‘Quit Saving Your Money’: Grant Cardone’s Bold Take on Building True Wealth

In the world of personal finance, advice often varies widely, but one voice that stands out is that of Grant Cardone, a prolific real estate investor and motivational speaker. Cardone’s philosophy is simple yet provocative: “Quit saving your money.” This statement challenges conventional wisdom and encourages a shift in mindset for those seeking true wealth.

The Myth of Saving

Cardone recently took to social media to share his thoughts on wealth-building, asserting that traditional methods such as saving, relying solely on a full-time job, or being overly frugal will not lead to financial freedom. “That full-time job won’t bring you wealth. Saving, saving, saving won’t bring you wealth. Overspending won’t bring you wealth. Being scared won’t bring you wealth,” he stated.

Instead, Cardone emphasizes that the key to building real wealth lies in investing. He argues that many people, including his own parents, fell into the trap of saving without investing, which ultimately limited their financial growth. “They didn’t invest their money correctly. They didn’t take money and leverage it into real investments because they were terrified of losing their money,” he explained.

The Power of Investing

According to Cardone, the only way to achieve wealth “beyond millions of dollars” is through strategic investments. He highlights real estate as a prime example of an asset class that can generate cash flow and appreciate over time. With nearly 8,000 units of cash-flow-producing real estate valued at over $4 billion, Cardone speaks from experience.

However, it’s essential to approach his advice with caution. Cardone has faced legal challenges over allegations of misleading investors, which he has denied. As with any financial advice, it’s crucial to consider your personal circumstances and do thorough research before diving into investments.

How to Get Started in Real Estate Investing

If you’re inspired by Cardone’s philosophy and want to explore real estate investing without needing a fortune to start, here are three accessible methods:

1. Real Estate Investment Trusts (REITs)

Investing in a Real Estate Investment Trust (REIT) allows you to profit from the real estate market without the responsibilities of being a landlord. REITs are publicly traded companies that own income-producing properties, such as apartment buildings and shopping centers. To qualify as a REIT, a company must distribute at least 90% of its taxable income to shareholders as dividends.

REITs offer a way to invest in real estate with lower capital requirements than purchasing physical properties. They are also liquid, meaning you can buy or sell shares easily on the stock market. However, it’s important to research individual REITs, as their performance can vary based on market conditions.

2. Real Estate Exchange-Traded Funds (ETFs)

For those seeking a more diversified approach, Real Estate ETFs provide an easy way to invest in a basket of real estate stocks. These funds trade on major exchanges and can include a variety of REITs and real estate-related companies.

For instance, the Vanguard Real Estate ETF (VNQ) offers broad exposure to U.S. REITs and has shown steady growth over the years. ETFs typically charge a management fee, but they allow investors to gain exposure to the real estate market without the need to select individual stocks.

3. Crowdfunding Platforms

Real estate crowdfunding platforms have emerged as a popular way for everyday investors to pool their resources and invest in real estate projects. These platforms allow you to invest in a share of physical properties, from residential rentals to commercial developments.

Some crowdfunding options are available to non-accredited investors, allowing you to start with small amounts, sometimes as low as $100. This democratizes access to real estate investing, making it more accessible to the general public. However, be aware that these platforms often charge fees, typically ranging from 0.5% to 2.5% of your investment.

Conclusion

Grant Cardone’s advice to “quit saving your money” and focus on investing challenges traditional views on wealth-building. While his approach may not resonate with everyone, it highlights the importance of taking calculated risks and leveraging opportunities in the investment landscape.

As you consider your financial future, remember that personal finance is not one-size-fits-all. What works for one person may not work for another, so it’s essential to evaluate your own circumstances and goals. Whether you choose to invest in REITs, ETFs, or crowdfunding platforms, the key takeaway is to take action and explore the wealth-building potential that investing can offer.

As always, consult with financial advisors and do your due diligence before making investment decisions. The journey to financial freedom is unique for everyone, and the right path is the one that aligns with your personal values and objectives.