Best Budgeting Tips for Digital Nomad TEFL Teachers

As a digital nomad and TEFL teacher, managing your finances while traversing the globe can be challenging! From varying salaries to fluctuating living costs, staying on top of your budget is essential. But worry not– despite what one may think, a lifestyle of frequent travel is not only for trust fund babies or six-figure salary earners. Being a digital nomad is actually easier than you might think! As a matter of fact, I spend significantly more money when I’m staying at my parents’ house in the United States than when I’m living in another country. After teaching online while living in a different country each month (17 countries in 14 months) for over a year now, I’m glad to say I picked up a few tricks and hacks here and there! Here’s a comprehensive guide on how to master your finances while teaching English abroad.

Understanding Your Financial Situation

Perhaps the most daunting aspect of being a digital nomad is the fluctuating costs of living that come with the differing countries you decide to stay in. While deciding your next destination in your nomadic adventure, it’s important to research what your monthly expenses in that country might look like and to compare them to your monthly earnings – at the end of the month, would you have spent more money than you earn, broken even, or earned more money than you spent? Important factors to research include the costs of housing, food, groceries, and transportation. This way, you can gauge whether or not this destination is a good fit for your finances or if you’d prefer somewhere more sustainable. Having a clear understanding of your financial landscape ensures you can fully enjoy your nomadic lifestyle without unnecessary stress!

Top Budgeting Tips for TEFL Digital Nomads

1. Smart-Housing Solutions

• House Sitting: I’m including this at the top of this post because house sitting is a digital nomads’ absolute lifesaver. It consists of living in a pet owner’s house and taking care of their house/pet while they’re out of town. Yes, you’ve guessed right – this means free housing. As housing can likely be the largest cost of one’s traveling expenses, the option for free housing seems almost too good to be true. Luckily, there’s a platform called Trusted HouseSitters that makes it easy to match with pet owners all over the world. Simply search which city and country you’re interested in with your available dates, and let the free housing options roll in. There is an annual membership fee, which is completely worth it if you’re a frequent user, and lucky for you - we have a 25% discount! House sitting is especially great for travelers looking to stay somewhere for an extended period of time (more than a few weeks), as many owners use this opportunity to travel extensively themselves without paying substantial pet hotel fees, and it allows you to feel more like a local rather than a tourist in that area! It’s a win-win situation for all parties involved.
  
  
• Subletting: When there are no available house sits in the region we’re staying in, we also scour housing pages on Facebook! Don’t be afraid to post that you’re looking to sublet someone’s home for the time you’ll be in the area – you’d be surprised at how many locals are willing to make an extra buck by letting you stay in their empty place while they’re out of town. This was a great option when I stayed in Tokyo, which isn’t exactly known for affordable housing, and I sublet a local girl’s apartment while she was staying in Nagano for the ski season. Trust me, this allowed me to pay a fraction of what the cost would’ve been had I booked an Airbnb or hotel.
  
  
• Monthly Airbnb stays: Airbnb hosts give customers a hefty discount if you stay at their place for a minimum of around 30 consecutive days. This is also great for the host as they’ve now got a guest paying to stay at their property for 30+ continuous days with one visit. My partner and I have experienced some monthly stay discounts as high as 70% – we paid $300 for my AirBnB in Sutomore, Montenegro, instead of its regular $1,000 fee for the entire month!

2. Choosing Budget-Friendly Destinations

One of the perks of being a digital nomad is the ability to live and work in a variety of locations. To maximize your budget, prioritize destinations with a low cost of living. These are some of the most affordable cities my partner and I stayed in for a month as a digital nomad:

• 🇻🇳Ho Chi Minh City, Vietnam: Since this city was quite renowned for affordable food, housing, and transportation, we decided to splurge on a luxury apartment in a high-rise complex with a rooftop infinity pool, building security, and a gym overlooking the sprawling city. And by splurge, I mean $700 for the entire month. A full meal at a typical small side-of-the-road restaurant would cost $3 per person, on average. We honestly didn’t cook a single meal in Vietnam, as eating out was so affordable, and we were never short of surrounding options. And the best part of Ho Chi Minh City? We rented a motorbike for only $30 for the month, which (like most locals) was our main source of transportation around the city. And when we didn’t feel like driving the bike, we never spent more than $10 for a Grab (equivalent to Uber or Lyft).
  
  
• 🇲🇾Kuala Lumpur, Malaysia: We were lucky enough to land two house sits during our month in Kuala Lumpur - both of them being luxury apartments in high-rise buildings. That entailed a whopping total of $0 spent on housing during our time in the multicultural Southeast Asian city. Slightly pricier than Ho Chi Minh City, a typical meal at a hole-in-the-wall restaurant would cost between $5-7, on average. With that said, Malaysian cuisine hands-down makes our top five countries with the best food. Similar to Vietnam, Grab operates in Malaysia for relatively the same price.
  
  
• 🇮🇳Jaipur, India: For how incredibly amazing Indian cuisine is, it still baffles my mind that each meal was around $4-5 per person. And by meal, I’m referring to a paneer dish with garlic naan and a mango lassi. Our apartment was around $300 for the month. Uber was our main source of transportation throughout the city, and you could even book a tuk tuk or auto rickshaw. Uber car rides would be about $3 for a 30-minute ride, and a tuk tuk would cost about half the price. (In 117-degree weather, we often opted for the car!)
  
  Read more on why you should add India to your digital nomad route! 
  
  
• 🇲🇽San Pancho, Mexico: With the three house sits we’ve managed to snag (one of them being for an entire month), we’ve again spent absolutely nothing on housing during our two months in Mexico. Roadside eateries are your best friend in large Mexican cities, and they’re everywhere. Tacos are, on average, $1 per piece. Uber rides are slightly more expensive than the before-mentioned cities at around $15 for a 30-minute ride.

3. Cost-Effective Living Strategies

• Grocery shopping on a budget: Buying from local markets is often cheaper than supermarkets, and the quality is usually better. In most cases, cooking at home instead of eating out regularly will also help keep your food budget in check.
  
  
• Eating out at restaurants: The simplest-looking hole-in-the-wall spots always have the best food - this is a motto I stand by! For the most authentic experience with local cuisine, stray away from the fancy, aesthetic restaurants that are more likely to cater to “Westerners,” AKA not authentic. Plus, the options at these smaller spots would be at a fraction of the cost and likely more delicious. The more locals you see eating inside, the better!
  
  
• Affordable transportation options: Public transport is usually the most affordable way to get around. Especially in well-connected cities, such as South Korea or Japan, taking the metro or bus is also a more time-efficient mode of transportation than by car. In cities where it’s safe and accessible, consider biking or walking too! The best way to truly explore a place is traversing by foot.It’s important to keep an open mind to all airlines! Airline prices can vary significantly between carriers, even for the same route. By comparing different airlines, you increase your chances of finding cheaper fares or promotions, helping you save money on flights. Price comparison websites, such as SkyScanner or Google Flights, can help you discover the best deals across multiple airlines.
  
  Read more on why you should add India to your digital nomad route! 
  
  
• Sharing costs: If possible, travel with a friend or partner! Splitting the cost of accommodation can significantly reduce your overall expenses. By sharing a larger apartment, traveling with a partner can make staying in comfortable places much more affordable. Renting a car or taking taxis can become much cheaper when the cost is split between two or more people. You can also buy groceries in bulk and cook together, cutting down on the cost of food. 

4. Managing Your Finances

• Setting up a budget: Financial management is one of the most important aspects of living abroad as a digital nomad. This involves tracking your expenses, setting a budget, and sticking to it. I use budgeting apps like Mint or YNAB (You Need A Budget) to help monitor finances.
  
  
• Emergency funds: Life as a digital nomad can be unpredictable, so it’s great to set aside some extra cash just in case. An emergency fund will cushion you against unexpected expenses like medical bills or urgent travel needs.
  
  
• Travel savings tips: Use travel hacking techniques, such as utilizing credit card points or frequent flyer miles to save on flights. I have two travel credit cards, Chase Sapphire Preferred and Capital One Venture X, that offer amazing benefits through free long-haul flights and stays for frequent travelers. Additionally, watch for off-peak travel times to score better deals!
  
  

5. Takeaways

From the beginning, my original intention of using my TEFL certificate, obtained in 2020 through an 11-week online course at International TEFL Academy, was to become an online English teacher/digital nomad. However, this route of hopping from country to country wasn’t the most feasible (along with being in the midst of a global pandemic). Instead, I taught on the ground for two years in South Korea and Türkiye, which turned out to be a great segway into navigating a different country each month as a digital nomad. While challenges may accompany this unconventional lifestyle, staying disciplined and mindful of your spending will allow you to enjoy the freedom that comes with living abroad. As someone who has traveled to 38 countries, I’ve learned the importance of being resourceful, planning ahead, and finding joy in simple, affordable experiences. Budgeting as a digital nomad teacher is all about balance!

• Why Teaching English is the Best Job for Digital Nomads & Expatriates
• Expect the Unexpected: How TEFL Enabled Me to Become a Digital Nomad
• How do I Get Health Insurance While Teaching Abroad?