The 6 Money Fails of the Broke (Avoid) ⛔️
In this video Rob Moore explains six common personal‑finance mistakes that keep people "broke" – a state where they have income but constantly run out of cash. He first distinguishes "broke" (having options but overspending) from "poor" (lack of basic resources) and frames the advice against a backdrop of high inflation, taxes, and cost‑of‑living pressures. The six fails are: (1) trying to look rich by buying status symbols, which ultimately makes you poor; (2) spending more than you earn, violating the fundamental law of money; (3) not tracking spending or having a budget, preventing mastery of finances; (4) purchasing depreciating liabilities (cars, watches, fast‑fashion) instead of appreciating assets; (5) making purchases while emotionally unbalanced, leading to impulsive decisions; and (6) saving without investing, which loses value to inflation and creates a false sense of security. For each fail, Moore offers concrete tactics – adopt a modest lifestyle, keep spending below income, create a pre‑income budget, use separate accounts or charge cards, focus on assets that appreciate, pause purchases when emotional, and treat savings as a short‑term bridge to investment. He concludes with a call to action, promoting a free Zoom masterclass on sales and wealth‑building, and urges viewers to share the video to help others avoid these pitfalls.
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The 6 main money fails of the broke. This is common across the world. I'm talking about broke, not poor. Broke is you have options but you spend too much money and you have nothing left. Poor is developing world poor. Now, the 6 main money fails of the broke, you're going to make sure you want to avoid these at all costs. Now, right now in the world, inflation is as high as it's been for decades. The relative cost of living is as high as it's been for decades. The relative, um, amount of taxation is as high as it's been for decades. Fuel, food, heating, electricity, you name it, prices are skyrocketing, and you must be prepared. I've got a little bonus to share with you as well, so stay with me till the end. So here are the 6 epic money fails of the broke. Number 1: they get poor trying to look rich. Number 2: they spend more than they earn. Number 3, they don't track what they spend. They don't know what they spend. They don't have a budget. Number 4, they buy depreciating liabilities. In fact, I'll cover the last 2 at the end. Let me detail each one first. So most people are getting poor trying to look rich, buying cars they can't really afford, living in houses that are too expensive for them, buying clothes and watches and jewelry and going to places to look good on social media and living above their means. If you act fairly poor for long enough, you'll end up being rich. If you act rich for long enough, you'll end up being broke. Okay, number 2, this is the fundamental law of money. So money is actually pretty simple. Never spend more than you earn. Let me say this again, never spend more than you earn. But most people are spending 110%, 120% plus of what they earn. So every month they're falling further behind, they're getting more and more in debt, and they're struggling more financially. And the law of compounding was stated, I believe, by Warren Buffett as one of the 8th, in fact, wonder of the world. Now, if you are in credit and you have the law of compounding, then it can really snowball and you can make a lot of money. But if you're in debt and there's the law of compounding, it can reverse snowball very quickly. So keep it simple. Never spend more than you earn, even if you only save 1% or 5% of what you earn, and target to increase that over time. Okay, the third thing is they don't track what they spend. They don't have a budget, um, you know, they don't, um save a portion of their earnings. They're not disciplined with their spending. They're not delaying gratification. And often this is trying to keep up with people on social media, or that instant fix, that addiction to those, um, emotions. So have a budget before the money comes in, apportion what you're going to save, what you're going to spend, what you're going to live on. And you can even game yourself by having separate accounts and only having your monthly budget spend on a card. You could use a charge card instead of a credit card, or in your spending account. Okay, so number 4 then is that people buy depreciating liabilities. So they buy cars that halve or two-thirds in value over 3 or 5 years. They buy a watch in a shop which halves in value after 9 months. They buy clothes which goes down by 70 or 80%. Within a year, whereas you can actually buy appreciating assets. Anything can actually be a depreciating liability, or anything can be an appreciating asset. You can buy a car as an asset, a car as a liability. A watch is an asset, a watch is a liability. You can buy clothes in the sales and they can maintain their value, or you can spend a load of money on clothes that are worth virtually nothing the minute you've walked out of the shop in them. But if you buy appreciating assets instead of depreciating liabilities you're going to not make one of the 6 epic fails of the broke. So number 5 is they spend when they're emotional. So a fundamental law of money is you will make better money decisions when you're emotionally balanced, when you're emotionally neutral, when you can see the upsides and the downsides, the highs and the lows. So if you can make sure that when you're emotional, either high and you want to celebrate, or depressed and you either want to hoard or spend to alleviate the pain, you're You're away from your credit cards, you're away from your spending, and try and make your big financial decisions, or most of your financial decisions, when you're balanced, when you're neutral. Take some time to think about your purchasing decisions. And then the sixth one is— and this is one that most people don't understand— is people save but they don't invest. So if you save, you're losing about 10% of your money a year in inflation. And if you save and then you end up using that savings because you end up needing to rely on it because your income's dropped, then those savings disappear. So actually what you want to do is you only want to save briefly as a bridge, and then as soon as you've built up enough to invest in something, you would immediately want to invest. Because when you invest, you protect your money from inflation, and then when you invest, you get a return, you protect that capital, you have capital appreciation and income. Whereas when you save, you can end up relying on those savings and therefore not challenging yourself to go out and earn, or you need those savings for something and therefore you deplete them, or inflation erodes them because obviously there's no interest in the bank. So quick summary, thank you all for tuning in, by the way. I can see more and more of you joining. Please hit the share button because right now we're in the worst time really for how high taxes are, how high cost of living is, how high inflation is, um, how much the government are not supporting us how difficult it is just buying fuel, uh, and how your energy bills are going crazy and the food bills are going mad. Everyone's putting their prices up. So, um, I'm going to start doing a lot more content, practical and tactical, on how you can navigate this, on how you can, um, not, um, fall into the traps of getting into debt, how you can save and manage and make more money. Actually, I'll do a recap and a few more examples, but first Um, this Sunday, 8 PM BST, 8 PM London time, I've got, um, a Zoom masterclass you might want to join me on. It's called How to Close the Sale and Put Money in the Bank, and the link is tiny.cc/robmoney. That's tiny.cc/robmoney. So if you'd like to learn how to close the sale and put money in the bank, whether you're employed or you're an entrepreneur, simply register. It's my gift to you. Tiny.cc/robmoney. Go there now and then come back and watch the rest of this. Um, I'll put the link in the comments once I've finished the live. Here's what I'll teach you, by the way: how to get uncomfortable earning small so you can earn big, asking for the sale and getting that money in the bank, and overcoming your issues around that, getting clarity on your offer, making it compelling, making it unique, and making a product and a service that flies off the shelves. Powerful and profitable pricing. There are 6 main ways to increase your pricing. I'll teach you all of those. What to do when people say I can't afford it, or what to do when people turn down your salary raises, or what to do when people reject your offers. Um, and I'll give you some tricks to align your values with others to make sales less salesy, and some reframes to overcome all the different sales objections, whether you're employed or an entrepreneur. So if you go to tiny.cc/robmoney. tiny.cc/robmoney. It's called How to Close the Sale and Put Money in the Bank. That's a simple— and thank you for sharing, by the way, there, Anna Marie. And it'll be this Sunday, 8 PM BST. I'm going to do some series on saving and making and earning more money in these disruptive times. I decided I want to help even more people while this uncomfortable situation is happening. That being said, there are going to be a lot of upside opportunities, and I'm going to help you with that. So what I've covered here are the 6 main money fails of the broke. Number 1 is people are getting poor trying to look rich. Instead of that, act poor for the short term so you can save and invest and build recurring income so you can get rich for the long term. Observe the masses, do the opposite. Number 2 is most people are spending more than they earn every month. It's a fundamental law of money that you will You will make more money if you spend less than you earn every month, and you will get into more debt if you spend more money than you earn every month. It's so obvious, yet 90-odd percent— I don't know, it could be 95, it could be 99.9% of the population don't follow that rule. But to know whether you're spending more than you're earning or not, you have to do number 3, which is you have to track what you're spending, have a budget, be disciplined in having a maximum that you can spend each month or each week. Just making sure that you— well, let me, let me say this: you cannot master what you do not measure. So you can't master your own finances unless you measure your own finances. Let me say that again: you cannot master what you do not measure. Number 4 of the 6 epic money fails is that people buy depreciating liabilities, especially with tax-paid money. So imagine that you earn money, let's say £5,000 a month. You get taxed 50%, so you're earning £2,500 a month. And then you spend that money on the £2,500 that goes down to £1,000. So you've earned £5,000 and you've netted £1,000. You've lost 80% of your money. So it's bad enough having to pay half your money in tax, but then to buy depreciating liabilities, that, um, you know, it's a double whammy in terms of losing money. So you need to buy appreciating assets. Just keep following me, keep registering for my masterclasses, and you'll learn more from me on that. Number 5 epic money fail is people spend when they're emotional. So if you're really high, be careful not to over-celebrate and spend money you haven't earned yet. And if you're really low, be careful either not to hoard and never spend or invest, or to spend to alleviate the pain. So many people are addicted to things and they're spending to alleviate the pain. Be careful to make big, important money decisions when you're neutral and when you're emotionally balanced, and when you can review the upsides and the downsides and make a logical, non-emotional decision. And then the sixth epic money fail of the broke is they do sometimes save, but then they don't invest. So they're losing 10% of their money to inflation, or they have an emergency or an irregular shock, and they end up having to dip into their savings, and that's gone forever. You're earning nothing in the bank on interest. So savings should only be a bridge to invest. You need to get your money out your savings as quick as you can and invest into an appreciating asset that has capital growth and an income stream. So just a quick little share for you there on the 6 epic money fails of the broke. Please hit the share button. Let's help as many people as we can. Because in the world we're in right now, these tips will really help people. Um, and remember, I've got a Zoom mastermind. I'm gonna give you— gift you a free place, um, from me to you. That being said, I can only have 50 places for non-Rob Moore, Rob.team subscribers. So I'm gonna have about 200 people on this Zoom mastermind max, and I can only give 50 places to my non-paying subscribers. So it's first come, first serve. My videos get tens of thousands, hundreds of thousands of views, so you have to be quick. So if you go to tiny.cc/robmoney, go there now, tiny.cc/robmoney, I'm going to share with you for 90 minutes plus Q&A, um, how to close the sale and put money in the bank, how to get uncomfortable earning small so you can get comfortable earning big, asking for the sale and getting the cash in the bank and getting the money over the line. Creating a compelling offer and creating clarity and your niche and a sexy offering and a product that sells, flies off the shelves. Powerful and profitable pricing. I've got 6 different ways that you can increase your pricing and your earning. What to do when others say I can't afford it, or they give you excuses or objections. How to elegantly sell without selling. This is all going to be covered. I haven't done training on this probably since I wrote my book Money. 5 years ago, and I did write the UK's best-selling book on money called Money 5 years ago. So this is content that many people haven't seen for many years. So I'll see you at tiny.cc/robmoney on how to close the sale and put money in the bank. Hit the share button, share the love, because people need this right now, including you. Um, and if you missed the link, I'm going to put it in the comments. Thanks for tuning in. Try not to go broke by acting rich. Don't worry about what other people think about you. Worrying about what other people think about you and trying to live up to that expectation is a sure way to go broke. Cool, cool, cool. Thanks for tuning in. See you later. Hit the share button. The 6 epic money fails of the broke: people getting poor trying to act rich, spending more than they earn, never tracking, um, what they spend or having a budget, buying depreciating liabilities, spending when emotional, and saving but not investing. And remember this: if you don't risk anything, you risk everything. Thanks, Amanda, for sharing. Thanks for following my work and everything you do. I really appreciate you.
