Yahoo Finance 5 Genius Things Barbara Corcoran Says To Do With Your Money
Whether you want to get started creating a budget or learn how to become a millionaire, it’s always a good idea to follow Barbara Corcoran’s financial lead. The real estate mogul and “Shark Tank” star is one of the most successful entrepreneurs in the United States, and her success story has been anything but conventional.
What has Corcoran done differently with money that really works? Check out five of her most genius money moves.
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Spend Your Money
Corcoran is often quoted as saying it’s smarter to spend money rather than save money. However, not everyone knows the context she’s referring to when she shares this advice.
In a May 2023 interview with CNBC, Corcoran said her philosophy for making money is to spend money. The idea of hoarding or saving money, Corcoran said, felt like “it would take my spirit away.”
Rather than hoard her earnings, Corcoran intentionally spends her money. She also said she gave away half of what she sold her business for — $66 million — to family members, friends, education funds and charities.
“I really believe if you spend, money comes back to you,” Corcoran is quoted as saying. “I think the carefree attitude of believing that money makes money, if you’re willing to share it and spend it, really works, or at least, it has certainly worked for me.”
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Spend a Week Using Cash Only
If you’re a twentysomething, Corcoran recommends spending a week, even just one week, where you only use cash and do not charge any purchases to a credit card.
This advice, which Corcoran told Business Insider in 2016, is money advice she wished someone had told her when she was in her twenties.
When she was in her twenties, Corcoran said she was bouncing checks and charging purchases she wouldn’t be able to pay off in full every month. If she had paid for what she wanted using just cash, Corcoran said she would have quickly realized how limited her cash was and how much money she was wasting by putting every purchase on a credit card.
Pay Off High-Interest Credit Cards
How do you rebuild after a financial crisis? Corcoran shared her top four steps in a 2021 interview with Good Morning America.
Corcoran acknowledged it’s very difficult to build wealth when you’re in debt, so it’s critical to make the moves necessary to get out of debt. After making a list of all your debts, detailing how much you owe and whom you owe, Corcoran said you need to pay off your high-interest credit cards.
“That’ll kill you, that monthly interest,” said Corcoran.
However, you’re not quite done after paying off your credit cards. Once you’ve paid these cards in full, Corcoran said you need to track your spending. Watch out for “little things” that add up, with two examples from Corcoran including food deliveries and streaming subscriptions.
Finally, Corcoran said those with multiple credit cards should go to a reputable company to consolidate the debt and save money on interest rates. Corcoran recommends conducting a Google search and reading reviews about the company to make sure they provide excellent service.
Add ‘Mad Money’ Into Your Budget
Where should someone start when creating their first budget? This was a question Corcoran answered from an audience member during a 2021 episode of “The Ellen DeGeneres Show.”
Corcoran’s answer was practical and creative. She advised making a list of all the expenses going out each month and the money coming in every month, including your income. The creative aspect of Corcoran’s advice was her tip on giving yourself a budget for “mad money.” Mad money, Corcoran said, is a line in your budget that makes you feel like a million bucks.
“You won’t stick with a budget unless you have an item called mad money, in my book,” Corcoran said.
Find Something You Do Well and Practice Until You Become Good at It
What should you do with your money if you want to become a millionaire? This year, Corcoran was a guest on the podcast Erika Taught Me, hosted by money expert Erika Kullberg.
In the podcast episode, Kullberg asked Corcoran her advice on the fastest way to become a millionaire.
“I’d say take the money out of the equation,” said Corcoran.
Corcoran then said you need to find one thing to focus on. Ideally, this should be something you do “very, very well.” Once you find this thing, practice doing it until you become “very, very, very good at it.”
By doing this, Corcoran said, you won’t have any competition.
“You’re going to be at the top of your heap,” said Corcoran. “Money automatically comes with being at the top.”
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This article originally appeared on GOBankingRates.com: 5 Genius Things Barbara Corcoran Says To Do With Your Money
