3 Ways for Entrepreneurs to KEEP More of Their Money

Dateline: Singapore

If you are an entrepreneur working hard to create your dream life and increase your wealth but are tired of paying high taxes, I have two key pieces of advice to help you achieve your goals faster and enjoy your dream life sooner than you think.

I was recently in Morija, Lesotho, and it’s in countries like this that I’m reminded of two key takeaways that entrepreneurs can apply and really live their dreams with.

Are you living the life of your dreams?

As I arrived in the town on a Friday afternoon I saw a scene that’s common for this type of emerging country. It’s kind of cool: groups of guys sitting around on different street corners playing cards or other games and drinking beers. When you’re faced with a scene like this you automatically think “Hey, these are work hours right?” And yet, these guys are relaxing and just kicking back.
If you’re an entrepreneur like I am, I’m sure there will have been a time when you’ve worked incredibly hard in your life, working 24 hours a day, slaving away at the “grind” because that’s what you figure you have to do. Right? And although you and I probably don’t want to sit around drinking beers on a stoop at 3 p.m., there is a way to apply these relaxed principles to create the lifestyle of your dreams.

In order to tell you about these two big takeaways, I’d like to give you some great examples of what I mean.

What you’re probably doing wrong

Here at Nomad Capitalist, we recently worked with an Australian guy. He was earning $400,000 a year with his online business but paying almost $200,000 a year on it! He had a nice standard of living and wanted for nothing. He had a great apartment, was visiting clubs and bars whenever he wanted to and was saving around $50,000 a year.

That’s not bad. But he wanted to become a multimillionaire and be able to retire early, support his family, and enjoy the rest of his life. So he came to me and asked how he could make this happen.

The first thing we did was get him to move out of Australia — i.e., leave his home country. He moved to Asia, where he could have the same lifestyle or better but without the huge tax bill. Now he has a better lifestyle and he’s putting away over $250,000 a year. He’s also investing his money with much better rates of return so he will hit his goal of being a multimillionaire much faster.

The elements of this story are twofold: Firstly, we’ve talked previously on Nomad Capitalist about how in the U.S. the average person often doesn’t have $500 when needed to pay for an emergency. In fact, almost two-thirds of Americans often find themselves in this situation. Now I’m reading that the numbers aren’t that much different even if you’re earning right up to low six-figure salaries. If you’re making millions, you probably do have a couple of spare bucks lying around, but the point is this: Even if you’re making $100,000 a year, you probably don’t have much spare for emergencies.

I spoke to my Danish friend about what happens in Copenhagen with people he knows who work in the big accounting firms. Some of those people are partners in those firms and earning upwards of €300,00 to €400,000 a year. But by the time they’ve paid for their fancy car, a house in the right neighbourhood, splashed out on entertaining friends, bought their wife a designer handbag, and paid their tax bill, they too are left with zero.

https://www.youtube.com/watch?v=pL1bQ66J

Two big takeaways

Water seeks its own level. Especially when it comes to living in your home country. It’s amazing; it seems that no matter how much you earn (for many people) you’re left with zero. By the time you’ve paid for the house, all the different bills, and then your tax bill, so many people wind with zero or very little leftover.

In my situation, I managed to save some money when I lived in the U.S. but as soon as I got out of that system I was able to save so much more, do so much more, and grow my wealth so much faster.

Being in a place like Lesotho where people are more relaxed really made me think about these two key takeaways I’ve been alluding to:

  • Reduce your tax burden
  • Don’t try and keep up with the Joneses

Imagine the life you could have

Imagine how much you could accumulate and how much more relaxed you could be if you applied them to your life:

For example, let’s look back at the guys from Copenhagen. Imagine if they lived in Malaysia. They might not need the Range Rover anymore and they might not care if they live in the “right neighbourhood.” They would just want a nice house that they could enjoy, rather than having to constantly show off. The biggest thing though, is that they’d no longer have to pay 50%-60% of their earnings in tax.

It’s the same with the Australian guy that I mentioned earlier. He decided to moved to Thailand. He chose an area of Bangkok that wasn’t the sexiest, but he liked it. And now he has a bigger and better house than the one he had in Sydney. He’s enjoying himself and, importantly, he’s no longer paying $200,000 a year in tax. He’s reduced his tax burden, he’s saving a lot of money, he lives where he wants, and he doesn’t need to show off to anybody. He’s doing what he wants. Our two key elements have improved his life and taken him from saving $50,000, if that, to $250,000 a year!

Furthermore, now that he’s opened his mind to living outside of Australia, he’s also no longer just keeping his money in the bank, earning 1% interest. He’s growing his money faster and will become a multimillionaire many years faster too.

 

3 Ways for Entrepreneurs to Keep More Money

These principles in action

If we apply the principles of a place like Lesotho where people are more relaxed and don’t take things too seriously, you can see that you can make a big difference to your own life. Maybe we want to be in the Four Seasons or in the business class lounge. But you can do that a lot more with a lot less effort when you cut out your tax burden and stop trying to “keep up with the Joneses.” When you decide to leave your home country and no longer pay taxes there, you can live somewhere with a lower cost of living, get more for your money, and afford a more luxurious apartment. You can do so much more!

You can learn more about how to cut your tax bill legally at NomadCapitalist.com. This is the way that so many people who are running location independent businesses, online businesses, e-commerce, consulting etc. are creating massive wealth so much faster than everybody else.

Andrew Henderson
Last updated: Mar 10, 2020 at 1:29PM

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13 Comments

  1. thisisponzi

    Moving to other countries where you don’t know anybody and have no relatives is only for those who really don’t care getting murdered and left beside the road without anyone looking for them. Communities in asian countries maybe dangerous to live and being an outsider that maybe something that we don’t know. My brother was killed when he was trying to make a living in a place where he has no relatives or friends. We could not contact him for some time and good thing one of the neighbor was kind enough to give us a call (thank God he gave our phone number to his neighbor) and they said they found him lying in his home covered in blood and been dead for probably several days already. If all you care is earning more money and your fine leaving your current friends and relatives you’ve grown with on where you currently live then your living a very low kind of life.

    Reply
    • coolguy555

      Lay off the acid dude

      Reply
    • whocares

      You are right. Being a slave to your government is so much better of an option.

      Reply
    • bee

      Agree with you, there’s a reason more high income earners don’t move to developing countries – the crime rate and poor infrastructure,as for the guys hanging on the corner in Lesotho, playing cards, that’s because they are probably unemployed, the rate of unemployment there is 25%

      Reply
    • chia

      Sorry to hear about your brother. However, not all asian countries are that dangerous to live in…. Singapore is actually very developed and crime rate is low. I’m in Malaysia and while I’m careful about my belongings and home thefts are rife, it’s actually still pretty safe. We have expat friends who enjoy it here and build their own new circle of friends. I’ve moved countries multiple times, and it’s always difficult leaving behind friends and family, but we always make new friends eventually and have new experiences.

      Reply
    • Derek Casanares

      Sorry to hear about the passing of your brother but I have lived abroad and I have more than 40 friends who are living abroad and they are safe and sound.

      Again, this is not trying to discount what happened to your brother.

      Sorry for your loss

      Reply
    • John

      It’s true, moving away from friends and family to save on tax is for loners. Take the Aussie (I’m Australian too, and considering this change because my business is about to be international, and I actually need to not be an Australian resident to run it properly).

      The given Aussie is saving an extra $200K per annum. That’s excellent. He needs to balance that with the fact he doesn’t have his mates or family around unless he’s visiting “home”. If he’s really young and an only child or just not very social, then fine. This is a great lifestyle for introverts. But otherwise, he’s completely removed himself from being a part of the lives of his siblings, nephews, nieces, friends and everyone else he loves. That’s something to be considered. And yes, he’s alone if he has a crisis.

      He’ll blow 20 grand of that saving in flights and expenses just by returning “home” a couple of times per year if he’s flying better than economy on a better airline than the cheapest. So to really get his money’s worth, he needs to become a non-entity in the lives of everyone he knows. It’s worth considering.

      Reply
  2. Oshin @ Hobo with a Laptop

    I very much agree with this. It’s so much more achievable to run a profitable business when your cost of living is lower. My fiance did the same thing and moved to Southeast Asia three years ago to pursue different things, writing, starting a business, etc. It was great because he could afford to make mistakes along the way without suffering much the financial consequences.

    Reply
    • Irina Loncar

      Thank you 🙂

      Reply
  3. Mark Samson

    Some people have an adventurous spirit (I’m one) and want to travel, see the work, live elsewhere. Nothing wrong with that. Other people are afraid to venture out of their own backyard (comfort in the familiar… fear of the unknown). It’s all about choice and true freedom allows for that.

    Reply
  4. Jina

    i totally agree with all points, nice informational details you shared, wish keep writing always good article. Thanks for it.

    Reply
  5. Tarachand Khyalia

    i totally agree with all points,

    Reply
  6. best writers online

    Yeap, you made a good point here – to make more money doesn’t necessarily mean to earn more it can simply mean to pay fewer taxes.

    Reply

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