I’m a Financial Advisor: How Grant Cardone’s Approach to Taxes Can Help You Build Wealth
Written by
Joel Lim
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Grant Cardone is trying to redefine taxes as an opportunity that propels people to make more money, invest intelligently and accumulate lasting wealth. Whatever your income bracket, his philosophy can help you build wealth.
Daniel Ray, financial advisor and director of investments and corporate administration at Credit Union Trust, shared some of his insights into his thoughts on Cardone’s philosophy. Let’s dive into how Cardone’s approach to taxes can help build your wealth.
Start a Business
One of the cornerstones of Cardone’s philosophy is entrepreneurship. He urges people to start small, even taking part in a side hustle, to get in control of their financial lives. Besides earning passive income, entrepreneurship offers considerable tax advantages.
“Starting a side business opens up tax opportunities that W-2 employees don’t typically have,” Ray said. “From claiming part of your rent as a home office deduction to writing off travel expenses, these deductions can significantly reduce taxable income and free up cash for reinvestment.”
This will allow entrepreneurs to reinvest the tax savings into growing their businesses. In general, a freelancer can deduct things like subscriptions to software, advertising expenses and even a portion of internet bills if he or they is from home.
According to Ray, this isn’t limited to old-time businesses. “You don’t need to be a millionaire to start. Begin with what you have, claim your deductions and scale from there,” he said. Small businesses that start today might generate big money in the future.
Leverage Real Estate
Real estate is the foundation of Cardone’s wealth-building philosophy. He has spoken volumes on multimillion-dollar multifamily properties, inspiring scores of investors into this lucrative market and explaining how it can help reduce taxes while building wealth.
“Real estate investors can use strategies like depreciation, mortgage interest deductions and 1031 exchanges to defer taxes and grow their portfolios faster,” Ray explained. “Even first-time investors can benefit by starting small with rental properties or house hacking.”
Depreciation allows investors to consider the wear and tear of a property against taxable income while the property builds in value. Tax-deferred 1031 exchanges permit investors to sell a property and reinvest the proceeds into another without immediately paying capital gains taxes.
“Start small and educate yourself. Even a modest rental property can provide tax savings and steady income, setting the stage for bigger investments later,” Ray added. Real estate’s unique tax benefits can help one grow wealth tremendously.
Cultivating the Growth Mindset
Cardone’s philosophy is based on positive thinking and acting like an entrepreneur. That means taking calculated risks, which is key to his goal of creating wealth.
Ray explained how adopting this mindset can transform your financial trajectory.
“A growth mindset involves viewing challenges as opportunities and always striving to improve your financial literacy,” he said. “When you approach taxes and investments proactively, you’re more likely to seize opportunities others might miss.”
Ray advised his clients to set clear financial goals. It could be saving up for a self-earned down payment on a house or financing a new business venture. Having the roadmap keeps you channeled.
“Cardone’s approach resonates because it’s about empowerment: When you’re in control of your finances, you’re not a victim of the system anymore, of taxes, for example. You are building wealth,” he added.
A long-term vision must guide your everyday money decisions. This will help you adopt a growth mindset for financial freedom.
More From GOBankingRates
