9 Misconceptions About Money

I'm going to share with you 9 misconceptions about money. I've been asked to write an article for Forbes magazine and on 9 misconceptions around money, so I thought I'd share with you what they are, get myself warmed up for writing this Forbes article which is happening in 3 days' time. Here we go. Number 1 misconception about money: is that money is the root of all evil, or the love of money is the root of all evil. That's misconception number 1. Number 2 is that profit is the purpose of money or business. Number 3 is that you get paid last. So a lot of people, when they earn money they think that they should get paid first. You don't get paid first, you get paid last, but you have to pay yourself first. And I'll tell you what I mean, uh, by that in a moment. Um, people say a lot, number 4, that money changes you. Does not change you. Does not change you. Let's get you down there a bit. Okay, number 5, it takes money to make money. That's a massive misconception of money. Number 6, money doesn't make you happy. That's a big misconception there. Number 7 is that time is money. I don't believe that to be true at all. Number 8 is that you should and can save your way to wealth. I don't believe that that is true at all. Um, and then number 9, cash is king. So let me go through now in detail for you these 9 misconceptions around money. Let's have fun. I've got a gift for you at the end as well, so make sure that you stay along. Um, all about money. Okay, so some religions say that money is the root of all evil, or love— the love of money is the root of all evil. This is absolutely categorically untrue because, um, money doesn't feel. Money is amoral. It has no emotion, no judgment, no projection, no perception. So money can't be evil because money is just a tool. So, um, if I had a hammer, um, it would be better at putting a nail in a piece of wood than my hand. So it's an effective lever. And then if I put a nail in with a hammer and then I wanted to pull it out, a hammer would be much better at that than me trying to do it with my fingers and fingernails. So it's a good tool, a good lever. You could also take that hammer and smash someone's skull in with, with it, and it would be better at doing that than with your hand, probably. But if someone took a hammer and smashed someone's skull in, the hammer wouldn't be tried for murder. The hammer wouldn't stand trial. What would stand trial is the human being that used the tool. Money is the same. Money is not evil. Money is the tool. Money is a lever. Money is energy. Money is flow. Money is a universal exchange of value. Money is not the root of all evil, and love of money is not the root of all evil. The root of all evil is humanity. The root of all evil is evil human beings. The root of all evil are evil actions that good human beings sometimes undertake. Okay, number 2 then. A lot of people in business say that the purpose of business is profit, and I get that. I get that especially for those people who are a bit fluffy and spiritual about making money, and they give, give, give, but don't charge enough. But actually, profit is not the purpose of a company. Profit is the outcome. Profit is not the purpose for an entrepreneur. Profit is the outcome. An entrepreneur should create valuable products and services and be useful to society. A business should have a useful product or service that is valuable to society, and profit is the result. Profit is not the purpose. A meaningful product and service and creating a community in an ecosystem that makes people's lives easier Faster and better. This is the purpose of a company or as an entrepreneur. So it's a big myth there. There's even a book called Profit First talking all about how profit must come first. Well, would you want someone to make a profit first at your expense? No, you wouldn't. Would you be happy for someone to make a profit if they offered you a useful product and service first and then they got profit in return? Yes, of course you would. There you go. Alright, number 3. When it comes to money, people think they should get paid first, but they pay themselves last. But it needs to swap round. You get paid last, but you should pay yourself first. Now, this is a proper paradox. No one will tell you this, so this is quite unique. But let's say you've got a boss and you want a pay rise. If you ask for a pay rise without doing the work, you won't get the pay rise. You'll piss your boss off. If you go and do the job you want, not just the job you've got, and if you do more than you're paid to do, you'll get a pay rise in exchange. And you get paid 30 days after you did the work because you get paid 30 days in arrears. So you actually get paid last. If you're an entrepreneur and a business owner, what you do is you offer the product and service, then you send them the invoice, and 30, 60, 90 days later you get the money back. So you actually get paid last, but when it comes to taking profit, drawings, dividends, salaries, etc., as an entrepreneur, or, you know, when you've earned your money and then you spend what you've got left, you need to flip that and pay yourself first. So rich people pay themselves first, they pay tax later, they pay bills later. So you save and invest in yourself first, and you pay bills and everything else later. Now, When you're an entrepreneur and you run your own business, you pay tax later and you pay yourself first, but out of profits. And you get paid last because you do the work first and then you send the invoice out after. These are rules of money that people don't understand. Okay, so let me say this one more time because it's really important. Instead of expecting to get more money, Be paid more by your clients, by your boss. Do the job you want, not just the job you've got, and do more than you're paid for and you'll get paid more. These two things that I learned from billionaires in the early years were absolutely vital. But most people are like, oh, life's not fucking fair, I want to be paid more, yada yada. Right now, Mo Salah is negotiating a new contract for Liverpool and he's in a freaking good negotiation position. He's probably going to get 400 or 500 grand a week. Why? Because he's been playing like a frickin' legend for ages. So he's done the work first and now he's gonna get the contract. Whereas if he was in negotiations trying to get £500,000 a week and he'd scored 1 goal in 15 games and he's playing shit, he'd have no leverage. He's done the work first and then he gets paid later. Okay, misconception number 4. So just quickly put you in the picture. I'm writing an article for Forbes magazine this Friday. Um, you know, Forbes is a major publication in the US, and they've asked me to do 9 misconceptions about money that most people don't know, and I'm covering them here and doing a little practice warm-up session for myself. I hope you're finding it useful. Make sure you're following me on the channels that you're on, on the line. All right, number 4: money doesn't change you. People say, oh, money changes you. No, it doesn't. Money does not change you. It makes you more of what you already are. It exaggerates your existing traits. If you're a philanthropist and you get more money, you'll give more away. If you're an alcoholic and you get more money, you'll drink more away. If you're a gambler and you get more money, you'll gamble more away. If you're an entrepreneur growing your business and your brand and you get more money, you'll innovate and grow your business and your brand. Whatever you value the most, you'll exchange money for what you value the most. Okay, someone's asking me, is this my signature cloth? Yes, this is Alexander McQueen. They should be sponsoring me. Come on. All right, what have we got next then? Um, people say it takes money to make money. No, it doesn't. That is a massive myth because no one is born with money. And by the way, you can get an inheritance and squander it all. You can invest money and lose it all. You can spend money and lose it all. It's no guarantee that you make money when you spend or invest money. It does not take money to make money. It takes resourcefulness, creativity, innovation, solutions, energy, exchange. Value, persistence, consistency, relentlessness, passion, enthusiasm, salesmanship, marketing, telling great stories. These are the traits that it takes to make money. Every winner was once a, uh, every winner was once a beginner. Every master was once a disaster. Does not take money to make money. You have to bust it out of your system because if you stick to the ideology that it takes money to make money, you'll only ever start making money when you've made money. But how do you make money when you haven't made money and you're waiting to make money to make money to make money. Paradox, motherfuckers. All right, great. Um, all right, number 6. This is a massive misconception about money. They say, oh, money doesn't make you happy. Fucking does. I've been skint and I've been rich, and I'll tell you what makes me more happy. Now, all things equal, I reckon you'd be happier with money. Now, would you be happy with money but no relationships and no friends and no life? Of course not. So money in and of itself doesn't make you happy. However, if all the things in your life are equal, but on one side you don't have much money and you're living hand to mouth, and on the other side you have more than enough money to live freely, how are you going to be more happy? Which one is going to make you more happy? So technically, they are correct that money in and of itself doesn't make you happy, because money is not a purveyor of happiness, because money is a universal exchange of value and it has no thoughts or feelings. However, all things equal, money gives you options, money gives you freedom, money gives you choice, money means you can give money away, money means you can tip big, money means you can travel well and live a good lifestyle. And actually, I would say money does actually make you more happy, or at least it, it reduces the friction and increases the speed of the things in life that make you happy. All right, number 7 misconception around money: they say that time is money. Time is not money because someone can spend 10 minutes doing something and it could make them £100,000. Someone could spend all day doing admin and it may make them nothing. So time is not money. Let me say that again: time is not money. Money is money. Someone has asked, am I rich? Yes, I'm rich. I was £50 grand in debt aged 25 years and 11 months. I got out of debt and made my first £100 grand within a year, became a millionaire before age 31. I became a deca-millionaire before age 35. I have 1,300 tenants across hundreds of properties that I own, co-own, and manage in my portfolio. We've got a 99-apartment development block we're just finishing which will have 159 tenants. We've just bought one letting agency. We're about to buy another, which should take our letting agency to the biggest in our city. Um, I do between £12 and £21 million a year in, um, my training business. I make hundreds of thousands a month on social media and hundreds of thousands a year in my books and audiobooks. I say this with humility only because I'm getting asked here. Someone, the same person, has said I'm going to be 20 2,000 times richer than you. That's great. Um, I'd be very happy for you if you're 2,000 times richer than me. You can lend me a tenner, motherfucker. You need to be better at trolling me than this. But seriously, if my followers and the people who follow me are richer than me, then I've done a fucking good job, a really good job. So, um, but yes, I'm rich. Um, said with humility because, hey look, I'm not a billionaire, and I'm actually not that bothered about being a billionaire. Um, but I do want to be a, um, you know, I do want to make a lot of money and I do want to give a lot of money away. Um, and money has made my life a lot better. I've got a quarter of a million pound Hi-Fi there. I've got Lamborghini Aventador under me there. I've got a Ferrari Testarossa under me there. I've got a Porsche Panamera Turbo S under me there. Um, so yeah, money— all this bullshit about money doesn't, you know, buy happiness and money doesn't make you happy. Do you know the only people who say money doesn't make you happy is really skimp people or billionaires. Billionaires would say that money doesn't make you happy because they've got fucking billions, so it's easy for them to say. What about when they became a millionaire or a deca-millionaire? I bet it made them a better quality of life then. So the billionaires and the zeroers have quit on their own dreams and they've quit on money. They're the one, "Money doesn't make me fucking happy." And everyone who says money doesn't make you happy is normally a grumpy bastard in his skin. So yeah, my friend here has said, when I'm a multi-billionaire, I'm going to give back. Yeah, don't forget me, my friend, don't forget me. He's asked here, any marketing tips? Yeah, definitely get yourself out on social media a lot, um, put regular content out there, um, on all the channels, uh, on the areas of expertise that you've got. Um, yeah, someone has said here about my TikTok viewers, thank you, that means they, they think my content is great. I've just started doing TikTok Lives I've only been on TikTok for, um, probably 9 months, but really 6 months properly. And we've had 8 to 10 million views in the last, I think, 30 days. So it's starting to do well. But I've just got myself a TikTok account manager, so I'm trying to figure it out. I'm prepared to look stupid and only have 12 people on my live because in a month or a year it'll be very different. Go on my Facebook Live, sometimes you see hundreds of thousands of people watching those videos. So I can put my willy away. It's not all about the ego. Um, just test platforms as much as you can. Anyway, I'm supposed to be doing 9 misconceptions about money and I'm getting carried away by, um, having a bit of a laugh with you guys. So yeah, people say time is money. Time is not money. Time is a human construct. It's quite possible that our universe or our multiverse is infinite. It never started, it never ends. So therefore, time is a human construct that we measure how we move around the sun and how the moon moves around us, or however we orbit. Time isn't actually real. So when they say time is money, time is not money. Um, I got paid £139,000— £135,000 to do a 60-minute plus follow-up keynote speech, but I've also done thousands of hours worth of free content on social media. So how can you say time is money? If time was money, I'd make more money on social media than I did for my keynote speech. Time isn't money, but you have to know the value of your time and your income-generating tasks and your key result areas. I've had a question here. Would you say you have to be ruthless in business to succeed? No, you don't have to be ruthless, but you do have to be decisive. And there's a— that's actually a great question. We'll do content on that, my friend. Do you have to be Ruthless in business. And I also think it, um, no, but decisive. I think it depends on how you define ruthless. If by defining ruthless you mean decisive and making strong decisions that other people can't make, like letting staff go and negotiating strongly and firmly, yes. But if by ruthless you mean treat people unkindly or screw people over or get better deals than them, no, that can actually be really bad. Now, back in the day, you could be a bit more ruthless and turn a few people over because you probably didn't cross paths with them that often or again. But now, because of social media and how we're all interconnected so quick now, you screw someone over and that can go viral and they can ruin your reputation overnight. So, no, I don't think you need to be ruthless at all. I think you need to be strong. I think you need to be decisive. I think you need to be able to make hard decisions. I think you need to be resilient. I think you need to be consistent, but you don't need to be ruthless. That's actually quite a— It's another misconception, and thank you for the kind comments here, by the way. I've got to go in a minute because I'm being interviewed for a podcast at, um, in a couple of minutes' time. Um, I'm writing an article for Forbes magazine, um, on the 9 misconceptions of money, and I thought I'd come here and share some with you and have a chat with you and go live and do a bit of a warm-up. I've got a gift for you, so thanks for staying. Time is money is a complete myth. Number 8, you can save your way to wealth. No, you can't. Inflation, You know, cash is— someone said on this live, cash is trash. Cash is worth a lot less now. It takes too long to save your way to wealth. You have to invest your way to wealth. Saving your way to wealth is too slow. You have to invest and then you have to speculate, because if you don't risk anything, you risk everything. And then final misconception about money is cash is king. Cash is not king. Cash flow is king. Cash goes down in inflation. Cash gets spent. Cash doesn't appreciate. There's no interest at the moment on cash. Cash flow is king. So you take cash, you put it into assets, so the assets create recurring and residual and relentless income, and then the income is king. Cash flow is king, not cash is king. Just had a message here. Hey Rob, love your books, especially your audiobook. Thank you very much. All right, quick summary, a gift, and then I gotta go. But I'm writing an article for Forbes called The 9 Misconceptions About Money That You Didn't Know. I thought I'd come and do a live and share the content with you here first and just warm myself up for it. I'm being interviewed for an hour by, um, you know, one of their media team on Friday. Cash is trash. My friend Grant loves that saying. All right, so money is not the root of all evil. People are the root of evil, of all evil. The love of money is not the root of all evil. People are. Profit is not the purpose of a company. The purpose of company, a company and an entrepreneur, is creating a useful and valuable product or service to as many people as possible, and profit is the result. Number 3: you get paid last. You have to do the job you want, not just the job you've got, and always do more than you're being paid for, and then you get paid well. So you end up getting paid last, but when you do get your money, you have to pay yourself first. Number 4, money does not change you, it just makes you more of who you already are. Number 5, it does not take money to make money. It takes resourcefulness, creativity, innovation, solutions, energy, passion, enthusiasm, drive, desire, persistence, you know, consistency, all these human traits. It takes human traits. To make money, not money. Okay, number 6, money does not make you happy. That's a massive myth. All things the same, you probably will be happier with more money. It makes a great servant, just a terrible master. So make sure it's a good servant and make loads of it. Number 7, they say time is money. Time is not money because you can spend 5 minutes and earn 5 grand, or you can spend 5 hours doing admin and earn nothing. So no two tasks have the same value. You need to know the value of your task, not the value of your time. It's the task, not the time. Ooh, I'm gonna write that down. Task, not time. Okay, labor used to be time for money, over time changed world now. Okay, number 8, you can save your way to wealth. No, you can't, not anymore. Cash is trash. Cash has no interest. Cash goes down in value. You need to invest and speculate your way to wealth. And then number 9, they say cash is king. Cash is not king. Cash flow is king. So if you'd like to create more cash flow, I invite you to join my special recurring income summit coming up in a few days' time. And because this is a new piece of content I'm writing for Forbes magazine and I just wanted to come here and unleash some of it, I'm actually going to give you a free ticket. So if you go to robmoore.events, you need to write this link in a URL right now, robmoore.events, R-O-B m-o-o-r-e dot e-v-e-n-t-s. If you go there right now, you can actually claim a ticket to the Recurring Income Summit. I've just agreed the founder of Netflix— I'm going to interview the founder of Netflix. Um, the head of marketing globally of Disney, um, is going to be, um, doing a recorded keynote speech at the Recurring Income Summit. My friend Matt Fidesz has over 1,000 franchises. And was Michael Jackson's ex-bodyguard in martial arts. He is going to be speaking at the Recurring Income Summit. I can see people putting it in the link. That's right, it's robmoore.events. Go right now because the event is coming up quite soon. If you'd like to build multiple streams of recurring income from digital assets that are quick to set up and don't cost a lot of money, you need to jump in on the Recurring Income Summit. So go to robmoore.events right now. Rob Moore events. Go there right now. I have to get out of here. I'm going to go deep again on this tomorrow on Facebook. So if you want me to go even deeper, come and follow me on my Facebook where I'll go live tomorrow morning UK time. And then I'm doing this as a full article for Forbes magazine coming soon. Thanks for tuning in. Love you all. Thanks for tuning in on the TikTok. Thanks for tuning in on the Instagram. Go to robmoore.events.