The number one question that I hear as a traveler is ‘where are you from?’. Obviously. It is a simple if not creative way to initiate a conversation, and virtually every vendor on the streets of the world is trying to get you to start talking with them. I have been trying out a few different responses, and currently just answer ‘everywhere’. It does not of course stop follow up questioning, but it actually feels pretty honest to me. Similarly, when heading to the US I say that I am visiting, not ‘going home’.
As discussed on Budgeting – fixed costs, a big part of establishing the financial freedom to travel is to lower fixed and carrying costs. The USA taxes its citizens on global income regardless of where they live (only Eritrea and a couple of other countries do the same thing). It is really difficult to avoid paying the US Treasury what it wants. That being said, it is worth a little research on tax avoidance (which is very different from tax evasion). State level taxation is different. I lived in a high tax US state, and while I had no compunction paying taxes to support services and infrastructure when I actually lived there, I resent being taxed by them now that I do not consume any of their services.
If you live in a high tax state consider establishing residency in a low or no tax state (think Texas, Nevada) if out traveling for a multi year stint. By changing my residency I lowered my tax burden by 9%. As with a number of the preparations for travel it makes sense to research the options and start putting this plan in place well before you launch. Consider moving to your new state a few months before you take off. If you do, be sure to hold on to your now ‘invalid’ state driver’s license. If you lose everything else and need to rent a car outside the US, this will suffice.
Many of the desirable (from a tax standpoint, not a political one) states require a few months of banking and rental history to establish residency. The DMV take a while to mail you your new license (though many issue licenses on the spot). Sourcing healthcare, and finding and visiting a primary care physician for an annual checkup, and a dentist for a regular cleaning, can take a lot of time. If your mail drop is going to be in this new state, switching your analog mail address with your correspondents is time consuming. I waited until after launching to make this major change and it was, frankly, a real pain.
Unsurprisingly, high tax states do not want to lose a revenue stream and so make it hard to extremely hard to ‘leave’. Make sure that you go online and notify the IRS and your ex state of your new address. I found a number of comprehensive guides to the options online, with some really actionable advice and warnings about pitfalls.