Why Saving Will Make You Poor 😳

Why saving will actually make you poor. This is going to be a reality check for most people right now in this cost of living crisis, in these soaring costs of inflation and raw materials and food and fuel and energy. Right now, a lot of people are giving out advice that you need to save, you need to save. And it's actually potentially dangerous advice. So I'm going to share with you some reasons why if you try and save your way out of this cost of living crisis, it— you could end up poor and broke. The first reason that you can't save your way out of this crisis or ever save your way to wealth is because inflation is way higher than interest. So when inflation is 10% plus and interest is 1% minus, the difference is so much that if you save money, you're losing money. So every year your money is going down by 10% or more just because of inflation and by saving it. And by the way, I'm going to give you some solutions at the end of this video. I'll keep it short and punchy. The second reason why saving will make you broke is because of the soaring cost of living crisis over and above inflation. Inflation. You've got quantitative easing and the government printing of money. Um, you've got massive increase in fuel and energy and food and raw material. So actually, your spending power is less than— well, it's more than 20% less than it was pre-lockdown, and it's the lowest it's been since the Second World War. So that's another reason why you can't save your way out of this, and saving you know, will make you poor. The third reason that, um, saving will make you poor is because most people can't save enough money to have enough to, um, create an income from. So most people are spending more than they earn, or they're actually, you know, gaining more debt. And let's say you could save, um, you know, a percentage, a percentage of your earnings. Most people are only saving, say, 5%. Because people can't afford to save 30%, because right now you'd need to save 30% of what you earn every month to make up for the 20 to 25% increase in living costs to just have 5% to be saved. It's an impossible task, yet many people are advising you to save your money. Oh, you know, don't go out for lunch, don't buy as many coffees, change your energy provider. You know, like that's gonna make any freaking difference. That's not going to touch the sides. And by the way, don't get me started on government not guaranteeing your money. Government have the ability to access your money or freeze your accounts. You know, these are all true and real. So these are some of the reasons why saving will actually make you broke and poor and you can't save your way to wealth. So there's only one way that you can actually get out of this cost of living crisis and, and do well, or not, you know. Have all your money drained from you, and that is to invest and to earn. To learn, earn, and invest. To build digital income streams, multiple streams of income. You cannot save your way out of this. Saving will make you poor, but investing will make you rich. Investing in assets that produce income, maybe even recurring income, or multiple streams of income. Um, and so that's the reason why I have the Rob.team platform. Now, the Rob.team platform was designed to be decentralized so that none of us could get canceled or deplatformed or shadow banned. So that's the first thing, it's an independent platform. And it was designed for you if you're a startup entrepreneur, a scale-up entrepreneur, if you want to get better financial education, real financial education, you know, stuff that really works. Um, if you want to create multiple streams of recurring income, digital income, information into income, content into cash, if you want to be able to earn your way out of this and invest your way out of this, because you know that saving will not get you out of this. And this is why I launched and designed— it's actually 3 years old now— my platform, rob.team. It's a members area, but it only costs you literally a large coffee a month. That's it. And you can cancel anytime. So if you'd like to join now, just open up a new page and just type in rob.team. Simply open a new page right now and type in Rob.Moore.com. You can join, do it now. It costs you literally the cost of a large cup of coffee. You can cancel anytime. There's loads of content updated every Thursday. In fact, we just updated, um, how to build your personal brand and 21 ways to monetize social media. We updated masterclasses of those. The social media one is 6 hours long, is probably a £1,000 course if it were to be sold separately and privately. Um, yeah, I'm putting it for free if you're a member of rob.team. Um, also we've launched the 9-module, 10-hour How to Invest series. So, um, it's all very well me saying, you know, saving will make you poor and you can't save your way out of this cost of living crisis, but, um, how do you invest? What do you invest in? How do you protect your money? When do you invest? How much should you invest? How do you diversify? How do you do your diligence? What's the right asset class? All of these things are detailed in the brand new How to Invest series, which has just been uploaded to rob.team. We don't drip feed the content, you get it straight away. So if you open a new page right now and you just type in rob.team, you can go and join right now for the cost of a large coffee, because you must protect yourself, because the government aren't going to save you. The government are going to print their way out of their debt, which just devalues your money. The government are probably not going to have the courage to put interest rates up, so you're not going to get any return on the cash in the bank. Inflation is going to go up, cost of living is going to go up, fuel and energy and gas and food and everything else are probably going to go up before they go down. Now, of course, this soaring inflation and cost of living, it will settle, but it might go up before it goes down, uh, and you've got to do something about it. And the government aren't going to save you, and you need to take personal responsibility. Um, and the best way that you can do that, I believe, is to join rob.team. We've got thousands of members. It's been called the Netflix but for entrepreneurs with actual financial education. If you want to get proper financial education and knowledge from the guy who wrote the book on money, I did, it's called Money, the UK's best-selling book on money, and then go and join my rob.team platform. It's decentralized, you know, full freedom of speech, no cancel culture, and I update with masterclasses and courses and articles and blogs every week. Often 4 or 5 pieces of content a week. I actually just wrote the 7 different income streams that you can leverage. Most people don't know what they are. Most people know the work-related income stream, but that's actually the worst. But you know, there's, um, of course income from interest, there's income from profits, there's income from capital. Um, there's actually 7 different types of income. So yeah, absolutely right, Carl. Um, it's also the cost of a large tea, although tea is usually a bit cheaper than a coffee. Um, and someone has said that here that they're worried about, I'm losing sleep over their savings. Look, if you have £1,000 in savings, in a year that's worth probably £850 or £800. So if you have £100,000, you've actually just lost £20 grand saving it in current, in, you know, in the run rate over the last year or two, literally. And then of course you've got your own emotions and, um, dipping into it and spending it, which, you know, often people's own emotions around money are the worst enemy, let alone inflation and government quantitative easing and printing of money. You know, I don't want to be a bit, um, you know, 1984 George Orwell here, but, you know, I don't trust the government fully to not intervene and freeze my assets and freeze my accounts. And, you know, they did that in Canada, didn't they? So I don't want much cash. And, you know, in the How to Invest series, we talk about, um, gold, watches, classic cars, Property, crypto, stocks, ISAs, you know, we literally talk about virtually every asset class there is. Um, Derek has said I'm the best and he is in Rob.team. Welcome aboard, Derek. If you want to join Derek and thousands of other members in Rob.team, if you want to be a startup entrepreneur, scale-up entrepreneur, if you want to create multiple streams of recurring income, start building digital assets even if you haven't got any money, by the way, because actually two modules on the Rob.team platform on the How to Invest series are if you've got no money and you need to be resourceful because you don't have resources. Then you simply go and join at rob.team. Open a new page now, any kind of web browser, internet, and just type in rob.team. You know, I want to help as many people get better financial knowledge. There's a lot of people telling you to save money. I'm sorry, it's not good advice. It's really not. Like, saving money to collect it to then invest that's, you know, that's a good way and reason to save money. But just saving money thinking you're going to get rich or financially secure by saving money— you're not. It's like taking £1,000, taking £100 to £200 out of it, burning it, and then that's what you're left with. That's what saving money is like. I also think you need to earn income streams and then diversify into assets. So maybe you'd like to earn more money, you'd like to create that side hustle, that second business. Maybe you'd like to pay less tax. If you'd like to start that extra business, that extra income stream, or multiple income streams, rob.team, the platform, can teach you how to do that. Because I've got 7 companies and 9 income streams, and I make many millions. I say that humbly, but I make many millions from audiobooks and books and podcasts and YouTube and membership sites and social media channels and real estate and training companies and lettings and management companies. So I've you know, intentionally over the years built multiple streams of income. Because if you have multiple streams of income, you're protected. Because if there's lockdown or a crisis or a war or something, and 2 or 3 of your income streams get shut down, or you've got retail premises and it gets shut down, but you've got other income streams. So multiple streams of income is great because it gives you a lot more income, but it's great because it's diversified and it's protected. Karen's just joined Rob.team. So if you want to learn how to do all this stuff go and join now rob.team by opening a new window and typing in rob.team. And even if you don't have a lot of money to invest, rob.team is great because you can start businesses with little or no money. Um, most of my businesses have been started with little or no money. I've got a £15 to £20 million a year information business that was started, um, on no money. I actually needed £200 to um, not to get off the ground but to sort of get it rolling. And I put that on a credit card, uh, and, and that business has done a quarter of a billion pounds in revenue now. And I have nearly $50 million worth of property— well, it's actually probably a bit more, um— and that was all started no money down, doing joint ventures with a business partner of mine using his money. So actually, a lot of people worry about not having much money. You know, Rob.team can definitely help you because you can get resourceful if you don't have the resources. Um, you know, they've got loads of great business models, um, that are great in 2022 that you don't need money for. So building your own membership site, like I have Rob.team, for example. Um, so, you know, I built many thousands of members on Rob.team, and I can teach you how to build your own membership site, turning your content into cash flow, your information into income. And if you'd like to do that, Rob.team will teach you how to do that. Um, every week we upload new content, and often we put 4 or 5 modules up there's a WhatsApp group, there's a community, and we do challenges. So I do the Make Cash Challenge twice a year, the 10x Your Social Media Following twice a year. The start— we're going to actually do a 5-day Start Your Business Challenge as well. So if you just go and open a new page and type in rob.team, see, simple as that, you can join really quick and easy. Um, take you a minute to join. Cost you a large coffee to get in, cost you that every month, but you can cancel anytime. You can go back and consume 3 years worth of content, all sorts of masterclasses, marketing masterclasses, masterclasses on starting a business, on scaling a business, on your mindset, etc. So go and join rob.team. I'll do a couple of Q&A actually, why not? Hey, Spencer has said, has the government got any control over personal gold? Well, Yes and no, Spencer. I think that you can't be fully decentralized, um, but I think you can be semi-decentralized. So I'm going to tell you a couple of little secrets. Um, so, um, if you buy gold through your bank, or any kind of physical asset, a piece of art, a watch, anything like that, then there's a trace, isn't there? Because you paid it through the bank. If you were able to buy it cash, if you do have cash but unfortunately I don't really take much cash anymore. But if you do have cash and you're able to buy it cash, then there's not a trace there, a paper trail of what was purchased. So once you buy something physical, if only you know where it is, then you're probably all right. It's probably completely decentralized out of the system. Now, if you buy something through your bank, then In theory, that could be traced and tracked, but over a long enough period of time, it probably wouldn't be, and you could probably get it out the system. So a lot of people talk about buying digital gold or gold— I don't know, but if you're going to buy gold, you buy physical gold. And why would you buy gold? You'd buy gold because you don't really believe in currency, or currency has really high inflation, or there's a bit of a revolution going on, which there kind of is right now. So gold is a protection mechanism. Gold generally tends to go up if there's a bit of a revolution or a lack of trust in government or the system or fiat currency. But gold doesn't produce an income stream. So I like gold as protection, but it's not paying me passive income every month. But my memberships are, my content are, my books are, my podcasts are, my real estate and my property is. So actually, cash is probably better than gold because cash goes down in value over time with inflation, whereas gold goes up over time. But gold doesn't produce income. And you know, a lot of my friends are big into crypto, and that's great, but it doesn't produce income. It's just capital. Capital is only one of the 7 different types of income, but capital isn't income. Capital is cash, it's money. So you also want royalty income, interest income, dividend income. I actually just wrote a brand new deep dive article on this which I've just uploaded to rob.team. Um, so if you go and join rob.team, you can learn the different types of income. One of them is labor, which to be honest That's the worst type of income because you're selling your life away to earn money. Whereas royalty income is brilliant because you create a piece of asset. It could be a digital asset like a license. Royalty is basically someone renting something that you own. So, um, I get copyright, um, royalty and oilty income. Royalty is oilty. That's a new word I just made up live here. Oilty is a cross between income and royalty. Um, do I have £50 million in properties alone? Yes, I do. Um, and then of course I have my training companies which have done a quarter of a billion in revenue, and I have all my social media related income which is a six-figure-a-month, um, income stream. I'm trying to get that to seven by doing a bit more full-time content. Check this out, I'm just building out a sort of a new little setup in my studio. Look at all those phones. So that is so I can create content on one TikTok TikTok channel, another TikTok channel, um, Instagram, LinkedIn, uh, Speakeasy or Green Room or Fireside or Twitter Spaces or Clubhouse. Um, and I'm hooking it all up to a decent microphone. I haven't, um, I've been messing around with it trying to get it going, but the reason I'm doing that is because, you know, I make tens of thousands of pounds a month just from Facebook. So if I could do the same for LinkedIn and Instagram and TikTok just by creating regular content, information that's useful to people, I literally turn my passion into my profession. And you can too, because my passion is business and entrepreneurship and money. So if you go and join nowrob.team, I can teach you how to turn your passion into your profession, information into income, content into cash flow. So I go open a new page, type in rob.te— AM. Go and join the Rob.team movement. It's a bit of a revolution going on. Derek has said, um, that's an amazing setup. Thank you, Derek. Uh, and these are just old phones, by the way. They're not brand new. Um, how can you— how can saving make you poor? So the reason that saving makes you poor is because inflation is much higher than interest. Therefore, interest is your cash going up, inflation is your cash going down. And so if interest rates are higher than inflation, saving money, it will go up in value to the amount that the interest rate is over and above inflation. So if inflation is 0 and interest rates are 5%, your money will go up 5% a year. If inflation is 5% and interest rates are 8%, your money will go up 3% a year. But if, if interest rates are 1% and inflation is 10% plus, your money is going down 9% plus a year. Plus you'll end up spending it because you'll need it, or you'll have your, um, volatile emotions or go and spend the money. So what you need to do is you need to protect your savings and your capital by putting your capital into assets. You see, when you put your capital into assets, the asset protects it from inflation as long as it goes up in line with or above inflation, and most of them do. Um, and then if you get the right asset, it can produce income. So you can turn savings that are going down into assets that are going up, that have equity and income. This is why saving makes you poor and investing makes you rich. So you actually need— the benefit of saving is just to get enough money to invest. So, um, you know, I've got a couple of bank accounts with a good few hundred grand in them. I just need to get rid of the money. I need to buy watches, I need to buy classic cars, I need to buy more property, though I feel like I've got enough. I need to put it into marketing to grow my brand and generate income on social media literally have a problem. Because like, you know, at one point I had quite a few million in cash in the bank. Let's say it was £5 million. So at 10% inflation, what is 10% of £5 million? It's £500,000. You're— I'm losing £500,000 a year just keeping that money in the bank. It's crazy. At least get it into an ISA or into the stock market. Someone said in the chat, is Vanguard a good place to invest? It's not a place, it's a platform that allows you to self-invest into the stock market and into your ISAs. I personally use Hargreaves Lansdown, but Vanguard does the same job. Um, and yeah, I think it's definitely max your ISA, max all your tax-free allowances, your ISA, your pension. Now I know to a certain degree they're still in the system. Like I said, you can't be fully decentralized, although, you know, with all these phones here I wonder if I could create my own, um, electricity and then I could go off-grid, grow my own vegetables. Um, because the only way you're fully decentralized and you have no, no governmental control or intervention is by going off-grid or starting your own currency. And that's not that easy to do. A lot of people talk about Bitcoin and cryptos. I think that they're good to get into in money you can afford to lose. That's called risk capital. Don't miss money you can't afford to lose. And it's not an income stream, it's capital. And some people are doing high-risk staking on cryptos, and the problem with that is, um, they're creating leverage on very volatile assets, and they can end up with a negative position after they've paid their capital gains. So you've got to be careful about that. So you can't save your way to wealth because inflation is too high, and the government— so if you leave your money in the bank long enough, there could be a bank run and they'll take it. Or they'll freeze it, or if it's over a certain amount, they won't, um, guarantee it. So you've got to get it out, out of, um, the banks if you can, and into assets. And I've just launched a brand new 9-module, 10-hour How to Invest series on rob.team. So if you just open a new page right now, type in rob.team rob.team. R-O-B dot T-E-A-M. You can join there for a cost of a large cup of coffee. You can cancel anytime if you want to, just so there's no risk to you. Uh, and there's how to invest series, monetizing social media, building your personal brand, becoming decentralized, investing, investing low and no money down as well as with some capital outlay, being a creator, um, and the best business models for 2022, like for example building a membership site. Um, which is a great way to do it. And I can see people are saying in the comments that they've just signed up to rob.team, so go join them there right now. Open a new window and type in rob.team. We also put all of our content that's had us censored and shadowbanned and canceled. So there's the David Icke content, the Jordan Peterson content, there's all the content about what's really going on in the world that they won't let us publish on mainstream big tech social media. All that content goes into the, um, Rob.team platform as well. Carla said buy gold, buy gold boring. Yeah, so gold doesn't produce an income stream, so you wouldn't want to be overexposed into gold. Gold is good to buy over the years. I like to buy Krugerrands because it's smaller than, say, bullion, um, but it's much lighter than silver, and you can just— every time you've got, um, you know, a spare bit of loose, you know, £1,500, £2,000, or it'll go up or whatever. You just buy Krugerrands. I think that's a nice way to do it, and you've got them. But then you've got a storage issue. You have a storage issue if you have physical assets, so you have to think about insurance and storage and safes and safety deposit boxes and all those things. So there's a lot of implications to it all. But hey, it's freaking fun to learn. I absolutely love— I mean, what better subject is there than money, other than maybe sex? But I don't— I, I— it's a passion I've not turned into a profession, and I'm not going to anytime soon. Um, but I really believe that, um, you know, it's so much fun to learn how to invest and learn how to make money and learn how to be an entrepreneur. And I believe all of, all of us should. You should— like, why should you give the responsibility of investing and managing your money to someone else? I think that's stupid. You should be your own IFA. You should manage your own money. You should learn how to, um, invest, diversify, speculate, and take higher risks with you know, small amounts of risk capital, start a business, you should be, um, you know, offsetting all your costs against taxes. So if I didn't have a company, all of these iPhones I've had to buy myself, this laptop I'd have to buy myself, this studio I'd have to build myself. But because I have a company, I'm able to offset all of these costs against my tax bill, essentially. So the profits I make, I can offset all the equipment in here, the hardware, the software, and reduce my tax bill. But most people don't have a company. It's easy to set up a company even if you don't really intend to be an entrepreneur. You set up a company and you can run expenses through that company and you can reduce your tax bill. Because do you know that the— do you know most people's biggest expense is tax? And here's the thing that I think is fucking unfair, but when you're employed, you get taxed first and you get paid last. When you're an entrepreneur, you get paid first and you pay tax last. And absolutely, you need to learn how to pay yourself first and pay what's left in tax. Whereas what happens is when you're employed, the government take all the tax and give you what's left. It's wrong, it's backward. But you've got to take responsibility. You've got to learn, earn, invest. And that's why I set up Rob.team. To help you learn, earn, and invest and take control. So if you're going to open a page right now and just type in rob.team in a new window, you can join now. Of course, you're large coffee, you can cancel anytime. There's loads of content in there. The 9-hour, the 9-module, 10-hour How to Invest series. There's the 21 Ways to Monetize Social Media to be a content creator, turn your passion into your profession. The best business models for 2022, the 7 different types of income and how you can create multiple streams of recurring income, build digital assets that are quicker, easier, and cheaper. It's all in Rob.team. So I'll see you there. You just have to open a page right now and type in rob.team. Let me warn you once again, saving will make you poor. Inflation and quantitative easing and soaring cost of living and government intervention that, that is eating away at your cash. You need to protect it by getting it into hard assets, digital assets, and invest it to turn it into income instead of it being eroded by inflation and taxation. So I'll see you in rob.team. Just open a page right now and type in rob.team. I'll see you in the members area.