Grant Cardone: Stop Doing These 5 Things That Make Everyone Else Rich

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Throughout the years, real estate mogul and private equity fund manager Grant Cardone has spoken out about finance and the concept of building wealth. Despite the financial struggles many people share, it’s still possible to achieve long-term financial success.

“There isn’t a single generation that hasn’t had money problems,” Cardone wrote in a CNBC article. “I get it, though. We live in a different world now. Things are more expensive. College debt sucks. Finding a job is hard. But that doesn’t mean getting rich is impossible.”

Financial struggles aren’t limited to one generation, nor are the solutions. Whether you’re Gen Z, a millennial or someone older, you could still benefit from Cardone’s advice — not least of which is to stop doing certain things that make other people richer while you continue to struggle.

Comparing Your Finances to Other People’s

Making comparisons to motivate yourself might work to a point, but it’s easy to overdo it. The more you compare yourself, the higher the likelihood of stressing yourself out. If you’re not careful, you could end up relying on credit to keep up appearances — something that’s actually keeping you down while boosting others’ wealth.

Plus, the time spent comparing could have been better used elsewhere.

“Comparing your worth to others is a mental trap,” wrote Cardone. “Stop worrying about how financially behind — or ahead — everyone else is. Stay focused on your financial goals. Stop wasting time. Sit down and crunch the numbers.”

Say, for example, you want to reach millionaire status. Cardone suggested that you take the time to figure out the various ways you can achieve that goal. At the same time, figure out what mistakes you’re making that are keeping you from that goal. Once you have the answers to both, make a game plan and take action.

Borrowing Money for Things That Don’t Generate Income

Many consumers fall into the trap of purchasing things they don’t need — and using credit to do it. This might be a luxury vacation or excessive dining out. It might be okay to use credit for some things, particularly when you can pay off your balance before those high interest charges are added. But doing it too much is a financial trap that only makes other people money while putting you in debt.

“Spending money on a class that will make you better at something or renting office space to run your company out of is smart,” wrote Cardone. “Buying a motorcycle or expensive shoes that will eventually wear out is not smart.”

Even then, use caution when borrowing money like this. If you put something on credit, make sure you have a game plan that’ll get you some nice returns.

Not Earning Enough Income

According to the Social Security Administration, the U.S. national average income in 2023 was $63,933. That’s about $5,333 a month, which isn’t always enough to cover the cost of living without taking on debt — like short-term loans or credit cards.

It might be easier said than done, but one of the worst things you can do — that’s also making others more money — is keep living on a lower income than you need.

“Step it up at work so you can get a raise,” wrote Cardone. “Find a new job with an even higher salary. Pick up a side hustle.”

Cardone also said that it’s best to shoot for an annual income of $100,000 or more. That way, you’ll have more money to save and invest. But don’t limit yourself. Even if you’re earning more than that, there are advantages to finding ways to increase your earnings even more.

“You should always be saving and investing your money, but it’s also important to earn more money,” he wrote. “The return you make from your investments will only increase if your earnings increase. Even if you have a high income, you can always make more.”

Aiming for Comfort Over Freedom

No matter who you are, if you’re trying to become financially comfortable, you’re probably aiming too low, Cardone said.

“Comfort is the opposite of wealth,” he wrote. “The entire middle class is built on seeking comfort; they’re satisfied with a $50,000 income, two weeks of vacation, health insurance and a house.”

To be truly wealthy, you need to aim higher.

“Wealthy people seek more than just comfort. Instead, they strive for an abundance of money because it gives them more freedom and security than they’ll ever need,” Cardone wrote. “If you’re just seeking comfort, you’re probably never going to achieve financial freedom. Comfort gives you a middle class life. Freedom gives you a wealthy life. Choose wisely.”

Following Social Media Influencers

Many people, but especially millennials and Gen Zers, let the people they see on social media influence their financial decisions. But just because they look like they lead luxurious lives doesn’t mean they actually are — or that you should try to emulate them.

There aren’t any guarantees that it’ll work. You might also be spending money — likely using their affiliate links or sponsors — you don’t have, ultimately making them wealthier.

“Letting what you see on social media tempt you into spending money on things you don’t need is a big mistake. The people you see on Instagram — with their lavish dinners, parties, cars, designer clothes and vacations — aren’t necessarily ‘wealthy,'” wrote Cardone. “They’re most likely just ‘pretender spenders.’ They’re the people who try to impress others by showing off extravagant things that were probably purchased with their parent’s credit cards (or their own).”

He continued, “An Instagram lifestyle is no way to live” unless you yourself are an influencer and it’s making you millions of dollars.

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