As an expat enjoying moving around the globe, you will always need to reinforce your income stream. Such could be hard to pull off because it’s still a new definition to the world. Many would assume the relationship between traveling and money-making barely exists when happening at the same time. However, it’s become a possible plan to pull off.
If you’re a full time traveller but wondering if there’s a way to make money while exploring the world, this is the article for you. Today’s content helps you better understand the concept of setting up a “muse business”, 5-flag theory and how it is applicable in Vietnam so you can be sure of keeping a decent lifestyle overseas, traveling while planning for your ‘old days’.
Vietnam’s digital expat explaining his backup plan
You need a long term mindset and a strategy to set up your expatriation. Obviously, many expats are not always prepared with a proper plan. That’s why there is a huge turnover among expat groups, and we have observed so many expatriates leaving after a couple of years.
In this video, we are talking about :
- What are the pros / cons of the 5-flag theory;
- How it goes when you have assets abroad;
- The essential reason that makes most expatriates fail;
- Numbers and the backup businesses he already have in place;
The 5-flag theory and how to understand it properly
The 5-flag theory is new to many people. It consists of 5 different flags which include citizenship, residency, banking, assets, and business. The purpose of the 5-flag theory is not to have all the flags planted. It aims to help a person visualize what factors in the mix concern them the most. After that, he or she will finalize the outline of their upcoming plan to diversify their life according to the geographical location or the scenario that they are in.
Further, into the 5-flag theory, it may sound complicated at first but it’s not hard to learn about it. The first thing you should know about this theory is that It does not force you to plant all the 5 flags to succeed. You can plant only 2 – 3 flags depending on your circumstances.
The idea of the 5-flag theory is to encourage you to allocate the 5 factors in different countries. It’s the right way to diversify your life. When doing this, you won’t face much of the instability of one country that may badly affect your, for instance, assets due to their abrupt adjustments in the regulations. No countries are perfect. Each has its distinct advantages and disadvantages that may benefit or sabotage your life.
The 5-flag theory requires intensive research. The focus of this theory is to understand where you should plant a flag and where not to. Such matter increases the diversification level that helps reduce risks. However, solely in this life strategy, benefits and risks exist. The most common risk of the 5-flag is the lack of control. Therefore, you may need to consider this carefully before jumping into the main steps.
The “egg basket” lesson
Never put all eggs in the same basket. Remember to distribute them into different containers so if you lose one, you still secure the others. The same lesson applies to your diversification plan. If an expat relies solely on his/her job as the only income, risks may come and damage your experience when living overseas. Regulations in a foreign country will change.
Expats are the ones who are the most vulnerable to these adjustments. For example, Vietnam has made some changes to its visa policy. This has forced many expats to leave the country even though they’re enjoying a good life in this country.
Therefore, you must push yourself to get out of your comfort zone. Many people are afraid of doing what they have never done before. However, escaping from your comfort zone is a life-changing lesson to the majority that humanity, of whatever ethnicities, genders, or ages, is capable of doing anything as long as they encourage themself to learn.
Diversification is about having a plan B when you run into trouble. By giving yourself more options, you can deal with different matters so that by the time one prevents you from moving forward, there are always other ways to proceed.
If you want to learn more and avoid the common mistakes expats and future entrepreneurs are doing when moving to Asia, get your FREE copy of the book “7 mistakes I made in Vietnam” to avoid pitfalls and take proven shortcuts to make the right decisions and thrive in the next 5-10 years.