Grant Cardone: What You Should Do To Protect Your Money in Our Current Recession
Written by
Gabrielle Olya
Edited by
Chris Cluff
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
While some economists are speculating about the timing of our next recession, Grant Cardone, fund manager and CEO of Cardone Capital and Cardone Training Technologies, believes that we are currently in one.
“I think we’ve been in a recession for two years,” he told GOBankingRates. “If you look at the average person’s income, their income hasn’t kept up with the expenses.
“The only thing that kept the government from admitting to a recession was the supposed unemployment numbers, but they changed the definition — 40% of all the jobs right now are government jobs, 40% of them are part-time jobs,” Cardone continued. “I wouldn’t count either one of them. The GDP has shrunk two quarters in a row.”
Here’s what Cardone said to do to protect your money during an economic downswing.
Also see his advice for how best to save for retirement.
Increase Your Earnings
The best way to protect your finances during a recession is to focus on earning more money, said Cardone, who will be hosting the 10X Wealth Conference in Aventura, Florida on Nov. 17-18.
“You have to make more money,” he said. “Everybody’s charging more for everything, so you have to make more money. That means you have to be better at whatever it is you’re doing. You have to be exceptional at it.”
Curb Your Spending
Now is a time to be extra intentional about how you are spending your money.
“People need to figure out a way to be more efficient in what they spend money on,” Cardone said. “You cannot do goofy s— right now. This is not the time to be reckless with your money.”
Cardone said to cut down on discretionary spending on clothing items in particular.
“You don’t need any more shoes or slacks or purses,” he said. “It’s dumb.”
Don’t Save Your Money — Invest It
Inflation makes the value of your money decrease over time, so if you keep it in a savings account, you are actually losing money, Cardone explained.
“You cannot save money right now,” he said. “This is a screwball concept that made banks rich. Your mom and your dad, your uncle, your aunt, your grandparents — all believed in saving money. It made banks worth trillions of dollars.
“People need to quit saving money in institutions — they need to start operating like an institution,” Cardone continued. “Start investing that money the way the institutions do.”
Consider Starting a Business
Cardone believed that recessions are actually a smart time to start a business, so if you have an entrepreneurial itch, now is the time to scratch it.
“It’s a great time to start a new business,” he said.
More From GOBankingRates
