Yahoo Finance Grant Cardone: 3 Frugal Habits I Live By
Grant Cardone has reached a level of wealth where he no longer has to scrimp and save — but there are still ways he lives frugally.
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The multimillionaire private equity fund manager and real estate investor shared his most frugal habits with GOBankingRates.
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He Doesn’t Spend Any of His Earned Income
Cardone believes that everyone should have multiple streams of income — ordinary/earned income, bonus revenue and passive income. To maintain his wealth, he only spends his passive income.
“If I can’t pay for it out of passive income, I don’t buy it,” said Cardone, who recently announced a partnership between Cardone Capital and REVIV to launch the world’s first patented Precision Nutrition System with 10X Health. “I purchase nothing for myself out of earned income. I use ALL my earned income to reinvest in my company, my brand or to buy more income-producing real estate.”
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He Doesn’t Buy Anything That Isn’t Tax Deductible
Cardone keeps taxes at the forefront of his mind when making purchase decisions.
“If I can’t write it off, I don’t buy it,” he said. “Purchases that are not deductible cost me twice as much as those I can write off and save me 40% on my taxes.”
He Doesn’t Make Impulse Purchases
Before buying anything, Cardone rates his potential purchase on a one to five scale, with one being he “absolutely has to have it” and five being “it’s absolutely not necessary.”
“Fours and fives are never bought, and threes are discussed,” he said. “This keeps me from making dumb, impulsive, wasteful purchases.”
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