Diversify. We’ve all heard this old time, wise advice on investment portfolios. But most people never think to apply this in their lifestyles and geographic involvements.
To the average joe, offshore banking is something for the rich and criminal, and learning a new language is hard — after all everyone speaks English right?
Whether it’s to mitigate risk, or to spice up your life, associating yourself with multiple countries is always a good idea.
Aside from the financial benefits, gaining and finding purpose in your life requires you to step out of your comfort zone.
Being tied to a single country and never stepping outside of your own is downright unattractive.
Whether it’s dating, business, or social relations, being too sheltered in your country of origin robs you of future opportunities.
In this digital age, its SHAMEFUL to be illiterate when it comes to foreign cultures.
There’s two main types of geographic diversification: cultural and financial.
You need to diversify financially and culturally in different countries to build success.
Plant flags in multiple countries.
What does it mean to plant a flag?
Planting a flag in a foreign country means that you travel there, and obtain legal documents. This is to establishing association (residence, travel document, etc..) with the foreign country.
Thematically, planting a flag means learning the culture.
It involves learning, experiencing, and absorbing the language. You become knowledgeable in the destination: where to eat, places to visit and party, and the geography of the country.
Geographically, you know how that country is related to your home country. You also know how this country relates to its neighbors.
In other words, you become acquainted with the geopolitical structure: A necessary repository of knowledge when dealing in high level business deals (if you are entrepreneurially spirited).
Lastly, in financial terms, when you plant a flag, you park assets under foreign jurisdiction. Planting flags means to diversify your income stream from your home country and currency.
Examples are real estate, (offshore) banks, investments, and business, etc, which are placed overseas.
Financially Diversify Overseas
This is more important if you live outside of the United States. The greater wealth you accumulate, the more sensitive to instability you become.
Here’s what I mean:
For example, Venezuelan citizens can benefit the most by holding their purchasing power in a foreign asset. Even a volatile asset like Bitcoin would be heaven compared to the Venezuelan Bolivar.
In contrast, the average middle class household in the U.S. doesn’t have the same need. A high net worth individual (HNWI) will be extremely sensitive, and the risk penalty is higher if all assets are parked in the U.S.
This is dependent on who you are.
The U.S economy, Dollar, and Banking institutions are relatively stable when compared to foreign places like Latin America and parts of Asia.
But there are a few niche countries whose Banking Institutions and Economic statistics far outshine the U.S in terms of stability and integrity.
HNWI’s already have done their research into this. For your background knowledge, countries like Hong Kong, Panama, Singapore, and Georgia, are usually the go-to to establish a basic offshore bank account.
The easiest of which is Georgia, since it’s opening up its laws for foreign interaction and tourism (though not the safest of the three).
In addition, Germanic European countries are also the best for offshore banking, however because of their extreme popularity. However, with laws like FATCA in place, it’s becoming harder and harder to open accounts (high starting balance and regulations / legal obstacles).
Opening an offshore bank account usually requires foreign travel due to laws and regulations (Know Your Customer Laws).
In the second part of this guide, I will talk about foreign real estate — another component of financial diversification, and other topics.
Lastly, you can invest in foreign markets with any stock brokerage tool.
Culturally Diversify Overseas
Furthermore, don’t just diversify financially. More importantly, diversify culturally. When you absorb a foreign culture or place, you gain insight on the needs of individuals outside of your environment.
This means that you will gain new ideas to solve current problems at home. Your senses and thoughts are fresh to that new environment.
You’ll realize problems and solutions in this new environment, allowing you to capitalize on business opportunities in new markets.
The synergy created between your foreign and domestic worldviews and perspectives drives you to success faster. It could be as simple as meeting a new person with like minded objectives, or taking a foreign idea and copying it and adapting to your own culture (like all of the rich Asian copies of American tech companies).
By shutting yourself into your home country and ignoring the outside world, you are missing opportunities and insights.
Successful people know TWO or MORE Languages.
Ignorant and DESTITUTE people usually only know ONE.
Cultural ignorance is unattractive and immature. In my previous post, I talk about instilling an Abundant Mindset to Attract wealth, worthy people, and opportunities. You cannot do this if all you know is your home country, culture, and language.
You can read all about foreign cultures in my future posts on travel.
With the ever increasing connectivity in this digital age, having only one flag is like farming only one seed in a corn field.
By planting flags in multiple countries — financially and culturally, you will be financially stable, independent, and attractive.
Multiple flags is one of the cornerstones for achieving success, and living the wealthy and abundant life that you merit.
THE LESSON: Diversify and Plant Multiple Flags as You’d Plant Multiple Seeds
Here is a great guide to get started on offshore banking. It was on my monthly reading list that inspired me to write this post. I’ve always had money overseas but never really considered writing about it till now.
Comment below: What were some of the ways that a foreign culture gave you a new idea or helped you solve an existing problem?