The Money Podcast Are You Being Dangerous with Your Money?
Rob talks about the most dangerous ways we can mishandle our money, uncovering shocking truths about banking, savings accounts, and inflation. Rob challenges conventional financial wisdom and explains why your savings account might actually be making you poorer. From the hidden mechanics of money printing to the true nature of banks, Rob continues to share the controversial insights that will transform how you think about managing your wealth.
KEY TAKEAWAYS
- Savings accounts are actually "degrading accounts" - your money loses value over time due to inflation being higher than interest rates, with banks typically offering much lower rates than the base rate while making profit on the difference.
- The banking system operates on a model where you are the product. Banks create money from nothing, lend it out multiple times, and make a profit from your deposits while providing minimal returns and maintaining limited transparency.
- Inflation is not a natural economic phenomenon but a controlled mechanism that consistently devalues currency, with current inflation rates significantly outpacing any interest earned in traditional savings accounts.
- Liquidity should replace the concept of savings. Keeping 1-3 months of expenses liquid is important, but this doesn't necessarily mean in bank accounts; alternatives like S&P 500, FTSE 100, or precious metals can provide better security.
- Money printing through quantitative easing devalues existing currency while simultaneously reducing the relative value of debt, which explains part of why "the rich get richer" - they hold assets that appreciate with inflation.
- The 85,000 bank deposit protection isn't per bank but per banking group, meaning multiple accounts at different banks owned by the same group don't multiply your protection.
BEST MOMENTS
"If you waste money and enjoy it, I'd argue that's not a waste. I think that gambling is a disgusting industry, especially when you're advertised hard at first, and lured in with money."
"Be an owner, not a loaner. When you give your money to the bank, you think you're saving it, you're actually lending it to them."
"If you borrow a million from the bank, you have a problem. If you borrow a hundred million from a bank, the bank has the problem."
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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 the global bestseller “Life Leverage” Host of UK’s No.1 business podcast “The Disruptive Entrepreneur”
“If you don't risk anything, you risk everything”
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