Investing Principles You Need To Know

17 million people have now used buy now pay later loans, and to me that is shocking. It's just come out in the media now, 17 million people in the UK. That is what, a quarter of the population are getting themselves into debt habitually. And of course, the companies that offer us the buy now pay later loans benefit from us getting into debt because that's how they make their money. This for me is a shocking statistic, and I'm going to talk through what the stats are, and I'm going to give you some fundamental rules of managing money so that you don't get yourself into debt. I've got 1, 2, 3, 4, 5, 6, 7 basic fundamental laws of money which will get you out of debt and make you a mini-step millionaire, i.e., in a few short years with these fundamental practices, you could make realistically more than $1 million actual net worth. Okay, so first off, here's the news: more than 17 million UK customers have now used a buy now pay later company to make an online purchase. For me, that's absolutely shocking. Why do you need to buy stuff and pay for it later unless it's absolute sustenance. Like, if your only way to live and to eat is to buy now and pay later, fine. But depreciating liabilities and TVs and gifts and electronics and all these things that we buy now pay later, even when it's 0%, by the way, because it just draws us into the trap— I, I don't see why we need to do that. So apparently as well, check this out, 17 million UK customers have now used a buy now pay later loan. The payment method is also set to have its biggest Christmas ever. So get this, inflation is really high, supply chain is really reduced, pushing prices up, interest rates at a virtual all-time low, inflation virtual all-time high, um, supply at definitely at virtual all-time low, interest at virtual all-time low, yet buy now pay later is set to have its biggest Christmas yet. I think you should buy now pay now unless you're in— unless you're investing in an asset, which is completely different. So, um, look, please hit the share button. There are millions of people even in developed countries that are, you know, drowning in debt, and it's not because they were raised in the developing world is because they have not been taught fundamental skills of managing money. And I'm going to give you some basic fundamental ones which stand the test of time and will make you a Mini-Step millionaire. So please hit the share button. Let me just finish the news and then I'll give you the tactics. They're simple to use, by the way, as well. So, um, buy now pay later firms allow people to manage their shopping either by postponing their bill for a short while or splitting it into manageable chunks over time, interest-free. But the problem with interest-free, it's like a gateway drug, is it builds you into the, oh, I can buy now and pay later, and then it's interest-free until a certain time, or it teaches you to delay payments and add interest. And here's the paradox of interest: interest that you pay is high, but interest that you gain is low. So you're earning nothing in the bank but the interest that you're paying is of course very penal. Now, the biggest provider in the UK, Klarna, has seen its customer base double to 15 million since early 2020. So the people that are getting, um, payday loans has doubled in what, nearly 2 years according to the BBC article here. Um, growth is fastest among people in their 40s and 50s, so not just the gen Z trend. Okay, right, so I'm going to give you a few tips here on how to not buy now pay later unless it's an asset and manage your money very well. This will make you a mini-step millionaire if you actually just fundamentally stick to these rules. So number 1, never spend more than you earn. This is so simple and so obvious, it's a fundamental law of money, but most of the population don't understand it. Never spend more than you earn, which means you've got to know what you earn post-tax, and you've got to make a budget. Number 2, only use debt for assets. There's no problem with investing in a pre— an appreciating liability. An appreciating liability, that's hard to say with your aligners in. Nothing wrong with investing in real estate or investing in real assets that can get you a you know, realistic but regular return. But only use debt for assets, not liabilities, because if you use debt for liabilities, you're paying interest, increasing your payments, but the value of the liability is going down, so you're losing twice. Okay, number 3 then: you've got to set a target of the amount of money that you save per month. So rule number 1, never spend more than you earn. The next rule linked to that is how much are you going to save of your net earnings per month? Maybe start with 5%, then 10%, then 15%. In a few short years, investing your savings into a realistic asset like, um, funds, um, just at a 5% return, in a few short years you can end up becoming a mini-step millionaire. So what's your target? Let me know in the comments. Is it 10% of your earnings? Is it 15? Is it 20? Now the more you earn, the more you should be able to save. But what actually happens with people is the more they earn, the more they spend, and actually the amount they save as a percentage goes down, not up. This is why actually it's nothing really to do with how much you earn as to whether you become a millionaire, because there are people that make a million a year and every year they're more in debt. There are people who make 60, 70 grand a year and in 15 years they can actually become a millionaire. Which is linked to rule number 1, which is never spend more than you earn. Okay, I'll come back to these rules. Please hit the share button if you're finding this content useful. Also, debt is a pandemic, and let's be honest, the government are in trillions of debt. There's going to be way more taxes and way more debt created and way more printing of money and massive inflation post-lockdown. And you've just heard the news in the UK, COVID strain. So, um, there could be a massive debt pandemic for decades after this lockdown because it's got, you know, this COVID and this lockdown's got to be paid from somewhere. So please hit the share button because I want to really help change the world and stop this before it starts. My personal mission is to help as many people on this planet start and scale their business and get better financial knowledge and education. And if people don't understand these rules, your friends, your family, the people around you, your customers and clients, your network then honestly, that's just going to go up. National debt is going up, so individual debt's probably going to follow suit. They're going to need to raid us, they're going to need to tax us to get their money back. So it's important you hit the share button here, right? So some rules of money saving, budgeting, is number 1, never spend more than you earn. Number 2, only use debt for assets. Number 3, save 10% of your income and then increase it to 15% and then 20%. I've got 4 more tips, but first of all, big news in the UK, I think shocking actually, is that more than 17 million people have used buy now, pay later loan services. And whilst you can get buy now, pay later apparently interest-free, it can be the gateway drug. It's a bit like eating artificial sugar, which builds your addiction to real sugar, and then you end up getting more weight. You drink more Diet Coke with all of the Go Large burgers and fries you have, and you end up putting on more weight. This is the same with these buy now pay later loans. So 17 million people, and it's set to go up in Christmas, and it's nearly doubled, or it's gone up from, um, yeah, it's gone up from 15 million since— this actually doesn't make sense, let me read you this. But the biggest UK provider in, um, Klarna has seen its customer base double to 15 million since double what it had in early 2020. But anyway, it's doubled, so, um, this debt could become a pandemic. All right, so let me share the rules with you. Never spend more than you earn. Only use debt for assets, assets that produce income. It's a good way to leverage debt, but you've got to know the difference between good debt and bad debt. Do you know the difference between good debt and bad debt? Okay, number 3 then is save 10% of your income, then increase it to 15% of your income, then then increase it to 20% of your income, then increase it to 25% of your income. And if you can get to a third of your income is saved— so I teach my kids, spend a third, save a third, invest a third. Spend a third, save a third, invest a third. If you can get to that point, no matter— even if you earn 30 grand a year and you spend 10, save 10, invest 10. 60 grand a year, spend 20, save 20, invest 20. You're going to be a Mini-Step millionaire in just a few short years. So that's your ideal position to get to. Now, it might take you a few months or years to get there, but at least set that target. Reduce your spending. Um, don't buy shit you don't need, especially depreciating liabilities. Like, if people invest in courses, training, education, well-being, I actually think that's often an asset. But electronics equipment, TVs, things that halve or, um, two-thirds in value in 3 years, expensive cars, stuff like that, it's a waste. So invest more money than spend it. Put money into things that you appreciate and appreciate you, such as well-being, investing in your education, etc. But electronics and expensive trips and stuff for the house and gifts and, you know, just stuff you go and buy in the shops that you don't need. Stop buying shit you don't need. Save the money and put it into an asset that goes up in value. Now, when you have enough assets that produce recurring income, you can buy shit you don't need every day with the income from the assets rather than the capital. When you spend capital, it's gone forever. When you invest capital into an asset and that asset produces recurring income, Spend it one month, comes back the next month. Spend it one month, comes back the next month. You know, a cat, a cat will crawl on your lap, chuck it away, back on your lap, chuck it away, back. Just in the end, all right. So that, you know, um, recurring income is the same. Don't know if you like that analogy. So don't spend emotionally. Um, pleasure and pain are emotions that will erode wealth. You're celebrating, you had a good day, you spend loads of money, you go out and get drunk, you eat expensive food. You're depressed, things are going shit, you spend to feel better. So emotional spending at the extremes, extreme pleasure and extreme pain, usually erode wealth. So don't spend emotionally, spend logically. If you're high, come back down to balance. If you're low, bring yourself back up to balance. Generally when you're low, you tend to hoard. Generally when you're high, you tend to just be frivolous, and you want to get back into balance. Of course, you can price compare. A great way to not spend emotionally or invest emotionally is always have a rule to do your diligence and price compare before you buy. Get them, you know, buy stuff in the sales, buy stuff below market value, buy stuff in the dips of the peaks and the troughs. Okay, and then finally, know the full cost. So please hit the share button if you found these tips useful. I think it's shocking that 17 million people in the UK— what's that, a quarter— have used buy now pay later services, which is ultimately the open gateway for debt. And you know, these companies, I'm not knocking them necessarily, we all have to earn a living, and maybe if people are wise, it probably helps them, um, because you know, they may say, oh, well, you can do it interest-free, but then just teaches you to buy now pay later, and the second time you do it there's a bit of interest. The next time you do it, there's more interest, and then it becomes your crack cocaine. So finally then, you gotta know the full cost of everything you buy. So when you buy a car, you have got, of course, the purchase, but you've also got the depreciation, the maintenance, the ongoing management, the repairs, the insurance, the tax. And people don't understand this when they buy something. It's not just the cost of capital. Ah, that's another thing, the cost of capital. People just think it's the cost of the asset or the liability that is the cost. Cost of capital, depreciation, management, maintenance, insurance, um, tax, etc. You gotta know the full cost of the thing you're buying. Work out the full cost of the thing you're buying over a period of time let's say it's going to be 3 or 5-year ownership. So for example, um, you know, I like to buy Alexander McQueen, I like to buy really nice clothes, but I'll usually get them in the sale when there's about 40 or 50% off. I love buying vinyl and hi-fi equipment, I usually buy it secondhand. So I, um, I have a quarter of a million pound hi-fi system, probably paid about 80 grand for it all in because I bought them secondhand and I'm now just, um, swapping it around and getting some headphones, etc. I've managed to do a deal at 25% off new price for my headphones and my amp, and that's about the same as the secondhand market right now. So basically, I won't pay the depreciation, and I'm going to sell my hi-fi at a profit. So quarter million pound hi-fi bought for, you know, let's say 80 grand, probably sell for about, I don't know, 85 to 100 grand. So I've been paid to own that depreciating liability. However, if I'd have bought the fifth— the speakers, 50 grand new, the amps, 50 grand, 50 grand, 50 grand— my 250 grand would have turned into, um, 90 or 100 grand. And then there's the ongoing repairs. So I did a little rant on TikTok which went quite viral about, um, don't own a Lamborghini, because you own a Lamborghini, okay, you buy it, but then there's the depreciation, there's the, the ongoing costs, people scratching it, the maintenance, the upselling from the dealers. It goes on and on and on and on. By the way, there's loads of other ways to save and make money, what you can run and offset against a business, how to invest in assets and find the right assets, how to understand your mindset around money. So if you'd like to learn a lot more about all of these tips and tricks, I actually deliver money content every single week for free. So if you go to robmoore.com/mmm, That's my name, robmoore.com/mmm. You can pick up a load of money-related gifts. So I actually wrote the 9 misconceptions of money that the masses don't know for Forbes magazine. You can pick that up at robmoore.com/mmm. I actually, um, did a guest article for Martin Lewis, who's the money-saving expert in the UK. And I wrote 12 ways to save £1,000 a year. So if you use them all, you can save £12,000 a year. I wrote that article. If you go to robmoore.com/MMM— I'm just typing in the link in the comments— robmoore.com/MMM, you can find all these gifts for free in your inbox. Um, I only send one email a week. I don't spam the hell out of you. I don't make any, uh, selling in there, although I did do one cheeky Black Friday offer because I wanted you to get a deal. But other than that, there's no selling. So go to robmoore.com/mm. Either go there right now, or at the very least, make a note of the link: robmoore.com/mm. You'll also get a weekly resource from me, whether it's an interview with a billionaire— I've interviewed 16, I've got my 17th coming up— um, or whether it's the laws and rules of money, um, and some money-saving and making tips and tricks. 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I teach you strategies and tactics, mindsets and skill sets around money, and it's all at robmoore.com/mm. And please give that gift to people you know. Instead of people buying shit they don't need at Christmas, instead of getting into debt at Christmas, what about teaching people the gift of education? Maybe you could buy them my money book. Maybe you could share this video with them and help change their relationship and attitude to money. Okay, so quick summary then. Thanks for joining me, by the way. Make sure you're following me, whatever channel you follow me and you watch me on. Make sure you are following me because I go live at random times, and if you don't follow me, you won't probably get access to the live element of the content. So there's more than 17 million people in the UK now who've used buy now pay later services. I think that's shocking, and I think that needs to change. Now, I'm not knocking companies that offer that because sometimes they offer interest-free, but the problem is it's a gateway drug and a lot of people aren't educated enough on money. So I want to change that. So this is only going to be more and more and more according to the BBC. Apparently it's doubled in nearly 2 years, the amount of buy now pay later loans people are using. Of course, inflation's really high, government are printing money like it's going out of fashion, Costs of living are going up and up and up and up, so more and more people are using debt now because they can't afford it. But you actually can afford it, you just need to manage the money that you get and you make better. So, um, this Christmas is predicted to be the highest ever use of buy now pay later loans, and I really don't think that that should be the case, and I want to put this warning out there. So a few rules of money that can help you budget well, save well, make money, and become a mini step millionaire. This is not Gerridge Quick, Let's get rich along. So number 1, never spend more than you earn. Fundamental rule, never spend more than you earn. Number 2, don't get into debt unless it's for assets. Assets produce recurring income. They go up in value, not down. So only use debt for, um, good debt for assets. Number 3 is target first to save 10% of your income. Now that's doable even if you only earn a small amount. Reduce your expenses a bit, maybe get a little bit of commission or bonus or overtime, 5% each, 5% saving, 5% more, more money, that's 10%. And in 3 to 6 months, that's 15%, then it's 20%, then it's 30%. And your ultimate goal should be to get to spend a third, save a third, and invest a third of all the money you earn. And that's what I teach my kids. If they get any pocket money, if they earn any money working in my company, They're allowed to spend a third, but they've got to save a third and invest a third. Now I'm just teaching them about investment because they're 7 and 10, so at the moment it's save a third— sorry, spend a third, save two-thirds, and then we'll be investing one-third. Teach them young, my friends, teach your kids young. Okay, share this with your kids, by the way, put this on your socials, let your kids see it. Okay, then once you have managed your spending better and you're starting to save money, then you need to invest, and then you need to speculate. So it goes save, invest, speculate. Not speculate first, um, and not invest before you save. You save, you invest, then you speculate. So investing is well-researched, proven assets that go up in value that you invest in carefully. Speculation is new asset classes that are less proven that can go up a lot in value but can go down a lot in value and you only put money you can afford to lose into speculations. But a lot of people at the moment are investing in cryptos and NFTs like it's an investment to them, when in reality it's a speculation. Nothing wrong with speculating because that might be your future asset, but speculation money is easier to lose than investment money. So you save first, then you invest, then you speculate. Never spend emotionally. Extreme emotions, extreme pleasure, extreme pain will erode wealth. Extreme pain, probably hoard money, end up losing it. Extreme emotions, probably be frivolous and throw money away. So, you know, price compare. Take some time to consider if the thing that goes down in value you actually need, and then, only then, when you're balanced emotionally, make your decision. Now, I think Spending on your mental well-being, spending on your education and yourself is actually an investment. Okay, don't buy shit you don't need. Electronics are material goods that go down in value, and you're spending too much on gifts for children at Christmas, etc., who probably don't appreciate it. And then finally, you've got to know the full cost. You know, when you buy a car, it's not just the amount that you pay for the car, it's the cost of capital you could have used somewhere else. It's the insurance, the tax, the maintenance, the depreciation, and all these other costs. So I hope you found this useful. I've got to hit the road. Um, if you— you know, this is all, um, free content from me on my social media pages. If you would like more money-related tips, go to robmoore.com/mmm. That— I'll put the link in the comments. robmoore.com/mmm. Now, um, just make a note of that or go there right now. Don't miss the link. Robmoore.com/mmm. I have done over 200 pieces of content related to saving and making money and investing and building your wealth. You can gain all of those for free at robmoore.com/mmm. I've interviewed 16 billionaires. You can get access to all the billionaire interviews at robmoore.com MMM. I interviewed my first Russian billionaire. I'm interviewing my first billionaire. S. Uh, so I'd always try and bring good value to you when it comes to, um, money. Um, some people are talking in the comments about classic cars. Yeah, my Ferrari Testarossa has gone up a lot in value. My Lamborghini Aventador, not so much. Um, and every week I give you new money-related pieces of content. I wrote the 9 misconceptions of money the masses don't know for Forbes magazine. I wrote for Martin Lewis, who's the money-saving expert, biggest money-saving guy in the UK. I wrote an article for him while he was on holiday on 12 ways to save £1,000 a year, which is £12,000 a year. So if you'd like to get all of this content for free from me, just go to robmoore.com/mmm, as in make more money, and you don't need to pay for that ever, and you get a weekly update and resource, no selling. Uh, and you don't— uh, people have been saying on this, um, these lives they'd like to pay me. You don't have to pay me for this. If you want to invest in your education, you can find my books online, etc. But the, the way I'd like you to pay is just to pay it forward. Teach some people, teach your kids these 7 lessons I've shared in this video. Stop them getting into debt from a young age. You know, the school system gets people into big amounts of debt. Let's interrupt that pattern, um, and share this content on your social media or wherever you can. And let's pay it forward. And let— Christmas should be a good time, you know, when people are having fun with their family and feeling grateful for life. And what Christmas shouldn't be is about getting yourself into more debt and ruining next year and the year after and the year after that. So it's a very relevant time to talk about this. So thanks for tuning in. I really appreciate you all. And remember this: if you don't risk anything, you risk everything. I'll see you on the other side when you're all millionaires. When you're all millionaires, don't forget me. Cut me in 20% on your will. Come on, I'm bringing it to you. Thanks everyone.