Grant Cardone’s Three Money Habits for Achieving Financial Freedom

In the world of real estate and entrepreneurship, few names resonate as powerfully as Grant Cardone. At 66 years old, Cardone has transformed his life from humble beginnings into a thriving empire, inspiring countless investors along the way. His journey from rags to riches is not just a tale of luck; it’s a testament to the power of disciplined financial habits. Recently, Cardone shared three key money habits on social media that he credits for helping him achieve financial freedom. Let’s delve into these principles and explore how you can adapt them to your financial journey.

1. Earn Passive Income

Cardone’s first habit is straightforward yet profound: “Never use earned income to improve quality of living, only passive income.” This principle emphasizes the importance of investing your earned income into assets that generate passive income, allowing you to enhance your lifestyle without relying solely on your paycheck.

To implement this habit, start by allocating a portion of your earned income towards investments that can yield returns while you sleep. Traditional avenues for passive income include stocks, bonds, mutual funds, and exchange-traded funds (ETFs), which can provide dividends that either improve your quality of living or be reinvested for future growth.

However, Cardone’s favorite investment vehicle is real estate, particularly multifamily properties that offer consistent rental income. He advocates for crowdfunding platforms, which enable everyday investors to pool resources to purchase real estate. This approach not only democratizes access to real estate investing but also lowers the barrier to entry, making it feasible for those who may not have substantial capital to invest.

2. Cash is King

The second habit Cardone emphasizes is “never use credit cards or debit cards for personal use purchases.” This mantra aligns with his overarching belief that “cash is king.” While this may seem extreme to some, it underscores the importance of financial discipline.

Using cash for purchases can help you avoid the pitfalls of credit card debt, which can spiral out of control if not managed properly. While some argue that credit cards offer rewards and security, Cardone’s approach is rooted in the idea of living within your means. By using cash, you are less likely to overspend and can maintain a clearer picture of your financial health.

That said, it’s essential to recognize that personal finance is just that—personal. What works for Cardone may not be suitable for everyone. Responsible credit card use can be beneficial if you pay off your balance each month and leverage rewards wisely. The key takeaway here is to avoid spending money you don’t have, a principle that is easier to adhere to when using cash.

3. Be Tax Savvy

Cardone’s final wealth-building discipline is “If the purchase isn’t tax deductible, don’t buy it.” This principle may seem more applicable to business owners, but it highlights the importance of being strategic about your spending.

As a businessman, Cardone can claim numerous business-related expenses on his tax returns, which can significantly reduce his taxable income. While the average American may not have the same opportunities, there are still ways to be tax-savvy. Familiarizing yourself with the IRS’s list of deductible expenses can help you identify potential savings.

Common deductible expenses include alimony payments, contributions to retirement accounts, and certain medical expenses. If you itemize your deductions, you may also be able to deduct charitable donations, capital losses, and property taxes. Understanding these deductions can help you make more informed financial decisions and maximize your savings.

Conclusion

Grant Cardone’s financial habits offer valuable insights for anyone looking to achieve financial freedom. By focusing on earning passive income, practicing cash discipline, and being tax-savvy, you can cultivate a mindset that prioritizes long-term wealth-building over short-term gratification. While Cardone’s strategies may not resonate with everyone, they serve as a reminder that financial success often comes down to disciplined habits and informed decision-making.

As you consider your financial future, reflect on these principles and think about how you can adapt them to your unique circumstances. Whether you’re just starting your journey or looking to refine your approach, the path to financial freedom is paved with intentional choices and strategic planning.