The Money Podcast 12 Rules for Money Management - Rob interviewed on Money
Managing money is one of the most vital skills anyone can learn in life, but it’s so often neglected in our school system. Rob talks through his step by step process for getting out of debt and into the green. As a guest on the Meaningful Money podcast Rob talks through how you should never spend more than you earn, you should know the difference between investing and speculating, and finally how to create some passive income. If you’re in debt and want a way out into the green, this is the episode for you.
Key Takeaways
How did you get to this point? My dad raised me to be an entrepreneur as he was an entrepreneur but I got lost. I got myself into a lot of debt but then went along to a business, property event after reading a few books and met my business partner who I still work with today. After that, I became a millionaire between 31/31, and we built a training business in property. Each time I’ve retired I get bored, start doing other things like writing books and doing my podcast.
What is your goal for this free content that you give away? Everyone has always said that you can talk, so if you can talk and make a career out of it that would be amazing. I genuinely enjoy talking and getting a message out to the world by helping others. I’ve learnt a lot of things in my journey and I want to support others to learn from my journey. It’s also a good source of revenue, in books sales, and speaker fees.
What was the core message of your book ‘Money’? It’s part, my personal journey out of debt into being a multi-millionaire and part is research, and study into different aspects of history, psychology and strategy of money. I wanted it to be everything about money, a one-stop shop if you like. If you are too selfish then society will force you to move into philanthropy or something else.
If there was one overarching rule for money? The one rule is ridiculously simple, which is to never spend more money than you earn. In a modern world where we wrack up debt which is not good for anyone’s mental health. Wealth is always in relation to wellbeing. In a pilot for a Channel Four show where I was a money coach, the people on the show were completely delusional around how much money they spent each month. People always pay everyone else first before paying themselves which is wrong. You should always pay yourself first.
The No Spend Year. Not spending money on depreciable liabilities, where it erodes capital is key to getting out of debt. It’s about proving you can be disciplined with the money that you have. You shouldn’t be going on three holidays a year if you can’t afford to. You have to learn not to spend money on things that lose value.
What are the sources of passive income? Some people see passive income as an overnight thing. You have to work hard enough to not have to work hard. Residual passive income could be anything from a song, or a book or property. It’s a thought process really around how you can buy an asset that pays a recurring income. Some assets provide passive income with some just preserve capital.
You have to target date when you spend less than you earn. Once you have gotten out of debt you should move to increase the amount that you can save. There are ways that you can think of reducing your expenditure but also ways that you can increase your income. I never spend more than I earn unless I put capital into an investment.
Max out your ISA. There are some ISA millionaires, where they put the maximum in their ISA’s every year. It’s all tax-free. You should target to invest the maximum amount in the ISA and you will get rewarded through the tax system. It’s so simple. You want to build your capital reserves. People can make a lot of money and then erode their capital rather than preserve it.
You should take some calculated risk but have the downside covered. You shouldn’t take big risks that you can’t cover. A calculated risk is investing in something that is relatively safe and protecting the downside. If we were to have a JV to manage a property together, then the protecting downside would be around having a charge or contract together.
Emotions can really ruin money management. The things that we regret in life are the ones where we are in an emotional state when we do them. I’m interested in a sustainable long term wealth, not overnight quick wins. You can spend lots of money celebrating in elation and through sadness. Make sure you do the research into an important investment decision.
Did you ever wonder whether you would have made it? I’m not always a positive person. I’ve had periods in my life where I’ve been a glass half empty. You don’t realise the ten-year overnight success and the hours that have gone into it. Things don’t happen overnight, but if you consistently do the right things then things will happen.
Best Moments
‘My dad raised me to be an entrepreneur.’
‘Everyone who talks about a subject should know about it.’
‘I wanted it to be a one-stop shop for interesting in money.’
‘There is nothing wrong in wanting to earn more money.’
‘People are completely delusional about how much they spend.’
‘Always have to pay yourself first.’
‘Know where you are at with your money.’
‘A lot of people speculate before they invest.’
‘You have to know the difference between investment and speculation.’
‘You never get taught how to money management at school.’
‘You’ll never learn to make more money until you know where you at.’
‘Learn what appreciates and depreciates.’
‘You have to work hard enough to not work hard.’
‘I never spend more than I earn.’
‘When you put money in an ISA that I will never touch again.’
‘Capital attracts income.’
‘Always protect the downside of the risk.’
‘Extreme emotions erode money.’
‘Don’t make decisions if you are wired or tired.’
‘Most people overestimate what they can achieve in a year bu underachieve in a lifetime.’
‘Compounding is the 8th wonder of the world.’
‘Every day do something.’
‘Overtime you keep going.’
Valuable Resources
Meaningful Money Podcast: https://meaningfulmoney.tv/2018/04/26/rob-moore/
Rob Moore : Money https://www.amazon.co.uk/dp/B01IIF7420/ref=dp-kindle-redirect?_encoding=UTF8&btkr=1
About The Guest
Pete Matthew is the brainchild of the Meaningful Money podcast. He is Managing Director of Jacksons Wealth Management in Penzance. He is a Chartered & Certified Financial Planner. I'd love to help everyone individually, but that's unlikely to be possible. Regulation of financial services means that if you would like me to advise you personally, then we have various steps to complete and that my company, Jacksons Wealth Management in Penzance would have to be the vehicle for that advice.
Contact Method
https://www.jacksonswealth.com
ABOUT THE HOST
Rob Moore is an author of 9 business books, 5 UK bestsellers, holds 3 world records for public speaking, entrepreneur, property investor and property educator. Author of global bestseller “Life Leverage” Host of UK’s No.1 business podcast “The Disruptive Entrepreneur”
“If you don't risk anything, you risk everything”
CONTACT METHOD
- Rob Moore Official Website
- Rob’s Facebook
- Rob’s LinkedIn