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Grant Cardone’s 5 Frugal Habits
© Grant Cardone
Grant Cardone wears a few hats. He is a best-selling author, real estate investor and equity fund manager. Cardone is also a passionate speakerproviding motivational advice and insights to Americans, with finances and building wealth being a main focus.
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Practicing what he preaches has taken Cardone far. He has a net worth of US$600 million. Part of the way he maintains his vast wealth is by practicing money-saving habits that anyone can and should practice.
Here are Grant Cardone’s Five Frugal Habits.
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 was choosing cash over credit cards. Many financial experts agree – including multibillionaire Warren Buffett, who generally condemns the use of credit cards.
Don’t keep too much money in the bank
Accumulating money in the bank is, in Cardone’s opinion, a bad habit. While he recommends using cash for purchases, he thinks it’s “trash” otherwise.
“Why do I say money is trash?” Cardone said in a Facebook post in 2021. “It’s because if you keep money in the bank, it won’t pay you back every month. You won’t create cash flow by keeping your money in storage.”
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Cardone maintains the habit of investing in real estate to generate cash.
“If you just bought the property and had someone living there who would write you a check every month, you would definitely weather storms,” Cardone said.
Prioritize purchasing tax-deductible items
Many essential items we need to buy are not tax deductible, but some are. Cardone said in X, “If the purchase is not tax deductible, do not buy it.
Avoid impulse purchases
In an exclusive interview with GOBankingRates last April, Cardone said that one frugal habit he swears by is avoiding impulse purchases.
To do this, Cardone rates your potential purchase on a scale of one to five. One means it is absolutely mandatory; five means “absolutely not necessary”.
“Fours and fives are never bought and threes are discussed,” Cardone said. “It stops me from making stupid, impulsive, pointless purchases.”
Keep earned income (spend your passive income instead)
In the same interview, Cardone stressed that we should all have multiple income streams, including income from work, but that we should only spend our passive income.
The story continues
“If I can’t afford it with passive income, I won’t buy it,” Cardone said. “I don’t buy anything for myself with my income from work. I use ALL my earnings to reinvest in my company, my brand or to buy more properties that generate more income.”
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This article originally appeared on GOBankingRates. with: Grant Cardone’s 5 Frugal Habits