Why Inflation is Great

Most people assume inflation is really bad. Soaring costs of living, relative spending power going down, costs of basic products and services and living is going up a lot. Fuel is going up dramatically, food is going up dramatically. Virtually anything you buy, raw material commodity, is going up and up and up. But do you know that inflation actually has an equal upside? Inflation is not all bad. Now look, nothing is all bad. I'd like to, um, just firstly get into your head on a mindset perspective and try and help you to think about that every downside has an upside, and also every upside has a downside. So whenever you think anything is really bad in the economy or financially, or anything is really bad in your life and it's causing you some relatively negative emotions, What negative emotions are is a one-sided, imbalanced perspective. By the way, what positive emotions are also a one-sided, imbalanced perspective. So now I'm just going to show you really quickly the equally balanced upsides to inflation. So the first thing is, if inflation is the increase in cost of living, inflation, you know, the increase in prices basically, then that also increases asset prices. So if you own any assets, inflation is also pushing the value of your assets up. Now, for example, I'm a watch collector, and I've certainly had a 7-figure watch collection. I've sold some, I've kept some, but with this dramatic inflation right now, Some of my watches have gone up crazy money. Cars have gone up. New cars are hard to get, which means that secondhand cars have gone up in value. Now, if you want to buy one, that's not good, but if you own one, that's good. So I own some collectible cars, and inflation has pushed up the value of my collectible cars. Property. Now, property prices are very high in my area. Just to give you an example, I'd buy a little single-family home, a little flat, for £70,000, £75,000, sub-$100,000 I'd be paying in what, 2009 after the '08 crash. Now these properties are £200,000, they're more than $250,000. So high inflation has forced up the value of assets. So major benefit number 1 of inflation is as inflation pushes the cost of everything up, it also pushes the value of everything up. So if you own assets, high inflation means high asset growth. So therefore, I definitely recommend to you, you should be investing in assets because the downside of inflation is it depreciates the value of cash. Now, do you know that cash is not an asset? People think that cash is an asset. Cash is not an asset. Cash is a liability. Now, is it good to have loads of cash? Yes, because cash is buying power. Cash is, um, it helps you hedge against liquidity issues. It's security. So cash has many benefits, but it is not an asset. You must remember that it's a liability. Why? Because it goes down in value. And let me give you the biggest proof that cash is not an asset. When you give it to the banks, the banks immediately lend it out. The banks do not want to hold cash. It's a liability on their balance sheet because it goes down in value. And with high inflation, cash goes down a lot, a hell of a lot. 10, 15% a year. So cash is a liability. Now, of course, I'm not saying don't have any cash, just go and give your cash away to everyone, cash is trash. You know, my friend Grant Cardone and Ray Dalio, you know, they say, oh, cash is trash. I wouldn't go as far as to say cash is trash, but what you want to do is you want to take your cash, which is a depreciating liability even though it's good to have, and add it and turn it into an appreciating asset. And then you get— you turn the negative impacts of inflation into the positive impacts of inflation. And the positive impact, you know, there's a few main positive impacts of inflation. And number one is the increase in asset prices. So you turn your depreciating savings and cash liability into an appreciating asset which gets pushed price increase through inflation. Um, okay, I, I'm not going to actually spend too long on this, so make sure you stay with me to the end. And I've got, um, I can help you with investing, I can help you with building assets, I can help you from protecting your cash. So stay with me. The next major benefit of inflation that most people don't know about, um, and I did a Facebook Live on this and this caused a massive stink, literally massive arguments on this. But I told people not to pay off their mortgage, and the reason being is, um, that your mortgage is already being paid down for you by the government. It's called inflation. So if you have £100,000 cash, it's worth £85,000 in a year with current inflation. But if you have a £100,000 mortgage, that mortgage is relatively worth £85,000 in a year thanks to inflation. So the next massive upside of inflation is it pays down your debt for you relatively. If your relative spending power goes down because of inflation, which it does, then your relative debt goes down because of inflation. So do you know the banks do this on purpose? Do you know how the banks basically pay off their debt? They pay off their debt by increasing the money supply. By quantitative easing, not actually paying it back. Oh no, no, let's not pay the debt back, let's just devalue money. And then when we devalue money, we devalue our debt. So the banks know this and the governments know this. So the thing is, the banks and the governments kind of scam you a bit. The banks want your cash, but they'll give you no interest and they'll lend it all out and they'll make on it and they won't pay you for it. And the governments will put themselves into massive debt to sort of COVID up how fucked the economy is. And then what they'll do is instead of paying that debt off and balancing the deficit, they'll just print a load of money and they'll erode it through inflation. Now here's the thing, if you have good debt— I'm not talking about car loans, I'm not talking about payday loans, no, that's bad debt— I'm talking about good debt. Good debt is debt leveraged on assets, and those assets produce income. If you have good debt, then the government are actually helping you. So I'm going to give you a couple of examples here. So example number 1 is in one of my bank accounts I have about £3.2 million, so what, $4 million in cash. That's a big problem for me because the problem with that is, uh, $4 million times 15% is £600,000. So I'm actually losing £600,000 £600,000 a year having that cash in the bank. So I'm actually trying to get that money out and put it into assets. It's just you've got to know how to invest and you've got to know what to invest in. On the other side though, I have 20— about $30 million worth of mortgages on a $50-odd million portfolio. Now, $30 million mortgage at 15% is £4.5 million. So my cash, I'm losing £600,000 a year keeping it in that bank account. But my mortgages are getting paid down by $4.5 million a year, relative value, not actual. The government aren't actually giving me, because some people don't understand this, because it's not easy, because we're not taught this in school. Why aren't we taught this shit in school? Imagine if we were taught this shit in school, how much more wealthy everyone would be. What's the problem with everyone being wealthy? If everyone's wealthy, then your customers can pay you more, everyone's more generous, we can give more to charities. So there's something really backward about the system and how you're basically bred like a battery hen. Oh, let's just make you a battery hen. Just keep laying the fucking eggs for us, you know, making us money. You're sort of made to be a battery hen of society whereby you work hard, you get a job, you pay half your money in tax at source, you get loans like mortgages and you pay them off for the rest of your life and you're just basically a battery hen for the government, laying them eggs all the fucking time. Just hit myself in the face. This is what it is, and you've got to get yourself educated because things have to change. So the benefits, massive benefits of inflation, if you are smart, if you're an investor, if you're wise, is number one is inflation is also pushing your asset prices up as long as you have assets. And number two, inflation is eroding the value of your good debt as long as you're leveraging good debt to get assets. Now the great benefit of leveraging good debt to get assets is you can get assets you wouldn't otherwise be able to afford because you're leveraging good debt against them. So hope you enjoyed my little talk on why inflation is great. Now let me ask you this question: would you like to learn to leverage the power of inflation? Like, instead of being a victim, victim to it and it wiping you out, would you like to learn how to leverage it, play the system, play the government, the banks at their own game? Would you also like to learn how to invest? So how to build assets that produce income, that go up in capital value, If you'd like to leverage inflation and learn how to invest, I recommend you join my members area, rob.team. Now, rob.team is literally just the cost of a large coffee a month. That's it. It's super quick and easy to join. Uh, you can cancel any time, by the way. And when you join rob.team— I'm just going to pin the link for you— you can open a page right now and just type in rob.team. T-E-A-M. There you go, I have pinned the link, so you should all be able to see the link. Go right now, open a page, click the pinned link, and type in rob.moore.team. And here's what you can get for the cost of just a large coffee once a month. You can cancel anytime. You can get my 9-module, 10-hour How to Invest series. How to beat inflation, how to make inflation your friend, how to turn depreciating cash into appreciating asset, how to turn— no, if you don't have any cash, by the way, anyone can afford a fiver, so that's not an issue. But if you don't have any capital to invest, learn how to invest low and no money down. So for example, you could build a membership site, you could turn your content into cash flow, you could monetize social media and a personal brand. And I teach you how to do all of this on a weekly ongoing basis, not just, you know, pitch and run, a weekly ongoing basis in Rob.team. So either open a new page and type in Rob.team or click the pinned link. See the pinned link. Now Emma has just said, um, Emma loves Rob.team. I can see people are joining on the Instagram Live. Um, I did type it in and it doesn't load. Let me just check, Stephanie. Um, R-O-B dot T-E-A-M. All right, mine loads. Try robmoore.com/team. If any of you having issues with the link rob.team, which by the way does work on my page, if you're in a different country there might be an issue, try robmoore.com /Team. T-E-A-M. That should work. I can see quite a lot of people joining on Instagram, so make sure you're joining on Clubhouse too. Let me know in the chat when you're in. Stephanie says she listens to my podcast and it's good listening. Um, Eric has just joined Rob.team. Welcome aboard. Now, why did I launch Rob.team? Why is it only, um, the cost of a large coffee? Why isn't it £1,000 for every course. So I run the UK's largest training company, it's called— well, property training company, it's called Progressive Property. It's about £20 million a year business, and all of my courses are £1,000 a day, and all of my masterminds are £5,000 for every 6 months, so £10,000 for a year. But rob.team is only the cost of a large coffee, and none of the courses you get charged for. So the, the 9-module, 10-hour How to Invest series It's actually free when you're a member of Rob.team. The 21 ways to monetize social media, it's actually free when you join Rob.team. So why is it literally just an admin cost of a Fiverr? Because I'm on a mission to help as many people on this planet get better financial education and knowledge. I want to change what's wrong in the system. Here's what's wrong in the system: you are taught by the government to be a battery hen. You are taught to go and get a job, pay all your money at source to the government in the form of tax, get loans and mortgages, and for the rest of your life be laying eggs for the government and the banks. And I'm here to change that, because that is no fucking way to live. No one was born to be a battery hen. You're not taught about inflation, you're not taught about leverage, you're not taught about budgeting, you're not taught about the benefits of money and the mindset of money and your emotions around money. You're not taught any of that stuff. You're not taught to be an entrepreneur, and you need to be. Um, I hope I pronounced that right, has joined Rob.team. Thanks for your kind comment. So go and join Rob.team to get better financial education and knowledge. I authored the UK's best-selling book Money. I have the podcast Money. I've been an entrepreneur for 16 years. I have a $50 million property portfolio and some. My business is worth tens of millions. It's done a quarter of a billion in revenue. I now have 7 companies. None of this is a flex, by the way, because I've interviewed a load of entrepreneurs who are billionaires. In fact, in rob.team, you could gain access to nearly 20 billionaire— billionaire interviews. Emma said the value is incredible. So if you're on the fence, get off it, because when you sit on the fence, it hurts your ass. You need to get on one side of the fence, and I want you to get on the side of the fence of being an entrepreneur and making your own money and not being a battery hen to the government and the system. So how you do that is joining Rob.team. So open a new page, type in Rob.team. The link is pinned. You can join right now for the cost of a large coffee. You can cancel anytime. Do you know what, let's say you haven't got much money. Or let's say you think, you know what, I'm not sure about this Rob guy, I need to check him out. Go and join Rob.team now, pay your cost of your large coffee to join, and go back and consume all the content over the last 3 years. And then if it's not for you, you can cancel. Thank you very much. Um, El Tiger is in Rob.team, welcome aboard. I love the name El Tiger. I'd like to be El Lion, except I'm more like El Pussycat. Um, but yeah, so if you join Rob.team, there's courses and content going back 3 years. There's thousands of members, and you can cancel anytime if it's not right for you. But here's the thing, I launched 2 weeks ago 21 Ways to Monetize Social Media, which is my— oh, it's a 6-hour online course. I make £100,000, sometimes it's £80,000, sometimes it's £120,000. So it's about, what, $150,000 a month? On social media a month through Rob.team, through my Facebook in-stream ad lives, through my YouTube ad revenue and all the other ad revenue and sponsorship revenue? Would you like to make 5, 6, or 7 figures a month on social media? Because MrBeast, who's a kid, and Joe Rogan, who's a legend— it's just Joe Rogan's a comedian who loves fighting, and he has made hundreds of millions on social media. Now I can't guarantee you're going to make hundreds of millions joining Rob.team. I would never say that, that's, you know, but what I would say is if you're stuck in the system where you're, you, you get your payslip but when you read it half of it's gone already, why? Because the government have already taken it. And then if you've got these loans and mortgages and you're just paying loads of interest to the government, you're stuck in the system, you're just laying eggs for them for the rest of your life. So go and join Rob Learn how to be a creator, start a business, scale a business, learn how to get better financial education and knowledge, invest in yourself. The values, the 3 values of Rob.team are learn, earn, invest. Get better financial education knowledge. Here's something else that is the reason I launched Rob.team 3 years ago. I think it's an absolute scam in the banks, and I think it's an absolute scam at school and university. Here's why. The scam of school and university is that the tutors, the teachers, earn £50k a year and they're broke. And they're teaching you business, economics, and finance. They're teaching you theory. That's a scam. You would not want to go and get your personal training from someone who still had a massive scar in their chest from their, um, triple heart bypass operation that they've just had, and they're 75 kilos overweight. There is no way you'd want to learn from them about— you wouldn't want them as your personal trainer. Yet you're going to school and college and university, and that's the same concept. You're learning from people about money and business and economics and finance who are broke. How's that going to work for you? You need to learn from entrepreneurs, people who really made money. Now, I said this humbly, it's not a flex because my mentors are billionaires. But I made quarter of a billion pounds in revenue in 15 years in one business. I have been focused on making money. You know, people say, 'Oh, money, Rob, it's not all about money. Money doesn't make you happy.' Fucking does! Money does make you happy. I've been skint and I've been rich, and I can tell you this: being rich is better. It does make you happier. Is it the source of all happiness? No. Does— if all things are equal, does money make you more happy? Yes. Do I want to learn from tutors at school and university who are broke? No. Is that system backward? Yes. Is it a scam? Yes. So people are worried about investing in scams. You should be worried about the financial system of school and university being a scam. And that's one of the reasons why I launched Rob.team. And that's one of the reasons why it's only the cost of a large coffee. You go to school and university, you will pay 50 grand a year. To learn how to be rich from skint people. That is fucked up. You can join rob.team for less than the cost of a large coffee and learn from— and not, by the way, not just me, because I get all my millionaire mentor friends in to do masterclasses as well. So what are you waiting for? Get off the fence. The fence hurts. Go and join rob.team. The link is pinned. It will cost you a large coffee, and that's it. And you can cancel anytime. Um, I've got a brand new How to Go Viral series. I'm one of the top 80 followed people in Clubhouse in the world. I go viral on Facebook about 3 times a week. I'm going viral a lot on TikTok right now, so I know how to hack virality. Not, not by getting naked, not by being a celebrity— by doing it the creator way, the entrepreneur way. So that's a new course that will also be live in rob.team. Nick is in and he says it's sick, love it. Right, final thing I'm going to say, and then I'm going to hand over to Pete and Jackie and Katie and Jen. The room will be yours in T-minus 2 minutes. I've got to get out of here. All right, the final thing is the banking scam. Now, I don't blame the banks for making profit. Look, I don't blame any company for making profit, but if they're making profit out of you and it's a bit of a scam, I'm gonna freaking well call that out. So here's the banking scam: you give your money to the bank, all of it, and they give you nothing back for it, and they don't guarantee it, and and they don't insure it, and then they lend and invest £10 to your pound, $10 to your dollar out. They see cash as a liability, yet they want your cash to turn into an asset. Hmm, something to think about. So let me do a pitch for you, see how good I am at this pitching malarkey. Hello, give me all your fucking money. Oh, by the way, I'll give some of it to you if you ask nicely. But if you want it all, you can't have it. And if everyone wants all of it, you're going to get none of it. And if I have cash flow issues, then I'm just going down with your money. And I won't insure your money, and I won't pay you interest on any of your money. But what I will do is I'll make money on your money by lending it out and investing it. So give me all your fucking money. No, you wouldn't buy that scam. That's what the banks do. And yet you've got all your money with the banks. What? Woo! So one of the reasons I was born, because people say to me, Rob, why are you shouting all your lives? Because someone's got to call out all this stuff. I'm a champion for entrepreneurs. I'm a champion for people who want to make a bit of a difference, want to add value, you know, who maybe weren't born with a silver spoon in their mouth. I'm a bit of a champion against the system. I mean, the music I like is Rage Against the Machine. I'm an anti-system guy. So come and join Rob.team. Learn how to play the game at their own— the bank at their own game. Learn how to turn inflation into your asset. Learn how to turn cash into your asset. So the link is pinned. I ain't trying to sell it, I'm just trying to tell it. Go and join Rob.team right now. I've got to get out of here. Holy shit, it's 9:25, it's coffee time for me. So I'm out of here. I'm going to hand over the room to Pete. He's going to host the room from now on on Clubhouse. But Pete would love to hear also from Jackie and Jen and Eric and David. Also, Pete would love to hear about the things that you're doing. Look, I've got to say bye to the people on Instagram. Let me just finish the Instagram. Go to rob.team. Don't let the banks take your money. Don't let the tutors teach you about being broke.