November 2012

Art of Non-Conformity

November 30, 2012

Photo from grahamdbrown instagram

Photo from grahamdbrown instagram

“If you want to know who your real friends are, start telling your craziest idea to everyone you meet.  Some people will slowly back away from you as if you really are crazy, but others will latch on to your idea and help you any way they can. The people in the second group are your real friends.”

Chris Guillebeau. The Art of Non Conformity

“The money you have is enough. Chris makes it crystal clear: there are no excuses left. START. Start now, not later. Hurry.”

Seth Godin on Chris Guillebeau

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100 Days on the Road: What I’ve Learned

November 29, 2012

Time to consolidate 100 days of travel.

Here are a few things I’ve learned from being “on the road” for 100 days with my family about what makes us happy.

Things that don’t make you happy on the road

THINGS

Before we left we sold pretty much everything including our car. All we kept was a bit of real estate as security, everything else went to friends, Ebay and the local skip (trash). Since then, we’ve had to pretty much rent everything – houses, cars, pushbikes where needed. When I buy stuff now, I have my own rule of “one in one out”. If we’re moving to a new place I don’t want to the hassle of a 3 month house detox yet again so if I buy something new, I have to throw something out. Of course, the logical driver of this in/out policy is luggage space but it’s a good discipline to have anyway. I buy a new pair of running shoes, I throw the old ones away. I guess it imposes some degree of mental discipline on my shopping habits, which is always welcome. Whereas before I’d order a lot of books from Amazon, now I’m asking myself – do I really want to carry this in my suitcase? I haven’t bought a single book in the last 10 weeks (apart from my own of course!)

In summary: you need a lot less than you think. I’ve survived 100 days out of 2 suitcases and I’m as happy as I was before.

BIG TICKET ATTRACTIONS

Most big ticket attractions on the road don’t meet expectations. There are a few exceptions – places like Disneyworld – for example. But, as a general rule, I’ve found that planning travel around these attractions is both expensive and disappointing. I’ve learned that it’s better to find a place with a good beach and good weather than to spend money visiting museums, theme parks, sightseeing and so on. All these attractions are good if you have limited time but after a while, you tend to just want to do your own thing, make your own entertainment and avoid the hassle of travel, tickets, accommodation etc.

Note this is a general rule. We’ve enjoyed some attractions that were those “once in a life experiences” that you fantasize about – places like Borobudur in Indonesia, Sagrada Familia in Barcelona and Minos in Crete. But, I guess if you look at them they’re not contrived attractions like a museum or a theme park. When I take this into account and spend all those hours research places to go using Google Maps etc, our trip next time will be less about “checking off” the sites (which I am guilty of) and more about simply hanging out and enjoying the vibe of the area.

In summary: I’ve made countless “to-do” lists for sightseeing but we end up only doing 10% of them. Of the 10% we do see, most are a disappointment. The real treasures in travels come from the unplanned experiences (getting lost in a backstreet), a surprisingly good lunch, or an afternoon on the beach.

CLASS OF TRAVEL

Admit it, we’d all like to say we’re not bothered about traveling first class but will tell the the world on Facebook etc when we do.

Unfortunately travel is a rather manufactured experience. There’s no reason why the cabin crew should treat you better in First than in Economy. There’s no reason why First should board before Economy but it happens and it creates the anxiety that makes us feel we could miss out. Apart from the obvious limitation (e.g. size of seat), the illusory nature of travel class is one that feeds on our own insecurities rather than creating real long term happiness.

I confess I’d like to travel with Emirates or Singapore Air in a first class suite all to myself at least once but unless I become super-rich or suddenly become an in-demand celebrity (both unlikely), there are so many more interesting things to spend $10,000 on.

I’ve traveled various classes. If it’s business and a client’s paying then I’ll always push for business class because the trip is usually only a matter of days. If it’s business and I’m paying then I’ll usually opt for the middle option of Premium Economy. For short haul flights (e.g. less than 5 or 6 hours) it’s pretty pointless to travel on any upgraded class because you’re not going to sleep anyway (which is the main benefit of business+ class).

Booking Business & First Class yourself are only a good deal when you’re cashing in your air miles. Then, it can be fun and potentially rewarding. We traveled Upper Class on Virgin from London to Japan but while some features were pretty cool (like the personal check in channel and valet at Heathrow), I wouldn’t pay $10,000 (3 tickets) for this alone. When it’s your own money, the difference between $1000 and $5000 a ticket is significant. Sure, a 10 hour flight may be uncomfortable even in premium economy but $4000 buys you a lot at the other end. Get yourself a priority pass, good carry on baggage and you’re made. The next time the flight attendant closes that separation curtain between business and poverty class, giving you all that dirty look, just think of the money you’ll be spending at the other end on things that matter.

In summary: there are better things to celebrate in this life than airlines

Things that do make you happy on the road

ROUTINE

All very well espousing the virtues of spontaneity in life but we are creatures of habit at heart. Add a family to the mix and routine becomes essential to sanity. While knowing this fact is one thing, implementing it is another. There are a few tips that may help:

  1. Weekend trips, short stays are tiring and can wear you down. I’ve never been a weekend trip person, I’ve always felt more tired afterwards than before that so called “break”. You need at least 2 weeks to settle into a routine i.e. your business setup in the new environment, finding access to local food, discovering places to go during the day etc. Once you have routine you can focus less on worrying about these things and more on enjoying the experience. I’ve learned to scale back my enthusiasm for visiting everywhere and moderate that with the need to find a routine. If I was untethered by business and family I’d be all over the place traveling the world but I’m not, thankfully. I need some consistency to make this travel thing work.
  2. Routine takes work. You have to discuss and work out these things, make plans. It doesn’t just fall into place. I’ve learned that you have to make time to talk about making routine work e.g. time children’s reading practise, time for running, working hours and so on otherwise the law of entropy – chaos – gets involved and messes things up.

In summary: design a itinerary conducive to good routine. Put down temporary roots and create space for these routines.

ACCOMMODATION

Where you stay has a big impact on the experience. Hotels are very nice but after 2 or 3 days you’ll start going nuts. You’ll start getting bored at paying $100s for their food and being charged for everything available. You’ll get bored of their “thoughtful” messages in the bathroom about how not using towels saves the environment. Most of all, you’ll get bored not being able to cook your own food or not being able to go where you want without a taxi. Fortunately there are some good services out there that help you rent apartments & houses weeks at a time – services like Flipkey, AirBnB, Expedia vacation rentals and Roomorama.

Being in a hotel is perfect for a vacation but it’s not good for your long term plans. You need control and importantly space (especially if you’re with a family). I’ve booked hotels I thought were good deals but ending up regretting the decision, thinking I should have gone with a long term rental instead. When choosing a rental, always seek out good reviews and avoid those that have none. While you could have a great time with a property with no reviews, you’re certainly exposing yourself to the risk of that not being the case. Beyond the benefits in terms of experience, long term rentals work out significantly cheaper. It’s hard to justify $200 a night for a whole year at a hotel (that’s $70k plus about another $70k in food, services etc). A weekly rental will be cheaper. They’ll also offer monthly rates which will be a lot cheaper again.

In summary: Hotels are good for the short term but a place like back “home” will make you happier

A COMMON GOAL

Sometimes it’s easy to forget why you’re doing it, that’s why it’s important to clearly agree on what the goal of travel is. Sure, if your goal is to simply travel and see the world, then that’s fine but you need to make sure that’s why you and/or the people you’re with are doing it. My wife has reminded me a number of times about our goal because sometimes I’d forget and then the questions and the doubts creep in. I think if we were simply traveling the world to have fun, we’d have got bored and gone back “home” by now. However, our plan is to find a place to live and experience it before settling there. That requires a degree of work and sacrifice, so when the going gets tough it helps you get through.

In summary: write down your goal, remind yourself, talk about it often

Where is the best weather in the world?

November 29, 2012

It’s a question I’ve often pondered.

So, you’ve looked at the visa options and could feasibly pass the Barefoot Tropical Island Test but what about lifestyle? What about the weather?

It’s particularly relevant if, like myself, you come from London because most places have better weather (except anywhere north of London).

So, being a pro at this subject now having invested countless hours wasted on the internet doing the research and having the luxury of visiting these places I can reveal some insights in answering this question.

Now, before I do this, you’ll all have your own version of perfect weather. My insight is based on the following prerequisites:

  • Lots of sunshine
  • Not much rain
  • Warm, never cold
Looks like paradise but it's bloody freezing!

Looks like paradise but it’s bloody freezing!

Of course, I often hear the “you’ll miss the seasons” remark from those that don’t like living in constant sunshine. Well, I don’t think I do weathering out the winter here in Southern California at 27 Celsius at the end of November. Some people don’t like humidity, heat and enjoy their winters. I don’t. That’s fair enough. I’m not going to offer any advice to those people because I’m not qualified to say what’s good and what’s not in their eyes. Which if fine. If we were all the same, life would be boring. My advice is for people who seek the sun.

In working out your options based on weather (by the way, don’t choose a place just because of the weather – I’m sure you know that already, but it can be a big factor in your decision) you’ll need some good data. Here’s a great website (World Climate Guide) for finding comparable data for pretty much everywhere in the world.

So, in choosing the perfect weather here are a few factors to consider:

Sunshine Hours
Anything above 2,500 hours of sunshine a year is comfortable. Areas that do particularly well for sunshine are Southern California, Malta, Canary Islands, Cyprus, Dubai who get around 3,000+ hours a year. Once you start going below 2,000 you’ll start to miss it. Most of North Europe gets less than 2,000 (London 1,400, Stockholm 1,500 etc). There are anomalies in this data. Some places (like Japan for example) don’t get much sun (1,900 hours on average) but are relatively hot in summer (a lot of cloud and rain) whereas others (like New Zealand’s north east coast 2,400 hours) or Calgary in Canada (2,400 hours) are relatively cold.

UV Index
Another factor to consider is UV Index. A score of 11+ is very high. Some countries are quite cold and windy but have high UV which makes life pretty uncomfortable. Strong sunshine while it’s cold can make you feel hot one minute but as soon as you’re in the shadow, freezing cold, not to mention the long term health implications.

Minimum Temperature
You’ll want an annual minimum that rarely dips below 10C. Many places have their winters where temperatures drop for a couple of months, especially at night time and this may be acceptable but for at least 10 months a year you want the nightime minimum to be above 10C. Once minimum temperatures get to around 16-18C you can sit outside in the evenings. Bear in mind that if you choose to live inland at altitude, temperatures will be markedly different and lower than those at the coast at night.

Rainfall
Pah! I hate rain. Sure, you need a few days of rain to water the crops but that’s as far as it goes. When it rains more than 1 in 3 days (i.e. 120 days a year) you start to feel the inconvenience. Note, the actual rainfall quantity isn’t so important. What matters is the number of rainy days. Many places have high rainfall but it rains less frequently because it all comes in one deluge then it dries up for days on end. Others have relatively low rainfall but are constantly wet (e.g. London, almost all of New Zealand’s north island and east Japan). Rainfall is also a strange beast. In some countries it rains mostly a night (which could be fine) while others it drizzles all day. These may appear the same on the data but be quite different in terms of comfort.

Sea Temperature
Amazing weather doesn’t mean you can swim in the sea. Southern California is a great example of this. Constant sunshine, warm throughout the year but the sea rarely gets above 20C. Until the sea temperatures reach 25C+ you’ll feel cold in the water without a wetsuit. (Sure, it’s fine if you’re a 24/7 surfer). By contrast, Honolulu Hawaii rarely sees sea temperatures fall below 24C. That said, we were there in November and on some days it did feel cold even though officially it was 25C. This had more to do with the prevailing wind and cloud cover.

Wind
Wind is great if you are a windsurfer but I’m not. Windy environments are uncomfortable. Unfortunately, few sites offer comparable data on wind but it can make a big difference to comfort levels. Where we stayed in Tauranga, New Zealand, for example has (on paper) a reasonable climate profile (2,400 sunshine hours, temperature ranges of 5-24 degrees annual and 160 rainy days). But, the wind is constant. I read somewhere (unscientifically of course) that a windspeed of 10kmh reduces the temperature by 5C. Bear in mind that the temperature reading given on these websites is air temperature and taken out of the wind. That means, it may say 16C on the gauge but with a 10kmh wind, it may feel more like 11C. A bright, sunny spot like Tauranga in New Zealand looks likes paradise in photos but you’ll rarely see people on the beach in swimwear except at the height of summer. That’s why the data can be deceptive. Not only do you want good weather you also want low wind. Still conditions in the middle of winter on a sunny day can be far more comfortable than a sunny day being buffeted by cold winds in the middle of spring or summer.

Predictability
Perhaps the single most important factor is the predictability of local weather conditions. Some countries like the UK and New Zealand have wildly unpredictable weather which makes living uncomfortable. Of course, you can see the daily data broken down in some circumstances if you want the empirical evidence but the general rule of thumb is that landmasses exposed to multiple airstreams and ocean currents have unpredictable climates. The Oceanic climate is perhaps the worst – cloudy one minute, freezing the next, boiling the next and so on. You can’t plan anything. You don’t know if your birthday barbeque is going to be glorious or a washout. Boring weather is just fine for me. I prefer the excitement in my life to be what I make, not what the heavens throw at me. Call me a control freak, but if I spend one day less worrying about will it/won’t it, I can get on with my life and focus on what’s important.

In Conclusion
Hope that helps. Of course, you have your own criteria. I’ve shared mine with you and also some tips on criteria we didn’t initially consider, are often overlooked, but are very important to comfort levels.

Where to Live? (More Visa Options for Entrepeneurs)

November 28, 2012

This post isn’t about why you should live somewhere new in the world, it’s about how. If you’re not convinced on the why, the contents of what I’m going to share from my own experience will be merely academic.

Instead, this post is for entrepeneurs who have the burning desire to taste the world but don’t know where to start.

I’m going to talk about visas – the single biggest hurdle you’ll face in relocating.

Sure, if you are an EU citizen and want to move within the EU or a Kiwi moving to Australia, you don’t have the issue so this post is academic. But this advice is aimed at those who don’t have that luxury.

No matter what your lawyer says, it ain't easy getting a visa if you're an entrepreneur

No matter what your lawyer says, it ain’t easy getting a visa if you’re an entrepreneur

Overview of Entrepreneur Visas

If you are a skilled worker, things are a lot easier (e.g. a nurse, diesel mechanic or radiologist). But I’m none of these. I tend to fail skilled visa tests because I have no skills of transferable worth. For entrepreneurs like me you have to think out the box. But that’s what we’re good at doing, so getting a visa is merely another challenge in this game called life.

Most countries have visas available for entrepreneurs but they require a degree of investment. Some are low, unspecified even. Others require $100,000s all the way up to $millions.

I secured an investment visa to New Zealand on the basis of establishing a business there. Let me tell you, it’s not easy. You not only have to deliver a business plan (which entrepreneur actually enjoys writing these things – ugh?!) you have to take medical and background checks. It takes time and money. In all you’re looking at a minimum admin cost of $12,000 to get the visa. Then you have to invest your money etc. etc. Bear in mind, these costs are on top of your moving costs.

How does Immigration Assess Your Case?

Generally speaking, entrepreneur visas consider the efficacy of the business plan on the following criteria:

  • Your experience – have you run businesses before?
  • The benefit of the business to the local economy – an IT consultancy is much more attractive than a B&B or taxi firm
  • How many local people you will employ in future years
  • The amount of capital you are going to invest

Generally speaking (again), immigration will fail your case for the following reason

  • It’s a fish’n'chips restaurant
  • You have never run a business before
  • You’re too old
  • It doesn’t look legit (i.e. it’s obvious you’re doing it just for the visa)
  • You don’t have enough capital to invest
  • You aren’t going to employ enough people
  • Something sketchy in your background
  • An unknown reason (only really applies to the USA)

Entrepreneur Visas: The Catch

The real catch with entrepreneur visas is the follow up. It’s often easier to get the visa than it is to renew them. Horror stories abound of entrepreneurs who set up their businesses only to be refused a renewal in subsequent years. You’ve ploughed all that money into the business, set up your life in a new country and are then given 90 days to get out. It happens.

The other catch is the employment issue. Many entrepreneur visas carry a requirement that you must employ X number of locals. Now this can be a real showstopper. Those locals can’t be family nor can they be ringers on contract. You have to submit to the dreaded payroll and that means local employment laws which will inevitably trap business owners into lengthy and unwanted terms that can drag you down.

Visa Lawyers

Every visa applications contains an unnecessary amount of paperwork. The game isn’t about submitting a great proposal but a proposal that isn’t bad. You see, the powers that be aren’t looking for excellent business ideas they’re simply looking for ideas that check all the boxes. That’s why you need to employ visa lawyers.

The USA, for example, has horrendous visa laws following the implementation of the Patriot Act. As usual, those that could make a difference to the economy are penalized whereas illegal immigrants seem to arrive by the truckload. Hiring a lawyer will cost you around $10,000 and up and that’s without any guarantee of success. If your visa application is denied (and they increasingly are here in the US), you need to employ a lawyer to appeal. That’s another $5,000 off the bat.

You see, visa lawyers make money if they win you the visa but they make more money if they don’t. Think about it.

Entrepreneurs Visas by Country

Here is very basic overview of a selection of countries and their entrepreneur visa programs:

Australia
Perhaps the toughest of all. You’re looking at a minimum investment of $750K US and the nightmare of employing multiple locals. This is a real showstopper on all accounts because the money invested has to be spent as opposed to simply available for investment.

New Zealand & Canada
Similar to above but the figures are lower, varying from $200K to $300K US. Unlike Australia, there are lower employment requisites and the money only has to be transferred to the business account opposed to invested. Needless to say, for entrepreneurs this offers flexibility.

Dubai
Dubai was historically obscure to the entrepreneur. You could only establish a company if you had a local partner which meant the obvious open door to exploitation and corruption. Most entrepreneurs won’t have a partner locally so would have had to turn to an accountant or lawyer offering his services as a hired gun. Today, however, there are options. Dubai has set up numerous free trade zones that allow entrepreneurs to set up a company and employ themselves. The requirements vary according to which zone they set up in (e.g. an internet company has a much lower entry level than a media one).

Chile
Chile is an interesting player and appears to be proactively sourcing entrepreneurs to come and startup in their country. Not only are they being proactive about it they are offering to reimburse a % of your startup costs. If you are looking to live in South America, this is a very exciting option. The administration process appears, on paper at least, refreshing – involving features such as a video pitch, which perhaps demonstrates it’s being run by entrepreneurs as opposed to bean counters.

Singapore
Singapore has 2 routes for the entrepreneur. The Entrepass which has relatively low levels of capital spending but high levels of local employment requisite of the Employment Pass. You can set up your own company and employ yourself as a senior manager under the Employment Pass but this appears to be a loophole immigration are tightening. Even though many Singapore visa lawyers are offering the Incorporation + Employment Pass option as a package, see my point about visa lawyers above.

Hong Kong
Reflecting the entrepreneurial nature of the country, Hong Kong appears to be welcoming. This is reflected in the fact that they consider applications on a case by case basis and do not stipulate capital and employment requirements that will hobble an entrepreneur. The flipside of this is, of course, a lack of clarity. The process of incorporation followed by employment through own company appears possible as in Singapore. I suspect that HK is a lot easier, cheaper and clearer to deal with than, say, the US, New Zealand or Australia but that conjecture is based purely on speculation as opposed to first hand experience.

USA
While USA immigration requirements for entrepreneurs are relatively low, they are unfeasibly subjective. There are no guidelines and immigration are becoming renowned for rejecting applications on a whim. This basically means you could spend $10k and a few months of time & hassle applying for a visa only to find it rejected for reasons beyond your control. The issue isn’t as much as the obscurity of the immigration selection process but the distinct lack of clarity in which option suits the entrepreneur best. In my discussions with immigration lawyers I’ve found that none agree on the best visa route (I’ve been recommended the E-1, E-2 and L-1 visas.) Very few lawyers appear to want to commit to a particular course until you’ve paid an upfront consultation fee of around $200. Even when you’ve paid up, you’ll still find that lawyers themselves don’t know because they are offered very little guidance from immigration authorities.

Malaysia
Malaysia has an interesting option – the MM2H (Malaysia My 2nd Home) which caters for expats who want to live in Malaysia but don’t necessarily want to start a business. Rather than start a business you are granted a visa on the basis of transferring a capital sum into the country. The catch is that you have to keep a minimum balance in the bank in order to retain your visa.

Notes on other countries. I haven’t included the EU as well as a bunch of other countries. The above is based on our own line of enquiry. We’ve engaged immigration lawyers, paid the fees and had needles stuck in our arms to do the medicals. It’s an intensive process so it’s unlikely I can offer generic advice to countries I have little experience of. I’m sure others can and to some extent, the questions below regarding considerations would apply.

Visa Considerations

If you are serious about application here are a few questions to consider:

  • Does my visa apply to my dependents? In many cases it will but in some it won’t. If you take the Entrepass visa in Singapore, you’ll only cover your dependentsifyour business employs a specific number of people and spends the required amount. That means it’s quite possible you can renew your visa but your dependents aren’t covered if, for example, your sales fall or things don’t work out so well. You may be confident of your current situation but it’s an awkward rod for your own back that perhaps clouds your future security with a high degree of uncertainty.
  • What are the conditions for renewal? Few business visas offer residence. Many require assessment every year or two years. Again, for the reasons above, this is an awkward scenario. Rules change. Businesses change. Entrepreneurs can and do get deported when their business doesn’t work out.
  • Does the visa offer residence? The downside of any entrepreneur’s life is uncertainty. It’s the price we pay. What you don’t want, however, is the constant specter of never being able to call your host country your home. In many cases, visas offer a pathway to residence (if you’ve lived 5 years for example). But, in some they don’t. The E-1 and E-2 visas in the USA, for example, allow you to live in the country but you’ll never get a green card. That means your business needs to keep performing indefinitely else you will be deported. There are cases where the children of successful E visa business owners have to leave their adoptive countries when they reach 21 as the visa runs out when they reach this age.
  • What are the tax considerations? You can see my thoughts on tax and why it’s important to get this right. In most cases, you will pay tax as the locals. However, this is a thorny issue. To qualify for a visa you may have to be seen to be taking a salary as opposed to dividends which itself unpacks a whole set of tax implications that entrepreneurs don’t like. That means the financial advantages of running your own business may be negated by the need to be salaried, and therefore taxed heavily.
  • Will my visa lawyer offer a no-win no-fee? They exist and I’d advise taking them where possible. A lawyer must be pretty confident of his or her own skills to offer this to a prospective client. Not only that, your lawyers must be confident in your own proposition. If the lawyer still gets paid even if they take on a lousy case it offers you no honesty. A no-win-no-fee lawyer is going to be honest with you and turn your case down before you fill out any forms because it’s a loss to them. The other type of lawyer will happily take you on because success rates aren’t accounted for anywhere and, as I’ve discussed already, lousy cases mean appeals, re-application and so on.
  • What happens if I change my mind? This is particularly relevant to us and a lesson learned the hard way. The lower the entry cost in time and money to any country, the easier it is to make the right decision if you want to change your mind down the line. But, what happens if you’ve invested $20,000 in lawyer fees and you, for whatever reason, decide that this place isn’t for you? Not easy. Of course, you’re not going to change your mind at time of application but you always need to factor this in to your reckoning. Things happen. Life changes. If you have plenty sunk into the move, you end up making the wrong decision. I know of 2 expats who moved out to Australia and wanted to change their mind but it was too late, they had sunk too much money into the move setting up the business. That means they were damned if they stayed and damned if they returned. It’s a lose-lose for them. Fortunately for us we hadn’t made any capital investments yet, we simply lost the upfront fees (not that was in any way a cakewalk.) But we lost a lot less than we would have done if we had paid for an office, hired employees, bought equipment etc. If I had known this up front, it would have influenced our decision process. Countries that have tough requirements for entrepreneurs (namely US, Australia, New Zealand) should not be dealt with lightly.

You Don’t Know That Much

November 27, 2012

New Zealand beach from the grahamdbrown instagram feed

from the grahamdbrown instagram feed

Quote Stephen Fry Book of Ignorance

Quote from Stephen Fry Book of Ignorance

A quote from Stephen Fry’s Book of Ignorance via Bookshavepores

 

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Why Income Tax is Morally Wrong

November 26, 2012

Here’s some data to chew over:

  • US personal income tax receipts for FY 2013: $1.36 trillion a year (source).
  • US repayment on debt interest: $1.3 trillion a year (source).

Think about that for a second.

The next time someone reprimands you for being morally repugnant in being tax efficient consider this fact:

Virtually no money raised on income tax goes back into society. When I mean “back into society” I mean what the defenders of social responsibility call the benefits of levying a tax – health care, defense, education and so on. Read that again – none of your income tax dollars pay for that.

In fact, you work 5-6 months of a year simply to repay interest on government debt to the federal reserves of this world.

The next time you hand over that tax check thinking you’re building a hospital, paying for little Johnny’s education or the pensions of those veterans, consider the reality: you are doing none of these.

The issue isn’t one of raising or lowering taxes, it’s one of tax itself.

Debt interest draws on income tax and income tax from the masses, therefore we continue to fund debt interest because income tax is easy. Conversely, corporation tax isn’t easy. Raise it and watch companies flee in search of lower tax jurisdictions. Citizens can’t do that.

If our national debt was funded by corporation tax, it would be a different matter. Just watch what happens when you start doubling tax bills of banks to fund the national debt.

The last 4 years have seen possibly the largest wealth transfer in history – a succession of loans and bailouts to the wealthiest in our society, all funded by our income tax payments. If we restrict this source easy money, we’d also restrict this cyclical behavior.

Thoughts on SoCal Life

November 25, 2012

In short, we love it here in Southern California.

3000 sunshine hours, 27 degrees C at the end of November. Then there’s the convenience: stores like Whole Foods Market within 20 minutes drive. Life is good.

SoCal sunset

There’s still plenty to enjoy. Heading to Santa Monica next week then San Diego and San Francisco – all places we love. Still the opportunity to head up into the mountains, experience more trails and enjoy the beaches.

But it’s not where we’re going to put down roots for now. My goal is to set up our company, recruit an account manager for the region and then head on to the next challenge. The real benefit of having a presence here is being able to tap clients like Facebook, Apple, Amazon, Google and Starbucks – all based on the West Coast. The next challenge, however, lies in Europe. Our family is still young enough and business flexible enough to enjoy the pleasures of a Mediterranean island existence.

The challenge for the Barefoot entrepreneur is to establish business in a high yielding market but live in a low one.

We’ll spend a couple of years living on olive oil, sardines and red wine then on to the next destination. Of course, it may all change. Life is like that these days.

 

 

Barefoot Success is…

November 23, 2012

English: Walking barefoot in the wet sand The ...

English: Walking barefoot in the wet sand The beach between East and West Runton on a warm September day. (Photo credit: Wikipedia)

Success is a journey rather than a destination

The path is the road to truth, to inner maturity, learning a way of being, a life skill.

The path has a beginning but no end. It has waypoints but not destination. Its Truth is uncovering the layers and learning to use your mind to be happy by eventually making others happy. It is a story of overcoming and adversity, of everyday greatness and failure that carries no secrets beyond the reach of the individual who decides to put one foot in front of the other. The path can be treacherous but at the same time is well trodden.

Find yourself a guide.

Build your courage through study.

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Waging War with…

November 21, 2012

“We continue to create suffering, waging war with good, waging war with evil, waging war with what is too small, waging war with what is too big, waging war with what is to short or too long, or right and wrong!, courageously carrying on the battle” Jack Kornfield

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Defining Self-Worth: 4 Lifestyle Options

November 20, 2012

My Barefoot office from the grahamdbrown instagram feed

My Barefoot office from the grahamdbrown instagram feed

“Worth” we are led to believe is a function of our career.

Our initial altruistic notions of “doing good” and being recognized as a “person of worth” are given but one track to run on. The anxiety of not “getting ahead” or the feeling of “emptiness” that goes hand-in-hand with the corporate sovereign also comes with its own remedy – consumerism and the “holiday in the sun”. You’re happiness is but one purchase away and one more purchase puts you ever more into debt, the bonded slavery that forces you onto the misery express and divorces you from your family.

What they don’t teach you at school are the lifestyle options. Our only option is the one that equates our worth to salary. The highly trained, those who sacrifice the most for study, work the longest hours – the professionals – are the pinnacle of acheivement and security. Yet, no wonder they are the unhappiest. These hedgehogs have little in the way of “scope” or variety and my years as a financial adviser remind me that the highest paid or often the most in debt. It’s no surprise to find an unemployed taxi-driver or a highly qualified doctor to be 100k in debt – I’ve seen them both. Both lack any sense of financial intelligence and as a result both are slaves to the system, forever needing the next paycheck to stay afloat.

So here are the alternatives.

First is to do what the hell you like, spend money and worry about the consequences later. Money after all is but a “mind forgd manacle” so if you truly treat it with this contempt, the weapons of the system can be ignored. Or so the theory goes. Up against a disorganized consumer, the system always wins. It ruins your credit rating, strips you of freedoms and ability to make your own living. The pleasures of abandonment are short lived and unfortunately the ramifications aren’t.

Secondly you can “drop out”. Go live in a commune and become self-sufficient. A great idea if you enjoy the fraternity of communal living. Espoused by Tom Hodgkinson in “how to be free” these idyllic anarchies encourage the positive aspects of mankind the social animal without the tyranny of bureaucracy. Unfortunately too many of said communities are a magnet for society’s rejected masses, those who live on the fringe and the downright crazy.

Thirdly, you can start using the system for your own gain. Rather than the servant of the professional dream, you build your own destiny in the vein of Kiyosaki‘s “Rich Dad Poor Dad“. By employing leverage you are able to escaple the manacles of debt and enjoy financial freedom.

The fourth alternative really takes the momentum of the 3rd to it’s rightful conclusion. What Kiyosaki cannot teach you is happiness. By chasing success you chase both an untenable dream and unhappiness. “I’ll work like crazy until the business can stand on its own two feet then kick back a little”. We all say it, no one ever reaches it. The irony is that by chasing “entrepreneurial success” over the “professional career” you merely replace one jailor with another. The fourth option then is letting go of the concept of success but at the same time being highly organized such that you also let go of the tyranny of the system and its botherers and using leverage to free yourself from the mundane. The fourth option is Barefoot Living. It is the option that attaches no happiness to any system, community or goal but the availability of time for yourself to focus on what’s important.

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