AFTER racking up £50k of consumer debt, Rob Moore knew something had to change, otherwise it was only going to get worse.
During his time in university Rob’s spending habits spiralled out of control, so he took out loans and racked up credit card debt in a bit to keep afloat.
“It crept up on me slowly going out in university, buying things on credit thinking I could pay it off and I couldn’t, not quite earning as much as I was spending,” he explained.
For the first few years, Rob didn’t take much notice of his building debt, he said on The Money Podcast.
It wasn’t until he realised almost all of his money was going towards paying off the interest on his loans that he knew it had spun out of control.
“It made me feel useless, worthless, and terrible at managing money,” he said.
But the shame and embarrassment was the exact catalyst he needed to make a change.
Rob then managed to pay off his debt in just one year, and even took it a step further and became a millionaire at 30.
Despite not having any real knowledge, experience or money to start him off, Rob was urged to get into property.
Then at a property networking even he met his business partner and things began to take off.
“In that year I got a job sourcing properties for a company, I earned minimum wage and I was paid commissions,” he explained.
Eventually, Rob and his business partner were able to start investing in their own property deals too, which is where the real money came from.
Alongside this, he was also selling some of his art, which he had always made but didn’t think about seriously selling it until he was desperate for the extra cash.
Within a year of this his debt was cleared and he earned “nearly six figures.”
“That sounds to some people like it’s quite a short amount of time, but I was motivated, I was desperate, I was hungry, my whole life had been gearing up to this point,” he explained.
With his debt clear and money finally coming in, he even managed to buy a posh new car with cash.
Changing his mindset towards money wasn’t something that happened overnight, in fact Rob said he spend years feeling bitter towards anyone who did have money.
The key to changing his “victim mentality”? Being open to learning from others.
“You know that the more you learn, the more you earn,” he said.
He read over 40 books in the first year and took part in a few courses to help him learn more about money and property, and much to his surprise, he actually enjoyed it all.
Of course, all of this was hard work and took a lot of commitment, including putting his social life on pause for a while.
Rob’s main piece of advice for anyone else looking to get out of debt or save money? Never spend more money than you have coming in.
“If you never spend more than you earn, month by month you’re going to earn more and more,” he said.
He added that people should never spend money emotionally, like he used to.
Whether it’s spending to celebrate something, or to cheer yourself up, it’s a big no-no for the money guru.
and Finally, don’t spend money impulsively.
Instead, wait a few days to see if it’s something you actually want and “buy on strategy rather than impulse.”
How to cut the cost of your debt
IF you're in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans