I neglected to write this essay for months because it didn’t meet my criteria for an essay.  It was neither pushing the limits of my thinking nor was it a topic of which I felt my opinion could be novel and valuable.((The first version of this was written in early December, 2022, then put on a shelf for about 60 days.  This version was written without consultation to the first version.))

I think of myself as the CEO of Evan, Inc.  I am the CEO of my businesses, my health, my time, my relationships, my purpose, and my time.  With that in mind, I think the best way to think about the economics of being a digital nomad is by using financial statements.

The income statement answers the most common question that people in the lives of Miranda and me are asked.

“How can they afford it?”

In my opinion, it’s hardly interesting because anyone can take 30 minutes and easily reverse-engineer our nomad expenses to reasonable accuracy.  That said, let’s review it anyway.

Income Statement

Revenue – Expenses = Net Income

Revenue

We still run our companies and work.  For both of us, our personal income last year was the best it had ever been.

Standard Expenses

In Ohio, we had the following living expenses:

• Rent / Mortgage
• Utilities
• Internet
• Car maintenance
• Car insurance
• Gas
• Food

As a nomad, our expenses are much simpler:

• Airbnb
• Flights / Trains
• Food

Airbnb. Utilities, internet are covered.  We don’t need to buy anything for the kitchen.  We don’t buy cleaning supplies.  We buy food and maybe trash bags and that’s it.  We tried to make the Airbnb cost about as much as rent + utilities + internet would be, although usually we were a bit over. 

Our usual Airbnb nightly expense was about $80 or $90.  Because we did long stays, we often received 15% – 25% discounts, so we were getting $110 – $120/night places for $80 – $90 / night.  In expensive cities, we spent far more. In cheaper cities, we spent far less.  We would almost((almost because sometimes the pictures didn’t match the reality)) always have a newly renovated Airbnb with two bedrooms in an upscale part of town.

We found this was the sweet spot.  A lot of times, the most expensive Airbnb wasn’t the best one; it was the biggest one.  The best locations, amenities, internet, and reviews were oftentimes Airbnbs in the $80 – $125 / night range pre-long-stay-discount.  We found that the most delightful Airbnb we stayed in was one of the least expensive, while one of the most difficult Airbnb experiences we had was also the most expensive. Although cheap Airbnbs are generally low in quality, we often didn’t notice a significant difference between mid-range and expensive ones.

Flights / Trains. Flights in Europe are stupidly cheap. Besides flying from rural Turkey to London, I can’t remember a flight costing more than $110 USD per person. 

No cars. Gas prices dominated the news last year, but we don’t get cars when we nomad.  We walk everywhere or Uber.

Living Like Minimalists. We live like minimalists a bit out of necessity.  We could travel with a bunch of stuff, but we don’t.((Recently, I saw that a few nomads travel with a cast-iron skillet.)) We only keep the items that fit in our luggage, so we didn’t spend lots of money on new clothes or other physical items, simply because we couldn’t carry them. Furthermore, since we are living in Airbnbs, certainly no home goods!

Net Income

I haven’t calculated whether we spent more money or less than we had while we were in the USA, but I know it’s close enough that I think we spent about the same amount in 2022 as we had in 2021 on a cash-on-cash basis.  This takes into account rampant global inflation in 2022.

Sometimes, I think people ask us how we afford it, while comparing their European vacation to our 8 months in Europe. European vacations from the USA are amazing experiences that can also be insanely expensive while being compressed into short timeframes.  Consider the following; during a 10-14 day European vacation, there are:

• Exorbitant, round-trip trans-Atlantic flights.
• Most or all nights are spent in a hotel room in the touristy area of town, which is inherently more expensive.
• All meals are eaten at restaurants.
• Fun experiences! Otherwise, why would you go?
• …and still all expenses from back home.  Rent/Mortgage, utilities, etc.

Nomading through Europe last year, we had:

• 1 exorbitantly-priced flight across the Atlantic.  Flights in Europe were cheaper than my car’s gas bill each week. 
• We stay in Airbnbs, which are much cheaper than hotels, but also we usually stay a 10-15 min walk outside of the touristy area of town.  It’s usually quieter and much more livable.
  • We also ensure they have full kitchens so we can grocery shop and cook our own meals.
• Fun experiences!  We’re still tourists!

We took vacations, but we didn’t have the exorbitant flights across the Atlantic, nor did we have any “living” expenses during our vacations, since we had no permanent residence we were paying for back home.

And, our businesses had their best years ever.

We both came out on top.

Balance Sheet

Assets – Liabilities = Equity

At its simplest, in business, assets are money or things that will put money into your bank account.  Liabilities are things that will take money from your bank account.  The optimization function is to optimize equity: the total value of the business.

On my personal balance sheet, assets are things that enhance my peace, freedom, and sense of adventure, whereas liabilities are things that detract from them.

Assets

Freedom of Location. Remote work allows us move freely without the need to ever show up to the office and without any pause about whether or not our coworkers or boss won’t approve. 

Freedom of Time. I, largely, create my own hours.  In an average week, I have 7-10 hours of meetings.  That means that, within reason, I can work independent of time zone.  Last year, revenue across our various companies, in aggregate, more than doubled, yet I was 5-7 hours ahead of US/NY for most of the year.  I was more effective and efficient than I am in US/NY time.

I was also more peaceful.  I joke that, basically every day, we would go on a walk in the morning and get a coffee, tea, and treat, but those morning walks are things I look forward to now.  Everybody else is working, so the streets are relatively empty.  Usually, I haven’t started my day yet, so I’m not stuck with a cluttered mind.  It’s not the same at 6PM when the streets are crowded from everyone walking home from work and I’m mentally exhausted.

Freedom to be paid in USD, but spend in the local currency.  This is one of the keys.  We are paid in USD.  The dollar, thanks to the ingenuity, entrepreneurship, and structure of the American system, is as strong as it’s ever been.

When we arrived in Great Britain in March, 2022, the GBP/USD exchange rate was $1.35 GBP to $1.00 USD.  By September, 2022, the exchange rate was $1.10GBP to $1.00 USD.

Three years ago, in Italy, the Euro/Dollar exchange rate was $1.35 EU to $1.00 USD.  In July, 2022, it was $1.00 EU to $1.00 USD.  It was briefly $0.97EU to $1.00 USD.

Most places, in general, are also cheaper than the USA.  Switzerland, London, and Edinburgh were the three key exceptions, where prices were, especially in Switzerland, quite a bit higher.  In Colombia in January 2023, a latte in the nice part of town was $1.50.  Dinner for 2 was often less than $20.00 USD.  In Argentina((where I’m editing this post)) in February, 2023, a sirloin steak is about $8.00 USD.

In Portugal and Croatia, prices marginally cheaper than in the USA.  Less than 20% cheaper.  In Romania, they were quite a bit cheaper, less than half the price of the USA.   In Turkey, they were much cheaper.  In France and Spain, they were about equivalent.  

Freedom to Control My Financial Outcomes.  June, 2022, was my worst month in business in history.  Revenue was great, but expenses were insane.  In my organization, I have the authority to go create new revenue and cut expenses, and by the end of August, the ship had been turned.  By the end of October, the income statement had righted itself.  By the end of the year, all was well.

Liabilities

Minimal.  That’s kind of the whole deal.  As a nomad, I have as minimal physical attachments as possible.  In this case, a liability would be something that ties me down to a particular location.  I own the stuff in my backpack, my carry-on suitcase, and a company.  I say this as a joke, but it’s largely true. 

There are some non-physical attachments to list in the liabilities column.  I miss the friends and family that I can’t see on a more regular basis.  

Equity

I optimize my life for inner peace and for freedom.  I’d argue I optimize for inner peace, and the first-most-important dependency in that equation is my freedom.

Being a nomad is the most free that I can be.  I can go where I want, when I want, and, within reason, do what I want.  Miranda and I have both said that if we won the lottery, we would live the same life we are living now.

It has been the most fulfilling experience of my life.  Being a nomad isn’t about optimizing my business (although it’s growing quickly) nor is it about optimizing my health (although I’m healthier than ever before) nor is it about optimizing my relationship with Miranda (although I think it’s better than ever before).

My personal balance sheet’s equity is about optimizing my life on my terms and how I want.

Notice, it’s not how anyone else says I should optimize it.  It’s not how anyone else says I should live it.  How I want to.  My monthly income statement has revenues, expenses, and income.  It’s structured same as anyone else’s, but it has different numbers. 

I designed my balance sheet, however, to be exactly as I want it.  I determined the definition of assets and the definition of liabilities.  Some peoples’ assets may be stability, connection, thrill, or time spent reading.  Mine aren’t objectively better than anyone else’s, but they’re certainly better for me.

You are the CEO of You, Inc.  Your income statement will always be Revenues – Expenses = Income.  Your balance sheet will always be Assets – Liabilities = Equity.   The magic of the balance sheet is that you get to define your assets, your liabilities, and what equity means to you.

Thanks to Miranda Wagner, Bill Bloom, Nina Ryan, and Shannon Waller for reading drafts of this essay.