The Flying Frisby
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What to do, what to do? My advice to the young

What to do, what to do? My advice to the young

From Tax Slave to Financial Freedom: Why Working Abroad Can Transform Your Future

(If you prefer, you can watch this article in video form here)

The youngster setting out on life in the west has a major problem. We live in a society that penalises hard work. Punitively and relentlessly.

As Daylight Robbery readers will know, over the course of a life, half of everything a typical worker earns will be taken from him by the government. More if you factor in inflation. 

People think a house is the most expensive purchase you will ever make. It isn’t. It is, by far and away, your government. And it’s a forced purchase as well.

Not only is the produce of your labour confiscated, it is spent on things on which you may often be philosophically opposed: wars, waste, masks, rainbow road crossings, corruption, human rights lawyers, Stonewall. I could go on.

But that is the bind in which the western citizen finds himself. It is the price he must pay for a civilised society.

So the typical worker finds himself working hour upon hour merely to stay afloat, his produce confiscated, week in week out. We can’t all be Elon Musk, much as we would like to be. Unless you have a very well paid job indeed, this is your reality. It is very hard to get on. You are trapped.

To make it worse, the money you are paid in also loses its value. Relentlessly. Thus what you got to keep is taken from you too.

This will remain your reality, unless you change it.

One solution, as I outline here, is to convert as much of your pay as possible into strong currency, but with 50% of your earnings constantly confiscated it is still a rough deal. (And don’t say income taxes are lower than that, I know they are. There are many other taxes we must pay too.)

So what to do?

The answer is leave. Go somewhere where taxes are lower and the currency is stronger. Then you will be rewarded for your labour. And through your labour, you might actually be able to save and improve your lot.

I have never been crazy about Dubai. I’ve always found the place a bit false. It lacks culture. I prefer places that are a bit more organic. I’d rather be in a quaint English village with an old pub and a beautiful church, wandering through the City with its mysterious, historical back alleys or lounging in some terracotta Mediterranean villa. What’s more, the thought of the slave labour on which Dubai was built makes me feel very uncomfortable. 

In my stand-up act I sometimes do a joke: “as a stand-up you need some ready-made put-downs in case you have problem people in the audience, so I have been working on my put-downs, and the best I’ve been able to come up with is … You look like the sort of person that likes Dubai.” (Some audiences - usually cultured ones - love that joke, others are baffled by it)

But all that said, every time I have been to Dubai I have had a good time. A very good time in fact. And I have always been well looked after.

But here’s the thing. There is no Income Tax in Dubai. VAT is just 5%. There is no Stamp Duty. There is no TV tax. There is no Council Tax. Petrol is cheap. Corporation tax is much lower. Booze, fags and sugary drinks face 50% excise duties. But who cares? You drink too much anyway.

As for the money you are paid in, UAE dirham, well, that’s pegged to the US dollar. It’s not ideal, but it’s better than the pound. 

So go the UAE, work, keep what you earn and, even in a relatively low-ranking job, in five years you will suddenly you’ll find yourself in a very different, much stronger position than if you had stayed in UK, Europe or any high tax jurisdiction.

Look at how crap our governments are. Why enable them?


Live shows coming up

If you have not seen my lecture with funny bits about gold, we have two more dates in London lined up for Feb 14 and 15. Please come.

And I am taking my musical comedy show, An Evening of Curious Songs, on a mini tour in the spring with dates in London, Somerset, Hampshire, Surrey and Essex. This is a really fun show.

Here are the dates and places.

Buying gold?

Interested in protecting your wealth in these extraordinary times? Then be sure to own some gold bullion. I use The Pure Gold Company, whether you are taking delivery or storing online. Premiums are low, quality of service is high, you can deal with a human being. I have an affiliation deal with them.

The Flying Frisby
The Flying Frisby - money, markets and more
Readings of brilliant articles from the Flying Frisby. Occasional super-fascinating interviews. Market commentary, investment ideas and more.