I read the book because the author’s forum nomadcapitalist.com was valuable. The book though, wasn’t. 3/10.
Do you want to stay in a place where politicians have everything but your interest in mind? Today, the internet and international law have enabled you to set up virtually anywhere and earn money with a simple laptop and an internet connection. You do not need to stay where you are.
Go where you are treated best. Borders are imaginary lines that can influence the way you are treated. Those who are badly treated leave. You should too.
You have been conditionned to love your country and stay there. You don’t need to.
The art of the Nomad Capitalist is to take the best part of each country. Eg: put your money in Singapore, do business in the US and live in Thailand.
The three flags theory. Getting service in a foreign country is planting a flag. To be completely free, you need to plant three flags:
– Get citizenship in a place that does not tax income earned outside of the country.
– Have businesses and investments in stable, low or no-tax countries. These are business havens.
– Live like a tourist in countries that support your values. These are the lifetime havens or playgrounds. It’s always better to be a tourist cuz the police and government leave you alone.
The EKG theory: Enhance, Keep, Grow
– Enhance your personal freedom:
a. live overseas
b. get a second passport
c. host websites overseas
d. date/socialize overseas
– Keep more of your money
a. personal tax reduction
b. offshore banking: protect your money and enjoy higher interest rates
c. corporate tax reduction
– Grow your money
a. Frontier market: start a business in a less competitve/crowded market
b. Foreign real estate: get better RE deals
c. Foreign currencies: earn higher rates by holding foreign currencies
There are two countries in the world where you have to pay taxes no matter where you live because you are of that nationality: Eritrea, and the US.
The NC lifestyle is about doing what you want. Becoming a nomad to get drunk in Ubud because everyone else is doing it is dumb.
Practice crisis investing: invest where there is crisis cuz you can get discounted assets.
Know why you invest into something.
Don’t develop companies in developed or emerging markets, go where the market has not emerged yet and you will have less competition and huge growth potential.
How to get to know people: Hire a lawyer. Overpay them. Get them to introduce you to everyone else (RE agents, developers, government officials, etc). A lawyer can become an “everything” guy.
Avoid the middle.
Don’t say yes. Say hell yeah, or no.
Everyday you do nothing, there is a cost. It is up to you to determine what that cost is.
Uncertainty is where the magic happens.
Chapter 1: My Five Magic Words: the five magic words are “go where you are treated best”. The idea is that Western governments no longer care about their people nor their country, and hike taxes to fund war projects or refund dumb debt no one desires. As such, you should leave.
Chapter 2: How to be a nomad capitalist: go on google flight, buy a ticket, board the plane, become a tax resident.
Chapter 3: The location independent lifestyle: earn money online.
Chapter 4: Second passports: you should get a second passport especially if you are from the US, because USA and Eritrea, are the only two countries that tax residents based on their nationalities and not on their tax residency.
Chapter 5: Birth, love, and children: date overseas.
Chapter 6: Nomad Healthcare: no need to pay for healthcare in cheap countries because the price is so low you’d lose money paying for insurance. Also the service is better.
Chapter 7: offshore banking. You can open bank accounts in many business-friendly countries just by showing up, like Romania. You should have several bank accounts so if one bank fails you do not lose all your money.
Chapter 8: offshore companies and tax savings. Open your company in a low-taxed country and have it taxed there. Some countries will not even tax it.
Chapter 9: foreign asset storage: invest your money overseas.
Chapter 10: Overseas investment: Same as chapter 9 but with real estate.
Chapter 11: Frontier market entrepreneurship: the only interesting chapter. Technically, you have more chance to succeed at business in a country where there is NOTHING and people are poor than in a country where there is everything and people are rich.
Chapter 12: Conquering dogma: do not follow the herd, do your thing, that thing YOU want to do, nothing else.
Chapter 13: the nomad mindset: the author brags about how his life is so much better than everyone else’s, and that you should be flexible and open-minded.
Chapter 14: how to get started: you need to have a purpose, and take action.
For more summaries, head to auresnotes.com.