The 7 Laws of Wealth Appreciation

7 Laws of Wealth Appreciation. I believe that what you appreciate appreciates, and certainly in the UK specifically, money isn't really appreciated. People don't tend to value it, and you will retain what you value, um, and you will repel what you don't value. Uh, now before I go into the 7 Laws of Wealth Appreciation, there are many laws around money. One of the laws around money is that money tends to flow from those who value it least to those who value it most. So my question to you would be, do you truly value money, or do you value things more than money? Another rule of money, which actually I first heard Warren Buffett share, is that money in the markets flows from the impatient to the patient, which I think someone like Warren Buffett is very patient. He's built wealth over, what, 70-something years. So are you patient around wealth building, or do you allow your impatience and your emotions to, um, damage your long-term wealth building? And do you value money highly enough So I'll come back to do you value money highly enough in a moment, because what I'm going to do is share with you the 7— these aren't the only 7, you know. I wrote the UK's best-selling book on money. The original manuscript was 250,000 words, so these aren't the only laws of money, but they are 7 laws of money. And then I'll come back to the value part. So law number 1 will be to stop spending on depreciating liabilities. Law number 2 will be investing into appreciating assets. Learn to talk today, Rob. Where are your teeth? Put your teeth back in. Number 3 will be learn to manage what you already have first, uh, and what you appreciate appreciates. Number 4 is investing in yourself. The more you learn, the more you earn. But I'm also going to correct that. Number 5 is reinvesting profits back into assets. Number 6 is transcending emotions around money. And number 7 is resourcefulness and the fact that it doesn't take money to make money. But like I said, I'd start with the value. So people tend to spend money on what they value most, and money tends to flow from those who value it least to those who value it most. So let's put those, both of those things together. Let's say you really value how you look. You will exchange money for creams, maybe even augmentations on your face, clothes, and things that you perceive make you look better. A $1,200 iPhone so you can have nice filters. So you spend money on what you value the most. And if you value things that depreciate in value more than you value money, you'll never have money and you'll always buy depreciating liabilities. Now, some people might argue that a good face cream with— I only learned what Q10 was yesterday. Someone gave me a masterclass on what you need to, um, in creams: vitamin A, vitamin B, vitamin C, and Q10. I just learned this stuff. Um, but it, you know, some people might argue that's an investment in yourself. But that aside, come on, that's a bit tenuous. If you value things over money Addictions, experiences over money. You'll always swap your money for them and you'll have no money, but you'll have those things. But those things go down in value. And creators, producers, millionaires and billionaires, they understand about production over consumption. So many people consume brands. I must admit I do too. I have got a Balmain hoodie on. I am a bit of a brand consumer, but I can afford it. But the brand produces, and then the people who get into the brand consume. So someone spends £1,000 on a hoodie, and that'll be worth £150 in a year, whereas the brand has made the £1,000. And the, um, one of the richest men in the world, Monsieur Arnault, of Louis Vuitton, LVMH, Louis Vuitton Moët Hennessy, said that some of the wealthiest margins are in the wealthiest brands. So he loves luxury brands because he has luxury margin. But then some people say, yeah, but they're just produced in the same sweatshop next door. And maybe they are, but the point is the producer values building wealth and produces things that build them wealth. And then the consumer values the consumables more than the wealth, so exchange their wealth for consumables, and then the consumables go down in value. So when you learn to value money and you save money, invest money, have money appreciate, use money well and wisely, put money into appreciating assets rather than depreciating liabilities, or you buy depreciating liabilities at the bottom of the depreciation curve— and I've got lots of examples— then, and you, and you learn about money and you value how you use money and you take care of it and you treat it well and you have a good relationship with it, then you make more money. And compounded over decades, this is millions of pounds. So we'll come back to value. I want to actually cover the 7 laws of wealth appreciation that I've promised in this life. So number 1, stop spending on depreciating liabilities. It's kind of linked to what I've just said. So you could buy a £50,000 Mercedes, which could be worth £20,000 in 3 years. Or you could buy a £50,000 Porsche that was £100,000 new and will probably only depreciate £5,000 a year. Or you cannot buy a car at all and get Ubers or ride a bike and get fit. You can buy clothes brand new. Let's say the item— let's say you buy a pair of Louboutin shoes, new, $1,000. 3 years old, worth $150. Or you can buy them in the sales or not spend the money on those shoes, and you could save, say, $500 over the 3-year life cycle. $500 at 5% compounded return over 20, 30, or 50 years can make quite a significant difference. It can make thousands of pounds difference move forward. So in an ideal world, you minimize your depreciation of where you spend money. Now, of course, You have to have sustenance, so you have to buy things to survive and to live, but anything else out of that you can buy secondhand in the sales at the bottom of the depreciation curve or buy the brands that depreciate the least and actually educate yourself on this. Now I enjoy doing this. I must admit I do love brands. I was at the Alexander McQueen fashion show yesterday and it's not because I'm a super uber celebrity, it's because I spent a lot of frickin' money there. But you can buy in Bicester Village, you can buy in the 40% sales. I don't know if you could claim buying them in the business, get some financial advice from a tax accountant, but in some industries that actually might be part of purchasing as part of your brand, which means you can buy with post-tax, not pre-tax money. So that will save you a good amount of money. So I really enjoy learning this stuff. I have a quarter of a million pound hi-fi system just behind me here. And that record deck's £35,000, I paid £15,000 for it. Those speakers are £50,000, I paid £35,000 for it, and the brand will probably retain their value. That preamp, I— the, um, the record deck preamp, £35,000, I had to pay £12,000 for it, slightly used. So I learned, because I, I do like buying things, I will just admit. I bought a $350,000 Lamborghini Aventador But we bought it— I say we because my business partner and I buy some cars together— but we bought it probably not at the bottom of the depreciation curve, but we didn't lose much money on it considering the Lamborghini. And we bought one of the, the, um, convertibles. They only made a couple of hundred of them, I believe. So you buy limited, you buy scared, you're scarce, you buy the depreciate bottom of the depreciation curve. Um, I bought a Ferrari Testarossa. That's way gone up in value. All my Rolexes and Pateks have way gone up in value. So what you can do is learn about what appreciates and what depreciates, and then start spending your money on things that have depreciated already so someone else has lost the money, and then you can start buying things that actually maybe even start to appreciate. So I listen to vinyl, I love vinyl, it's my favourite music source, and a lot of the vinyl I buy goes up in value. So I'm enjoying listening to vinyl and it goes up in value. So law number 1 of wealth appreciation is to stop spending on depreciating liabilities because Most people don't know the money they're losing because they can't see that they're losing it. Like, if someone scammed you, or you made a bet and you lost, or an investment and you lost, you'd see the loss of money, and you'd really— that would hurt you and affect you, and you would learn from that. But you buy a phone or some kind of material item, you don't see the depreciation, you don't see the loss, because it's just locked in the phone. But you don't have to get the brand new iPhone every time it comes out. You can get a 2 or 3-year-old one, still works really well, but you'll get that for a few hundred dollars and not just over $1,000. And when you implement this across all areas of your life, then you make— this makes a massive compounded difference. There's also, and I sort of referenced it, but what you can buy through a company. So your laptop, your phone, maybe I've got here a Zoom H5 that I'm recording the podcast live episode on. These are— I've got the lighting and all the equipment. I have 3 phones and I use one for Facebook Live. I'm Instagram Live in here. I'm also live on Wisdom, the new audio app. So I can put all of these material items through the company, which means I am paying pre-tax, not post-tax. So that saves me probably 55%, 60% all in, probably, when you've got corporation tax and then you can claim the VAT back and you've got the income tax. So I'm saving a load already there, and then you can depreciate them on your balance sheet, which means that comes off your profit. So when you monitor everything and its life cycle of appreciation and depreciation and you buy at the right time in the right structure, I mean, you can save 60 or 70% of the capital sum of the thing that you buy, and you compound that over everything that you buy, and that is significant. So that's law number 1 of wealth appreciation. Let me just cover the other 6 that I'm going to cover just so you know. And you know what you're here for. So number 2 is investing in appreciating assets. Number 3 is learn to manage what you already have first. Number 4 is investing in yourself. Number 5 is reinvesting profits back into assets. Number 6 is transcending emotions around money. And number 7 is resourcefulness and that it doesn't take money to make money. Okay, number 2, which is a nice foil to number 1, is investing in appreciating assets. So I own, I have 1,300 tenants in my real estate portfolio. I have 3 main real estate companies, investment ownership, investment management and development. And across them all, we have about 1,300 tenants all in. And so I have hundreds of units. I have one big apartment block that's 99 apartments, another one that's 40, 45 that we're developing. I've got one unit block which has 65 tenants. So these are appreciating assets. Property tends to double every 7 to 10 years. It has since I've been investing in real estate because it's doubled and doubled again pretty much. And it has actually, if you go back to 1088, you can track back or go back to nationwide house prices, 1950s, you can see that real estate in the UK tends to double every 10 years or so. So if I invest into real estate, my capital is going to double every 10 years or so. But if I have leverage where I just put a deposit down and then I borrow off the bank, then my capital return is going to probably be 4 or 5 times that again. So, um, you can see most things as an asset. So like I said, I have a quarter of a million pound hi-fi system, and some people would think that that's a disgraceful opulence, and you know, um, but actually it's just a way to park money. I wouldn't say it'll go up, it might a bit, I have bought well, um, but at the very least the money is there to save from inflation, save from theft, save save from scams, save from myself buying Alexander McQueen, save from my wife, and save from my children. And I can get some pleasure and enjoyment out of it. When I buy cars, I try and buy them at the right point. So I bought a Ferrari Testarossa a few years back, and I mean, that's probably nearly doubled in value now. Are you investing in your digital real estate? So for example, I'm just here live for the first time on Wisdom. So I mean, I'm investing my time in doing a Wisdom Room, which is a bit like Clubhouse. To build some digital assets. And the digital asset will be the recording of the room and the new followers I may gain, um, from the Wisdom Room. By the way, if you are listening in on Wisdom, you can follow me just by hitting my profile. There's a follow button underneath it. I'm also live on Instagram. And so if you're, if you're watching on my Instagram, make sure you do follow me as well. Do you buy domain names? Do you have NFTs? Do you have followers, web traffic? Do you write articles and blogs? I'm recording a podcast here. That's a digital asset for me because I earn on every podcast through sponsorships and endorsements, et cetera. So you can invest in appreciating assets in terms of physical real estate, like real estate and physical assets such as art and watches and cars and in the stock market. But you can also have digital real estate, which you don't have to invest money in, but you just create through your content, your ideas. And your resources and your web presence. I'll tell you what I'll do. I'll save digital real estate for another episode because there are probably more than a dozen digital real estate assets that you can create with virtually no money that you could probably do in 15 to 30 minutes, not necessarily earn in 15 to 30 minutes, but set it up. But the point is you invest into appreciating assets rather than depreciating liabilities. That's number 2 law of wealth appreciation. Appreciation. Number 3 law then is learning to manage what you already have first. Now, it was, it was Warren Buffett that said, um, you won't get more money until you learn to manage what you already have. And I would add to that that you, you probably won't sustain growing your wealth unless you learn to manage what you already have. So if you knew a gambler, would you loan them some money or give them some money? You probably wouldn't. Because you, you have an idea of what they're going to do with that money. So if you don't manage your money well, you will repel attracting more money because people will look at you and go, you're un-lendworthy, you're un-investible, it would be a bad decision to invest with you. And so that is a— there's quite a lot to that. Again, I might do a specific episode on that. By the way, if you're enjoying this content so far, I have a podcast called Money. We're nearly 200 episodes in, so you can find that just by going on Google and searching Money Podcast or Money Podcast Rob Moore, just in case you're enjoying this content so far. So if people don't see that you're investable or purchase-worthy, or you're trustworthy, or that you back well your products and services, then you're not going to get more money. You're not going to attract fees. You're not going to attract loans. So you have to learn to manage yourself and manage money very well before you're going to retain more. You might in the short term blag a loan, or you might blag, um, you know, someone buying from you. But when they see you manage it badly and squander it, or you don't deliver, or you're not trustworthy, or you're all over the place, or you're overwhelmed, or you're a bit you know, you flighty and you follow get-rich-quick, then you won't get more. So it doesn't really matter whether you have $100 or $1 million, and it doesn't really matter if you have 5 followers or $5 million. How you do anything is how you do everything. How you do one thing is how you, how you do all things. So learn to manage yourself well, your brand well, and money well, and you'll attract more of it because people will see that you are investable. Now, being investable, there's so many different traits of being investable, which I'm going to cover with you on point 7. Okay, so I believe that what you appreciate appreciates, and I'm on a mission to help as many people on this planet start and scale their business and get better financial knowledge, especially in the UK, not so much in our American friends, you're a bit further ahead of us, but it's still quite common that people have a bad relationship with money. You know, if you think about how we're raised, our parents will say money doesn't grow on trees and you have to work really hard and save your money. And even religion will say it is more likely that a camel will go through the eye of a needle than a rich man go to heaven, or it will say that the love of money is the root of all evil. So many of us, certainly in our 30s, 40s plus, have been raised religiously and, um, familially, in a way that pursuing money is somewhat bad or evil, or you'll be judged, or it's difficult. This is not true. Look at these 6- and 10-year-old YouTubers and these podcasters and these influencers and these creators making millions, not knowing that it's hard and not knowing that it's bad. And I believe what you appreciate appreciates you. Get more of what you appreciate. You get more of what you focus on. Thoughts become things. Where focus goes, energy flows, and results show. So start to learn to love and appreciate money, and you will learn to appreciate money. And by appreciate, I mean be grateful for so that it grows. Because if you think about it, what, what you are grateful for, you will attract more. But what you are ungrateful for, what you don't want to be known for, you will repel. Like, for example, let's say you had the belief that to be rich was to be greedy. You would repel all wealth because you wouldn't want to be perceived by society or your friends as greedy. So you'd make damn sure that you don't earn much money, or you earn just enough to not be judged, and you'd repel everything else. But if you believe that money made you look generous and it could help you become a philanthropist and was inspiring to millions, you'd attract more of it and you'd embrace it. So, um, learn to manage what you already have first and learn to appreciate money, and it will appreciate. Okay, so law number 4 of the 7 Laws of Wealth Appreciation is investing in yourself. You are your best asset. Invest in yourself wisely. You pay yourself the best return. The more you learn, the more you earn. So people see investing as stocks and bonds and real estate, et cetera, but really don't value themselves in that way. And if you don't invest in yourself, why should anyone else invest in you? If you don't value yourself, why should anyone else value you? So I commit every year hundreds of thousands of pounds to invest in my personal development, my education, mentors, sales and marketing and leadership courses for myself and my staff. I have what now, probably 85 staff in my main training companies, probably not quite as many, but nearly the same in contractors and, you know, my guys who build and develop my properties for me. So I don't just invest in myself, I invest in them. And people are your best investment often, not always, but often. And they can pay you a really good return. But a lot of people, they're scrimping on themselves. But if you scrimp on yourself, other people are gonna scrimp on you. I'll give you a good example of this. We've all had a friend that ducks out of the round. So, I don't know if you call it the same in America, but in the UK, you know, you'll go out with friends and you'll do rounds, which is someone will buy all the drinks for everyone, and then next person's round, they'll buy all the drinks. And there's always one that ducks out. Oh, they seem to be in the toilet when it's their round. Oh, they've gone home early. Yeah, and in the short term, they save £30. In the long term, no one wants to spend any time with them or invest with them or buy them anything. So you have to invest in yourself. That's the most important investment. Warren Buffett believes that. Many of the biggest billionaires, they believe that too. Okay, number 5 then is you need to kick in the law of compounding. And the way that you kick in the law of compounding is one, being in an asset class or in wealth building long enough. Number 2 is finding an asset that appreciates. And then number 3 is reinvesting back profits into that asset to grow the capital value and grow the income. So when you make money, don't just take it, reinvest it, build more digital real estate or physical real estate, or pay off some debt so that you've got lower loan to value, therefore higher income, or reinvest into marketing or reinvest into sales or reinvest into training and development or your personal Education. Brian Tracy taught me that you should invest about 10% of your earnings into your personal development, or the value of your car. Now, I suppose if you have a $300 rusty car or a Lamborghini Aventador, that makes a difference. But, you know, that I've found to be a good measure of roughly how much you should invest in yourself. If in doubt, I'd invest a bit more. Okay, number 6 then is transcending emotions around money. Now, this is a big one. I want you to get ready for this, um, because I believe that volatile emotions erode wealth. Extreme emotions erode wealth. So, um, and that can be good as well as bad, by the way. Let's say you're really excited, you've just won the lottery, you love everything and everyone, you buy a, I don't know, a quad bike for all your mates, you take them out around the world. You know, um, Mike Tyson famously squandered, I think, hundreds of millions. I can't— I saw the number recently, it was hundreds of millions. And he said, there were a load of hanger-onners and leeches who spent all my money and advised me badly. But he didn't learn how to manage the money, and he would have been in a relatively elated, a careless, not careful state because he was making loads of money. So you could— if you're careless, you will squander money, you will celebrate too much, you won't do any diligence and research and analysis, and you'll throw money left, right, and center. You won't be as committed and as focused. You'll relax. But then if you're overly careful or depressed or down, overly low, you will hoard, you won't invest, you know, you'll, um, you'll become tight and people won't, um, invest in you, and you become bitter and resentful. So volatile emotions, high or low, tend to damage wealth building. So You need to transcend your volatile emotions and make your investment and money decisions in a balanced and neutral state. Not too high that you're flippant and careless, not too low that you're too skeptical and careful. Balance your emotions and that's where you make your investing decisions. You know, I know I'm a bit of a sucker for being sold to and I know I can get really excited and I know I just go, oh yeah, all right, let's do it. Oh, you only live once, I'm still young, yeah, fuck it. Oh shit, when I get back. So, um, taking some time away, doing some price comparisons. You may be sleeping on a big money decision, doing the, the diligence and the research required and necessary, and balancing your emotions. Now, that's emotions around the decision of investing and spending money, because it's for investing and spending, but it's also around your beliefs around money and whether you think money is good or bad, right or wrong. Because what billionaires that I've studied have done, I've read up on hundreds of billionaires and I've interviewed personally 16, and I've got some that are friends of mine, and they've transcended what money means. So people make money mean what they think it means, whether it's greedy or good, whether it's right or wrong, whether it makes you happy or not, whether you're a slave to it or a master of it. But in reality, what billionaires have done is transcended that all human emotion and belief and meaning around money is not what it is. It's the human projection. And actually, if you look at money, it's a tool. And like, you wouldn't look at a hammer and everyone go, oh, well, I perceive that that hammer does this. And then someone else goes, oh no, no, no, no, no, the hammer doesn't do that, it does something else. Everyone knows that a hammer hammers an alien or pulls one out. It's just— it's obvious because it's so binary. It's so clear what a hammer does. It's got two main functions. But money is a very complicated tool, very powerful. But what money is, is a universal exchange of value. It's a measure of worth, a unit of account. That's all money is. It's actually a really great invention. It's a better replacement for the barter system. It removes friction, increases speed. It measures equal in transaction. It creates fairness in trade and speed of trade and measure of trade and lack of decay of trade. So it's a very powerful tool, but us humans go, "Oh no, no, no, it's greedy and evil." You know, you're never going to go to heaven if you have money, you bastard. And you know, we make it mean what our life is, our own beliefs. So transcend emotions and beliefs and meaning around money. Understand what it actually is. Learn what the tool is. Learn how to use the tool, and you'll appreciate wealth. And then my final law of wealth appreciation— I hope you found these useful— is people say, 'It takes money to make money.' No, it does not. No, it does not. It takes resourcefulness. I think it was Tony Robbins that said, it's never a lack of resources, it's a lack of resourcefulness. And I agree, there are virtually limitless resources on this planet or in this universe or in this multiverse, and human beings are very resourceful. If I put a gun to your head and threatened to take away the things that you love the most, whether it was your children or your Lamborghini, unless you raised $50,000 in a week or a month, you would get it done because you would call off all of your contacts. You would get out on social media. You would find ways to overcome objection and ridicule and knockbacks, and you'd be persistent and consistent, and you'd go 15 hours a day until you got the deal done. So it's resourcefulness, not resources, that make more money. It's not money. I mean, money can make more money, 'Cause you can buy assets. But you know, people say, oh, it takes money to make money. No, no, no, no. It takes money invested wisely to make money. But you can take money and lose it all as well. So it takes money to make money, then it also takes money to lose money. Hmm, hmm, yeah, yeah, see? So it's actually resourcefulness, not resources. And what is this resourcefulness? Persistence, consistency, passion, energy, enthusiasm, drive, commitment, desire, hunger, creativity, innovation, the desire and ability to solve problems. These are all very human resources. We all have them. You have them, I have them, everyone in this wisdom room, everyone listening on this podcast, everyone watching on Instagram Live. We all have infinite human resources. Every human being was born with the ability to be all of these resources. They are latent within us. They are gifted to us. Even before we are born, yet we're not using these gifts that we've been bestowed. Use these gifts, come on, mother truckers. All right, quick summary then, and then I've got a gift for you, a special free gift as a thank you for joining my first ever wisdom room. And so, 7 laws of appreciation of wealth. Number 1: stop spending on depreciating liabilities. Number 2: investing appreciating assets. And what you can also do is buy otherwise depreciating liabilities that either become an asset or you buy them at the bottom of their depreciation curve. And when you compound the lower loss and the higher gain of not buying depreciating liabilities and investing in appreciating assets, and you do that for decades, that's hundreds of millions. It literally is hundreds of millions. Okay, number 3, learn to manage well what you already have. Because what you appreciate appreciates. So learn to manage money well and manage yourself well around money, and then you'll get more. You'll be more investable. Number 4 is invest in yourself. You are your best asset. Invest in yourself wisely. You pay yourself the best return. The more you learn, the more you earn. And by the way, for some people, the more you unlearn, the more you earn. But I'll come back to that on another episode. Number 5 is reinvest profits back into assets. Number 6 is transcend emotions around money. And number 7 is resourcefulness makes more money than money makes money. So thank you for tuning in. A special gift for you right now. Do this immediately. So if you go to robmoore.com/mm, so robmoore.com/mm, as in make more money, robmoore.com/mmm. Go there right now, and I've got some gifts there waiting for you. I've done a deep dive article on the 19 habits of self-made millionaires and billionaires. I wrote an article for one of the mainstream UK press media. It's at Martin Lewis, the money-saving expert in the UK. I took his column when he was on holiday, and I've done a load of ways to save and budget money. Every week I give you a new episode of content, either on my podcast Money or on my YouTube channel or across my other media. I'm doing a lot of content on TikTok, I'm doing a lot of Clubhouse rooms, and I'll give you one piece of content a week which I call Rob's Resources, and it's usually around the subject of money. I have a book I'm writing called Increase Your Fees with Ease, and I have a couple of other surprises. These are all free, no cost, no upsell or catch. It's just a way for me to stay in touch with you. I don't know if I'll do another Wisdom Room. Some of you, this is only the first time you've caught me on an Instagram Live because of timing, and I know I've done nearly 200 episodes on the Money Podcast and I haven't really offered this much, so my bad. So go right now to robmoore.com/mmm, R-O-B-M-O-O-R-E dot com, mooore.com/mm and go and grab those gifts for me completely for free. You'll see there on the page, and there are a couple of other bonuses, and you'll just need to pop your correct email address in, your main one. I only ever email once a week, by the way, and I email the resources unless there's extenuating, exciting craziness going on in which case you might get 2 in 1 week, but that'll happen like 3 times a year, something like that. So you won't get shbammed by me, but I just want to continue to give you more content. So hope you found this all useful. Thanks for tuning in. Just to let you know, I have a podcast called Money, so make sure you also subscribe to that, and I will be trying out this wisdom feature a bit more, so those of you on the Instagram Live and the podcast, there's a new audio app called Wisdom, a bit like Clubhouse, a bit like Facebook audio rooms. There's this big land grab for the audio content creation space right now. So this has been fun as a test. So thanks for tuning in, everyone. I'll see you on the next Instagram Live.