How to Use Remote Work to Your Advantage: The Complete Guide to Traveling While Working

The COVID-19 pandemic changed our lives in many ways, forcing us to adapt to unprecedented challenges at home and in our careers. And although our lives have largely returned to pre-pandemic norms, one trend has endured: the shift toward remote work. 

Indeed, high-speed internet, cloud-based software, and communication tools like Slack and Zoom have made it easier than ever to work remotely. As a result, many professionals are breaking free from the traditional 9-to-5 routine and using this opportunity to explore new places while maintaining a steady income.

Of course, becoming a full-time digital nomad isn’t in the cards for everyone. But if you have a flexible work schedule, you can still satisfy your wanderlust by managing your time and finances strategically. 

Here’s how to use remote work to your advantage without burning through your vacation time or savings:

#1: Create a Travel Bucket List 

First, think about all the places you’d love to visit if time and money weren’t a concern. A well-thought-out bucket list can help you visualize your travel goals and plan more effectively.  

From there, you can prioritize your trips based on your personal interests, travel budget, and remote work suitability. For example, you may want to focus on places that have reliable internet and affordable accommodations when you’re working and save your vacation days for adventure travel.

Once you prioritize your list of destinations, you can move on to logistics like where you’ll stay, how you’ll get there, and what you’ll need to pack to work efficiently and securely away from home.

#2: Keep a Separate Budget for Travel 

One of the benefits of working remotely is the potential for significant cost savings. For instance, working from home eliminates your daily commute, which can help you save money on gas, vehicle maintenance, and public transportation.

In addition, you no longer need to maintain a separate wardrobe for work, which can help you cut back on clothing and dry-cleaning expenses. Plus, you’re more likely to eat at home than go out for lunch every day, like you might in an office environment. 

At the same time, traveling while working remotely can introduce additional costs, including transportation, lodging, meals, and entertainment. In some cases, you may also need to consider the additional cost of cell phone service and secure internet, especially if you’re traveling internationally. 

Ideally, the money you save by working remotely can help fund your travel plans. However, to ensure you’re staying within your means, it may be helpful to create a separate budget for your travel expenses. 

And don’t forget to explore all your travel options to find the best deals. If you’re planning to stay somewhere for several weeks or even months, for example, an Airbnb or short-term rental may be more cost-effective than staying in a hotel. 

Lastly, keep in mind travel expenses can fluctuate and unplanned expenses are likely to arise while you’re away from home. Therefore, you may also want to consider boosting your emergency fund to cover unexpected costs while traveling. 

#3: Consider the Potential Tax Implications of Traveling While Working

It’s important to note that traveling while working may impact your tax situation. In the United States, for instance, you may owe taxes in another state if you earned income while visiting—even if you weren’t there for the entire year. 

Meanwhile, some states have reciprocal agreements that allow workers who travel between them to only file taxes in their home state. Different states have different rules and requirements for taxing remote workers, so it’s a good idea to be aware of the tax filing requirements if you plan to travel extensively within the United States. 

If you plan to work outside the United States for a substantial amount of time, you’ll still pay U.S. taxes and may owe applicable taxes in the country where you’re working. However, there are two ways remote workers can avoid overpaying taxes and double taxation. 

First, the Foreign Earned Income Exclusion (FEIE) excludes the income you earn abroad from your U.S. tax liability, thereby lowering or eliminating what you owe in U.S. taxes. To qualify for the FEIE, you must be a bona fide resident of a foreign country or be physically present in that country for at least 330 days over a consecutive 12-month period. 

There’s also the Foreign Tax Credit (FTC), which gives you a dollar-for-dollar reduction of your U.S. tax liability for any taxes you pay outside the United States. But like the FEIE, you must meet certain requirements to qualify for the FTC.  

In general, traveling while working shouldn’t materially affect your tax situation unless you plan to stay in one place long-term. Nevertheless, it’s wise to consult a financial planner or tax expert to avoid costly mistakes and penalties. 

#4: Evaluate Your Insurance Needs

Whether you’re planning a short trip or lengthy excursion, it’s important to have the right insurance coverage to protect yourself and your assets while traveling. In addition to reviewing your existing policies, there are certain types of insurance you may want to consider purchasing specifically for when you travel. 

First, check your health insurance policy to see if it covers medical care while traveling. If your coverage is limited, you may want to consider purchasing travel insurance. 

Travel insurance can cover a range of unexpected events, from trip cancellations to medical emergencies when you’re away from home. While costs vary based on the policy you select, on average you should expect to pay about 5-6% of the total cost of your trip for travel insurance. 

If your travel plans involve renting a car and/or driving, check your car insurance policy to see what it covers, especially if you’re traveling internationally. You may need to purchase additional coverage. 

Also, keep in mind you may need to obtain an international driver’s permit before you leave for your trip. You can visit the Department of State’s website to learn more about your destination and what it requires of visitors. 

Lastly, many major credit card companies provide travel-related insurance coverage and emergency services for their customers. Be sure to check your credit card benefits before purchasing additional insurance to avoid paying for coverage you already have. 

#5: Plan Your Daily Routine

Unlike a traditional vacation, traveling while working means you’ll need to manage your time as efficiently as possible. Planning your routine in advance can help ensure you’re able to cover your work responsibilities and spend ample time exploring your surroundings.   

First, be sure to consider the time zones of your clients or colleagues and plan your travel schedule accordingly. This will ensure you’re available when necessary and help you maintain a healthy work-life balance while traveling.

You’ll also want to make sure you’ll have reliable phone service and internet in the places you’re visiting. Whether you’re staying in an Airbnb, hotel, or other accommodations, it’s a good idea to confirm whether Wi-Fi will be available. 

Depending on the nature of your work, you may want to consider purchasing a mobile hot spot for your travels. A personal hot spot is generally more secure and dependable than public Wi-Fi and can help you avoid gaps in internet service. 

Lastly, consider researching co-working spaces in the places you’re traveling to, especially if you plan to participate in important calls or virtual meetings while working remotely. 

Co-working spaces can offer a range of benefits, including reliable high-speed internet, private workspaces, and access to amenities like printers, coffee, and snacks. While you’ll typically need to purchase a day-pass or short-term membership, a co-working space can be a much more productive and comfortable place to work than a coffee shop or café.  

By working out these details before you arrive at your destination, you can avoid wasting valuable time and energy once you’re there. As a bonus, you’ll also have more downtime to relax and enjoy yourself. 

Simplicity Wealth Management Can Help You Navigate the Financial Considerations of Traveling While Working 

The shift toward remote work has opened a world of opportunities for professionals to travel and explore new places while maintaining their careers. However, to use remote work to your advantage, it’s important to understand the financial implications and plan accordingly.

Simplicity Wealth Management specializes in the financial planning needs of successful tech professionals. If you have the flexibility to work remotely and want to incorporate more travel into your financial plan, we’re here to help. To learn more about how we can help you achieve your financial goals and lifestyle aspirations, please schedule a call.