5 Frugal Habits of Grant Cardone
Grant Cardone wears a few hats. He’s a best-selling author, a real estate investor and an equity fund manager. Cardone is also a passionate speaker, delivering motivational advice and insight for Americans, with finances and building wealth being a key focus.
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Practicing what he preaches has gotten Cardone far. He boasts a net worth of $600 million. Part of the way he maintains his vast wealth is by practicing money-saving habits that anyone can and should do.
Here are five frugal habits of Grant Cardone.
Stop Using Your Credit Card (Go the Cash Route Instead)
In a post on X, formerly Twitter, Cardone said that one discipline that helped him build financial freedom is opting for cash over credit cards. Many financial experts agree — among them multi-billionaire Warren Buffett, who generally condemns credit card usage.
Don’t Keep A Lot of Cash in the Bank
Hoarding cash in the bank is, in the opinion of Cardone, a terrible habit. Though he recommends using cash for purchases, he thinks it’s “trash,” otherwise.
“Why do I say cash is trash?,” Cardone said in a Facebook post in 2021. “It’s because if you keep cash in the bank it’s not going to pay your back money every month. You’re not going to create cash flow by keeping your cash stored.”
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Cardone stands by the habit of investing in real estate for cash flow.
“If you would just buy the real estate and have somebody living in it who pays you a check every month on it, you’re guaranteed to weather storms,” Cardone said.
Prioritize Buying Tax-Deductible Items
Many essentials we need to buy aren’t tax-deductible, but some are. Cardone said on X, “If the purchase isn’t tax deductible, don’t buy it.
Avoid Impulse Buys
In an exclusive interview with GOBankingRates last April, Cardone said that one frugal habit he swears by avoiding impulse buys.
To do this, Cardone rates his potential purchase on a one to five scale. One means it’s an absolute must-have; five means it’s “absolutely not necessary.”
“Fours and fives are never bought, and threes are discussed,” Cardone said. “This keeps me from making dumb, impulsive, wasteful purchases.”
Hold Onto Earned Income (Spend Your Passive Income Instead)
In the same interview, Cardone stressed that we should all have multiple income streams, including earned income, but that we should only spend our passive income.
“If I can’t pay for it out of passive income, I don’t buy it,” Cardone said. “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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This article originally appeared on GOBankingRates.com: 5 Frugal Habits of Grant Cardone
