Grant Cardone: Understanding the 3 Unique Ways Wealthy People Think
Written by
Peter Burns
Edited by
Molly Sullivan
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Wealth brings security, freedom, comfort, power and status. However, becoming wealthy is much easier said than done. Grant Cardone, a financial influencer, real estate investor and self-made millionaire, started out with very little but wanted to change his financial future. To become wealthy, he chose to study individuals who were in the financial position he wanted to reach. Here are three things that he learned.
They Delegate Tasks
If you start a business, you might start out working 80-hour weeks and taking on tasks that range from responding to customer emails to developing marketing strategies. It can be challenging to give up the reins and give control to others, but according to Cardone, that’s exactly what wealthy people do. “The wealthy know that time is the only truly scarce resource,” he said, “You can’t buy more of it.”
One of the wealthiest people on earth agrees with him on this point.
Warren Buffett, the CEO of Berkshire Hathaway Inc. and a legendary investor, emphasizes prioritizing your time to become successful. One way to do this is to set clear boundaries by saying no to things or delegating tasks. Buffett has pointed out that when he delegates responsibilities to trusted team members, he doesn’t have to waste his time or drain his energy on unnecessary things.
They Have Assets, Not Income
It may seem like common sense that to become wealthy, you need to raise your income. However, Cardone doesn’t see it this way. He said, “Wealthy people don’t earn income. They have no income, in many cases, or very low income…but their assets go up in value.”
To illustrate this point, Mark Zuckerberg earned a base salary of $1 from Meta in 2024 but earned $27.22 million in total compensation. This is possible because Zuckerberg can opt to take compensation in shares of his company, assets that will continue to earn him money over time.
This strategy also benefits wealthy individuals in terms of tax considerations. Cardone said, “Rich people pay a lot of taxes. Wealthy people don’t pay any taxes.” While he may be exaggerating, he has a point. When an individual owns large assets, they can use them in various ways as tax write-offs to lessen their tax burden. They also pay less tax for long-term capital gains than income.
They Use Debt To Invest Effectively
Taking common forms of personal debt, such as credit cards, personal loans and mortgages into consideration, the average American household has more than $150,000 worth of debt. Debt may be a frightening concept, but many view homeownership as an excellent investment that leads to owning an asset. While true, Cardone doesn’t see homeownership as the best investment and claims wealthy people rarely try to buy their own homes first.
Instead, Cardone explained that a much better first investment is in cash-flow real estate. Cash-flow real estate involves buying commercial real estate, such as an apartment complex or office building, and generating monthly profits from rent payments. The rent payments cover expenses like the mortgage payments, property taxes and maintenance, meaning the wealthy investor makes money while owning more of an asset.
Furthermore, Cardone explained that wealthy people use businesses to get into debt for significant investments instead of taking out a personal loan. A major reason to do this is that if your business is unable to pay down debts, you aren’t personally liable. It can also provide access to larger funding amounts, which you can convert into income-generating assets.
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