Grant Cardone: Savings Advice You’d Regret Following
Real estate tycoon Grant Cardone has some big opinions when it comes to regret. Among his most counterintuitive? Following your passion and saving your money won’t lead to generational wealth.
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“Anyone has the potential to ‘get rich,’ but the biggest problem for most people is they’ve been miseducated,” he told Muscle and Health.
The real estate giant who has a net worth of $600 million and real estate assets of $4 billion may know a thing or two about finances.
“I spend a lot of my time stripping away information from people that are not helping them,” he said. “People shouldn’t be poor; people should be in good health. The majority of the population don’t have money or good health because people have been misinformed and educated in a manner that causes them to be in poor financial and physical health.”
Below are some of the money insights he has imparted over the years.
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Don’t Save Your money
Most financial advice is geared toward people saving their money, but Cardone is adamantly against this practice.
“Saving is one of the greatest lies on planet Earth,” he said. “The idea that you should save money is completely ridiculous, which the banks perpetuated. They pay you nothing to keep your money there.”
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Instead, he recommends investing in something that produces more money.
“I don’t want money, and I want assets,” he said. “I trade cash for assets that produce money without me putting in the time. Saving money is a scam.”
He elaborated on this idea further in a video he posted to X (formerly Twitter), where he noted there’s only one thing that will help you build real wealth, and that boils down to investing.
Don’t Buy a Home
In perhaps one of his most controversial pieces of advice yet, the billionaire advises against purchasing a home.
“Equity is dead money,” he told Muscle and Health. “Unless you’re rich and think you’re going to make a bunch of money on it, or you have so much passive income from other investments you can afford it, don’t buy a house.”
His reasoning? According to Cardone, your money stays stuck in the house. “If you put 50% down on the house, the money lies dormant, earning nothing. And then you have to feed it. It’s not a golden goose. If you buy a golden goose, the golden goose should give you eggs.”
Don’t Follow Your Passion
While many people firmly believe that following your passion is the path to finding ultimate happiness, Cardone says this is a false mindset.
“This idea that ‘money won’t make you happy’ and ‘don’t just do it for the money’ and ‘find something you’re good at’ — none of this creates wealth for people,” he said.
Indeed, most experts agree that building wealth often requires a high level of proficiency, which may take years of training and experience. Some passions may not be financially viable due to high upfront costs or low profit margins. Pursuing these might even require significant personal sacrifices like working long hours or investing large sums of money, which may not necessarily align with wealth-building goals.
For this reason, Cardone advocates for “literally studying money.”
“Money follows people,” he said. “So don’t look at what you’re good at or even what you’re passionate about — look for where the flows are.”
He gives Jeff Bezos as an example of someone who saw a demand as people moved to the internet and followed that business hunch with Amazon.
Don’t Be Content With Your Job
In a 2019 piece for CNBC, the tycoon wrote that you should constantly ask yourself, “How can I earn more money?”
Whether that means asking for a raise, switching to a new job with higher pay or opting for a side hustle, Cardone said you should strive to be “a money fanatic.”
“The acceptance of the idea that eight hours invested in your job is enough regardless of your financial position is a misunderstanding of epic proportions.”
Drive and motivation, according to Cardone, are essential for achieving financial success and stability.
“I wasted half of my 20s working low-paying jobs that didn’t challenge me to grow and develop valuable skills,” he wrote. “I’m not saying low-paying jobs are bad; sometimes you have to start at a lower salary. But being content and without any drive won’t make you successful in life.”
Life is full of opportunities; but, without drive, you may not recognize or pursue them, resulting in missed chances for personal and professional growth, happiness and your overall financial well-being.
All to say: A little discomfort can go a long way in warding off regret.
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