I completely agree with you on this. Net worth is a much more accurate description of a person's financial wealth than an income is. Net worth is also much more under the control of the person in question, whereas income is much less so.
It is very true that net worth matters more than income in many respects. It provides a stable foundation for life. High income in most cases involves high costs and taxes. It's amazing to me how many women I dated could not understand this. They were always fixated on top line income like a shiny lure. ✨️
Net worth actually requires real discipline to grow/maintain. High income could easily be golden handcuff & doesnt matter anyway if you spend every $ you make.
Agreed. But I think an even better measure is "How many assets do you control?". Net worth can be nebulous if you are using currency to measure. But you could measure net worth in ounces of gold. Gold (the original money) would be much more accurate as all currencies inevitably decline in value.
that's how you create greedy people, not producers. Only gold and silver are real monies, everything else is currency... currency has to keep moving or it gets stagnant and dies.
Yes, but once you retire, you miss the income from the paycheck. Hopefully your investments are good. One should have income from at least a handful of sources. Net worth can go away through inflation and taxation.
Now in my 70's and retired for 15 years, was always self employed and very frugal. Lucky to be in the 1% and we stick to the 3-4% rule of spending. But yes it's all about Net Worth and how you build it.
I agree. A study was put out months ago by Yahoo finance. 34% of people who make $150k live paycheck to paycheck. 34% of people who make $250k live paycheck to paycheck. And some don’t have $500-1k in their checking account. I don’t want to be one of those people. Neither those with very high student loan debt.
Net worth needs careful attention to not have it vaporise with inflation. 1 mil is not much when all you can buy with it is half the worst house in your city
Cashflow is all that matters, how much money you bring in, to how much goes out. Does not matter if you are at one or ten millionen, if you spend more than you generate.
Personally I would love to work for Andrew. I'm just not all that interested in juggling businesses more than I am in working on interesting projects. It's a personality type.
So I can understand his perspective as an appropriator. As a busy bee I kind of feel like there's always stuff to be done and if I stop doing stuff I start dying. Even if it's hunting and gathering.
In 2009 my gross wealth and net wealth became one of the same, my younger brother claimed he was wealthier then I was his gross worth is about 2 million mine about 1.5 million, I asked him how much wealth would he have if he paid off all his credit debts he came back and said about $500K, I told him that's your wealth and that's all the wealth you have, it didn't go over well with him he told me I'm wrong
too common, its inbedded into society to be fair, to think the money you owe is yours 😂😂😂 for that alone you have to respect credit card companies and banks for their genius marketing. like everyone who says they just bought a home and it's theirs with only a 5-10% deposit, 5 years later all they say is i can't wait to clear the mortgage 😂😂
100% agree. Net worth comes from a high income. A high income can change if economic factors change or your business has a new competitor. Net worth is money you've extracted and haven't spent.
Not really... investing 10% of an average salary would make you a millionaire before you retire so income doesn't have to be high. It's mostly discipline and financial intelligence to know the difference between assets and liabilities and to prioritize acquiring assets
It means the same, but assets and liabilities is the term I use. It puts into perspective that having a house can actually be a liability because you have to pay taxes on it if you're not selling it.
A primary residence is always a liability until you sell. I always tell people not to pay their property taxes even after they've paid off their mortgage. Then they'll see who really owns their home
Andrew, I agree with you to a certain point. Net worth is very important. However, equally as important to me, is how much income is being generated from that net worth. If you're worth $5M USD but those assets only produce $100K in passive income that $5M net worth isn't worth much. If your $5M in net worth is generating closer to $1M in passive income then the net worth number becomes much more meaningful.
the point Andrew made is that income is often outside your control, whereas net worth is within your control. Seeing the value of net worth through it's ability to generate income is the opposite of his message here.
I have a network of $1 million and it grows every year. My income is low. I eat out of garbage cans and am homeless in the US. Income means squat shit. In a decade I’ll have a net worth over $10 million. Im moving to Moldova. Sick of high expenses in the US and the government wanting to jail me for everything I do.
Well actually it's a focus shift over time: The first 1-3 years in business you focus on revenue / income to lay the base and thereafter on liquid net worth for the next 5-10 years (recession proofing and options) and then on just on net worth.
I never looked at wealth as a number .. I wanted enough money to live a modest lifestyle without having to work again .. I could never be worth 10 million because after I got to a comfortable spot .. I just give it away to people in my life that are hard working and need an occasional hand .. once you get to a certain age you get it ... if you are lucky ... much better than chasing your tail like a dog
One of my favorite questions: for an individual alone it can be very complex yet as simple as it will ever get compared to when you factor in a spouse & kids. It all revolves around your desired lifestyle and what it costs to sustain it and if you aspire to grow that net worth while sustaining your lifestyle simultaneously. Depending on how you allocate your wealth between different types of assets; you could be seeking high growth stocks yet sacrificing the comfort of higher consistent cash flow that comes with decent dividend stocks. But then also have to weigh the factor on a maneuver if one of your picks slashes their dividend (this is why some ppl have at-least one or a couple “dividend aristocrat / king stocks that have a history of non shrinking yields for 25-50+ years.) a lone wolf in a cheaper overseas country with minimum desires and expense filled habits can probably get by with as little as half a million to 1 million net worth without supplemental wage or social security income. In my personal opinion most reasonable people should pretty decently comfortable in hypothetically South East Asia or Latin America solely on a net worth of anything in ballpark between 3 to 5 million, even 2 million should provide so much more wiggle room for comfort than even 1 million can.
Disagree. Net worth can be taken by governments, ex-wifes, frivolous lawsuits, crooked partners, inflation, taxes, market collapse, etc. And "net worth" alone does not put food on the table, as you can be asset heavy but cash poor. The important part is to be able to generate wealth under adverse conditions in relatively short time. Then you can always confidently look to the future.
you do know when he saying net worth he means pure cash, not assets or liabilities, houses are not assets anyway, your home shouldn't be for sale because you need the money to live, a common western nightmare
Yes, but you can usually sell your asset, to attain a lot of cash. In any case, most people with a high net-worth, lets say those with $1,000,000 net-worth or more, rarely have all that moneys worth stored in assets. Any sensible person would keep at least a reasonable amount of cash readily available or have investments that they could relatively quickly change into cash. So I agree with Andrew on this one.
@@michaelhall7028 i hear you on that one, i want my home to be a home, not a house i may need to sell to get cash or borrow against to get cash i strongly believe thats how it should be
Couldn't agree less. You're always saying what if your bank account got seized. What if your assets went down to zero or your property became worthless. Wouldn't you be happy to know you still have a couple million a year coming in? Your net worth is a hedge against your income one day ceasing and your income is a hedge against your net worth ceasing to exist. Moral of the story? Both are good and are equivalent to diversification.
you cannot grow net worth once you have child support in America, the system can take 65% of your gross income for 20 years so you can never gain net worth. Do you know which countries have easier child support laws? if you come to america and have a kid, they can take half a million from you so you will be put into a struggling situation you don't wanna be in.
This guy's message is really interesting to me but I find the way he continuously waves his hands around really distracting, very unprofessional & extremely off-putting
![Lethal Company Music Video 🎵 "Follow The Orders" [VERSION A]](http://i.ytimg.com/vi/QeooZB4Z7RA/mqdefault.jpg)
I completely agree with you on this. Net worth is a much more accurate description of a person's financial wealth than an income is. Net worth is also much more under the control of the person in question, whereas income is much less so.
It is very true that net worth matters more than income in many respects. It provides a stable foundation for life. High income in most cases involves high costs and taxes.
It's amazing to me how many women I dated could not understand this. They were always fixated on top line income like a shiny lure. ✨️
Taxes are avoidable. High costs? What costs do you mean? Like operating costs?
Net worth actually requires real discipline to grow/maintain. High income could easily be golden handcuff & doesnt matter anyway if you spend every $ you make.
😂
Agreed. But I think an even better measure is "How many assets do you control?". Net worth can be nebulous if you are using currency to measure. But you could measure net worth in ounces of gold. Gold (the original money) would be much more accurate as all currencies inevitably decline in value.
Agree. I don’t think you can define wealth as the money someone makes. Only as the money someone has.
that's how you create greedy people, not producers. Only gold and silver are real monies, everything else is currency... currency has to keep moving or it gets stagnant and dies.
Yes, but once you retire, you miss the income from the paycheck. Hopefully your investments are good. One should have income from at least a handful of sources. Net worth can go away through inflation and taxation.
@@pnachtwey if your net worth is not earning income, something is seriously wrong
@@President-Elect_Cory no it’s how you create owners
@@TheMichaelMove Owners of what?
Now in my 70's and retired for 15 years, was always self employed and very frugal. Lucky to be in the 1% and we stick to the 3-4% rule of spending. But yes it's all about Net Worth and how you build it.
5:30 "at least until inflaiton kills me" hahaha cracked up at that part 🤣🤣🤣
First you need income to build net worth then your net worth should produce income to increase net worth ; )
The very end is quite confusing. Which one is better to you? Ill assume the title of your video is what you feel is better.
I agree. A study was put out months ago by Yahoo finance. 34% of people who make $150k live paycheck to paycheck. 34% of people who make $250k live paycheck to paycheck. And some don’t have $500-1k in their checking account. I don’t want to be one of those people. Neither those with very high student loan debt.
Passive income is King...
There is no such thing as passive income
@@luisdetomaso867 yes there is... and it's the only way to true freedom.
@@President-Elect_Cory Passive is a fallacy. You either need to do work to keep the income coming in - or put your money at risk. Nothing is passive
The "Orders of Magnitude" mindset... thanks for the insight on scaling one's net worth.
Reminds me of Grant Cardone's 10x philosophy.
This is one of the most important video you've done, for me.
Glad to hear it.
Net worth needs careful attention to not have it vaporise with inflation.
1 mil is not much when all you can buy with it is half the worst house in your city
Andrew you spoke wisdom today! This is principled success and principled business. EXCELLENT episode. Thank you…
Cashflow is all that matters, how much money you bring in, to how much goes out. Does not matter if you are at one or ten millionen, if you spend more than you generate.
Personally I would love to work for Andrew. I'm just not all that interested in juggling businesses more than I am in working on interesting projects. It's a personality type.
So I can understand his perspective as an appropriator. As a busy bee I kind of feel like there's always stuff to be done and if I stop doing stuff I start dying. Even if it's hunting and gathering.
In 2009 my gross wealth and net wealth became one of the same, my younger brother claimed he was wealthier then I was his gross worth is about 2 million mine about 1.5 million, I asked him how much wealth would he have if he paid off all his credit debts he came back and said about $500K, I told him that's your wealth and that's all the wealth you have, it didn't go over well with him he told me I'm wrong
The concept of “Assets minus liabilities” didn’t go over well with him? 😆
what do yall do lol
too common, its inbedded into society to be fair, to think the money you owe is yours 😂😂😂
for that alone you have to respect credit card companies and banks for their genius marketing.
like everyone who says they just bought a home and it's theirs with only a 5-10% deposit, 5 years later all they say is i can't wait to clear the mortgage 😂😂
100% agree. Net worth comes from a high income. A high income can change if economic factors change or your business has a new competitor. Net worth is money you've extracted and haven't spent.
Not really... investing 10% of an average salary would make you a millionaire before you retire so income doesn't have to be high. It's mostly discipline and financial intelligence to know the difference between assets and liabilities and to prioritize acquiring assets
It means the same, but assets and liabilities is the term I use. It puts into perspective that having a house can actually be a liability because you have to pay taxes on it if you're not selling it.
A primary residence is always a liability until you sell. I always tell people not to pay their property taxes even after they've paid off their mortgage. Then they'll see who really owns their home
You are an inspiration. Thank you.
Thanks for watching.
Thank you Andrew I appreciate you and all the value you share I am Planning we can meet up this year
Hi, Thank you for your comment. Our Team will be happy to serve you: nomadcapitalist.com/about/team/
Andrew, I agree with you to a certain point. Net worth is very important. However, equally as important to me, is how much income is being generated from that net worth. If you're worth $5M USD but those assets only produce $100K in passive income that $5M net worth isn't worth much. If your $5M in net worth is generating closer to $1M in passive income then the net worth number becomes much more meaningful.
the point Andrew made is that income is often outside your control, whereas net worth is within your control. Seeing the value of net worth through it's ability to generate income is the opposite of his message here.
Thanks for this video .
You remind me of the lawyer In Carlitos way 😂😂
Please tell us how you turned NC from a blog to an office/workplace-based business with employees!
Balls, big balls to take action and sell
@@blyat7276 Sorry, not detailed enough (and not from the boss himself)...
I have a network of $1 million and it grows every year. My income is low. I eat out of garbage cans and am homeless in the US. Income means squat shit. In a decade I’ll have a net worth over $10 million. Im moving to Moldova. Sick of high expenses in the US and the government wanting to jail me for everything I do.
Well actually it's a focus shift over time: The first 1-3 years in business you focus on revenue / income to lay the base and thereafter on liquid net worth for the next 5-10 years (recession proofing and options) and then on just on net worth.
How about a video on the new 10 year nomad visa in Indonesia?
I never looked at wealth as a number .. I wanted enough money to live a modest lifestyle without having to work again .. I could never be worth 10 million because after I got to a comfortable spot .. I just give it away to people in my life that are hard working and need an occasional hand .. once you get to a certain age you get it ... if you are lucky ... much better than chasing your tail like a dog
Amen, brother.
Thanks Hans this was insightful
What amount of Networth do you think is enough, at a minimum?
One of my favorite questions: for an individual alone it can be very complex yet as simple as it will ever get compared to when you factor in a spouse & kids. It all revolves around your desired lifestyle and what it costs to sustain it and if you aspire to grow that net worth while sustaining your lifestyle simultaneously. Depending on how you allocate your wealth between different types of assets; you could be seeking high growth stocks yet sacrificing the comfort of higher consistent cash flow that comes with decent dividend stocks. But then also have to weigh the factor on a maneuver if one of your picks slashes their dividend (this is why some ppl have at-least one or a couple “dividend aristocrat / king stocks that have a history of non shrinking yields for 25-50+ years.) a lone wolf in a cheaper overseas country with minimum desires and expense filled habits can probably get by with as little as half a million to 1 million net worth without supplemental wage or social security income. In my personal opinion most reasonable people should pretty decently comfortable in hypothetically South East Asia or Latin America solely on a net worth of anything in ballpark between 3 to 5 million, even 2 million should provide so much more wiggle room for comfort than even 1 million can.
Adani's net worth is is taking a dump right now.
Disagree. Net worth can be taken by governments, ex-wifes, frivolous lawsuits, crooked partners, inflation, taxes, market collapse, etc. And "net worth" alone does not put food on the table, as you can be asset heavy but cash poor. The important part is to be able to generate wealth under adverse conditions in relatively short time. Then you can always confidently look to the future.
you do know when he saying net worth he means pure cash, not assets or liabilities, houses are not assets anyway, your home shouldn't be for sale because you need the money to live, a common western nightmare
Net worth can be protected with some foresight. As if Income can't be garnished by family courts, reputation loss can't lead to job/income loss etc.
Yes, but you can usually sell your asset, to attain a lot of cash. In any case, most people with a high net-worth, lets say those with $1,000,000 net-worth or more, rarely have all that moneys worth stored in assets. Any sensible person would keep at least a reasonable amount of cash readily available or have investments that they could relatively quickly change into cash. So I agree with Andrew on this one.
@@phosoa8965 If you fully own a house, the value of that house forms a part of your net-worth.
@@michaelhall7028 i hear you on that one, i want my home to be a home, not a house i may need to sell to get cash or borrow against to get cash i strongly believe thats how it should be
Why are you using such loud intro music / sound effects?
Couldn't agree less. You're always saying what if your bank account got seized. What if your assets went down to zero or your property became worthless. Wouldn't you be happy to know you still have a couple million a year coming in? Your net worth is a hedge against your income one day ceasing and your income is a hedge against your net worth ceasing to exist. Moral of the story? Both are good and are equivalent to diversification.
You are the CEO of nomad capitalist?
He's the founder.
Founder of Nomad Capitalist and the world’s most sought-after expert on global citizenship.
100k shares in xxx company.
💯
you cannot grow net worth once you have child support in America, the system can take 65% of your gross income for 20 years so you can never gain net worth. Do you know which countries have easier child support laws? if you come to america and have a kid, they can take half a million from you so you will be put into a struggling situation you don't wanna be in.
in 2023 if you do not realise America is a slave state, thats your business
dont have kids and it is not they it is people your ex partner
talk too fast
So slow down the video...
@@TheMrPorter When you slow down the video, the audio becomes unnatural.
He said "for me" 10 times in the video
Because everyone has a unique situation and he cannot speak for everyone, only himself.
The art of saying nothing useful ... so many vidéos and very little take aways.
This guy's message is really interesting to me but I find the way he continuously waves his hands around really distracting, very unprofessional & extremely off-putting
I don’t understand anything you saying man you just talking 😂