Book Summary: Nomad Capitalist, by Andrew Henderson

Summary reading time: 4 minutes.

Book reading time: 5h.

Score: 3/10

Book published in: 2018

Main Idea

Go where you are treated best. Earn money in one country, pay taxes in a second country, and live in a third country.

It’s better to leave developed countries and build businesses in emerging markets because you have less competition and bigger problems to solve (hence more money to make).


About

Nomad Capitalist was written by Andrew Henderson, the founder of nomadcapitalist.com.

While the forum is valuable, the book is a disaster.

The author repeats itself on each page and brags about how cool his life is now that he is rich and travels.

Great.

3/10.

This summary is weirdly divided. The first part is the “One Idea to Retain”, then the next part will be my notes.

Finally, the third and last part is a very short summary per chapter.

Enjoy!

Should you wish to financially contribute to the website, you can buy the book here.


Summary of Nomad Capitalist Written by Andrew Henderson

Do you want to stay in a place where politicians have everything but your interest in mind?

Today, the Internet and international give you the chance to live anywhere and earn money with a simple laptop and an Internet connection.

-> you don’t need to stay where you are.

The best places to go are the places where you are treated best.

Most people don’t leave because they have been conditioned to love their country and stay there.

They don’t realize borders are imaginary lines.

The art of the Nomad Capitalist is to take the best part of each country and assemble them together. Eg: put your money in Singapore, do business in the US, and live in Thailand.

Earn in the US.

The Three Flags Theory

Getting a service in a foreign country is “planting a flag”. To be completely free, you need to plant three flags.

  • Get a citizenship in a place that does not tax income earned outside of your 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 where you live because the police and government leave you alone.

The EKG Theory: Enhance, Keep, Grow

Enhance your personal freedom.

  1. Live overseas
  2. Get a second passport
  3. Host websites overseas
  4. Date/socialize overseas

Keep more of your money.

  1. Personal tax reduction
  2. Offshore banking: protect your money and enjoy higher interest rates
  3. Corporate tax reduction

Grow your money.

  1. Frontier market: start a business in a less competitive/crowded market
  2. Foreign real estate: get better RE deals
  3. Foreign currencies: earn higher rates by holding foreign currencies

There are two countries in the world that tax you based on your nationality: Eritrea, and the US.

The NC (Nomad Capitalist) lifestyle is about doing what you want. Becoming a nomad to get drunk in Ubud (Bali) because everyone else is doing it is dumb.

Practice crisis investing: invest where there is a crisis because you can get assets for a discounted price.

Know why you invest in 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 Grow a Network and Other Lessons

  1. Hire a lawyer.
  2. Overpay him.
  3. Get him to introduce you to everyone else in the city (RE agents, developers, government officials, etc).
  4. A lawyer can become an “everything” guy.

Avoid the middle. Don’t say yes. Say “hell yeah”, or “no”.

Every day you do nothing, there is a cost. It is up to you to determine what that cost is.

Uncertainty is where the magic happens.


Pay your taxes in Cyprus. Photo by Datingscout on Unsplash

Nomad Capitalist: Summary per Chapters

Chapter 1: My Five Magic Words: the five magic words are “go where you are treated best“. Western governments no longer care about their people nor their country, and hike taxes to fund war projects or refund dumb debt contracted to fund wars. As such, you should leave.

Chapter 2: How to be a NC: 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: get a second passport if you are from the US so you won’t have to pay taxes there (US nationals virtually belong to their government).

Chapter 5: Birth, love, and children: date overseas.

Chapter 6: Nomad Healthcare: no need to pay for health insurance 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. Get 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 if it is earned outside of the country.

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. You have more chance to succeed at a business in a country where there is NOTHING and people are poor than in a country where there is everything and people are rich. That’s because these countries have needs, so people will come work for you and buy from you.

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.

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  • Post category:Summaries
  • Post last modified:May 13, 2022