Top 15 Money Misconceptions: The Truth Banks Don't Want You to Know

Today's episode 15, Money Misconceptions. But first, please explain.

Do you know that in 2005, 16 of these was the same value as a gold coin? Now it's three of these. And so silver's become way underpriced relative to gold. Before 2005, gold and silver tracked pretty much at the same relative price. You could buy X amount more silver for the same amount of gold and now gold's just gone like that. And this has become really cheap compared to gold.

So does that mean we should all be buying silver or gold?

Well, of course I'm not giving investment advice and I don't think you should choose between them. I think if you don't have thousands or tens of thousands to invest, silver is a great way to start because in fact, I'll tell you what we'll do for a bit of fun. If someone can guess exactly how much silver is here in monetary terms, not in weight. So there's a few coins and some bars. And by the way, at the time that I bought it, if they can guess exactly how much silver is there first. Five people who guess in the comments, I'm going to give a. Give them some silver coins just for fun. I've been giving away a lot of silver because I want to encourage people to get into real money because, you know, this fiat currency thing, thing, it's not real money. In 100 years, these will have beaten inflation. So you'll be able to buy more or at least the same with these. In 100 years, £100 might be able to buy what £2 can now. So this is real money, which is why I talk about it a lot.

Do you think crypto is real money?

I think crypto is the evolution of money. Do you know money used to be stones in the bottom the sea? Do you know in prisons they would exchange cigarettes, even sardines used to be money. Do you know the word salary derives from salt? And you know, salt was one of the most valuable currencies. Salt has a lot of use. This is why silver is very valuable, because you need this in every battery. And actually silver has much wider use than gold. So it's not just a store of value that's good, it has high utility. So, and salt is great for, for example, preserving meats. So people used to get paid their salary in salt. So people don't understand. If you look back in the past, you can see how money evolved. I'm telling you this, like, mark my words, there's a day in the probably not too distant future where fiat currency, pounds and pence, dollars and cents, and cash won't exist as a currency anymore. And right now, if you had to bet, what would you say is likely going to replace it? Some form of cryptocurrency. But of course, right now it's the Wild west because anyone can set up a platform like Sam, Bankman, Fried and FTX and call it a crypto when it's just their e commerce platform. But Bitcoin is unmanipulatable, un inflation able and finite and limited in supply, which are all the hallmarks of a good decentralized currency. The opposite is the case for, you know, fiat currency because the government can inflate it away. If the government came to you and said, we need money for war, pay us some tax to fund the war, would you say yes or no?

No.

No. So they don't ask you what do they do? They just print trillions through the back door. And then the more they print, the more there is. And so the more there is, the less yours is worth. So when they print money, the price of everything goes up and the value of your money goes down, which means that your relative buying power is less, which means they funded a war stealing your money.

But with crypto, from my understanding, it's meant to be separate and not at all linked to actual currency. And yet this week, when billions is wiped off of the stock market, crypto also takes a dive as well. So is it pointless if it's also going to go up and down the same as everything else in our economy?

Well, it depends what you want to use it for. So I'm not the sort of investor or storer of money, because yes, this is an investment, but actually it's just a store to match or beat inflation. You know, there's no passive income from this like you get from real estate, for example. So I don't sell my investments. When markets go up or down, I buy, hold, die. That's it. Like I have sold and I've regretted it always. I'm old enough to look back and know how much my assets have gone up that I sold. I bought a Richard Mila M11 for 75, sold it for 80, thought I'd done well. Ish. And then it went up to 250 and there are a lot more now. Any properties I've ever sold, I've sold properties in the low hundreds of thousands that are worth mid-200s of thousands now. So I've seen assets just rise as long as they're good assets. So I buy hold die. So I don't really care if the value of the stock market and property and bitcoin are related or unrelated because I'm not hedging and I'm not trading. I'm just storing and beating inflation.

So if it's buy, hold, die and that doesn't pay you anything.

Well it does. It appreciates in value. So if I need to be paid, I can sell it.

So it's a case of adjusting case. So the point I was going to make is if it doesn't pay like your real estate portfolio does and you're going to buy hold Dai, so you're going to keep it, why don't you just spend the money and enjoy it?

Well, I spend the income from my property portfolio. Well, I spend minimum income and I run maximum expenses through my business that I legitimately can, which you can find on the HMRC website. So technically I spend income but I minimize the income I spend to minimize tax and then everything else is just.

A store of wealth, just in case.

A store of wealth. So the longer I hold this, the more it goes up in value. But there's something you're missing here on this and it's not to do with income, it's to do with ownership. So governments and central banks and inland revenues don't own this. I own this. Do you know I tried to put money into crypto and two main high street banks wouldn't let me put more than one grand a day in or five grand in a 30 day period. Do you know if you read the terms and conditions of the banks, do you know they can hold your money pending any kind of decision they deem that they can make Indefinite, like read the terms and conditions of the bank because they basically are own your money. Whereas with things like silver and say Bitcoin, you have sovereignty, you have decentralized ownership. So I don't want anyone to be able to take away my core foundation of wealth. I mean, look, I still need to earn money through fiat currency because I have, I don't have a job and I don't have a salary, but I run companies and I get paid in fiat currency. I'm not saying that, you know, some people like fiat currency is a Ponzi scheme, it's dead, it's over, it's a scam. They still, they still accept money. So I'll earn in my business in fiat currency and then I will run my expenses down as low as I can and then I will invest as much as I can into real Estate, income producing real estate, probably a well managed group of companies, FTSE 100s and P500, like a self managing fund. And I'll do that. So they're the three main income streams and then everything else is defensive and protected. Because probably in theory my property rights, you think they're fairly good. In the western world they probably are pretty good. But technically, probably the king probably owns the land or whoever's got the strings on the king, the royal family. So maybe technically I don't own my own property, but there'd be, I mean there already are riots at the moment, but there'd be riots on the streets if they're like, oh, you don't own your deeds anymore, you don't own your property. But you should technically look at the terms and conditions in the bank and the terms and conditions on your title deeds because basically if they want it off you, they can take it off you. But all right, you know, I've got this because I'm doing it here on a video, but obviously it's just a small amount that I have. But they can't take what's physically yours that's not digitally connected to anything that they don't know about.

So one thing you said with silver is it started sort of tracking with gold and then gold's gone up like this. But then you've said silver has to be used in batteries. So you would have thought with all of the electric cars being made. Yeah, that would be closer to gold than it is not further away.

Yeah, I mean anyone who I speak to is a real expert in precious metals, says exactly that. They say that silver should be more expensive than it is. Well look, a price is what a price is, you know, so people say that there are bubbles. Well, the price is what the price is, but bubbles burst. So yeah, long term tracking silver price to gold, gold's gone way up and so silver compared to gold is very low and it has high utility and with all these car batteries that need to be made. That's why I'm, I'm not heavily in silver. Because you've got a storage issue. By the way, it's a great investment to get into a lot of people. I'd love to invest, but it's complicated. I don't know how I don't have tens or hundreds of thousands of pounds. Silver's probably the best gateway drug investment because I'm not going to say because I've asked people to guess in the comments, but you'll be surprised how affordable that is. Two Ounces, nice heavy silver coin. You'll be surprised. You could, every birthday, every Christmas, every anniversary, you could just ask for your friends and family to buy your silver coins. If you've got generous friends and family, ask them to buy your silver bullion. And you know, instead of buying something that's 100 quid and it becomes 20 quid in three years, you buy something that's 100 quid and it's maybe 130 quid in three years. And then if you look at the compound and obviously that I've just made that number up, but. And if you look at compounding over time, that's pretty powerful.

How easy is it to sell it though? Enough. Load it.

Very easy. These are, you can buy these on the Royal Mint, go on the Royal Mint website. I mean it's even got the Royal Mint on it. That's legal tender easy.

Okay, so you said that's probably the easiest investment to get into or maybe one of the better ones. But if you haven't got much money, wouldn't it make sense for your investment to be one either in yourself or in a business that's actually going to cash flow? Because for example, if I'm working my nine to five and I'm putting all of my spare cash on being a good boy and investing it all into silver, the end of the month I'm still left with a grand to live on. But have I got to wait 40 years to sell my silver before I make money?

Yeah. So you've got passive investments and active investments. Passive investments, assuming they're not a scam, are low risk, low return, defensive, safe, long term, five, eight, maybe 10% a year. Maybe that's a little bit on the high side. If you don't have much money, you're not going to be able to get very wealthy very quickly with a passive, low risk investment. So you do active investments. The best active investment is a trading business. That is you buy something for X and sell it for 2X. Or you create a piece of information and turn it into income or content into cash flow. You sell a product or a service or an idea or a piece of software. The asset behind that is the entrepreneur, founder, that is you. So, so you could invest £50amonth and build a cash flowing business in three to six months. You take the £50 and you buy as many books as you can and then you consume the rest of the free content maybe that people like you and I create. And you launch a business and you do it online, on social media for Free. Now this is saying the more you learn, the more you earn. So a lot of people are looking for passive returns, but they're confused because they're in an active investment class now. You leverage the asset in passive investments. You leverage your knowledge, your contacts, your experience, your hustle, your energy, your enthusiasm in the active investments. You know you have to be active before you can be passive. You have to be occurring in income before you can get recurring income. So if you said to me, rob, property, gold, silver, crypto stocks, what's the best investment class? I'd put it all over there and I'd say, yourself, you are your best asset. Invest in yourself wisely. You pay yourself the best return. If you'd like to make, manage and multiply more money and build multiple streams of recurring income, and you'd like to meet one billionaire and at least seven millionaires face to face, I recommend you join us at an upcoming money maker summit. The link is robmore Live Money. Now, you need to be quick because we don't run many money maker summits throughout the year and we keep relatively small numbers, 150 people, sometimes 200, sometimes less. You'll learn the strategies and tactics to get your tax bill down, your income streams up, start and scale your business, make, manage and multiply money. And if you upgrade to the VIP tickets, you'll be able to have dinner with multi millionaires. You'll be able get champagne reception, Q and A sessions with multi millionaires. And whilst I do occasionally offer some subsidized tickets, there's just small upgrades for these special VIP tickets. So go now. At Robmore Live Money Gold is predicted to go up to $3,000 an ounce by bank of America. That's a 50% increase in a very short time. Gold and silver have gone through the roof recently with all this news of an impending recession, depression or crash. I'm also very excited to announce a brand new and long term partnership with Direct Bullion. This is not an ad or an affiliate link, this is a long term partnership. The owner of Direct Bullion has actually been a fan of my show for many years and myself and Nigel Farage have become the ambassadors for Direct Bullion. If you go to robmore.directbullion.com you can get the very best spot or under prices on silver and gold. You can learn about how to invest in in silver and gold from the people who I buy gold from and who mentor me on my silver and gold investing. You can also buy gold and silver in your pension, which is something that A lot of people don't know about. So to save me answering the thousands of questions I get about investing in silver and gold, Simply go to robmore.directbullion.com.

Yeah, even just on the basic level, even if you're not necessarily learning how to become a millionaire, if you just do a, let's say a one time course to get a certain qualification that then takes your base salary if you're an employee, employee from let's say 20 grand to 30 grand. So that's 10 years. Every single year you've now made from a 1000 pound course. I think people don't even look at it when they're an employee doing extra qualifications to increase how much you can earn as an employee. Because not everybody wants a business. But still I think it's worthwhile investing even if your employer won't pay for it, for you to make more money. Because then the more you make in your salary, the more you can invest. Whether it's Silver S&P 500 is where I put most of my money. I think that's undervalued. And not everybody wants to be an entrepreneur. I don't really want to be an employee, but I think investing in your education definitely have the highest ROI for me.

Yeah. And who says it has to be your money? It can be your employer. Yeah. Now look, I'm an entrepreneur, I don't take a salary and I actually don't think anyone should take a salary. Obviously my hundred guys in the office and not going to imagine after this, oh, we've decided everyone, no salary. The thing is, salary is comfort. I don't take a salary, but I also don't have a ceiling on what I can earn. So I'm hungry. But the very first public speaking course I did, it wasn't my money, it was my boss's money who was sending me to do a speech and I pitched him that. Well, if you want me to go and do a speech for the company, surely I need to be good at speaking. So he invested in public speaking. This recent budget should warn you that your pension is not safe and secure and they're coming for your inheritance. Do you even know how much is in your pension or where your pension is invested? Add to this the recent inheritance tax grab on your pensions and the risk of a market crash. You probably didn't know this and I didn't until recently, but physical gold can be added to your pension. Pot gold is inheritance tax free and has grown 700% in the last 20 years. You probably know from my content. I'm investing heavily in silver and gold and that's why I've partnered with Direct Bullion. Myself and Nigel Farage are brand ambassadors and Direct Bullion can help you with gold to protect and grow your pension. I buy my gold and silver from Direct Bullion and I don't earn any money on any purchases of gold or silver if you buy direct from Direct Bullion. So if you go to robmore.directbullion.com you can get a great price on your silver and gold and you can get the Pension Gold Investing Guide completely for free. As you know, I don't do many strategic partnerships and when I do, I. I do them with people who are credible, who've been doing it a long time, who invested things that I invest into and gold and silver's going wild. I'm investing heavily in gold and silver and I recommend you check out robmore.directbullion.com course for me, the first 50 properties I bought were with my business partners and then his mum's and then his stepdad's money. And so the first 50 deals we did that we kept or packaged on some of them, sold some of them, that was all other people's money. So you don't have to necessarily use your own money to learn. But then when you do have money, why wouldn't you invest it in yourself? Why would someone spend a thousand quid on a TV that will be worth 150 quid in three years, but they wouldn't invest £1,000 into their health well being or their knowledge or experience? I'd never understood that.

Well, here's another one. Right, holidays.

So biggest waste of money ever.

Even people that, you know, work hard, have it, have a break once a year.

Well, all right then, if you are wealthy beyond your needs and you can pay for your holiday with passive and recurring income, go on as many holidays as you want. But why in the first three years of your business, when you aren't making any money, are you going to spend five or ten grand and then probably put it on credit? So probably end up paying 18% interest on top and probably taking a year to pay it off and losing the one to two weeks of work, why are you going to do that three times a year?

Yes, it's not a great pitch, actually.

No, and I'm not. I'm public enemy number one for saying about holidays. But the thing with holidays, I think, is most people you speak to, they're going on holiday to run away from their life. What about building a life you don't want to run away from? Or even better, let's say I've pissed a few people off. What about starting a business and doing work trips in nice places instead of holidays? Going and doing speaking gigs or going and having meetings or doing site visits, or going and hiring some studios and doing podcast interviews in other countries because you're working while you're relaxing. But also it's the money. Because here's the thing, like, for me, because I've got two kids and an expensive wife, a holiday is 20 grand. I'm getting nothing out of 20 grand. But I have to earn 40 grand gross to get 20 grand net. That's three times a year. That's 120 grand, and that's 30 days of the year I might lose out on being able to, you know, build my business. It's a lot of money. Whereas if we could do work trips, I'm mostly saving the tax, and I'm not necessarily losing ground on running my business. Holidays are supposed to be rewards, I think, and people are taking them before they've earned them.

What other I'm going to call it childish behaviors do you see adults make around money?

Well, they spend more than they earn. They spend it before they've even received it. They spend it to buy shit they don't need to impress people they don't even like or don't even know. They buy things that they want now but don't need. They buy things that go down by 80% in value because they have to have it. There's seven childish reasons that people waste money in about a minute.

All right, clip that bitch. No, that's David. All right, you got ready for some misconceptions?

Yeah. All right.

Saving money is the key to getting rich.

Saving money is the key to going broke. You cannot save your way to wealth. It is impossible because the way the savings accounts and the banking system is set up in is that savings go down in value. Let me ask you this. Tell me this isn't a scam. How can interest rates be 5%? But high street banks will only give you 1.5% savings interest, yet they'll lend to you 8% for a house and 10% for a car. Tell me how that's right. That's some kind of scam. And everyone's implicit. You've got to get rid of the concept of saving, and you've got to start thinking about storing. This is a much better store of money than the bank because the bank can take it off you immediately. As soon as you put it in the bank, it's theirs. And inflation starts to eat away at it. Whereas this goes up with inflation. It's been proven. Since you can track back through the values of silver.

That's what I was going to ask. So when you deposit money, it's no longer yours. Right?

Well, read the terms and conditions of the banks. Obviously, if they just stole it, there'd be riots, but in China, they have literally taken people's savings and they have put out a statement and said, these are now government assets. And like, have you ever known of an insurance company not to pay out on a claim? Well, people assume their money is insured in the banks, then they naively assume that those insurance policies will pay out. But those insurance policies can only pay out if they're solvent. But the central banks and governments are insolvent. They're in trillions of debt. Now, they've loaned out nine pounds in every ten. So you only need 11% of deposits to be requested on the same day. That's called an insolvency event. That's known as a bank run and bang. I do not believe that the banks are going to think wars, riots, trillions of debt. Everyone wants their money. I know what I'll do. I'll give rocks. More is money first. You cannot save your way to wealth because inflation eats your savings. You can only invest your way to wealth. And investing in simple terms is beating inflation.

Okay, two, hard work alone is enough to become rich.

No, people work really hard in the gold mines, you know, who've got the axes. But it's the people who own the gold mines that make all the money, the people that build the buildings. You know, you see those pictures of, you know, the New York skyscrapers with these men at the top eating sandwiches. They earned hardly any money and many of them died. I mean, how many people died making the pyramids? So none of the builders of the buildings got wealthy. It's the people who designed them and owned them.

Are you saying those people that owned them didn't work hard?

Those people that owned them leveraged everyone else to work hard. So they are organizers, directors, managers, visionaries. I mean, look at Dubai 40 years ago, desert now. Like, probably the most affluent city in the world is the Sheikh of Dubai. Forgive me, I don't know his name. Is he building all the buildings? No. Is he deploying resources and capital? Is he using intellectual capital? Hard work gets you to a point. Smart work gets you the real money. You know, there's different Levels, there's sort of labor management, but really you want to be the visionary.

I always see it as you've got sort of two scales to 10, which is 1 to 10 is your ability and hard work, and then the other one, one to ten is your opportunity. So for example, you could be a 10 out of 10 in hard working and skill and ability in the service industry. And you're a waiter, but you're working just as many hours as Elon Musk and he might be a 10 or even so, maybe not him, but you could be a 6 or a 7 in ability, but your opportunity is 10. And you're always going to do much better because that is your leverage. That makes sense. So, for example, in those hours, Elon Musk can build a car company in a rocket company because he's got a great opportunity and therefore that opportunity is worth more, worth billions, if not more. Whereas if you're very good at marketing locally, but you've just got a local restaurant, you're never going to make as much money.

Yeah, you can work hard in the wrong thing. Yeah, you can work hard in a dying industry. You can work hard in a mature market that's got no growth opportunities. You can get in fairly early in crypto or AI. You can have 25 or 50 hours of basic knowledge and you can ride a very early adoption upward curve. Yeah. So there's skill ethic and hard work, but also the market that you're in and the timing of the market.

Okay, speaking of which, time is money. True or false?

No, time is not money. Money is money because you could spend 30 hours doing a $50 admin task. You could have outsourced to fiverr.com or you can spend 60 minutes on the phone and convert a 25 or a 30 grand client to your agency. So time is not money. How you invest time and leverage time and use time and build value is money.

What's your biggest hack on managing your time? Are you got 300 properties, a family.

300 businesses, 300 go fuck myself rental units.

Yeah, but, but you get it. You've got lots of different companies, lots of people relying on you. What's your hack? To make sure that you're efficient, but also still making an impact each day.

So I have this time management system which I don't think anyone's ever talked about before. Lmd leverage, manage, do. So the first thing I do, first thing when I get up in the morning is go through all the tasks that I need to leverage to other people, whether it's staff or outsourcers or partners or investors. I deploy them first because what most people do is get stuck in their admin and then they get distracted. I start with what I can leverage and who I can deploy. Because if I can deploy 10 people to work for me, in theory, I can not do much that day. And I've still got 10 people earning for me. Even if they only earn 20% of what I can earn per hour, I've got 10 of them, I've got to do a full day and they'll still earn twice as much as me. Then I look at what I've got to manage. So when you deploy resources and tasks to people, they need managing, they need deadlines, checking, they might need bit of micromanagement. It's a fallacy that micromanagement is a bad thing, by the way. And you just might need to check and chase and remind and prod and poke. And so that's the second layer of tasks that I do. And then only after I've done those do I go to the do tasks that I've got to do. So leverage, manage, do. And I generally get leverage and manage tasks done by about 8am, which means in theory, I could not do anything else for the rest of the day and I'm still achieving result.

Okay, I need to write that one down. That is a good one. Okay. Money doesn't make you happy.

Money absolutely does make you happy. No rich person ever said, money doesn't make me happy. Take all my money away. Some people who are rich say money doesn't make you happy. But if you said, then give it all to me, they would all of a sudden be a bit sheepish and say, oh, well, you know what? Money is the universally agreed exchange of value. Without money, we cannot exchange value with each other. We can't turn our passion into our profession. We can't travel the world. You know, people say it's not about material items, it's about experiences. Experiences cost money. So money in and of itself can't make you happy. But everything is easier with money.

And I saw a massive grin on your face unpacking all those silver bars. So it must make you a bit happy.

Yeah, look at that. Yeah. I mean, because, you know, when you look at money, you see opportunity. You know, you can go places, do things. You know, you can buy access. So let's say you want to meet someone. Well, you can buy access to them. Let's say you want a mentor, you can pay for their mentorship or donate to their charity. So money is access, money is opportunity and it does make you happy.

That's the other. When people are like, oh, I want to, I want to help people and make an impact. Well how are you doing that? I was making this point the other day, I was out for dinner, which was you can go and build a well. Let's say you want to help people and objectively you have the, you know, the person on the gap year building a well in South America and you go, they're a very nice person. And then you see asshole, greedy billionaire Bezos on his super yacht and you go, oh well this one's a better person, this one's helping more people. This one employed hundreds of thousands of.

People, then paid billions in tax, even though people won't admit that.

Yeah. And will also probably donate a lot of money even if it is to get a tax bill down or whatever, still donate and still going to have a much bigger impact. So I think that's bullshit as well, is if you want to help people, well you should probably be greedy for at least a few years to amass your own worth. And then that is the most leveraged way to help as many people as well.

Something people don't talk about is fair exchange. So I believe if you are not selfish, you self negate, you can get wiped out. If you are not selfless, I. E. Help people, no one will give you anything. So we all had a friend that went to university with us that every time it was their turn to buy the drinks, off to the toilet, off home, they got away with it once or twice they say, saved a 50 quid round and 100 quid round and then everyone went, wait a minute, they're never here anymore, fuck off. And everyone branded them as someone not to give money to and not to trust. So they saved 150 quid and cost themselves masses. And so you need to be selfless and show the world that you know you can give, but also you need to look after number one and make sure that your bills are paid.

Buying now, paying later is a good financial strategy.

If a bank says to you buy now and pay later, run a mile, it'll probably be up to 30% APR and they'll catch you with a pair of trainers or a pair of earrings. It's an absolute scam. I went to a trainer shop, a sports shop with my son and daughter and my son picked up this trainer and he brought it to me and he's like, look dad. And it had an advert in the kids trainer for Buy now, pay later on nothing. Klarna buy now, pay later for a pair of trainers. And that's teaching the kid they don't have to work, they can just get the thing now. They don't know anything about the interest. The kid's going to emotionally leverage the parent, the parent's going to end up buying it and all of a sudden it starts with your trainers and the same with earrings. My daughter went to get her earrings pierced and right behind where you get them pissed is buy now, pay later. Klarna encouraging you to get into debt. Start 8 year old earrings. Before you know you're 35, you've got conservatory you don't need or use. You got cars, you've got a house that's a noose around your neck and whatever else you've got on credit, you've probably got store cards, credit cards and you're trapped. And they're taking 30% a year off you in interest and you're stuck for the rest of your life. So if a central bank or a commercial bank or a high street bank says buy now, pay later, do not. However, if you can get money off the bank to invest in assets and pay them back later, I absolutely would do.

What's your opinion on millionaires and billionaires getting loans against their assets? Is that a similar thing? So if you've got a lot of money in property or perhaps the stocks, you could borrow against it from the bank and then use that money to invest further or maybe spend.

Yeah. So the richer you get, the biggest problem that you have is probably tax. So anything you can do to delay drawing income or cementing a capital gain, you're likely to do that. One way to do that is to refinance an asset and draw down equity capital from the asset. Because a new loan is not income, it's a loan. And you know, some of the big boys like Elon Musk and Jeff Bezos do that with their share capital. They play around with their share capital, big real estate investors, as their portfolios go up in value rather than selling them and slaying the golden goose, they just pay off an old loan with a new loan and take that big lump of money. Maybe they might partly live on it. They're probably going to reinvest it into more assets to produce more income.

All right, next misconception. The bank is working in your best interest.

The bank is not a public service. The bank does not care about you. The bank does not save your money, it invests your money. The bank can technically Stop your money and so therefore technically owns your money. As soon as you give your money to the bank, the bank's purpose, its sole purpose, is maximum shareholder value. It cares not about your well being, it cares not about your pension, it cares not about your retirement. And when you give your money to the bank, interest rates are 5%. They give you one and a half in interest, which is negative 3.5%. But then when they lend it back to you, they lend it to you at eight or ten for a house or a car. So they're positive three or five and you're negative three and a half. There is no such thing as a savings account. There is only a degradings account because money goes down over time in savings accounts with inflation. So you should forget about saving and you should think about storing money. You want to protect your money from inflation. The only reason you would use a bank is for convenience of speed. The only reason you would use a bank is for convenience and speed. I can take money quick, I can deploy money into an asset quick. That's the only reason you would use bank to increase the flow, the GDP of money even now. And the banks will let you a grand a day put into crypto, five grand over 30 days. The bank is not a public service.

What's your opinion on those people that spend loads of time moving from savings account to savings account? Because this one's got a little 50 quid bonus and this one's got four and a half percent interest.

David, could you make a note in that little bit there? I. You're going to need to edit. I stumbled on my words and I started again. I don't, don't leave that in because obviously there's a queue there for you to edit. There was one or two other instances, wasn't there, where we started again on a question. So yeah, just make sure that they're cut out. Yeah, go and ask the question again.

So what do you say? What do you think of those people that spend hours on their laptop researching moving from this savings account to this savings account? This one's got a 50 quid sign on bonus, this one's got 5%. Interesting. Good use of time.

I think it's smart to know the margins of money. And if inflation currently is 2 or 3 and you've managed to get a savings at 5 and you're storing that money until you can invest that smart. Now, of course, if you have millions of pounds, a 0.1% difference in interest makes a vast difference. So you can get into diminishing law of returns, where you're spending three and a half hours to save five pounds a month. But the behavior of being good at budgeting and making sure that you're not wasting money is a behaviour you can scale up. When you've got millions or billions maybe in income, the only reason you should save money is to store it, holding it to invest. So I've knocked savings accounts. I have savings accounts because I have been paid in fiat currency. And at this and at this moment in time, the best place for it is in a high interest account. But I know I'm just holding it there, storing it there until I can deploy it into an investment.

How much money should somebody keep in the bank at once?

Well, I used to think it would have been a lot more. I'd have said get to a month then three months. In a business, I always wanted to get to two years working capital. So I really call it more about how much working capital, not how much in the bank. So quick reminder, there's no such thing as a savings account. Just think about storing money. Now, I don't think about how much money I should keep in the bank, I think about how much working liquid capital. So for your own personal expenses, you want to build up to a month working liquid capital, then 3 months working liquid capital and maybe you want to peak a year working liquid capital. That is, if you earn 50 grand a year and your expenses are around about that, you want 50 grand in working liquid capital. That doesn't have to all be in the bank. It could be in other liquid forms. You could have it in crypto, you could have it in the S&P 500, which is very liquid place to store money because within a few days you can get it back. So I don't like having much money in the bank. I've probably maximum across all my businesses and personally never got more than three and a half, four million in the bank. Considering our businesses do a million our business, considering our businesses have a million a month overhead and you know, I've done a quarter of a billion in sales and I became a millionaire 15 and a half years ago. It's a very low ratio of cash in the bank. I keep that being said, some of the big players, some of the big investors right now, they're liquidating assets and storing it in cash. When they say cash, they mean liquid because they think that there's opportunities. They think the market's going to tank. The markets have tanked and so it can be smart to hold more in working Liquid capital. If you are crouching like a tiger waiting to pounce to go in the markets as they drop.

But not on a Black Friday television.

Deal, no, no, not on depreciating liabilities.

Okay? Taxes are necessary for the government to function.

Yeah, they are necessary for the government. Yeah. Taxes are necessary for the government to function. Doesn't mean they're fair, doesn't mean they're right, doesn't mean they deploy them well, doesn't mean that's their only source of income. Because you could argue if the governments can print money, why do they need taxes? They can just print trillions or gazillions on demand. So why do they need taxes?

Taxes are necessary for the government to function.

The government will have you believe that taxes are necessary for them to function. It is their only source of money and they'll have you believe they need it for the good of the the public services. Although in the UK all the public services are fucked. The NHS is fucked, the police is fucked, there's riots everywhere. However, have you ever asked yourself, are taxes necessary for the government and the country to function? Because they print money. They literally make money out of nothing. They provide no value. And print, by the way, it's the wrong word because they actually don't print print money, they just create numbers and they can create trillions. If they want to fund a war and they don't want you to know, or they know you won't pay in your taxes to fund a war, they can just go 100 trillion, 100 trillion. So why do they need taxes if they can print unlimited amounts of money?

And how do they pump the money into the economy?

Well, what happens is the. Is technical as hell, but basically the central banks create the money and then it's dispersed through to the commercial banks and then into the high street banks and then loan to you.

But how do they give it to. From central to commercial? Just here's some money?

No, no, it's just done on digital exchanges. It's just literally. Oh, there's trillions. Oh, there's trillions.

It's a fun game.

Yeah, it's a fun game. Let me ask you this, if you could do that, would you?

I needed to, yeah.

What do you mean if you needed to? If you could have a money printer that could just create billions or trillions out of thin air, you're telling me you'd only have it if you needed.

To think there's a degree of. I would definitely use it initially, but I don't think I'd necessarily Print off a trillion.

So it's sitting there. Yeah, it's looking at you. Yeah, it's unlimited supply. And you'd go, now I just take a fiber.

But that's maybe because I spent so much time with you. I know the impact of inflation.

Yeah. Well, the thing is, you know that the more you print, the more it hurts everybody else. It benefits the government, but it hurts everybody else. And this is what people don't understand. When the C word, which then came with a lockdown afterwards happened, the government's pumped best part of a trillion into all these support loans. And everyone at the time was like, wow, look at the government. Aren't they generous? They're supporting people. But that was stolen from you because as soon as they put a trillion into the economy, the rest of the money relatively goes down and therefore the cost of goods and services relatively go up. So you didn't know it, but they just reduced the value of your money so that you could say is theft because you weren't complicit. But at the very least, it's a tax. And when inflation is 10% a year, doesn't take very long for your money to go down to not worth much. But this keeps going up. And oh, you know, they say, oh, but inflation is only 2.1%. Yeah, but we don't get to claw. Yeah, but we don't get to claw back or reverse the 6%, the 8%, the 10%. So every time you get high inflation and they say, oh, but now it's only 3%, it's too late, it's already been wiped off the value of your spending.

Have you seen this TikTok trend of people doing an order on their food shopping from 2019? So basically when you do an online food shop, you call your previous orders and on some of the shopping websites you can basically just press like reorder. And a guy in America went viral first. He did one from 2019. I think his weekly groceries was like $100. And then the exact same, just reordered everything again was $420 four years on. Wow. Wow, right?

Yeah. So in the 1980s, the average family shop was in the mid-30s of pounds. And now I think it's 140 pounds. Most of that has probably happened since 2020. Most of that shocking. Tell you what's the most shocking, a Mars bar has gone up from what, 15p to 95p. If you look at most things that have gone up, they've gone up three to four times. House nearly 10 times. So people's affordability in housing has just been wiped out. And yeah, that's. I'm a real estate investor. I chose to be a real estate investor so I could get the advantage of that. I get the advantage of inflation because I own property. Every time they pump money into the system and push inflation up, inflation pushes the relative spending power down, but it pushes prices up. So if you know you own assets, your asset prices are pushed up with inflation. So I benefit by owning real estate. Also, when they put money into the system and devalue the spending power, they also devalue their own debt. But I have debt against my property portfolio. So when they pump inflation and money into the system, which you know they're always going to do because they are trillions in debt, you know, they're just going to keep hitting the print button. Pushes the value of my asset up, it pushes the value of my debt down so I win twice. I think it's shockingly unfair on the working class person, you know, who can't afford a home, who, when they save £100, it's worth 95, then 91, then 86, then 80. They should be able to save £100 and it's always worth £100. But their money has gone down. But their house prices have gone up so much. I just figured this out 18 years ago and I just chose to look at the system and how it works. And I know they're always going to print money. I know they're going to try and erode their debt through the back door by printing money. I know they're going to fund wars and anything. They can't get off of us in taxes by printing money. So I thought, well. So I thought, well, how does printing money benefit them and can I do the same? And printing money pushes asset prices up and debt down. So I have good debt which gets wiped out and have assets which get pushed up. Yeah.

And just to confirm, it's not like, let's say you've got 100 grand house and 50 grand of it the bank owns, it's not saying that Suddenly you owe 30 grand, it's just that 50 grand isn't worth as much as it once was.

Yeah, it's all relative.

Yeah.

So spending power. No, your mortgage amount doesn't come down in value, it's just if you've got a 50 grand mortgage and 100 grand house in 10 years, let's say for ease of numbers, it's probably more like 15, that 100 grand house is worth 200. But the relative value of that 200 grand grand house isn't 200. That 50 grand debt is still 50 grand, but the relative 50 grand might be 20 grand.

Yeah. So you went twice?

Yeah.

No, nobody. I've never heard anybody explain it that way. Maybe it's because I don't want people to know.

Maybe. Well, you won't learn that at school, you won't know that at university, you won't learn that at college, you won't get a degree in that.

Okay. Having a high income automatically means you're wealthy.

No, because you can have a high income and a slightly higher expense and you can be just over broke. There are a lot of people earning hundreds of thousands of pounds but spending hundreds of thousands of pounds buying. They don't need to impress people they don't even like. So you can earn three grand a month and spend two grand and you can earn net a grand a month. You can earn 100 grand a month, spend 105 grand a month and earn minus net 5 grand a month.

Do you think those people around the 100 grand salary are the worst off?

Yeah. And this is a shocker. Most people don't know that this between 100 and 125 grand there's a black hole where you get taxed at 60%. 60% because you lose all your reliefs up to the first 12 and a half grand that you get tax free. So you're already earning 45. So you're already earning 40% income tax up to 100 and then 100 to 125, you're paying 60% in tax. So you either need to earn less than 100 or quarter of a million. Plus if you're going to go over 100, go way over 100. They're smart fuckers. They catch you because they know that bracket there that's hard to bust through.

That's why I need your own limited company.

It's why you need to elope to Dubai. The UK doesn't have any resources. It sold off the assets that it did have. But it could become like Dubai, like if it embraced tech. It actually just rejected 120 billion of AI investment. I mean, how crazy is that? If I'm running the uk, I'm going to invest loads of money into AI and tech. I'm going to invite all of the big entrepreneurs across the world to come and invest into the uk. I'm going to give them loads of tax breaks, I'm going to give them good returns and I'm going to build something in The UK that the rest of the world wants to pump money into and that could be a trillion pound income stream for the country. Or they could encourage all small businesses to grow and employ and produce and that could be a trillion dollar pound income for the country. Or they could take an extra 5% tax off the billionaires and the massive corporations and that could be a trillion pound or dollar income stream for the country. But oh no, all they do is tax us.

Would you ever move to Dubai?

Yeah, I would move because I'm kind of over the uk. If my mum and dad weren't alive and I didn't have my family and this team and organization here, I would have gone probably four years ago. I'm just waiting. Well, I'm not waiting. I want my mum and dad to be here for a long time, but I'm not hanging around here anymore. It's sad. It's sad to say, but do you know knife and female assault and rape. The convictions are about 4%, which basically makes those crimes legal. Pretty much. You can't get in the NHS unless you die, so then you've got to pay for private health care, which therefore becomes much more expensive because it's in demand. I mean, I don't know if you've been to the dentist recently, but private dentists raking it in because you can't get in in the nhs. So the police is screwed, the NHS is screwed. There's riots everywhere which of course the taxpayer will have to pay. They're killing business. Taxes are going through the roof. Labor have come in, you know, they're trying to make all of these employee rights so you can't let a staff member go even after day one. They're VAT tax on school fees, they're trying to put capital gains tax at 20% up to the income tax tax level. It's just an absolute raid. It's a gang bang.

Sounds like a good time.

It's not a good time. It's a gang bang that you don't want to be in the center of. That's exactly what it is. Might be good for you.

No, you want to be in Dubai looking from the outside.

Yes. Where they encourage entrepreneurship, where they keep taxes down, where they support businesses.

Yeah, well, me and my girlfriend was in Dubai this year and around the marina and it seems very late. Everyone has dinner really late and we must have been out around 11. And the amount of girls or young women by themselves just jogging or whatever, you would never get that at 11pm in central London. Just people by Themselves chilling like no problem at all, nobody was bothering them, Nothing.

Yeah, you can leave your watch on the desk, you can leave your phone on the table. Yeah, I mean there's really not enough punishment for crime. Also the prisons are overrun, so they're letting a load of criminals back out. I mean all of this stuff is no wonder there's riots on the streets at the moment.

Okay, you need to increase your income to become rich.

No, you need to reduce your expenses first. Because if you increase your income and expenses relatively, it's called lifestyle creep. Most people, they earn more money, they've already spent it. So you need to increase your income but lock your expenses down. Then when you increase your income, you've got more tax to pay. So then you've got to figure out how to get your tax tax bill now.

And I suppose if you use your income and you keep your expenses low and used to buy an asset, your income could stay the same. But the capital appreciation of that over the years, you become rich.

Yeah, yeah. I mean there's one thing for sure, if you go back to 1952, house prices were under two grand and now they're quarter of a million pounds. If you track gold and silver and any asset class back far enough, they go up 5, 6, 8% a year. Or in Bitcoin case. Apparently no one in a four year period has ever lost money in bitcoin. It's always gone up and you could be 40% a year at times with bitcoin. So really you want to hold assets forever and live off the income and keep your expenses down and don't have lifestyle creep and then have a company where most of your expenses that you can run through a company to reduce your tax bill so you don't pay twice. Golden rule. Just to remember, if you pay it after tax, you've paid for it twice because it cost you twice as much.

That was why that was my mental thing I had to switch in my head when going from an employee to owning a company was that's how I almost convinced myself to do the jump was, well actually even if I earn a fair bit less in my first year, my take home is going to be the same anyway. So almost was like, oh, there's no risk, just fucking do it.

Well there is a risk because you've got no guaranteed salary.

Yeah.

But when you work out the gross versus the net, because when you start a company you need your laptop, you need a phone, you need some cameras, you know, you need a computer, you need all this hardware and that can all be bought through the business, which means on that amount of money that you earn, you can offset the expenses of the hardware and you can depreciate it. And there are little ways where you can draw certain amounts of initial income without paying the big income tax bracket. Always speak to an accountant. But if you juggle that first 50, 60 grand, you can get the tax bill down a fair bit.

Yeah, I think, again, I'm not an accountant, but roughly between salary and dividends up to about 50k, you barely pay any tax on really at least an unlimited company in the uk.

And then if most of your expenses are run through the company, you've got your personal expenses down. Because back to your question about how to get rich. It's the gap between your expenses and your income. So your income doesn't have to be huge if your expenses are low, your income has to be huge if your expenses are high. So when you attack the income to go up, that's fine. But if you earn 10, you might net 5. If you own a company and you sell 10, you might net 2 or 3. Whereas when you save 1, you save the whole one.

Oh, top tip on becoming rich. Earn an average salary in the uk. Move to Thailand. Right.

Okay.

I went there, I was like, oh, okay, this is what it's like to be.

And this by Thailand then.

Yeah, at least the South. Yeah, yeah, most of it. All right. Credit cards are always bad and should be avoided.

Credit cards are great if you pay them off every month and run all your ad accounts through your credit cards. I know you cheekily tried to get me to run my hundreds of thousands of pounds worth of ad accounts through your credit card.

Only a portion of it. Yeah. Not the whole lot.

So if you can rack up your air miles and rack up your cashbacks and rack up all of your benefits and bonuses on a credit card, that is very powerful. Also, you've got better insurance and the bank takes a risk with the credit card, whereas if you do it by debit card, you could be taking the risk, but only if you pay it off every month.

Yeah, it was Mark's book, actually. Low cost, high life that got me into a lot of those. Yeah, your business partner. Okay. Buying a house is always better than renting.

Buying a house is only better than renting if you know where you want to live, if you want to stay there for 10 years, plus if you want to raise a family, if you know all the tax breaks and if you buy well and add value. Otherwise, if you're young if you want some flexibility, if you don't want a massive overhead, you should probably rent.

Next misconception. You should focus on paying off all your debt before investing. True or false?

False. Depending on the cost of debt. If the debt is more than the likely return, you should pay off the debt. If the debt is less than the likely return, you can invest and use the asset to pay off the debt. If you can leverage and create more debt to buy an asset like a loan to buy a property, you can use the income from the rental from the tenant to pay off the debt.

Financial success comes from following a single universal strategy.

There are no one size fits all in making money. And I was going to say other than you need to sell it for more than it costs and you need to offer something valuable. But some companies get billion dollar valuations without selling anything and some people create Ponzi schemes where they didn't offer anything of value. So there is no guarantee of success and riches. There is no one single way that I can think of that guarantees you to be rich other than sell it for 10, keep 2 or 3. If you can scale over billions of units, sell it for 10, keep two or three, you're going to be really rich. That sounds so simple. But most people are selling it for 10 and it's costing them 11 and they don't even know it.

I find as well, and perhaps you do as well because you've mentored a lot of business owners. Why do people sell their stuff so cheap when they're starting off?

Because they don't believe that people will buy it from and they don't believe people will buy it from them because they don't believe they're good enough. And maybe they think that they're new and they'll feel like an imposter or a fraud or people will find them out. Or you're selling your products and services and you've only just started and you're no good at this. And they look at other people who are have been doing it longer and they're like, well, why would anyone come to me if they can go to them? But everything is based on value. So you could buy a 50 pound digital cheap watch made in Japan and it could break in a week and you could feel ripped off. You could buy a patek Philippe for £50,000 and you could give it to your son who you didn't even know you were yet going to have and you could feel gratitude and value in a 50,000 pound watch that's goes down your bloodline and you can feel ripped off by a cheap plastic digital watch. So it's all about, well, it's actually not about value, it's about perceived value. So if you're struggling with your pricing and you're under selling yourself, create more value, give more, do more, serve more. The great advantage you have when you start a business is you can care and you can make things bespoke and you can be more personal and you can add that extra level of service that you can't when you're a billionaire because you just can't reach all of your buyers and your customers. So focus on that. Focus on going the extra mile, doing more, caring more. People always pay more for bespoke and people always pay more for service.

So I suppose if you're the biggest, your advantage is we are the biggest, we are the best. We've got the most case studies and testimonials, scale proof. But if you're the new one, your advantage is we are small and we are therefore boutique, bespoke and we care about our customers more. Essentially. Those are the arguments you would make in your messaging.

Yeah. So there's always an argument for why you are better even though you are less experienced as long as you're a step ahead of them. Because, you know, don't teach people how to buy real estate if you've never bought any real estate. Yeah, but if you've bought, bought five, buy to let, then you can teach people how to go to buy their first five. By the time they bought five, you'll be at 10. As long as you're a step ahead of them, then that's something that you can teach yourself. But you know, in the world of watches, a one of one can sell for millions of pounds. So let's say you make a product, why don't you make one of ones or small numbers. But for high quality, for people with a lot of money, like it's a lot easier. I asked Karl Hartley is it easier to sell one Bugatti or 20 Fords and he said it's way easier to sell one Bugatti because they're, they're easier to sell two. They know what they want, it's just one. Whereas 20 Fords, I've got to sell 20 of them. The clients might nickel and dime me and try and get it cheap. I've got 20 times less chance of something going wrong if I'm selling 1 20th and they've already got the money and they'll probably buy 3i.

When you uploaded that the comment section of all the people. Like, oh, obviously it's the Ford. He doesn't know what he's talking about. Well, he kind of does. He clearly haven't done research. But it's true. I always find the people that are on the lower end of pricing, let's say they want to know everything, but not only that, so then question everything. You then tell them and it's always, they want the world and they want everything of you. So, for example, when we first started and I might do some consultations with clients or whatever, it's like if the Zoom calendar said 30 minutes, I must have 30 minutes of your time. Whereas a lot of our clients now is we'll jump on a zoom, it automatically generates as half an hour, but six minutes in and I cool, got everything I need. I'm off now. Because their time is valuable and they paid more and I get more time than when I was dealing with the more broke people.

Yeah. The best way to repel broke people is to increase your fees. I mean, it's so common. I mean, it's such common sense, but it's obviously not common. I think people are scared of losing clients, but you should want to lose the wrong types of clients. No two client has the same cost to you. No two tasks have the same value. You could have one client who gives you 30 grand and cost you virtually nothing. No customer service, no headache refers, people really grateful, no bother. Then you can have a client who wants that same 30 grand product for 10 grand, always in your customer service department calling you up all the time, massive maintenance, and then probably wants a refund at the end of it and wants to keep it everything. So the best way to make more money other than to create greater value is to increase the price. And people say they can't increase the price. There's nothing stopping you increasing the price other than you.

Your point on perceived values actually really landed with me because you mentioned Ponzi schemes. Either that that is perceived value, they thought they was getting return, therefore they will keep, keep plowing money into it. And I see this with information as well. So you could sell a course, for example, and in one person's hands that information might do nothing. And somebody else's hands could be worth hundreds of millions. Like your old boss who paid for you to do speaker training. There's probably people on that training that did sweet FA with that. And yet you've built this company into £250 million off the back of your speaking skills.

Yeah. I have nothing else to add.

Wonderful. We'll move on. Okay, you need a lot of money to start investing.

You do not need money to start investing. You need knowledge, resources and contacts. You can start investing for a very small amount of money. I can't say because I think we've run a little competition in the comments for guessing how much silver is here. But money is an infinite resource because the government can print trillions on demand. Wars, lockdowns. Hit the button, print trillions. Money is an infinite resource. Money goes to value. If you think something is valuable to you, you'll exchange the amount you perceive it's worth. You will buy from me what you deem to be valuable equal to the amount of money you perceive of its value. So there is no limit to how much money you can make. The only limit is how much value you create. The more value you create, the more money you make.

I think you're gonna like this. What's the biggest lie banks tell us all about money?

That saving will look after your retirement, that we look after your money and your future. I remember going into the bank and I'd had a bit of a windfall and I walked in and there was someone at the desk in Barclays, must have been 19 years old. He's like, oh, sir, come and sit down over here. And he sat down and he started giving me advice on what I should do with my money. 19 years old, probably earned 17 grand. And his advice was, oh, move it into this investment with our bank or move it into this asset with our bank. And of course that would have locked my money with them for long term on very low interest and very high risk. So whatever the banks say, that makes them seem like a public service. We look after your pension, we're with you to your retirement. You know, we help you save for the future. These are all lies. The bank's interest is maximum shareholder value and you are the product.

What's the biggest lie governments tell us all about money?

That inflation is a naturally occurring event. They don't say money goes down in value over time. You'll never hear them say that that's what it is. But prices rise. Inflation isn't a naturally occurring event because if they stopped printing money, inflation would stop. So inflation is a government instilled strategy to steal your money.

Is that why you think they would probably never adopt something like Bitcoin?

I don't necessarily think they wouldn't adopt it. I think if they could regulate it, police it, control it it, or own it, they maybe would. I mean, there's been talk of Governments launching their own central bank digital currencies, CBDCs. So.

But would that mean that there's a limited supply, like there is Bitcoin, if they did that, or would it be virtual currency, but they can still press the inflation button?

Well, you tell me. Do you. Do you really think that the central banks and governments do not want to be able to print money?

Yeah, of course they do.

So they'll have a cbdc, but it won't be Bitcoin and it won't be uninfiltrable, uninflatable and unmanipulatable. They'll just. It'll just be another version of fiat currency in digits instead of in paper, although it's not paper anymore.

Banks, governments, insurance companies, who's the biggest criminal?

I think if you draw the lines up, they probably all go to the same place. So I think if you look at Black, BlackRock and Vanguard and State street, they have major shareholdings in banks and insurance companies and companies that have political influence in governments. They're not criminals because they're above the law. So what they've done is created a law which makes you a criminal if you break it. But it's their rules, so they can break it at once. Will, I'll give you an example of one. If you knowingly trade insolvently, which means you make sales but you know you're losing money, you can be struck off as a director. And if it's extreme, you can go to prison. The central banks and governments are trillions in debt and they are knowingly trading insolvently and they've made it legal for them to do so. It's illegal for you, it's legal for them. So they're not criminals by their own laws because they're above their own laws.

This episode was brought to you by Disruptive Media, helping bold entrepreneurs stand out through podcasting video and social content. Visit disruptivemedia.co.uk to learn more. This episode was brought to you by Disruptive Media, helping bold entrepreneurs stand out through podcasting video and social content. Visit disruptivemedia.co uk to learn more.