Have Wi-Fi, will travel: that’s a basic tenet of most digital nomads. Known as the “anywhere worker,” nomads can set up shop wherever they get a decent Internet connection.
Hawaii has become the next big destination for nomads as a tropical paradise on American soil. Its crystal-blue ocean views and luscious tropical rainforests provide a beautiful backdrop to the workday.
For these reasons, Hawaii may be on your bucket list as a digital nomad. But it’s one of the most expensive places to live in the US, and record-breaking inflation isn’t helping matters.
Is your budget prepared? Here’s what you need to know to make it work.
You Need a Significant Cushion of Savings
Everything is easier with savings — no matter where you put down your temporary roots. But when it comes to Hawaii, arriving with a cushion can help you offset the higher cost of living. It gives you time to find an affordable place to live and work without rushing you into making the wrong decisions.
An emergency fund is also a great idea for any nomad since you have fewer safety nets than the typical salaried worker. Let’s say your laptop shows the blue screen of death — you’ll have to replace it right away, even if you haven’t received your first paycheck in Hawaii.
Like most people, nomads should aim to save six months of living expenses in this fund.
Having a Line of Credit Can Help in Emergencies
No one wants to think of their emergency fund failing, but it’s a reality you have to consider.
Sometimes, the nomadic life can be unpredictable and challenging. After replacing your laptop, you could hurt yourself while on a hike and need emergency x-rays. Add in an unexpected tax payment, and all these bills could deplete your savings.
Having a line of credit is insurance you can pay for the unexpected should your savings ever fall short. You can find a personal line of credit in Hawaii by going online and comparing financial institutions from your desktop or your phone.
If approved, a Hawaii line of credit gives you a defined amount of money that you can tap into at a moment’s notice. Best of all, you don’t have to start using it right away. You can keep it as a backup, untouched, until something happens.
Budget for the Typical Expenses
As a nomad, you should update your budget any time you move, adjusting your expenses to reflect the cost of living in your new neighborhood. However, this tip is especially important when you move to Hawaii.
The Aloha State has clinched a spot on the top 10 most expensive states for a long list of expenses, many of them considered essentials. Here are three of the most common ones below:
- Rent: The average rent in Hawaii is $2,399, the highest in the United States.
- Gas: If you rent or buy a car for your stay in the state, filling up your tank will cost you — Hawaii has the third-highest prices in the country.
- Groceries: Hawaii rises to the topmost priciest state for grocery shopping, likely because so many items have to be imported into the islands.
Working Remotely in Hawaii is Possible with a Plan
The Aloha State might be an expensive place to live and work, but plenty of digital nomads are able to make it possible. You can join their ranks if you keep these financial tips in mind before moving.