Barbara Corcoran: Spend Money the Right Way and It Will Come Back to You
Written by
Adam Palasciano
Edited by
Nicholas Morine
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Many people may be under the impression that diligently saving money can make them rich. However, two self-made millionaires have a different opinion.
Barbara Corcoran, a real estate entrepreneur and star of ABC’s “Shark Tank,” is a firm believer that saving money doesn’t result in wealth.
“I’m just not a believer in saving money,” Corcoran explained to CNBC Make It. “I’ve never saved a dime my whole life.”
Additionally, finance guru and investor Grant Cardone recently tweeted his thoughts about saving money: “That full-time job won’t bring you wealth. Saving, saving, saving won’t bring you wealth… The ONLY thing that will bring you true wealth is investing.”
Focus on Building Cash Flow
Rather than throwing your money in a savings account, both Corcoran and Cardone agree that it’s financially smarter to invest in assets that “keep your money moving” and “create cash flow.”
It’s true that investing is one of the best ways to build true wealth and create cash flow. For example, investing in a start-up or real estate can lead to big returns and the potential for consistent income. Money indeed makes money, and investing carefully can get you there.
Avoid Financial Fear
Investing isn’t for the faint of heart, there’s no doubt about it. However, wealthy individuals like Corcoran and Cardone didn’t get rich by being risk-averse.
Corcoran was about to go bankrupt for the fifth time, but she thought of an idea that made her $1 million in a single day by selling apartments and creating a buying frenzy.
Cardone was raised by risk-averse parents who were terrified of losing their money. As a result, their wealth didn’t grow as much as it could have. He decided to take more risks than his parents, which has helped him reach the level of wealth he has today.
It’s important to remember that while investing always comes with financial risk, it can also come with financial reward.
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