Money lessons are important to learn, especially if you’re a new investor or entrepreneur. It’s something that most people need to learn at some point in their lives. For us, the lifestyle that Nomad Capitalist brought was all about how to get more, how to be more, and how to do more. One of the big ways to do that is by financially keeping more of your own money that will allow you to do a lot more. In this article, we will share three ways in which we believe legal offshore tax reduction can help you, your family, and your business.
Getting More When It Comes to Money Lessons
The first question that we want to ask you is this: how do you get more? One thing that we’ve told people time and time again is that you should follow my five magic words, go where you’re treated best. You should go where you’re treated best, not where you’re treated a little bit better. You see, we’re not a big fan of moving from California to Arizona. If you’re already packing up the truck, you might as well take it as far as it can go. You can go to Puerto Rico, to Panamá, or to Palau. The world is big, and your options are endless! The thing to keep in mind is that you have to go somewhere where they treat you best. Why? Because there’s so much at stake, and we’re not simply talking about money lessons. There’s so much at stake, especially when it comes to business. What we always tell people is that if you’re making $1,000,000 a year, then that’s the beginning of a seven-figure earning entrepreneur lifestyle. When you look at $400,000 or $450,000 that you might be paying in taxes per year, then living in a high-tax legacy brand country might not be so great. Can you even imagine investing that much money in a bond or a fund? This is where we’re starting to talk about big changes when it comes to generational wealth. Now that is one of the money lessons that most entrepreneurs need to learn. So what other money lessons are there?
Money Lessons to Learn When Going Overseas
The first of the money lessons that we want to state here is going overseas. You see, going overseas not only lowers your taxes, but it also helps you earn more. It has the opposite compounding effect. So if you live in the United States, or Australia, or Denmark, and you make $1,000,000, then you’re pretty much-giving half of it away. When you go overseas, then depending on your circumstances, you could probably keep up to 100% of your income. Although, this is a bit more difficult for Americans. The cost of living doesn’t have to be any higher, too. There are so many affordable places out there. Deciding to live in these affordable places is one of the money lessons in itself.
Knowing the Right Money Lessons to Use When Going Overseas
Although, what we see time and time again, is that people are coming back to us a year or two later. These people say, “I thought I was going to cap my business at $1,000,000. I thought that was it and that I was just going to milk the tax savings and maybe even pocket an extra $4,000,000 in the next decades, but no. What happened was that I started thinking because I started feeling freer, and I realized that I could get up to $1,500,000.” We hear this so often from people who, not only on the back end, actually did make more money than they got to keep. These people simply stopped paying $500,000, and they kept that. Sometimes, they made an extra $500,000, or whatever the numbers may be. We also hear people coming in and saying, “I probably could be doing better. I just don’t see the point of earning anymore because the more you make, the higher your tax rate will be.” Sure, you may be giving away $.50c to Joe Biden or Andrew Cuomo or to whomever politician that may be. That’s the thing, though, because whatever the case may be, the tax rates in these legacy brand countries will also be high. So I think that this was a hard one to explain. However, if you ask yourselves why you’re not pushing as much as you can go, why you’re not hiring as much as you can, and why you’re not expanding as much as you can. Well, it’s because you realize deep down whether all these risks are worth it when you only get to keep half. The thing is, when you’re keeping it all, you have the liberty to take more risks. So when you go overseas, you can uncover all the different opportunities where you can hire for lower starting costs. You can do whatever you may be doing, and you’re going to earn a lot more, and this is one of the most important money lessons that you can learn.
Money Lessons in Being Able to Enjoy Life More
The second in our money lessons is that you ought to know that you’re going to be able to spend more. Not only that but that you’ll enjoy life more not only for yourself but for your family and the people around you. I’ve told this story countless times before. There was a guy in Denmark who worked for a big accounting firm. He makes EUR 700,000 a year, but what do you do with that money when you have to pay taxes? You have to pay the Audi bill, and then you have to pay your wife’s Range Rover bill. Then there’s the bill for the house, the mortgage, the fee to live in the nice neighborhood. Obviously, there are fees for the children’s private school. Now, you may be going into debt, but your best-case scenario is you’re probably going to break even. Now, what we’ve done in my life and my companies is that we’ve decided to become entirely asymmetrical. We have people working for us from overseas. These people make more money than most Americans, and they live in countries that are far cheaper because we just decided to cut our ties. Sure, this person on this salary will live in this neighborhood, and it will cause this. So what do we need to do just to get them to break even?
Why Being Able to Spend and Enjoy Things is One of the Money Lessons
If you’re making millions of dollars a year, of course, you can afford a lot of stuff. Then again, removing that tax burden will make it a lot easier to spend. We can tell you that it’s so much easier to spend, do nice things, or stay in nice hotels. It’s so easy to buy nicer gifts, eat nicer meals, and you also get to buy higher quality stuff. It’s so easy to do all these things when you know that you’re keeping that money. Sure, there’s nothing wrong with paying some tax necessarily. Although, when you pay so much and they just waste it? Sadly, this is what we’ve been hearing from people in the United States and those legacy brand countries. So we think that once that’s out, you’re going to be freer to spend, and you’re going to enjoy life more. We also happen to think that this makes you more productive. This is a part of why after renouncing my US citizenship, I went and started building my property portfolio around the world. I could have great experiences for myself where I can just feel good in my properties. In being able to do all these things, I can be more productive, I can contribute more, and I can get more things done. It all works together now.
Money Lessons When it Comes to Giving
The third of the money lessons, which several of our guests at Nomad Capitalist Live has mentioned is how we should talk more about giving. Again, if you don’t have that much “leftover,” then giving will probably be on the last on your list of priorities. For a lot of people, what’s been incredibly important is saying, “Rather than giving $.40c on the USD to a government who wastes it and spits on you in return, why not go and pick a percentage and give that to worthy causes?” Maybe you have a bit more time, or you can afford to hire someone you know. Perhaps you can hire someone in an emerging market, right? So what we’re going to have them do, is make a list of charities that we’re going to give to. Naturally, these are causes that are important to us. Then again, you could also help the people around you. Maybe there are situations where you know someone who needs surgery, but they don’t have the money to pay for it. So you know what? We’re going to do that for you, and it’s all good. Obviously, there are many socialist politicians around the world who get angry when you give your money to charity. They get angry because they want to be the “charity,” and they want to get your 75%.
Why Giving is One of the Most Important of the Money Lessons
What do you think is the true value of being successful? For us, the value of being successful in our terms is being able to go out and give to people who genuinely need it. We look at giving as a pyramid. What’s the biggest problem we’re facing right now? What do we want to solve right now? We think that most people need to go out and find causes that they feel good and passionate about. Then again, you can turn these “donations” into residencies or even citizenships. That’s one of the main criteria that can qualify you for a citizenship by investment program. So rather than giving greater amounts of money to a government that hates you, doing it for a charity gives you a sense of love. There’s also more of a sense of appreciation in getting to see where your money is going, which no government will ever do. For the most part, the valid thing that we think it contributes to is human existence, which can definitely be worthwhile.
Putting These Money Lessons to Good Use
These are the three basic money lessons that we think you’ll need to do as you earn more, spend more, enjoy life more, and give more. Of course, you’ll also need to save more, right? That’s the end result of all this. After you do all these things, then the fact that at the very beginning you reduce your taxes means that you’d still be able to save more. You’ll put more side investments because the more you invest, the more cash flow you’ll earn. Your asset values will also increase, and you’ll be creating a legacy for future generations. If you believe in all these things, you’re allowing your family to have a better life than you did. You’ll also allow them to give more. Overall, we’re creating a very positive cycle for value creation, enjoyment, and happiness in life. As we all know, these are all great and very important things. When it comes to helping other people develop happiness and getting a sense of love back, we think that all these are great things. Then again, it all comes from simply answering the question, how do I reduce my taxes by going overseas? By following Nomad Capitalist’s tax-friendly quadrant, we’re talking about dramatic lifestyle happiness and legacy to the tune of millions just by taking that first step offshore.