If you’re a digital nomad, you might be tempted to move to an island nation. Why not? Islands are warm, they have lots of nice people, and its great fun if you have money. That being said, island nations are vacation destinations for most people. Most people don’t know what it’s like to live or make their careers in island nations. As a matter of fact, many or most people born on island nations leave. This is is all for good reason, because while island nations are beautiful, they’re dying economically. This is mainly because there simply isn’t the production required to sustain the population.
Minimum wage is low
I don’t consider Hawaii to be an island nation. But if you look at all island nations, unskilled labor doesn’t pay much. Even in Hawaii, minimum wage is only $14/hour. This might sound like a lot, but the average rent for a studio is about $1,400. Generally speaking, wages in island countries are low due to the lack of skilled labor and heavy industry. Prices are also high because islands tend to be small and remote.
There aren’t a lot of great jobs
A lot of people in poorer countries don’t have skills. But there are a decent amount of people who have an education. Some of them get jobs, a lot of them don’t. A lot of island countries have a lot of skilled workers, but very little industry to go along with it. Tourism is what drives a lot of these places. This makes things hard for workers, because hospitality jobs tend to be considered “low skill” and “low wage”.
Islands with higher wages have higher prices
If you are looking for a rich island thinking it’s going to be easy to get by, think again. A lot of the higher GDP islands are full of people who are either rich or super rich. Think multi-millionaires and billionaires. This means that these islands are prohibitively expensive. Living in these places is only easy if you’re pretty well off, even by American standards. Compare prices in Hawaii with those in the Dominican Republic. It’s a night and day difference, but both islands are still quite unaffordable for locals.
The locals will complain, but getting by is still possible
The main thing is learning to be realistic. If you’re able to work for yourself while living on an island, you can “get ahead” so to speak. You can get certifiably rich in a lot of poor countries if you’re really smart. You just need to start a business and have the right relationships. It’s going to either be very difficult, or just take a long time to set up. Either way, once you have a business that works on an island nation, you have a business that works. That’s the upside of the whole situation.
What is in store for island nations?
The same as usual. Lower fertility rates and increased emigration. More rich people building houses and hotels on them. Island nations have become more livable over the years, but it doesn’t make sense for most people to live on them. If you can make it in an island nation, you can live an extremely comfortable life somewhere else. That’s the harsh reality. I don’t see how this can change without advancements in technology. We need real estate to get a lot cheaper. The only way I see this happening is if people keep leaving. There is hope, however. Those who are willing to put in the work can get ahead. A lot of people on these islands either can’t find or won’t do any work. Wealthy people will always like being in island nations. The climate is very attractive when money is no object. There will always be something to do, even if that something isn’t much. But I wouldn’t move to an island nation if was trying to get started in life, and didn’t have deep roots on one.
I personally wouldn’t move to an island country unless it was for a second home. I moved to an island country when I was 21, so at the start of my career. It’s been good in the sense that, if you can find something that does better than average here, you’re likely going to be OK pretty much everywhere. But I wouldn’t recommend that someone follow in my footsteps. The best places to live in are countries with large populations and lots of natural resources. Your money goes a lot farther when you’re younger, and as result it’s a lot easier to find purpose and meaning. I find a lot of people where I am get caught up in a cycle of working hard and playing hard. This can make it really difficult to save money and build a substantial net worth. When you’re young, income matters. But net worth is what’s most important as we age. Moving off of an island nation is an easy way to minimize future stress levels. You were warned.
Thanks for paying attention.
