Grant Cardone Thinks You Should Look at Your Cash and Investing Accounts Every Single Day — Here’s Why
In the world of finance, the mantra “out of sight, out of mind” can lead to missed opportunities and stagnant wealth. Real estate mogul Grant Cardone believes that the average American investor is getting scammed by complacency. He argues that individuals work hard to earn their money, only to hand it over to financial institutions and forget about it. During an interview with podcast host Lewis Howes, Cardone stated, “You get money, you work your a– off and then you give it to an institution and forget that it’s there.” This perspective raises an important question: Are savers truly getting the short end of the stick?
Are Savers Getting the Short End of the Stick?
The current landscape of banking reveals a troubling reality for savers. Major banks like Wells Fargo, Chase, and Bank of America offer entry-level interest rates on deposits that hover around a meager 0.01%. In contrast, the Federal Reserve’s benchmark interest rates are between 5.25% and 5.50%. This discrepancy suggests that traditional savings accounts are failing to provide adequate returns for the average consumer.
A recent survey by JP Morgan, which analyzed the cash balances of 8.3 million Chase customers, found that the median cash balance in checking accounts was approximately $6,600. This substantial amount of money is sitting idle, earning virtually no interest. While checking accounts are primarily designed for daily transactions and short-term needs, the reality is that many individuals are unaware of better options available to them.
High-yield savings accounts, for instance, currently offer interest rates as high as 5.3%. Yet, Cardone argues that many people are either oblivious to these alternatives or simply unwilling to seek them out. “People are unconscious; they don’t know where their money is,” he remarked, emphasizing the need for individuals to take a more active role in managing their finances.
The Importance of Personal Inventory
Cardone advocates for a daily review of cash and investment accounts, a practice he refers to as “personal inventory.” He believes that this habit is essential for anyone serious about building wealth. “If [your account] is zero, look at it until it makes you sick,” he advised. This approach aligns with the philosophy of management consultant Peter Drucker, who famously stated, “You can’t manage what you can’t measure.”
By frequently checking their accounts, individuals can gain a clearer understanding of their spending habits and cash flow. This awareness is the first step toward controlling expenses and deploying excess cash into investments that have the potential to appreciate over time.
The Power of Small Gains
Consider this: if you had invested $1,000 in a high-yield savings account last year at a 5% interest rate, you would have earned an additional $50. However, if that same amount had been invested in an index fund tracking the S&P 500, you could have seen a return of approximately $262 over the same period. While these figures may seem small in isolation, they highlight the significant impact that informed investment choices can have over time.
Conclusion
In a financial landscape where traditional banking options often fail to provide adequate returns, Grant Cardone’s advice to monitor your cash and investment accounts daily is more relevant than ever. By taking an active role in managing your finances, you can avoid the pitfalls of complacency and make informed decisions that will contribute to your long-term wealth.
Whether you’re a seasoned investor or just starting, the key takeaway is clear: don’t let your money sit idle. Take the time to understand where your funds are and how they can work for you. After all, in the world of finance, knowledge is power, and proactive management can lead to substantial rewards.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.