How to Build Your Net Worth Faster

I think one of the most important if not the most important metrics in charting your financial success is not your business profits last year not how much money you took home not what your margins were but it's quite simply net worth not just for billionaires and celebrities but understanding that everyone has in that worth and building towards long-term financial success and so today I'm going to share with you four principles that I've determined as great ways to focus on building that worth as a nomad capitalist [Music] hey guys I'm Andrew Henderson and you know here at Nomad accomplice we encourage people to think outside of the box if you have a business where can you move that business to keep more of your own money be more respected with lower taxes fewer regulations where can you go and live where you feel totally at peace where can you go and park your money to make sure that you're protected we call it go or you're treated best and so those are the principles that I apply to any personal finance conversation I always want to go where I'm treated best so there's four things that I've thought about within that framework that I think are important for the successful entrepreneurs and investors that we talk to here on the channel and that we work with in our business and the first thing that really comes to mind when it comes to building that worth to me is you want it to be sustainable you know I see a lot of folks out there who take huge risks for me one of the biggest risks is they go out and they borrow a lot of money they put a lot of money in their credit card building their business or I had a business partner a white long ago when we were making a business investment and he wanted to grow the company by acquiring other businesses with debt and I just felt very uncomfortable with that there are many other types of risk and you can determine risk for yourself I mean for me a risk is going and working a nine-to-five job for me risk is keeping all my eggs in one country's basket you know some people might say investing all of your money in cryptocurrency is risk you may not think that's risky because you understand it so everyone gets to define their own risk but for me what I want with net worth is sustainability and so when I look at the culture where I come from in the United States you see a lot of people you know taking on debt businesses take on huge amounts of debt you see often herbs and flows in the market and I lived in California and Arizona during the last Great Recession and I watched as housing prices in Las Vegas also nearby where we did a lot of business went sky-high and then fell through the floor I mean imagine before the Great Recession houses in the middle of an open desert two hours outside of Los Angeles sold for half a million six hundred thousand dollars and then became ghost towns right so what I look at is how can I build a net worth of aníbal way if I were a stock I would want to be a growth and income stock just slow and steady gains okay now the faster you can you can you know increase those annual gains that's cool as long as it's sustainable I don't want huge ups and then huge downs huge ups and then huge downs I like for things to be sustainable and so by controlling more of the variables by controlling the tax rate you pay by you know not living in a country that has a wealth tax or is threatening to impose a wealth tax that could eat away and make it more difficult to have sustainable wealth by being diversified around the world and by making investments in things that are not risky you can be a lot more sustainable when I look at markets you know people have either cheered or jeer to the fact that I've promoted Cambodia for a number of years you look at a chart of Cambodia since the end of the Khmer Rouge you know you go back to the mid 90s and you look at just kind of slow steady growth alright and so that's a market that was just one example is less correlated to all the risky stuff that's out there and part of it is there's really not a lot of access to to debt financing right you know people are coming in and putting cash and they have to consider the fundamentals and it's much you have to really think long term and you have to think you know this is where my money's going and you know where a lot of us come from in the West people just you know makes you spur-of-the-moment decisions not an important stuff that actually helps them but like emotional stuff like this is our dream home let's buy it right now who cares taking a bigger mortgage called the mortgage low the loan officer you know get a bigger loan even if it's half of our income that's not sustainable okay so tip number one for me is analyzing what's happening in your country in your culture both politically the tax situation the financial situation are there good investments there you know is it sustainable I think a lot of Western countries are not that's why you know the United States has 20-some trillion dollars in debt not sustainable right meanwhile countries like Singapore no net dead right so there's a difference in culture that I think you have to consider and this is why you got to get outside the box in your own country to think you know is this really the best place for me to be that's step one step two to think about really is the compounding effect and it's fun for me is we get folks sometimes that come through you know guys were 23 25 26 years old who are making a lot of money had a gentleman recently he makes about one and a half million dollars a year I think he's 24 years old I'm and I said to him I said listen you've got this successful business now his particular business I don't know if it's the kind of thing that's gonna run for generations he might have a great five to ten year you know business by his own admission I said listen you're making a million a half a year you're paying you know hundreds of thousands of dollars in taxes I don't know the exact number I said imagine for the next decade from 24 to 34 you're a young guy you go overseas right you get that tax bill down to practically nothing you've got an extra let's call it half a million dollars a year that you can put into your investments and creating your sustainable net worth so half a million dollars time is tinged with zero growth five million dollars now imagine you invested that even relatively conservatively okay you know what would that be worth it 34 then imagine the business fizzles out or you sell it or whatever you're 34 years old right you get a whole life ahead of you but you've had some of the most important 10 years of your life compounding this is why I think number one it's worth starting a small business when you're young and building it into a bigger business but it's also the best time to go offshore and practice the kind of offshore tax trailers that we talk about because you know I had no gentleman recently and and his wife they're in their 60s right and for them it's much more about defense okay taxes are kind of down the list for them because they understand they're not gonna have as much time to compound they're looking at protecting their wealth you know their look and avoiding possible wealth taxes or wealth crabs or bank failures or bail-ins or whatever they've got a different perspective okay they're more defensive but if you're young you've got to recognize the impact of the impact of compounding interest everyone says they know compounding interest but then they live in a country where they give half of their salary half of their business profits away to the government and say hey I'm a I'm a smart guy with compounding interest well you would realize that over the course of your lifetime had you lowered your tax rate from 40 or 50 percent to five percent and invested the difference not even considering maybe the coughs living where you might go is lower or you could hire lower priced staff or find other cost efficiencies that's just gravy if you just did the forty or fifty percent of five percent you know gained and invested the rest we're talking millions and probably tens of millions of dollars over your lifetime especially if you start earlier so you really have to pay attention to compounding interest because most people again when they're starting their businesses they're wasting a lot of money taxes cost of living high cost of operating so focus on compounding so point three is tax savings this dovetails of course is point number two but what's interesting to me is I always put it in perspective someone comes to me and says I'm paying a quarter million half a million a million dollars a year in taxes whatever it may be I say to myself that's a lot of money because when you compound it it's gonna be really a very significant way to increase your net worth and even create generational wealth but to the government two hundred fifty thousand dollars is nothing that's like they host a party at one of their big embassies and and they spend it on nice food and getting the gang together and so if you can put that money back to work for you you were going to be able to have a tremendous advantage over everyone else I will see guys who come in they are seven figure earners they are let's say my age you know mid 30s and we'll go over for tax purposes you know what's your net worth and we've shared the example before of someone who lives in their country they were born there that grew up there that's all they know and their goal is to keep up with the Joneses right so that maybe they make 300 thousand dollars a year which is a pretty good salary for most people but then they give you know forty or fifty percent of the salary away and then because they have the job you know they need to drive a certain car to the job and then because they need to buy the home in a certain neighborhood because they're expected to entertain and then they they marry the girl who you know okay there's a certain way we should be doing things and that she needs a Range Rover and the kids need to go to a certain school and you know we're not eating at McDonald's so well you know we need to get the nice foods and everything needs to be a certain way because oh by the way that's what everyone else done the street is doing and we kind of surround ourselves in this environment where we're forced to keep up at a certain level not only with taxes but with all of our call of living and lo and behold that $300,000 turns into zero dollars pretty quick and so you're not building that worth if you're saving zero dollars right you're maybe depending on the government to build your net worth by giving you a pension check by giving you a social security check when you're 67 years old but then they're in control what I love about net worth is you're in control right you know you a salary that can give away business profits you know businesses come and go but net worth is always there for you and so for me understanding that that things are fleeting at times save as much cancer as you can to put into your coffers and grow your net worth more sustainably don't be the people who live in their own little bubble of all I know is Denmark all I know is New York all I know is Sydney and therefore I'm just gonna go out and live this lavish life in that place I'm going to invest in that place I'm gonna get bad investment returns I'm gonna pay way too much in taxes I'm gonna overpay for kids school I'm gonna buy these you know overpriced foods that I could get somewhere else for four more you know affordably and so if you do that don't be surprised when you have no net worth you know it's for me it's all about thinking outside of the box and most people don't do that so point number four the last point I think is really the most important one that supports point one through three and that is when you do it you'll feel it let me explain what I mean I had a gentleman recently and what's been interesting in working with folks who are deca millionaires centum millionaires and even above is you watch how many of them did grow their net worth sustainably it just happened over time I've had a couple guys and I had the founder of one billion-dollar company just kind of shot through the roof in in the crypto space but for the most part you know these guys who are in their 40s 50s 60s it's just you know slow and steady and now they have 80 million dollars and one of these guys had this beautiful sports car I don't know think about cars but I guess it was a pretty expensive like million dollar car or something like that and he said you know I always was interested in cars from a young age but he said I never really made the car the goal I was never focused on that I was just going at doing my business you know focusing him on my money trying to find all the advantage they could and just when I had the money I said I felt to myself he said I woke up one day and said now I can afford the car it wasn't like the goal every day where he put the you know the car on the board and it was looking at it and you know the moment he has enough money he buys it you know what I found is until you do steps 1 through 3 you won't know how you're gonna react in one day you'll find out that because you stopped giving the government 50% of your money and you went somewhere where you could be treated best when you started you know treating that worth is the most important thing you're gonna have more money and you're probably I didn't even get a note to do with it you're gonna say to myself like do I want a yacht do I want a million-dollar car you'll have to figure that out but you know you don't know until you get there this is all I always tell people about the nomad capitalist lifestyle people have so many preconceived notions you're not gonna know what you're gonna feel until you're gonna get there and listen I'll be honest what we do you know living overseas and and living a nomadic capitalist lifestyle is not for everyone and some people will start it and they'll want to go back and that's fine you know it's not as if if you if you saved only a couple hundred thousand dollars and then went back I mean you know you've really lost out right nothing's permanent but you know when you have the extra money from doing these steps you're gonna be a totally different person you're gonna take a totally different approach one thing that I've seen again with people who are you know very very successful is they've realized there's no need to cut corners it's always interesting watching people who are you know sometimes just starting out in business and they're looking for every angle and every edge and like you know almost occasionally you know I see someone was like you know who can I screw over kind of things like that's the only way to get ahead like that's such a small-minded way to build in that Worth and that's why most of those guys who have these kind of flash-in-the-pan one-year two-year three-year businesses never build sustainable net worth because you know it is about keeping up with the Joneses it is about finding an angle right and yet the people with the you know the huge fortunes just realize you know I could just do things sustainably so those are four things that I want you to to keep in mind for me it's the Hustler versus builder paradigm nothing wrong with starting a business that brings in a whack of cash for three years then you go into the next thing nothing wrong with that at all but the mindset for me is a long term net worth building sustainable and then making sure you keep the net worth making sure you don't put it all in one bank and it fails making sure you don't put it all in one stock and it fails for me personally you know I'm all for crypto I'm not putting every dime I have in crypto currency I'm just not gonna do it right and I've seen people become incredibly wealthy or equipped with cryptocurrency you know some of them do have huge crypto positions and so maybe they know more about it than I do and they feel comfortable with that but for me I've also seen people by the way that you know it's ten million dollars and it's three million dollars of their ten and that is probably a lot more diversified so these are the things that I want you to think about you know how do you grow your net worth how do you keep your net worth how do you grow sustainably the stuff we talked about it nomadic capitalist in my opinion helps you do that a lot more easily than staying in one place and doing what you're told how can nomad 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 nomad - 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 capitalist calm and click on become a client

Channel: Nomad Capitalist

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Keywords: nomad capitalist, go where you're treated best, net worth, how to build net worth, successful entrepreneurs advice, business risk management, business risk, wealth taxes, passive income ideas, wealth creator, go overseas, start business, going offshore, tax saving, tax saving investment, how to save tax, being wealthy, Increase active income, personal growth, how to live wealthy, entrepreneur motivation, habits of successful people, how to get rich, nomad lifestyle, taxes

Id: dXg4WuT5rDI

Length: 16min 2sec (962 seconds)

Published: Tue Jul 14 2020