What Would Grant Cardone Do With Your Paycheck?
Written by
J. Arky
Edited by
Rebekah Evans
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Financial influencer and public speaker Grant Cardone has a lot of advice for ways to build wealth, start up a company and manage your money properly. That’s all from life and professional experience over the years, but what if you were to hand Cardone your next paycheck? Chances are there would be a few key things the money guru would do with your income.
GOBankingRates hypothesized, based on past videos, interviews and posts, what Cardone would do with your paycheck so maybe you can do it for yourself the next time the funds land in your account.
Purchase a Few Assets
Cardone is a big proponent of the notion that you shouldn’t be buying “stuff” with your money because “stuff” sits around and does not generate any income. On TikTok, Cardone explained that maximizing your assets creates more value and increases your overall net worth.
With your paycheck, Cardone would like to purchase or save up to buy an asset — for example, a house that can build equity or equipment that could be used for a side hustle — so that your money is making even more money.
Invest Funds in Real Estate
Over and over, Cardone has said that the way he truly made his fortune and built his empire was through the investment of real estate. He saved any extra money he earned until he had enough to invest in real estate. This allowed him to earn monthly income without actively working for it, Cardone explained on his website.
While the market can go up and down like any industry, putting your paycheck towards a real estate investment is setting up a foundation for generating much bigger revenue streams in the future.
Save Money Only for Investing
If there is one throughline for Cardone’s money mindset, it is that putting money aside should only be done under the pretense that it will be used to jumpstart or uphold investments down the line, thus creating more money for you.
According to a blog post on Cardone’s website, rich people invest money and poor people spend it and that “if you leave money in savings too long, it disappears.” Your paycheck should not be blown over the weekend, nor sit in a safe collecting dust, but stored with the intention of investing.
Set Up Your Paycheck With the 40/40/20 Rule
Cardone knows that some money must be spent on cost of living expenses but, according to his TikTok, his formula for breaking down your paycheck is known as the 40/40/20 rule. That means of your total gross income on your paycheck, 40% is going to be saved for taxes. Another 40% should be saved for an investment. And the left over 20% is what you live off of.
If you haven’t already created a financial roadmap via this breakdown, Cardone would likely set up your payroll distribution with automatic savings based on these percentages so you can start to generate wealth with each future paycheck.
