As a financial realist, it’s healthy to have dreams. You see it that way too, don’t you? Dream of financial independence. Imagine chilled moments under palm trees. Enjoy the prospect of international entrepreneurship. However, there is one thing you shouldn’t do – approach the company haphazardly.
A solid strategy for your dreams will help you realize what is possible. A well-founded specialist knowledge allows you to become more prosperous step by step and to tackle big goals. For financial realists like you who only keep your dreams in a drawer until the right moment, here is a tip on how to do it practically.
Overcome inertia
Harry Donald Schultz’s flag theory is based on a principle. She recommends that you settle where you can do best. This theory splits well-being into different aspects. You separate business, private and financial matters if they help to turn your wishes into account balances. In order to be successful, you break some habits and research your options until your knowledge is sufficient.
Understand the approach
The 3-flag theory owes its full name to Mr. Schultz’s pictorial recommendation of locating work and financial investment and residence where most useful, even if that requires a division of countries. In practice, this is easy to do for people who work from anywhere – the digital laptop nomads on the beach in Mexico provide the right picture. These workers already separate residence and place of work because they often work for their country of origin from abroad. However, these nomads often follow our approach inconsistently. Many work for Peanuts, build little and are content with a period of felt freedom under palm trees until they return to Germany.
We want to show you how you can plan to save taxes and work out freedom on the route. Let others set off in an uncomfortable mobile home after their high school diploma or bachelor’s degree. Wouldn’t you prefer to stay in a hotel with a nice atmosphere?
persistence comes first
The success of the flag theory can be perfectly explained with a psychological experiment. Psychologists increasingly reward children for their willingness to wait for rewards. Long-term observation clearly showed that the children with the greatest patience achieved more and enjoyed more satisfaction in life. That’s why you use the flag theory with smart patience. Great freedom only comes when you have enough in your bank account. This will need time.
Build your strategy slowly. First you analyze where you work, live and invest money. Then you think about what it brings you and what it costs you. Maybe you live near Switzerland and would have the opportunity to earn good money as a cross-border commuter in the neighboring country with the strong currency and make a better living from it in Germany than you do now. The price for this would probably be more commuting time than now. Make reflections without taboos. Only when you have broken down the pros and cons in your Excel spreadsheet do you make a decision.
Are you planning to start a company? Then find out more about the tax rates. There are some countries that are cheaper than Germany and still allow you to earn money in your home country. This requires solid advice, preferably from specialized consultants. Deal intensively with the specific opportunities that Malta, the US state of Delaware and various off-shore havens offer.
The same principle applies to the investment of your finances. Invest where it costs you little and brings you a lot. A US bank might make you an irresistible offer. Find out beforehand about important issues such as deposit insurance so that you can calculate your risk. You should build the foundation for your financial freedom with little risk, you approach the desire for the return with a little more daring. In this way, the achievement of goals remains realistic.
taxes and freedom
Find the right way for you to save taxes and achieve strategic financial freedom. Bring patience. Open yourself to international opportunities. Spread your risks. Then you will see how the flag theory works for you in the long run. What are you waiting for?
