How to Become an Ultra High-Net Worth Individual #NomadCapiTEAlist

I'm Andrew Henderson welcome to another edition of nomad Kappa tea list but we talk about the human side of being a nomad capitalist and do a longer form deeper dive in some of the issues that you really care about darling and today I'm enjoying this New York breakfast tea from twg tea it's a really nice black Assam tea with some hints of caramel and I wanted to talk about something that comes up in my conversations with friends with people as I travel with people that we work with here at nomadic capitals and that is how to become an ultra high net worth individual how do you increase your net worth and I think that the thing about being a nomad accomplice gives you a lot more focused on long-term value creation because you're looking at the place where you live you're looking at the society that you grew up and you're looking at the value that you're getting from all the institutions that are around you and you're saying is this the best value proposition in the world and for most of us the answer is no okay no one country is number one for anything in most cases little and everything okay and certainly not the country that you are I are from and so once you're doing that once you're focused on getting the most value out of the places where you live Bank and vest have a citizenship etc I think that that naturally goes in hand with how do I increase my net worth and it gets entrepreneurs and investors that we talked to thinking about how to increase their net worth over time rather than focused on income income is taxed at much higher rates and if you you know get out of that system and you take back control of your income you dramatically reduce your taxes you can go on to building long-term wealth and so I find it very interesting to read some of these studies that come out that say you know the United States for example if you want to be in I believe the top one percent is about ten point three million dollars in net worth right now obviously these numbers change with with different market fluctuations but that is in terms of wealth for all ages from what I understand that puts in the top one percent obviously the top one percent globally would be a lower number but what I want to talk about today is and how do you get to become a Penta millionaire deca Millionaire sent a millionaire with you know tens and even hundreds of millions of dollars I think it's possible but I want to share my thoughts and I also want to share some thought from two folks one is Jeff whiner who writes the kick-ass entrepreneur and another one is from early to rise great website for successful folks to read I got some inspiration from reading both of their articles on this topic I'm going to add some of my own commentary and one of the things that they talk about each of them is if you want to be truly successful if you want to get to the next level and for me you know being overseas has helped me get to the next level because I'm seeing people all around me who are fabulously wealthy because I put myself in environments that are more intentional right where I come from in the United States I had friends who were doing alright but I was not in an environment where I was hanging out with the super wealthy and so being overseas it's a more intentional mindset and you go and you seek out people who are I think at a higher level and so mindset is really an issue you may have $100,000 your income I remember being in my early 20s and cracking six figures and income for the first time I thought I was doing fantastic I thought I was unstoppable and you know Dan Locke and it talks about this at times where he says I had a mentor once he walked into a room and said you're all broke you're all poor you know you think you're making half a million dollars a year you're killing it you have nothing and you know having more of that mindset in my life by living more intentionally has really helped me because it's constantly helped me to to grow that's the mindset piece that I think is important that's the piece that the two gentle and I mentioned spoke about is the kind of the first thing to being ultra wealthy from going to rich to being wealthiest do you have the right mindset most people and you give them advice and one of the gentlemen talked about people coming to him for advice on investing in real estate and multifamily and commercial properties and he would tell people you got to do this then you got to do this then you got to do this and he says you know year or two later at two years later you'd meet up for lunch they haven't done it I know that if you're in business you know that most people just don't do it you can tell them exactly what to do but he said what happens why do people not do it a life got in the way I was busy that's part of why I think the quarantine of 2020 was so interesting because the I'm busy went out the window you know the excusive I got a runner I'm commuting I'm stuck in traffic I gotta take it it all went away no you're sitting at home alright and so what are you going to accomplish now and he said and I believe this is very important if you're gonna become successful you have to make whatever that thing you want to be successful at your top priority if you want to be wealthy that has to be your top priority at least for a while Dave Ramsey the the financial commentator in the u.s. is you have to live like no one else that later you can live like no one else you have to make a sacrifice to later not have to make any sacrifices basically and to have what you want most people aren't willing to do that I think that's the fear behind it you know what I've learned when I talk to so many people is and we look at this one when we're screening people to come and work at our company is you can tell people something and they can say yeah I understand but if they don't feel it internally if they can't get over the fear internally if they can't get over the self-doubt never gonna accomplish anything and that's something that I learned the hard way was you can't just tell people to do and so if you want to be successful you've got to be able to feel it and you've got to make it your top priority for me in my 20s building a business building wealth was the top priority came above dating came above a lot of things and I did have some early successes so I was able to travel and I would eventually you know work as I traveled and I would basically build up my first business in the broadcasting industry and later some other investments while I travelled because I was able to set them up to work in the cloud but it was non-stop work and I still have largely that mindset today but you have to make it your top priority if you want to be mr. universe you know you got to be in the gym all the time okay you can't be and I'm too lazy today mindset really is number one and so that was the first thing before we get into the actual tips that was the first thing that I think is important and so you know for me the fire movement in the financial independence retire early I love that it's intentional I love that people are counting the numbers I love that people are thinking about it and in their putting effort into or folks are just living in nothing for their 20s and maybe their 30s to retire at 35 years old with a million dollars that you're in from a job and they're gonna invest it and just live a nice normal life off of the income from that money but my challenge is if you want to become super wealthy most the people that I've met they're working because they don't want to retire if you look at these guys behind me in a Roger of a Robert Kiyosaki just just two examples from from our conference coming up I don't think that that they could tolerate not working they could not work I could you know stop and not work and we could all have you know varying degrees of life but you you know for me and I think for most people with the you know the ten and twenty and fifty one hundred million dollar level you enjoy continuing to work continuing to doing something that's what I think some of these guys who are billionaires you know they they retire quote-unquote and they've become full-time philanthropist just because they can't handle not doing something so anyway that's the the bedrock of all this is the mindset here are the tips number one is focused on goals not numbers this is something that I've seen myself and with folks here at Nomad capitalist is what is the impact of your financial decisions that make today what's gonna be five ten twenty years from now I used to do real estate and I would buy real estate and I'd be obsessed with the numbers I remember a couple years ago anybody you should be obsessed with the numbers you have to make money when you buy but a couple years ago I bought a place and I paid a couple thousand dollars over what I thought it was worth it eventually became worth much more than that but I bought it and I was kind of afraid to pull the trigger because I thought you know the numbers aren't quite where I want them to be I wanted to get an excellent deal I got I think a very good deal and I got a property who's in a great location that everyone wanted even before I finished it people were making offers to buy it and owning an asset that's in demand yes you want to make money when you buy yes you want to have good returns I'm telling people don't be investing in many of these Western economies where the yields are 2% you know go to places where you can be treated best or you can get better yields but you know I would rather be investing in something that's gonna have great value five 10 20 years rather than investing in some untested suburb where I can get an extra percentage point yield you know sometimes I see people who they're afraid to get into a certain stock or a de cryptocurrency you're into gold or into there you know to exchange into a foreign currency or whatever because oh you know the rate was one point one two dollars to the Euro and now it's one point one three and I feel like a sucker and you have to think you know long term if you make this financial decision today if you make this investment today if you start this business today if you make this business decision today what's gonna happen in the long term you know if it's not going to matter five years from now don't give it five minutes of thought and so I'm not saying make bad financial deals I'm saying think long term you know if you're someone who's looking at expatriated this is obviously a very unique thing to know mad capitalist maybe you're a citizen of the country like the US where the country is getting in your way as an expat and you want to leave I've had people who will literally step over a million or two million or five million dollars in tax savings because they don't want to pay a hundred thousand dollar donation for a second Passport just to get the job done quickly and easily and they'll go a slow and in belaboured route and end up losing that larger amount of money because they're they're so focused on that short-term loss that they can't see the ROI in the back end so that's number one focus on goals more than on specific numbers number two is take more risks and this was some great tip from early to rise where you know let's just imagine you know I I have a couple friends who they make million dollar salaries even if you make a million dollar salary in a zero tax country let's just say you save you know half of that half a million dollars every year you know it's gonna take a long time to get to the ten million dollar mark and obviously most people don't have a million dollar salary in their business so what do you have to do you have to take more risks in something at least that most people think is risky we've had people who've come to us who have amassed you know 100 million dollar fortunes and cryptocurrency to them it's not risky we've had people who've sold businesses for hundreds of millions of dollars who've raised you know money for multi billion-dollar companies and to them wasn't risky I talked about how I hate risk but how I did risky's different than everyone else defines risk because because risk is working at a job hoping you'll get to that million dollar levels you can save enough money to eventually retire and be a tech a millionaire because you get retired on a million dollars very well you can't as some of the places that we talk about the Georgia's and a lot of the places we talk about but if you want that higher quality of life you know you a million dollars isn't gonna cut it and so you need to be able to take risks what I would also say to add under that number three is rely on yourself again just as a lot of the the entrepreneurs you see being successful aren't getting there through the stock market you want to rely on yourself I think cryptocurrency in my position is a great hedge I'm not a guy who goes all-in on anything I believe in diversification but you know for me the idea of going from five million dollars one day to 100 million dollars the next day that's happened to some people not obviously in one day but you know that's a little freaky to me I like sustainable long-term wealth building and I think cryptocurrency gold things like that are great hedges I like things where I can rely on myself obviously you can never totally rely on yourself but if I can go out and build a business and figure out how to grow that you know that's gonna be the winning ticket and so I think if you're in business figure out how to be a builder figure out how I can build a business that 10 20 years from now we'll still be surviving still be thriving we'll be bigger than ever maybe I can sell that business in the future maybe you know I can just continue to get basically an annuity from that business potentially millions of dollars a year that's really to me the only way that you're gonna do it short of being a pro athlete or an entertainer and even those things don't last forever to me business is the great equalizer the entertainers and the athletes once they can no longer be those things the smart ones that get into businesses you know Magic Johnson or Shaquille O'Neal guys like that they get into business because it's this thing that everyone can can do well with if they have that long term mindset so I like to rely on myself that's part of why I like what we talk about it nomadic capitalist being offshore going to places where I'll buy my own health insurance I don't need government health insurance that I pay 50% in taxes for I'll buy my own life insurance I'll send my own kids to school whether it's k12 or whether it's university you know I will basically self-insuring all those things and I'm prepared to rely on myself I think that is a big mindset shift for most people is you know we like to think we're relying on ourselves we'd like to think we're independent if you're getting a bunch of stuff from the government you know you're not really relying on yourself number four is you have to have targets this is important and now in business it's important to set goals writing your goals down especially in this era of everything's on a computer a tablet a phone I'm a little bit old-school I'd like to write things down I get these these nice you know Montblanc notebooks with the the silver lining I got a nice pen like to go and just write things down it it does feel more real to write it down but as with anything else in life with your business with your money you have to have some goals I'm gonna mention three goals that early to rise mentions that I think are important and giving my feedback but if you don't have a goal where you're gonna end up you're just gonna be constantly chasing more remember the movie The Wall Street sequel the guy said how much is enough and the guy in Wall Street said more now I'm not here to bash capitalism as I imagine Hollywood is where the pursuit of wealth is viewed as evil but I am here to tell you that I've seen this with people that I know where they set one goal they get there and they think it's the panacea and it's not you have to understand the metrics to figure out how much wealth that you want to create to be able to live because this idea of oh he's a millionaire again a millionaire I mean what's a millionaire getting you these days especially with low interest rates especially with volatility and some of the markets in the world changing number one is your lifestyle burn rate how much money do you spend i sat down with mrs. H recently and we did a number we said okay what well just assume that we were living the way we wanted to be living or let's say I retired what would it cost to live the way that we want to live we came up with a number and we live in places that are relatively affordable not because we have to it because we like them I think that there's a lot of opportunities there and so we came up with about a hundred and fifty thousand dollars a year that's pre children so if you have children that number it's gonna probably go up quite a bit but that number was you know for us we like flying in comfort between the different homes the homes are paid for so there's not a any debt obligations but we like going out to nice restaurants especially in Europe in certain parts the world would like going out to shows and things like that but like going and you know buying you know nice stuff and having nice things in the home and so obviously you could add that and if you buy a new home you know you might go in furnish it and that's not included in that but okay let's just say that is the number that you come up with what's your rate of return gonna be how do you get there okay and obviously we've talked about how by diversifying your cash position into different banks some banks in emerging markets pay three four or five percent in u.s. dollars you can earn a higher interest where you're gonna be investing in real estate where you're gonna be investing stocks what's your investment portfolio you're gonna look like it what's it gonna kill you and then now you can figure out what your number is gonna be so you know one hundred and fifty thousand dollars a year you know you might want five or ten million dollars now could I spend more than $150,000 a year sure but what I'm sitting then theoretically it's hard for me to think why would I want to spend more than 150 because again I'm living in a place where you go out for a very nice Italian dinner like you know with wine might cost you 150 bucks and the older I get I don't want to do that every day right so that's the fact number one the second factor is this start over again fund this is if everything gets lost what do you what what do you do for me I think the beauty of being a nomad capitalist is by keeping more of your own money legally you can put more money aside and you can take fewer risks the capital that's active you can demand more from because you're finding places that have higher returns higher appreciation or at least they have lower risk but I do believe in having and I we've talked before the concept at the lifetime emergency but just putting cash and wherever you feel that secure could be a combination of banks gold crypto whatever you that you feel comfortable with to where that would in my mind visit remove the need for the start over again fund because you are responsible for yourself when you're overseas and then the last metric was the what he early to rise calls to take a hike target we've talked about is the fu money this is basically what you're building up to to where you feel comfortable so all these three metrics work together to be able to be your targets for where you want to end up and so you need to figure out what those numbers are and you need to know what they are and be working towards them and understand that lifestyle creep is a thing you know I can live on 150 grand a year I probably spend more than that at times but I don't know that I have an interest in having a yacht for example but certainly some people you know they get to a certain point someone they want to got or suddenly they want a jet you know for me that's not necessarily my thing but you have to consider all those things and you have to make sure you know obviously as we mature as we succeed more as we earn more we want certain things and so those are factors that you want to consider tip number five is increased your active income you know there's a lot of talk about passive income I think passive income is great and I think you should have that as part of your portfolio but the best way if you're gonna become super wealthy is active income that you earn what is your high value skill you know you see these celebrities I was reading the celebrity net worths and who knows which of these are actually accurate but it's soon the celebrity net worths you would be surprised to hear right and so you know if you're Pamela Anderson and you know you had some kind of problem or I don't know whoever it was and you know you were down to the felt at least you know you probably can go out and do a reality show or you can be in a movie or you can do a Vegas show or something like that now again this is where like my concept of you know having liquidity having cash having it diversified so that you're protected against a lot of shocks and knowing that you're not gonna be down to the felt I also think having no debts important but if you can increase your active income if you can increase your skills that's gonna give you a better chance to be super wealthy because it's obviously an easier way to make money through active income I worked with a lot of guys who make you know from a million to a couple million dollars a year just kind of you know normal office very successful but just kind of normal everyday entrepreneurs you wouldn't you know think twice about them on the street and they often say you know I haven't really had much time to get to investing because I've been too busy growing the business the money is just sitting there their path to success was through active income obviously some people do very well trading currencies trading stocks we have people who do day trading that we work with any kind of stuff I got crypto trading whatever but active income now your skill could be on a crypto currency export I can make money doing that but having an active income rather than relying on something else is the best way I think to get to join the ultra-wealthy number six obviously saved more than you spend those are important factors personal finance 101 you cannot out earn your spending you know if you just keep spending more and more and more and more I mean look it's again some of the celebrities look at you know Nicolas Cage for example it goes out and buys all these beautiful properties Islands all kinds of stuff around the world and there's a problem doesn't pay taxes whatever the case may be and has to sell stuff off at the worst possible time for me again it comes down to sustainability you know I'm working on building a portfolio of properties around the world that was interesting is but four years ago I had a meeting with a couple friends and some people we worked with and I was discussing this idea of having a beautiful property portfolio of homes around the world that would suit every need that you have and I think for them was a fun conversation for me it was serious and that goes back to the mindset piece that I've been doing it but I'm not going out spending ninety percent of my income on accumulating real estate for personal use okay I think again diversification is important but if you're spending more then that's going to be a problem step number seven is live wealthy I think these two go together they seem like they don't but they actually do go together live rich is eerily to rise says live rich I had a friend once in the United States he was actually kind of a client slash friend and he was a psychotherapist and he says you know what I tell my patients is if you're afraid of spending money that's going to negatively impact your ability to make money now what that isn't is go out and waste money and stupid stuff it's not don't pay attention to the numbers it's don't be so tight fisted don't be so obsessed with again you know the USD euro spread when you're buying a property you know don't be so obsessed with with this I've struggled with that at times and I think the less I've struggled with it the more successful I've been because I try and spend a very very tiny percent percentage of my income but if you don't enjoy things I think you're not going to to get to the next level I think what also happens is you know there's just certain things that you do to reward yourself you know you have a great month or a great quarter or a great year maybe you go out and buy a really nice watch and do you need it no but I think it kind of cements in your own mind where you're going and these are just things that successive people do you know what we're talking about here I think is above the Millionaire Next Door level which i think is very respectable The Millionaire Next Door but if you have these active income earning abilities if you have a high-value financial skill you don't have to be the millionaire next door you can be someone who is you know the the deck a millionaire who lives the way that you want to and I think that involves at times you know buying nice stuff and then for me step number eight is diversify what's left diversification was a key point and everything that I read from people who are deca millionaires they're diversified obviously not everyone is a deca millionaires diversified but if you want to be sustainably wealthy I think that's important so for me that the bank accounts in multiple countries is having a cash position it's making sure that you do not have to start over again which is a fear I think a lot of folks who become wealthy you know what if it all falls apart right being diversified solves that problem you know having money that's not you know in digital form you know just numbers on in a bank computer you know having things like precious metals having a real estate perhaps rental real estate owning the properties that you you live in you know being diversified one thing that I've seen from successful people is they own their home and they're not you know taking out mortgages at 3% and then investing the rest at 5% in pocketing the spread they just remove the risk from their life they remove the frustration of having to pay the bank every month and I can tell you how nice it is I don't I don't have any bills every month it's like the best thing ever I think that it's a different mindset going back to mindset you know not means not sending money to stupid banks is a nice feeling knowing that you know you don't have to deal with that I think it's kind of a wealthy mindset versus say let me go into debt and try and you know arbitrage that point I felt that that was more interesting the past and now I I kind of think like you know just pay your stuff off I went to a bank recently opened a priority banking account oh oh you're buying a house here do you wanted to get a loan I said no no no loan I don't want you people in my life I want you as little as possible I sort of know what you calling me and say my you know my payment is late where's the money I don't want it any of that and so I think that's really something important so those are the tips for how to become ultra wealthy again if you're living the nomadic capitalist lifestyle you have a much higher probability because you're keeping more of your own money you are putting your money in places where it has the potential to grow faster and most importantly you're changing your mentality you're getting out of the mind so that everyone else is in where well hey this is just what it is here where we live you can't do any better you got to take it for what it is leaving intentionally you know choosing where you go choosing how you live choosing how you grow your wealth and earn your wealth those are all very important things and I was really excited to see them talked about by two very successful folks in these articles so I want to hear your comments here for nomad capitalists if you've made it this far what are your thoughts what are your goals leave a comment below what are your goals for creating wealth what do you want to do why do you want to grow leave a comment below and tell me which of these tips are resonate most with you which of these tips do you think are most important what would you add leave a comment and I would like to hear what you think how can no mad capitalist help you four ways number one subscribe to our channel and click the notification bell to make sure you get our new video every day number two get a copy of no Matta capitalist the book you'll learn a lot of my personal experiences over a dozen years of studying this stuff as well as exactly some of the strategies that you can use to build your nomadic capitalist plan number three if you're not sure where to start but you want to come and learn from my team and I you want to come and mingle with like-minded people learn more about our live conference Nomad capitalist live it's coming up soon and number four if you want some help right now because you've got a burning issue you need something solved you want to lower your taxes get a second passport or build the Nomad capitalist lifestyle of your dreams go to Nomad cap less calm and click on become a client

Channel: Nomad Capitalist

Views: 229,995

Rating: 4.8915076 out of 5

Keywords: NomadCapiTEAlist, nomad lifestyle, nomad mindset, become an ultra high-net worth individual, become rich, geting rich, successful people, what the rich do, rich habits, habits of successful people, how to become a millionaire, how to be a millionaire, Being wealthy, Increase active income, Live wealthy, personal growth, personal development, how to get rich, how to become a billionaire, robert kiyosaki, robert kiyosaki motivation, how to be rich, entrepreneur motivation

Id: De1QecSwlX4

Length: 27min 51sec (1671 seconds)

Published: Sun Jun 14 2020