How To Get Rich According To Grant Cardone

There are a million ways to make $1,000,000, and this is how Grant Cardone did it. Let's just jump straight into it. Welcome to ALUX.

First up, you never spend more than you earn. The principle of never spend more than you earn with a spending limit—ideally at 20% of one's income—is a classic tenet of financial wisdom that Grant Cardone ardently supports. Cardone, an immensely successful entrepreneur and sales trainer, takes this age-old advice and gives it a contemporary, urgent spin. In a world where credit is easy and the lure of consumerism is everywhere, Cardone's call to limit spending becomes even more significant. He emphasizes that this rule is not just about being frugal or cutting back. It's about freedom and opportunity.

Money saved is money that can be invested, and investment is the true pathway to financial freedom. When Cardone recommends a spending limit of 20% of your income, he's emphasizing the aggressive pursuit of financial independence for many people, especially those just starting out. 40% might be more realistic, but the principle remains the same. You must live below your means to create an opportunity for wealth.

Now, here's the fascinating twist. Cardone is not advocating a lifestyle of deprivation. Rather, he's pointing out that if you want the freedom to scale your business, to invest in opportunities, or even to enjoy luxuries later on, you have to make sacrifices right now. Think of your limited spending as an investment in your future—a down payment on your financial freedom.

Another reason why this principle is so important is the psychological shift it necessitates when you're conscious about not exceeding your income in your expenses. You automatically start thinking about how you can increase your income, not how you can cut costs. This subtle shift from a scarcity mindset to an abundance mindset can make a world of difference. The key takeaway here is to use discipline in your spending as a tool for achieving greater wealth and financial security. It's not about cutting back for its own sake. It's about making strategic choices that will allow you to gain greater freedom to take calculated risks and seize opportunities when they arise.

So the next time you think about exceeding that spending limit, remember, you're not just saving money. You are buying your future.

Know your cost of living. Imagine being the CEO of the most crucial enterprise you will ever run in your life. As CEO, you wouldn't want to rely on any guesses or approximations for your business budget, right? You'd want specifics, details, metrics. Every penny that goes out would be accounted for, and you'd want a clear overview of your revenue streams. In Cardone's view, this same level of meticulous attention should apply to our personal finances.

Knowing the ins and outs of your cash flow is like holding a magnifying glass over your daily habits, needs, wants, and luxuries. The clearer the picture, the easier it is to make informed decisions. But it's more than just listing down numbers; by urging us to know our cost of living, Cardone asks us to engage in a deep, often uncomfortable analysis of our priorities. Are you overspending on things that don't bring long-term value? Could that money be better allocated somewhere else? It becomes a compelling exercise, a challenge in value assessment, urging you to question the why behind every expense.

The clarity you gain also magnifies the impact of the first point—limiting spending to 20% or 40% of your income. When you know exactly what your life costs you, achieving that 20% or 40% funding limit becomes more tactical. You're no longer cutting blindly. You're wielding a scalpel, making those precise incisions that allow you to live well today while still investing for tomorrow.

Understanding your cost of living has a ripple effect, too. It helps to reduce financial stress, a leading cause of anxiety. It prepares you for emergencies, as you'll know exactly how much of a financial cushion you need. And perhaps most importantly, it sets the stage for scaling your income. When you know your numbers well, you can set more accurate and ambitious financial targets, which feeds back into the growth mindset of expanding your wealth.

In a nutshell, knowing your cost of living is not just about avoiding financial pitfalls; it's about steering your life with intention. It's financial mindfulness, a practice as valuable for your wallet as it is for your well-being. So, grab that ledger or finance app and start accounting for your life. You're not just crunching numbers here. You're crafting your future.

Lease and rent grants. Cardone's perspective on leasing and renting might seem counterintuitive, especially in a society that often equates ownership with success. Yet, Cardone urges us to reconsider our assumptions and understand that particularly when you're building your wealth, less may indeed be more. His mantra: stay away from long-term monetary commitments.

The question then becomes: why does the man who built his fortune on real estate advise against the dream of owning your home? Well, let's dive in, shall we? Take a moment to think about the gargantuan financial commitment that a mortgage is. They're not just loans. They are long-term relationships with financial institutions—relationships that can last longer than most marriages. You are effectively tying up a large chunk of your future income, often for decades.

But here's the catch. While you're committed to that hefty mortgage, you might miss other investment opportunities that could yield a far greater return. The idea here is to not tie up your resources, but to keep them liquid, agile, and ready to seize new opportunities. Cardone brings up an eye-opening example: even big banks, the epitome of financial stability for many, don't own their properties. They lease them. Why? Well, because leasing provides flexibility. It frees up capital that can be used for investments that yield faster and potentially higher returns.

Banks understand the concept of opportunity cost better than anyone. Every dollar spent on property ownership is a dollar not spent on potentially more lucrative ventures. The key takeaway here isn't that ownership is bad, but that timing is crucial. Cardone's philosophy can be distilled into one powerful question: do you want to own a piece of real estate, or do you want to own your financial freedom? For those in the early or even in the middle stages of wealth, building financial freedom should be that top priority. And that means keeping your capital free to move, grow, and multiply rather than being tied down.

So, what's the action plan here? Scrutinize your financial commitments and ask yourself, is this advancing my financial freedom, or is it delaying it? Make choices that allow you to maintain financial flexibility in the race to financial independence. It's not always about who owns the most; it's about who moves the most intelligently.

To sum it up, think of your journey toward wealth as a chess game. Each piece on your board, each dollar in your bank account, is a potential move toward victory. Long-term commitments like mortgages are akin to sacrificing your queen too early in the game. Why limit your moves when you're just starting out? Hold on to your power pieces until you can make a move that brings inevitable victory: financial freedom.

Own assets, not stuff. It's human nature to crave possessions, right? From a young age, we're programmed to desire the newest toys. And as we grow, these toys just become more expensive—designer clothes, luxury cars, high-end electronics. But Grant Cardone advises us to redirect this innate drive toward acquiring assets instead of mere stuff.

Picture your life like a sandbox. Most people spend their time filling it with sand—items that might look nice but offer no real lasting value. Sure, it's fun to play with it for a while, but sand slips through your fingers. It doesn't grow or change. It doesn't bring anything to your life other than fleeting pleasure. Assets, on the other hand, are like throwing some seeds and soil into that sandbox. Unlike the sand alone, which will always just be sand, the seeds and soil have the potential to grow into something more. They can turn into plants, flowers, even towering trees, depending on what you choose to nurture.

These seeds could be stocks, real estate investments, or a side business—things that not only hold on to value but have the potential to multiply it. Each time you make an investment, you're essentially planting a new seed in your sandbox, creating the potential for unlimited growth.

To make this more concrete, think about buying a brand new luxury car. It's enticing, right? And you would look so great driving it. However, the moment you drive it off the lot, its value decreases significantly. Now, conversely, if you were to invest that money in a promising startup, a mutual fund, or real estate, your money has the potential to actually grow. Five years down the line, that car would only be a depreciating relic of its past indulgences, while your investments could have doubled or tripled in value.

The takeaway here is simple but transformative. Every dollar you spend is a dollar that can no longer grow for you. Grant Cardone's philosophy isn't about depriving yourself of life's pleasures; it's about making intelligent decisions that enable those pleasures to sustain themselves in the long term. It's about sowing those seeds that will allow you to enjoy a beautiful harvest later on, rather than settling for a handful of sand that will soon just slip through your fingers.

Buy stuff with passive income. The allure of cool stuff is hard to resist. However, the method you use to acquire these items can either set you on a path to financial freedom or lead you down a rabbit hole of debt and regret. Grant Cardone proposes a strategy for satisfying your desires for lavish items: don't buy them with your active income; buy them with your passive income.

Imagine your financial life as a well-designed video game. In this game, your active income—what you earn from your job—is like your main character's basic weapon. It's functional and gets the job done, but it has its limits. On the other hand, passive income—or money you earn from investments, royalties, or other assets—is like a powerful special ability or a potent magic spell. It works continuously in the background, even when you're not actively engaging with the game.

The catch? To unlock these potent abilities, you first need to gather and wisely invest the coins you collect—i.e., your active income. Once your special abilities—your passive income streams—are robust enough, then you can use them to buy those magical items or powerful upgrades. The cool stuff that makes the game infinitely more enjoyable and easier.

So, okay, let's bring it back to the real world here. Imagine you've got a monthly passive income from rental properties, dividends, or a side business. Instead of tapping into your paycheck to buy a new designer watch or take an exotic vacation, wait until your assets generate enough extra cash to fund your desires. This way, you're not trading your valuable time for material things. Your assets work for you, effectively buying you not just cool stuff, but also free time.

The takeaway here is that by building and nurturing assets that create passive income, you turn the tables on your typical consumerist model. Instead of becoming a slave to your desires, your desires become a reward for a smart financial strategy. And each time you make a purchase, it becomes a motivating testament to your growing financial acumen and independence.

Rely on yourself. The concept of self-reliance isn't new, but when Grant Cardone talks about it, he's not just paying lip service to a fashionable entrepreneurial mantra. He's sharing an essential principle that underpins true financial freedom: depending on yourself. This doesn't mean that you isolate yourself from your loved ones or refuse help. Rather, it means understanding that at the end of the day, the most significant factor determining your financial destiny is you—your skills, your mindset, and your work ethic.

Imagine you're the captain of a ship sailing through turbulent oceans of financial uncertainty. Many people mistakenly believe that their ship—their financial life—will be guided by external forces, such as a benevolent government, generous family and friends, or a doting spouse. They forget that these entities are like passing ships or lighthouses—nice to have, but not entirely reliable for a safe journey. If you're waiting for a government stimulus check to build your fortune, you're like a sailor relying on fickle winds. You might move, sure, but not necessarily in the direction that you actually want to go.

Your ship's engine—the thing propelling you toward your financial goal—is your own skill set, honed to perfection. Whether it's mastering the art of sales, becoming an expert in a highly specialized field, or creating something valuable, these are skills that put the wind in your sails. And just like a seasoned sailor, you should continuously upgrade your navigational tools—your mindset and your work ethic. Just consider the myth: obsessive Sisyphus, condemned to push a boulder up a mountain for all eternity.

Now, what if Sisyphus had a moment of insight and decided to carve steps into that mountain or invent a lever system? It might take years to implement, sure, but eventually, he'd reach that peak with far less effort. This epitomizes the importance of an evolving skill set and innovative mindset. But what about work ethic? Well, think of it as the North Star in your journey—a constant that helps you to stay the course when the seas are rough and the destination seems far away.

Just as ancient sailors used celestial navigation to find their way, your work ethic will guide you when there are no lighthouses in sight. Increase your income in a traditional financial script. Most people are told to work hard, save every penny, and live below their means. Now, while saving is essential, it's only one side of the wealth-building equation. What often gets neglected is the importance of increasing your income.

Imagine you're sailing a ship. Saving is like patching up any leaks in the boat to prevent sinking, while increasing your income is akin to unfurling your sails to catch more wind and accelerate. Doing both is what makes your wealth ship sail to far-off lands much faster. Grant Cardone, a man who epitomizes the notion of expanding income horizons, swears by this philosophy. He believes that while saving gives you a safety net, increased income gives you opportunities—opportunities for investment, for additional streams of revenue, and for a better lifestyle without the guilt of overspending.

Take this example to make it more tangible. Okay, so let's say you're an avid reader and your goal is to have an extensive home library filled with first edition books. Expanding your income also allows you greater room to contribute, whether in terms of charitable acts, enabling the dreams of family members, or simply having the power to influence positive change in your community. The more you earn, the more you can affect the world around you in a meaningful way.

Therefore, it's crucial to step out of your comfort zone of your regular paycheck. Look for side gigs, invest in scaling your skills, negotiate your salary, or even start your own business. The point is to make money work for you, not the other way around. Instead of playing financial defense, play financial offense, because the real win is not about how much money you save, but in how much money you make.

Ten x your goals. The concept of ten x your goals is not just a catchy slogan; it's a philosophy that fundamentally changes how you approach life and ambition. Grant Cardone is synonymous with the idea of scaling your goals to a level that seems almost absurd. How? Why would someone advocate for setting goals that are, on the face of it, unrealistic? Well, it's about shifting your mindset and changing the playing field.

Let's dive into the psychology of goal setting for just a second. When you set a goal that is reasonable or achievable, you're limiting your drive, your ambition, and your vision right from the outset. In doing so, you're setting up psychological barriers that define your playing field. If you aim to make $100,000 this year, every action, every thought, and every plan will be in the context of that $100,000. Now, what happens when you ten x that goal to $1 million? Well, the playing field changes dramatically, right? Suddenly, the strategies you would have employed for the $100,000 goal seem woefully inadequate.

Your ten x goal forces you to rethink everything—from your daily habits to your skill set, from your networking strategies to your investments. And that's the point. By scaling your goal, you force yourself to scale your efforts, your strategies, and most importantly, your thinking. When you aim for a ten x goal, even your failures are on a grander scale. Say you don't meet that lofty goal and you only achieve 50% of it. You're still five times ahead of your original target.

This brings us to another psychological advantage: the loss aversion principle. People are generally more afraid of losing something they already have than they are motivated by the prospect of gaining something of equal value. So when you set a ten x goal, your loss isn't as devastating as it would be if you failed at the reasonable goal. In a sense, ten xing your goals is like choosing to play in the Champions League when you've been competing in the minor leagues. Yes, the competition is tougher; the stakes are higher, and the challenges are much graver. But even if you don't win the championship, just playing at that level forces you to up your game, and that makes you a winner no matter the final score.

Be omnipresent. The idea of being omnipresent might sound like a divine attribute, but in the context of Grant Cardone's teachings, it translates into an actionable, albeit ambitious, business strategy. It's not just about being everywhere, but being everywhere effectively. Now, how do you multiply your influence, your voice, and your brand to cover as much ground as possible? In an age where attention is currency, Cardone argues that you need to be the face, the brand, and the message that people see everywhere they look.

In a world that's swarming with information and distractions, the average individual is bombarded by thousands of messages every day. Amid this deluge, if your voice isn't loud enough, your message clear enough, and your presence strong enough, you're almost certain to be drowned out. This is where omnipresence comes into play. It's not about sheer volume or overexposure; it's about consistency, quality, and strategic omnipresence. You want to show up where your audience is looking, provide value where they're seeking it, and offer solutions to the problems they're experiencing.

In other words, if you manage to convert attention, you win. Master the close. According to Grant Cardone, mastering the close is not just a tactic but an essential skill set that transcends the sales floor. It's the ultimate ten x action that seals the deal and validates all your efforts. However, mastering the close is not just about learning some magical phrases or high-pressure tactics; it's an art form that combines psychology, timing, and skillful communication, underpinned by an unwavering belief in your product or service.

Now, Cardone often remarks that a great closer is someone who can close the gap between a prospect's problem and the solution your product or service offers. It's more than just finishing a sale. It's about providing real value, solving real problems, and creating a win-win situation for everyone involved. This approach elevates closing from a mere transaction to an act of problem-solving. You're not just closing a sale; you're opening a new chapter in someone's life where their problem is solved or their life is improved because of what you offer.

There are two types of winners in life: those who can create and those who can sell. If you manage to be really good at either one of these, you'll have a great life. If you master both, well, your grandkids will have a great life too. If you like this video, ALUX, you'll love the rest in the series. We'll see you back here next time, my friend. Take care.