularly the potential utility for digital nomads.

 

What do you think? Would you try hosting on Airbnb? If you do, please consider using this link to sign up as a host, and I’ll get a small referral credit!

 

Frugality and flexibility are freedom

 

What if there were a tool that could enhance your freedom and improve your life more powerfully than mere monetary wealth? I read, write, and think about money and personal finance a lot but I’m a firm believer that money is far from the most important thing in life. Certainly, if used wisely, money can be a tool that increases access to the most important things. But there are other tools in our arsenal that can be even more impactful, when wielded intentionally.

I find a lot of value in the principles of minimalism, but I’m aware it doesn’t appeal to everyone. While many aspects of minimalism might in fact be more broadly applicable than is sometimes assumed, there are two related concepts that I do think can be employed by everyone, regardless of their position or circumstances. These are the complementary practices of frugality and flexibility. If taken as practices, to engage with repeatedly and continually, these two ideas can transform the way you live, travel, and move throughout the world and towards your goals.

Frugality

Thanks to excellent bloggers such as the Frugalwoods, the concept of frugality is enjoying something of a revival. The word used to carry a sort of dour, joyless undertone, but that’s an unnecessary association that’s quickly dissipating. I consider the concept of frugality to be centred around appreciation and mindfulness of value. And that definition of value should be expansive enough to include value as measured not just in money, but also in time, focus, energy, and attention. No matter how much or how little material wealth we may have (and that itself is always a relative matter), we can all practice avoidance of wastefulness and excess. In fact, the practice of frugality is one of the most freeing aspects of minimalism. Best yet, one needn’t identify as a minimalist to enjoy the freedom-enhancing benefits of frugality.

For me, one of the most important elements in a practice of frugality is an honest assessment of value, and of one’s needs. This assessment is uniquely personal to each individual, but it does require a high level of self-honesty to be used to its full effect. For example, should the frugal traveller, be she a vacationer, an expat, or a digital nomad, take a taxi or the local public transport to and from the airport? My personal vote will almost always be to go for public transport, but someone who suffers from severe motion sickness might make another value assessment. I’d caution, however, that if the full benefits of frugality are sought, enduring or even seeking out some level of discomfort could become an occasional practice. I genuinely enjoy discovering both how resilient I can be, and, much more frequently if I’m honest, how little discomfort is really involved in making the more frugal choice.

But how, specifically, does this practice translate into greater freedom? It’s simple: the fewer resources you need to consume, the freer you are. This is especially true for the nomadic. This means you’re free to go more places, do more, experience more, without the shackles of many expensive (in terms of money, time, or otherwise) self-imposed ‘requirements’. If you build up your frugality muscles, you’ll simply need fewer resources to sustain your travels. You may find you are just as happy in a small, modest accommodation as in an expensive hotel, just as satisfied by local fare, stumbled upon while walking around the neighbourhood, as in a pricey, top-rated restaurant. It’s not that those experiences don’t have their place, but with no baseline concept of frugality, it’s all too easy to allow them to greedily take over, and subsume the other experiences. Too much luxury is an expensive prison. Frugality unshackles us from that prison, and opens up ever more of the world for us to explore.

Flexibility

Closely related to frugality is the practice of flexibility. Not necessarily in the yoga sense of the word (although that can be a good metaphor), I see flexibility simply as openness and adaptability to a variety of circumstances. It means not clinging to preconceived notions of how we think things are or should be. It means adapting to change or to the conditions we find ourselves in with grace and good humour. And it means practicing putting things in perspective. With a little effort and intention, it can be an incredibly powerful tool in your freedom toolkit.

Firstly, the more flexible and adaptable you are, the easier your practice of frugality will become. But perhaps even more important is how it improves your experience of the world in general. When you practice dealing with delays, setbacks, unexpected challenges, and disappointments with a positive attitude and a sense of humour, you are building up an incredibly valuable skill. It allows you to move through the world much more freely and confidently. You can start to see everything as simply another interesting experience, when you know you’re adaptable enough to make the best of it.

How do frugality and flexibility improve location independence and financial independence?

Both frugality and flexibility are tools that serve those pursuing location independence and/or financial independence especially well. For one, travel requires both, and provides plenty of opportunities to put both concepts into practice. And so does being mindful with money. In fact, I’d go so far as to say that those who want to enhance their location and financial freedom could find no tools more powerful than frugality and flexibility combined.

It makes sense to approach both frugality and flexibility as practices to continually incorporate into our lives, as opposed to unreachable ideals that are met with either success or failure. When we cultivate a practice mindset, then success is simply defined as returning to the practice. Then, all the results that come with the practice are just more interesting bits of data. In that way, we can avoid both judging ourselves to harshly, or being too self-congratulatory. And, as with a yoga practice, for example, there won’t always be linear progress, and that’s OK.

Even once we become location independent or financially independent, we can continue these practices. The person who has meticulously planned their 4% withdrawal rate might incorporate a bit of frugality and flexibility should they encounter a market downturn in their early years of retirement, for example. And if they’ve spent some time getting accustomed to the practice, they may be able to flex their plans, and to be a bit more frugal, and avoid too much unnecessary stress and worry in what might otherwise be a rather stressful time. The person who’s planned a few stops ahead as a digital nomad might reassess based on changing personal needs, or changing conditions in their current or future locations. The key is being willing to re-evaluate and adapt, ideally with a smile.

Even those who don’t identify as minimalists can benefit from incorporating more frugality and flexibility into their lives. It will continue to open up more doors and enhance your freedom, and your overall experience and enjoyment of life.

An ideal day

Since quitting my corporate job to claim back some time, space, energy… life for myself, I’ve been considering what constitutes an ideal day. Historically, I’ve tended to think about time in terms of larger chunks: months, seasons, years. I’d typically have an answer at the ready when asked what I’d like to accomplish or experience in the next few months, or in the next year. But what about in a single day?

Part of living, working, and travelling intentionally means being the authors and architects of our own time. It’s a responsibility I relish. I think some people experience a degree of trepidation at the thought of designing their own schedules and being fully responsible for their own time. I can understand that, but I haven’t felt that way myself. Instead, it’s more like returning to sanity and civility after far too much time spent in the opposite conditions.

So I’ve given a bit of thought as to what an ideal day would include. Obviously not every day incorporates all of these elements, but when many or most of them are present, I consider it a day well spent. Interestingly, if unsurprisingly, none of these are expensive as such, and all can be done from anywhere in the world.

Elements of an ideal day

  • Wake up without an alarm

  • Unhurried breakfast and coffee

  • Write something

  • Read something

  • Create something

  • Learn something

  • Practice yoga

  • Walk and/or do something outdoors

  • Prepare and eat healthy meals from whole ingredients

  • Interact with people I care about

It’s reassuring to observe how simple this list is, and how much of it is entirely possible and within my control most days. I won’t beat myself up on days that don’t contain as many of the ideal elements, but I know I can continually come back to the things that bring me joy and satisfaction, no matter where I am. I suspect many people’s lists are also filled with simple, mindful endeavors. Things that probably don’t cost much money, and are best savoured slowly.

No matter where you are on your journey, I hope you incorporate some of your own personal elements of an ideal day, into your day today. What are some of the elements on your list?

Nomad budget

While I’m still in Dublin, and still have my apartment here, I’ve been thinking ahead to my plan after I give it up and become more fully nomadic. Being something of a personal finance geek, and given that my income is now highly variable, the topic of my monthly budget has been top of mind. I have no intention of blowing through too much of my savings on this experiment/adventure. So I’ve been considering how to plan and forecast to ensure my financial goals are being met, as well as lifestyle ones.

I believe the digital nomad lifestyle can be even more affordable than living full time in many expensive cities, even when some of our untraditional costs may be higher than is typical in many budgets. So I’ve been planning, running some numbers, and researching the options. I like to keep things simple, so I’ve minimised the categories to the extent possible. But I think it’s still realistic and includes room for both the things I value, and for emergencies.

 

Monthly budget for digital nomad in Europe

Budget for Europe nomad-ing:
Rent (including wifi/heat/electricity) 650
Food 200
Phone 50
Flights (yearly average) 250
Local transport 50
Entertainment (including Netflix & Spotify) 50
Insurance (World Nomads estimate for a year) 50
Yoga 100
Total 1400

Process:

  1. Determine the required line items
  2. Research
  3. Think both best case and worst case

Most of the line items on my budget are fairly obvious. I don’t have a lot of must-haves, and yet as I look at it, I see luxuries built in at every turn. The rent budget is sufficient to stay in Airbnb’s all to myself in many cities in Europe, when booked on a monthly basis. If I had to I could easily find cheaper accommodations. The food budget is has plenty of room in it even here in Dublin, and in many places in Europe food is much cheaper. Yoga is something I really love to do, and is important enough that I include it in the budget, even though it’s a total luxury. I could practice on my own, but I really love finding local studios to practice with a teacher and in a group setting. So that stays on the budget, knowing it could be cut if necessary.

My research has consisted primarily of checking Airbnb, sites like Expatistan, NomadList, Numbeo, and Teleport. I also monitor Google Flights and Skyscanner on a regular basis so I’m pretty comfortable with how much I’d spend on flights in a year.

However, the flight budget is a good example of what I mean by thinking both best-case and worst-case. If I go back to Vancouver twice a year, without any trips booked on points, and with trips at some of the more expensive times of year to fly, that could be €1,400 in flights on its own (worst case). That would leave €1,600 in the yearly budget for flights to and from everywhere else. With any flexibility and advance planning at all, I think that’s very doable, thanks to some of the low cost carriers operating in Europe. It’s important to me to be able to both go back to Vancouver regularly, as well as spend time in regularly Dublin, to be with my boyfriend. So in the best case, I might very well spend less than €200 in any given month. But if I spend €3,000 in a year, it won’t be a disaster.

Plan:

  1. There’s never a “normal” month, in any budget
  2. Lows will help offset highs

A universal truth in personal finance, regardless of whether we’re settled or nomadic, is that there’s no such thing as a normal month. The only true constants in my budget seem to be the cost of Netflix and Spotify. Everything else is in a constant state of flux, and it’s useful to be aware of that so the fluctuations aren’t perceived as stressful or unexpected. A good budget can and will flex and adapt to accommodate these perfectly normal, abnormal occurrences.

For example, I’m very much hoping that my housing costs may average out to be less than €650 per month. Some of the cities I’m eyeing up have really nice Airbnb offerings for closer to €500. But the trick then will be not to increase spending in other areas, because I see that extra “room” as being like built in insurance for unexpected increases in other areas, like if I’m somewhere that I need to take an expensive taxi, or if I need to replace any clothing.

Periodically assess:

    1. Revisit plan vs. Actual on a regular basis
    2. Adjust accordingly

Planning is nice (and I do mean that, although I do get that not everyone enjoys it as much as I do), but the reality can only be assessed in hindsight. That’s why I will go back and revisit the plan vs the actual spending on a regular basis. I think quarterly is the right frequency, as it’s not so granular that a single month could cause too much alarm, and yet it’s often enough to allow for course corrections throughout the year as needed. And, crucially, I’ll have to be open to adjusting based on those periodic assessments.

Starting out with a plan, as well as an expectation of variability and the need to be flexible and adaptable, seems like a balanced approach. If the plan is reasonable and within the boundaries we’re comfortable with, then we can move forward without fear or regret. And as always, rigidity is the enemy of frugality.

This budget accounts for yearly spending of €16,800. Depending on your perspective, that might be very lean indeed, or represent a princely sum. I think it’s enough to live well in many of the areas in Europe that I’m interested in right now. Stay tuned for my quarterly updates throughout 2018 to see how that looks in practice.

Tiny apartment tour

I’ve been thinking about housing options lately. Becoming location independent can give us beleaguered millennials a much-needed leg up in a housing game that can feel rigged against us.

Refusing to play by rules that aren’t fair is a perfectly rational response. But what does that actually look like? In the interest of transparency, I thought I’d give a glimpse into my current housing solution. As I transition into alternatives, I’ll continue to share how those options look and evolve over time. It is and will continue to be an exercise in compromise and is but one possible path among many.

*Not my apartment building

Current location

I’m presently in my apartment in Dublin. I chose it for its proximity to my former office and it’s served its purpose well. It’s the smallest space I’ve lived in to date, and I have very few complaints in that regard. I wasn’t given the exact floor space when I moved in, but I’d say it has to be less than 300 square feet. It was mostly fully furnished, but I had to buy all the kitchen stuff myself.

I’ve had overnight guests stay on an air mattress twice now, for multiple nights each time. It worked fine, and that’s about as often as I hosted overnight guests in a year even when I had much more space.

Without further ado, here’s the grand tour:

Entrez-vous

The entry, as seen from the front door. To the left is the bathroom, to the right is the bedroom.

 

Living space

The living space, comprised of the kitchen to the left, and the seating area to the right. That vast expanse of floor space in the middle is exactly big enough for a queen size air mattress… if you move the storage ottoman/coffee table aside, that is.

 

Seating area

Desk and chair to the left. The set of drawers on the right contains the wifi modem, my yoga clothes, and a few extra pairs of shoes. A large canvas duffle bag is stored under the loveseat, containing some extra winter clothes.

Kitchen

This actually functions really well! I’ve been able to cook everything I’ve wanted to here. There’s enough counter space for chopping, and the dish drying rack doesn’t take up too much of the more useable space. Sometimes North Americans balk at the under-counter fridge. But I’d say for a household of 1 or 2, it’s perfectly sufficient.

 

Kitchen stuff

Here’s all my kitchen stuff. The more eagle-eyed may note there are no drawers in this kitchen. I just keep my cutlery in that orange rack, and other utensils in the bamboo holder to the right of the sink. No junk drawers here! The cabinets contain all crockery, glasses, pots & pans, and miscellany. There’s plenty of space.

 

Bathroom

This is really just to show the very limited footprint of the bathroom! It’s entirely possible to brush your teeth from the hallway. No space to keep many toiletries in here so it’s a good thing I have a pretty minimal routine.

 

Bedroom

Bed is tucked away in the corner, but it’s nice having it separate from the living area. That’s a luxury in the Dublin rental market!

 

Wardrobe/”vanity”

 

Tiny wardrobe

Inside the wardrobe, a minimalist amount of clothes. That black tote bag functions as the laundry bag. Yes, that’s Estonian on the canvas tote on the shelf. I’m delighted you noticed.

Because I enjoy being a voyeur on other people’s tiny wardrobes, I’ll do a tiny wardrobe post soon. It’s really more clothes than I need and I’ll probably pare it down before I move out of this flat.

Trade offs

It’s not fancy or terribly modern, but I pay €300-400 less per month than many people I know, even people who have flatmates. That’s €3,600-4,800 less per year. That’s a lot of travel and/or savings. For that, I don’t mind doing my laundry in a weird, dark, spider-webby shed. Yeah, that’s why you don’t see a washing machine anywhere.

I’m very glad I’ve had this experiment in small space living. I’ll definitely seek out a small, minimalist living space again in future. And I’m really exited to see what other, lower cost options await in the rest of Europe.

Would you give small space living a try?

Housing can make or break you

Housing is a hot topic for everyone, especially millennials. In many cities around the world, prices are rising faster than wages, home ownership feels out of reach for many, and even renting is becoming unsustainable. As though that weren’t stressful enough, it’s also the single biggest line item on most people’s budgets. That’s why it’s such a huge opportunity. Yeah, yeah, I know. But stick with me.

No matter your situation, I think that optimising your housing choices is the single most powerful tool in your arsenal to improve your finances and your life. There are a number of variables you can play with, depending on what matters most to you. More flexibility will result in more options, so I think with the right mindset, anyone can improve their situation by carefully examining this one, crucial choice. We tend to have a lot of emotions and preconceived notions wrapped up in our housing choices, but taking a step back and approaching it intentionally, as a deliberate choice, will dramatically impact your life and your goals.

Church ruins are an adventurous, if unconventional, choice

When you are location independent, a lot of the standard personal finance advice may not apply to you. I’m thinking of things like debates over whether to pay off your mortgage early, etc. Depending on your personal circumstances, it may not make sense for you to buy a property at all. And, don’t despair, because there are plenty of smart people with good reasons why that may not be a bad thing. However, when you don’t own your home, you constantly have to (aka: get to!) reconsider and reevaluate your housing situation.

Broadly, I think of housing consumers (that’s all of us, for the most part!) as fitting into three main categories, depending on how long we’re going to be staying in a given location. Most personal finance advice I’ve seen tends to be tailored to those who will be staying put for the long(ish) term. In my mind, that’s more than around 5 years, which might not seem very long to some! For the location independent or digital nomad communities, we may find ourselves looking at more the medium term (say, 1-5 years) or more often shorter term (1-12 months). Thusly, I’ll focus more on the latter two of the below categories:

  1. Long term: when you’re staying put for a long time (5+ years)

  1. Medium term: when you’re staying for the time being (1-5 years)

  1. Short term: when you’re testing the waters or just passing through (1-12 months)

In any of these situations, however, I think the main competing variables to consider are as follows:

Variables:
  • location

  • cost

  • size/privacy

  • fanciness/amenities

  • specifics (i.e. large kitchen, outdoor space)

  • commitment

Generally, the more flexible you can be with each of these variables, the more options you’ll have. One of the advantages of being location independent is the freedom to play with the first variable as much as you like. It’s the factor that I think is the single most powerful, and gives you the most choice within each of the others.

Beyond location dependence

A large part of why housing markets can suck so badly is that they traditionally have you as a fairly captive consumer. You have to live in a particular area because of where your job is, so you’re stuck with very little latitude on perhaps the most important variable. By becoming location independent, we remove that condition. Instead we can come to view it as a competition of where can offer us the best combination of variables based on our particular values and needs.

Looking at each of the above variables in turn, I think we can make some deliberate and intentional choices about what really matters to us, and what will ultimately make our lives better. Then, we can apply some creative thinking and find housing solutions that work for us rather than against us.

Location

This is a real estate cliche for a reason. But as digital nomads we can think about this beyond neighbourhood and commute time. Considering location, we can expand our search across cities and countries, and then narrow it down to our ideal neighbourhoods. Looking beyond the area you’re in can dramatically improve your options. You can choose less expensive cities and countries for part of the year. You can choose areas outside those adjacent to the CBD of a particular city, if you won’t need to be commuting into city centre every day. However, you may be more concerned with finding a walkable neighbourhood, or somewhere within easy reach of the nearest major airport.

Some of the high cost of living cities around the world don’t offer great value for money. Dublin, where I’m currently based, is in a full blown housing crisis. If I don’t need to compete with thousands of others for overpriced, substandard options, why would I? Then, when I am evaluating a location, I can narrow my search to locations that offer the lifestyle I’m looking for, and be a bit more stringent with the next, and next most important, variable.

Cost

As cost of housing rises, we have to either earn more to keep up, or accept that a higher percentage of our current income gets eaten up by this greedy line item. I prefer to set a maximum percentage of my take-home income that I’m willing to spend on housing. I think 30% of take home is a reasonable maximum. And yes, I’d want to be firm on making that 30% after taxes and retirement contributions, or in other words, 30% of spendable income. If that’s not possible in a given location, I’d have to concede that that location may be temporarily off the short-list. Or maybe it’s a location to work into your plans in shorter increments, or by utilising some unconventional options (some examples of which are briefly noted below).

Location and cost are of course very closely linked, and are the most important variables. If you’re going to be very picky on either of those, you’ll want to be quite flexible indeed on the below, secondary variables.

Size/privacy

In many desirable locations, having housemates is a very common solution to rising costs. If you’d rather more privacy, you’ll likely want to be very flexible on the size of your accommodations. I’m quite happy in small spaces, so that’s an easy one for me to concede. I’d happily accept less space for a location and cost I was happy with.

Fanciness/amenities

If you’re going to be a digital nomad, and sampling the housing offerings of many different locales around the world, being quite flexible on this will serve you well. I personally don’t derive much life satisfaction from expensive finishings or lots of fancy features. Sure, those things are nice to have, but if they become deal-breakers, you will find your options severely limited. Clean, safe, and functional are about as fancy as I personally need. Plus, if you’re looking for somewhere for a shorter term stay, it can be an interesting quirk to practice living without certain things you may have become accustomed to. You may find they’re less essential to your happiness than you thought!

Specifics

This is where you can tailor your search to the things that really do provide you with life satisfaction. I’d want a place I could cook in, in most places if I was staying for longer than about a month. Reliable wifi is probably another must-have. But what makes you happy? Do you crave outdoor space? A quiet street? Enough floor space to bust out a few yoga moves? Or space to host friends and family when they come through town? For me, once I’ve been sufficiently flexible with the categories that matter less, I find I can devote the appropriate level of attention to those few areas that matter most. And then keep experimenting, because they can and will fluctuate over time.

Commitment

As a shorter term housing consumer, you may wish to avoid signing year-long leases. This is easier to pull off if you don’t have a lot of stuff you need to move around with you. I think the default assumption is you’ll need to pay a lot more for the luxury of less commitment, and this is very likely true in many expensive cities in the West. A cursory search on Airbnb reveals at least a dozen attractive cities where a month-long rental is far less than I pay now on my year-long lease in Dublin. And that’s including wifi, heat, electricity, etc. If the conditions are right, I think this is another variable that can work in favour of the location independent.

Unconventional ideas

I’m going to be experimenting with a few untraditional options, such as month-long Airbnb rentals, coliving spaces, and some newer sites that appear intriguing, such as GoGo Places. I  think the options will only continue to increase as more and more people adopt a location independent lifestyle. I’m excited to see this space develop and what other creative solutions people come up with.

 

What does housing mean to you?

Ultimately we each need to decide what really matters to us. Is housing just a place to rest your head, or do you need your home to be your refuge, your nest, a reflection of your taste and personality? I don’t think there are any wrong answers, but examining our answers honestly can help hone our housing choices. And those choices will drastically impact our ability to progress towards our other goals, like financial independence, contribution, and travel.

What does it take to be happy? I believe that the fewer “must-haves” on our list, the greater our access to contentment. And the more flexibility we allow into the most expensive line items on our budget, the better. When approached as an opportunity to be flexible and creative, you can avoid being a victim of the housing market and instead continue to advance towards your goals.

Minimalism is freedom

 

There are a lot of advantages to taking a minimalist approach when making international moves. I’ve mentioned some of these in a previous post. But minimalism can have an impact that goes beyond the practical, and if fully embraced, can help us reach our goals of financial freedom and location freedom. In fact, I find that both goals become far more likely, and require far less effort and fewer resources, when a minimalist approach is taken.

 

Tailor your choices to your goals

Being location independent and financially independent both seem to be goals to which many people say they aspire. But when faced with making some unconventional choices in order to attain these unconventional goals, they may protest that they could never do X, Y, or Z. There’s nothing wrong with that. One choice is not a rebuke of all other possible choices. However, it’s only fair to take a clear-eyed view when examining the trade-offs. Whether a life of location independence, financial independence, or both, is something you’re interested in, you should consider what you’d be willing to do differently to get there. After all, doing things the way everyone else does will logically only lead to the results everyone else has. And again, that’s perfectly fine. No one should be made to feel badly for living life the way that suits them best. But if having more control over your time and physical location are important to you, some lifestyle tweaks will serve you better than others. Minimalism is one of the most useful.

 

Fewer burdens, more freedom

There are a few statements that are seemingly obvious in their simplicity, but nonetheless must be clearly stated and fully understood: Financial independence is easier the lower your expenses are. Location independence is easier the less stuff you have. Being flexible with both categories (expenses and stuff) makes both even easier. Easy is good.

 

The easy way or the hard way

The hard way to pursue location independence or financial independence would be to have lots and lots of rigid expenses that you’re not willing to adjust, and to have loads of physical possessions that you absolutely cannot live without, and then carry those expenses and possessions around the world with you. That doesn’t sound fun or productive to me, so I’ll stick with the easy way. It’s eminently possible to do things the harder way, of course, but to be perfectly honest, that’s never been my style. Maybe it’s a sign of a deep commitment to minimalism, this inclination to avoid wasted resources, including time and energy. Maybe it’s laziness. Maybe they’re one and the same. I don’t really mind which. I’ll assume that most people are like me and, quite sensibly I must say, prefer to do things the easier way.

There is a lens through which even making an unconventional life choice like pursuing location independence or financial independence (or both) is actually easier than the more conventional alternative. Living in the same place for too long, or working a standard job for 40 years, sounds really hard to me. Accumulating lots of stuff and lots of debt sounds hard also.

 

The less you own, the freer you are

Here’s where minimalism shines. The less you own, the freer you are. The more basic your needs are, the lower your expenses. The process only refines and clarifies even further with repeated iterations. Over time, you realise you need less to be happy, and naturally, the right level of minimalism emerges. It will ultimately serve to advance your freedom in any areas that matter to you.

In yoga there is a concept of aparigraha, my favourite translation of which is non-grasping. This dovetails perfectly with minimalism, in that it reminds us to work on being less dependent on any particular thing, be it a material possession, a habit, or a particular outcome. Keeping this in mind as a virtue to strive for, we can move lightly through the world with fewer encumbrances.

Be minimalist with everything except pictures of succulents and cacti against white backgrounds

Don’t own stuff, own yourself

Don’t own stuff, own yourself. Self-ownership is the clearest definition of freedom I can come up with. It’s the simplest, most minimalist, yes, even the laziest way of explaining what it is I’m seeking. If you’re seeking that too, in whatever shape or form that looks like in your life, consider how minimalism can serve to further that goal.

 

How to think about your side hustle income

Originally published at Millennial Money Guide:

It’s no secret that millennials are a generation of hustlers. Many of us have, or are looking to develop, side hustles to supplement the income from our main jobs. But how should you categorize your side hustle income? Make sure every dollar has a purpose with these 4 strategies.

1. Don’t double count your earnings

I recall my first non-wage side hustle income. It was the simplest introduction possible: I started selling my old stuff on eBay. My primary motivation wasn’t even the income, but rather the decluttering that selling my stuff would facilitate. I was looking to ditch dead weight, and focussing on physical clutter seemed like one way to begin. But, when the sales actually began hitting my PayPal account, I began thinking of all the things that new income stream could offset. And I do mean all the things. I was full of excitement about how that $75 I earned selling a handbag could cover my groceries for a week! And half a plane ticket to Vegas! And a nice restaurant meal out! I needed to slow down and realise it might offset one of those areas of spending, but not all. And that it ultimately represented a net loss anyways, given the handbag probably cost over $200 new.

Once your side hustle income starts flowing, check that you’re not allocating it to more than one area. Give each dollar a singular purpose, be it covering day to day spending, bulking up your emergency fund, or investing.

2. Don’t spend it before you earn it

Closely correlated to the above, be mindful about adjusting your spending upward, especially before your side hustle income really starts materializing. My preferred way of looking at it is, earning side hustle income is not a good reason to spend recklessly, or in a way you wouldn’t have done otherwise.

An example of this is income earned from Airbnb, particularly if it’s only when you travel. I list my apartment on Airbnb when I travel, but I only do so for trips I would’ve taken (and would’ve been able to afford) anyways. If I started taking trips just for the purpose of earning more Airbnb cash, I’d want to be very mindful of the overall cost of that travel, relative to the potential income generated. The same could be said of buying items to flip, which is a really interesting area to look into. Just be conscious that the inventory you bought doesn’t represent actual cash until you’ve successfully flipped it. And it should go without saying, but please don’t go into debt chasing side hustle income.

3. Budget for taxes

Depending on the character of your side hustle income, you may need to report it as self-employment income. One way or another, in most cases it will ultimately end up on your tax return. One exception would be when you have a loss on the sale of personal-use property, such as your car, home furnishings, or clothing (i.e. that $200 handbag I sold for $75), which is not reportable, as it’s not a deductible loss. In general, any source that has paid you more than $600 is required to issue you a 1099, which is reported to the IRS, and is then your responsibility to report on your tax return. For a broad overview, the Turbotax blog provides a summary of what to think about. You should consult a tax professional for the specifics on this as related to your personal circumstances.

4. Enjoy the process while you develop your hustle muscle

I’ve found delving into different side hustles to be a really fun process. Even just those first few eBay sales started building up my entrepreneurial drive. My side hustle muscle, if you will. It’s remarkable how different it feels earning your first independent income, versus getting the same old paycheck you’re used to. I’ve found, and have noticed in others, that it tends to spark the desire to do more, to seek out new opportunities, to optimize other areas of life. As millennials, we’ve tapped into the power of developing multiple income streams, and we certainly love the freedom and flexibility that allows. Keeping a few key concepts in mind as we do this will serve us well as those income streams grow and change over time. Whether your goal is to replace your day job income, pad your savings, or fund your next adventure, thinking more like an entrepreneur is going to get you there faster.