Barbara Corcoran’s 4 Riskiest Money Tips That Might Really Make You Richer
Written by
Cara Danielle Brown
Edited by
Amber Barkley
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Barbara Corcoran is probably best known for founding New York City brokerage The Corcoran Group and investing in over 120 entrepreneurs on ABC’s hit television show “Shark Tank.” She’s also made headlines with her no-nonsense business advice, which is not for the faint of heart.
In short, Corcoran has always been comfortable taking risks. Having grown up very poor, Corcoran has stated she never felt she had anything to lose by putting herself out there. It is exactly this daring mentality that has made her extremely successful… though that same mentality nearly pushed her to the brink of bankruptcy several times along the way.
So what are some of her risky money tips that might actually make you richer?
Don’t Bother Saving Money
This one might have many a financial advisor scratching their head. But Corcoran has infamously stated she never saved a dime in her whole life; she simply doesn’t believe in it.
Instead, she invests her money so it compounds instead of letting it sit idly. In fact, almost all of the money she ever earned had been immediately re-invested back into her own business. Talk about a flex! If her business failed, she would have been left with nothing, but the potential for big losses went hand in hand with the potential for big wins… and win she did.
It therefore makes sense that Corcoran’s golden rule in getting very rich through property investment consists of overspending money to make money.
In a TikTok posted to her account, Corcoran emphasized never cutting costs on the ground floor for a worthwhile endeavor: “I would say that I always am willing to overspend — be the highest bidder — on any property that’s good, because those are always the properties that make the most money.”
Don’t Follow Your Passions
While this flies in the face of most career advice out there, Corcoran believes following one’s passion is not tangible or action-oriented and never works out as well as people want to think it will. While Corcoran emphasizes enjoying what you do, she veers away from romanticism in favor of shrewd pragmatism when it comes to making money. This is why she instead encourages solving problems.
“How do you put that on paper? I don’t find that my successful entrepreneurs followed their passion at all. You know what happened? They were in a day job and something went awry, or they saw a situation that turned out better or worse or a problem that there was no resolution for related to what they were doing in their day job. And they say, ‘Whoa, you know what a good solution would be?’ and they think of a good solution and they decide to do it,” Corcoran told Forbes.
For Corcoran, action and opportunism outweigh idealism and hard-headedness when it comes to getting rich off one’s profession.
While some would argue not following one’s visceral passion is a risky prospect that could lead to life dissatisfaction or lack of purpose, Corcoran argues there’s no upside of being a starving artist — especially since being in survival mode never puts one in the head space to create, anyway.
So branch out. You may even stumble into a passion you never knew you had.
Don’t Diversify Too Much
“One piece of advice people hear all the time, and I just don’t believe it, is: ‘Diversify, don’t put all your eggs in one basket,'” Corcoran told CNBC Make It, referencing traditional financial advice as it pertains to minimizing losses inherent in stock market volatility. “I put all my money in the real estate basket, my brokerage firm, and everything in there went to buying properties.”
While Corcoran watches the market and invests carefully, she sticks solely to buying and selling real estate — the industry that she knows. She actively chooses not to spread her money across other sectors, and that strategy has gone surprisingly well for her. In 2001, she sold The Corcoran Group for $66 million.
Translation? According to Corcoran, if you really know what you’re doing, you may not need to idiot-proof your portfolio.
You Shouldn’t Have To ‘Work Your Buns Off’ To Get Rich
Counter to popular hustle mentality, Corcoran disagrees that entrepreneurs must kill themselves working long hours in order to get rich. While moguls like Grant Cardone and Elon Musk encourage outworking the competition to acquire copious wealth, Corcoran has never sacrificed work-life balance. And she’s obviously wealthy!
Corcoran does not feel taking your kids to the park will cause you to fall behind at the office. She believes individuals burning themselves out are simply doing it wrong.
Per CNBC, Corcoran emphasizes working smarter in business rather than harder by asking, “How could I do even better tomorrow?” and “How can I do better than my competition?” — then gradually enacting that plan, one step at a time.
Additionally, by stepping back and making the goal about the work — not solely getting rich — Corcoran insists money finds you.
Takeaway
While each tip may not be viable for every individual, Corcoran’s wealth-building advice encourages individuals to get out of their comfort zones and challenge themselves instead of always playing it safe with their finances. Profit and growth can sometimes be worth the risk.
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