7 Reason Grant Cardone’s Money Advice Might Not Work for You and What To Do Instead
Written by
Jamie Stone
Edited by
Rebekah Evans
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Grant Cardone has built an empire around his aggressive approach to wealth building, real estate investing and entrepreneurship. With millions of followers and a net worth reportedly in the hundreds of millions, his “10X” philosophy has inspired countless people to think bigger about their financial goals. However, his one-size-fits-all approach to money management isn’t necessarily right for everyone.
While Cardone’s advice can be motivational and valuable for certain individuals, his strategies often require specific circumstances, risk tolerance levels and financial foundations that many people simply don’t have. Here are top reasons why his advice might not work for you and what you can do instead.
His ‘Avoid Saving’ Philosophy Ignores Financial Security Needs
Cardone’s Advice: Grant Cardone famously advocates against traditional saving, arguing that cash sitting in savings accounts is “losing money” due to inflation and that you should instead invest every dollar into income-producing assets.
Why It Might Not Work: Emergency funds are crucial for financial stability. Life throws curveballs ( job loss, medical emergencies, car repairs) and without a financial cushion, you could end up in debt or forced to liquidate investments at the worst possible time.
Better Alternative: Follow the 50/30/20 rule as a starting point: 50% of income for needs, 30% for wants and 20% for savings and debt repayment. Build an emergency fund covering three to six months of expenses before aggressively investing. Once you have this foundation, you can allocate a higher percentage toward investments while maintaining your safety net.
His Real Estate Strategy Requires Substantial Capital
Cardone’s Advice: Focus heavily on real estate, particularly multifamily properties and commercial real estate, as the primary vehicle for wealth building.
Why It Might Not Work: Commercial real estate typically requires significant down payments, often 20% to 25% or more. For a $1 million property, that’s $200,000 to $250,000 upfront, plus closing costs, inspections and reserves. Most people don’t have access to this kind of capital.
Scaled Alternative: Start with Real Estate Investment Trusts (REITs) to gain real estate exposure without massive capital requirements. Consider house hacking by buying a duplex, living in one unit and renting the other. You can also explore real estate crowdfunding platforms that allow investments starting at $500 to $1,000.
His ‘Debt is Good’ Mentality Doesn’t Apply To High-Interest Consumer Debt
Cardone’s Advice: Leverage debt to acquire assets and build wealth faster, treating debt as a tool rather than something to avoid.
Why It Might Not Work: This advice works for low-interest, tax-deductible debt used to purchase appreciating assets. However, credit card debt averaging 20% or higher interest rates will drain your wealth faster than most investments can build it.
Better Approach: Distinguish between “good debt” and “bad debt.” Pay off high-interest consumer debt first using strategies like the debt avalanche method (highest interest rates first) or debt snowball method (smallest balances first). Only consider leveraging debt for investments after eliminating high-interest obligations.
His Risk Tolerance Doesn’t Match Everyone’s Life Situation
Cardone’s Advice: Take massive risks and bet big on yourself and your investments to achieve extraordinary returns.
Why It Might Not Work: Risk tolerance varies based on age, family situation and personal circumstances. A 25-year-old single person can afford to take bigger risks than a 55-year-old supporting a family and nearing retirement.
Personalized Alternative: Assess your risk tolerance based on your timeline, dependents and financial goals. Younger investors can allocate more to growth investments, while those closer to retirement should prioritize capital preservation. Use age-based allocation formulas as a starting point, such as holding your age as a percentage in bonds (40 years old = 40% bonds, 60% stocks).
His Income Assumptions Don’t Reflect Average Earnings
Cardone’s Advice: Focus on dramatically increasing income rather than managing expenses, often suggesting people should earn six figures or more to implement his strategies effectively.
Why It Might Not Work: The median household income in the U.S. is around $80,000, according to the U.S. Census Bureau. Many of Cardone’s strategies assume disposable income that simply doesn’t exist for average earners after covering basic living expenses.
Realistic Scaling: Start with what you have. If you can only invest $100 monthly, begin with low-cost index funds or Exchange-Traded Funds (ETFs). Gradually increase contributions as your income grows. Consider side hustles or skill development to boost income over time, but don’t wait until you’re earning six figures to start building wealth.
His ‘All-In’ Mentality Lacks Diversification
Cardone’s Advice: Go all-in on real estate and business ventures rather than diversifying across asset classes.
Why It Might Not Work: Concentration can lead to higher returns, but it also dramatically increases risk. Real estate markets can crash, businesses can fail and putting all your eggs in one basket can wipe out your wealth overnight.
Balanced Alternative: Build a diversified portfolio across asset classes including stocks, bonds, real estate and potentially commodities. The classic 60/40 stock-to-bond allocation has historically provided solid returns with manageable risk. You can adjust this based on your age and risk tolerance.
His Mindset Advice Ignores Mental Health and Work-Life Balance
Cardone’s Advice: Work obsessively, sacrifice personal time and relationships and maintain an aggressive, never-satisfied mindset toward wealth building.
Why It Might Not Work: This approach can lead to burnout, damaged relationships and poor mental health. Sustainable wealth building should enhance your life, not consume it entirely.
Healthier Approach: Set realistic financial goals that align with your values and life priorities. Build wealth systematically over time rather than through extreme sacrifice. Consider working with a financial advisor or therapist to develop a healthy relationship with money that supports your overall well-being.
Grant Cardone’s advice works for some people, particularly those who already have substantial income, high risk tolerance and the psychological makeup to handle extreme pressure. However, most people need a more measured, diversified approach to building wealth.
Your path to financial success doesn’t have to look like Grant Cardone’s and that’s perfectly fine. The best financial strategy is one you can actually implement and stick with over time.
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