Self-made millionaire’s advice: “Keep stacking that paper until you have a hundred grand in the bank”
Grant Cardone was broke and soaked in student debts worth of $40,000 after graduating from college. By 30, he’d made his first million. Since then, the 58-year old has built five companies and a multi-million dollar fortune.
Cardone doesn’t like to follow other people’s rules, especially in regards to saving money. “I would never, ever invest money in a 401(k),” Cardone said, according to CNBC. “Why would I go to work, have my employer give me another $6,000 a year, and then take that money and send it off to Wall Street, where I can’t even touch it for 30 years? I wouldn’t do that.”
The promising retirement plans are “traps that prevent people from ever having enough,” Cardone writes on his website. “The 401(k) is merely where you kiss your money away for 40 years hoping it grows up.”
The millionaire also advises people to focus on earning rather than saving: “People need to show the ability to produce more revenue — not invest it — first. People get rich because they produce revenue, not because they make little investments over time”. Moreover, he says that you should focus on earning big: “Keep stacking that paper until you have a hundred grand in the bank. I know this is very unrealistic for a lot of people, but the reason it’s unrealistic is because you’ve been conditioned to think small.”
Grant Cardone advocates for saving the money you earn and put them in a traditional savings account until you have at least $100.000; after that, you can start investing them. This way, your money will be accessible anytime.
He is not the first self-made millionaire who encourages this type of thinking. Another one would be Steve Siebold, who studied wealthy people for 25 years and found that they set their expectations high and aren’t afraid to think big.