Barbara Corcoran’s Simple Money Advice for Gen Zers
Written by
Ashleigh Ray, AI Editor
Edited by
Ashleigh Ray
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For Gen Z, stepping into the personal finance game comes with its fair share of challenges. If you’re feeling a bit lost in the sea of advice, you’re not alone.
Barbara Corcoran, a name synonymous with real estate moguldom and financial savvy, was not always the money expert she is now. She once walked a mile in less-than-stellar financial shoes, making her advice not just valuable but relatable.
Let’s dive into her simple, yet powerful money mantra tailored just for zoomers.
Her Journey from Spendthrift to Power Player
Barbara Corcoran’s early days post-college were a whirlwind of financial faux pas. Moving from New Jersey to New York City, she embarked on a real estate career with more enthusiasm than financial sense.
Her initial approach to money? If she didn’t have it, she’d spend it anyway. Between bouncing checks and maxing out credit cards, Corcoran was the epitome of a terrible spender.
However, as the years ticked by, reality hit hard. The dream purchases remained dreams, and the lifestyle she yearned for remained out of reach. A stark realization hit her during her late 20s — she couldn’t afford the life she wanted by spending money she didn’t have.
This epiphany was the turning point, catalyzing her transformation into the head of the Corcoran Group, a titan in Manhattan real estate.
Corcoran’s Advice to 20-Somethings
Corcoran’s golden nugget of advice for you? “Spend even a single week where you only use cash, charging nothing to a credit card,” she recommended in an article by Business Insider.
In a world where swiping plastic feels second nature, this challenge might seem like stepping back into the stone age, but there’s wisdom in this simplicity.
Why cash, you ask? Because cash is tangible. Every dollar you hand over is a visual, physical reminder of your hard-earned money leaving your pocket.
This realness makes you hyper-aware of your spending, a stark contrast to the abstract action of swiping a card. Research backs this up, including a study from Dun & Bradstreet that revealed people tend to spend 12%-18% more when they use credit over cash.
A Testimonial
To give you an idea of the cash-only challenge’s impact, let’s talk about Kathleen Elkins, a Business Insider reporter who took it on.
Starting as a two-week experiment, Elkins extended her cash-only spending to a full six months because of the profound effect it had on her budgeting awareness.
The act of physically handing over cash or watching her bank account dwindle made her spending much more tangible, forcing her to be more conscious of her financial decisions.
Building Financial Muscle Memory
The essence of going cash-only isn’t to shun credit cards forever but to build an important financial muscle memory.
The goal is to train yourself to spend only what you can comfortably pay off at the end of the month, even if you decide to enjoy the flexibility and benefits of credit cards later on. This discipline is the foundation of healthy financial habits that can save you from a world of debt and stress.
A Final Thought
Barbara Corcoran’s journey from a spendthrift in her 20s to a financial powerhouse is a testament to the power of financial discipline and savvy spending.
Her advice to adopt a cash-only lifestyle for a week might seem simple, but it’s a powerful tool in understanding and curbing unnecessary spending.
So, Zoomers, remember that the path to wealth isn’t paved with credit card swipes but built on the solid ground of mindful spending and financial discipline.
Take Barbara Corcoran’s advice to heart, and you might just find yourself on the road to financial freedom much sooner than you think.
Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.
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