Barbara Corcoran: ‘I Don’t Believe in Saving Money’ — What She Does Instead
When it comes to your personal money philosophy, you may be a spender or you may be a saver — or fall somewhere in between. But Barbara Corcoran is a spender all the way.
“I’m just not a believer in saving money,” she told CNBC. “I’ve never saved a dime my whole life.”
Here’s a closer look at Corcoran’s money philosophy and how it’s worked for her.
Corcoran Puts Her Money To Use
Rather than putting money into savings, Corcoran likes to spend and/or give her money away as soon as she gets it.
“When I sold my business for $66 million, I immediately thought, ‘What could I spend it on?'” she told CNBC. “I gave half of it away to family, friends, education funds [and] charities, because I really believe if you spend money, it comes back to you.”
Taking Her Mom’s Advice
Corcoran said that she inherited her attitude about money from her mother.
“I had a mom who raised 10 kids on a shoestring budget, and she always said, ‘Money’s meant to be spent.’ And she didn’t have much to spend,” she told CNBC.
Corcoran said that when her company was on the verge of bankruptcy, it was her mother who told her not to panic. When she explained to her mother that she was about to announce she was closing her business after 12 years because she did not have enough money to stay afloat, her mother responded: “Don’t worry about the money — what a waste of time!”
Corcoran said that taking her mind off the panic allowed her to concentrate on solutions.
“I thought of a new idea that made me a million dollars the next week!” she said. “So I think the carefree attitude of believing that money makes money if you’re willing to share it and spend it really works — or at least it has certainly worked for me.”
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