Grant Cardone is 63 years old. Forty years ago, he graduated college with a degree in accounting. “Not only did I not have any net worth when I got outta college, I didn’t have any self-worth either,” Grant said in a recent YouTube video.
At age 25, his net worth was in the red: -$43,500. Mainly because of student loans. He had been conditioned to believe that the way you get ahead is to pay off your debt and pinch pennies.
Slowly but surely, Uncle G realized that’s no way to live. He wanted to be so rich, he could spend as much money as he wanted, give it away, live an awesome life, and make his family proud. To do that, he determined the opposite was true: that he would need to use debt to his advantage.
“When I learned this, my entire life changed,” Grant recalled. “I went from a negative $43,500 [in personal net worth] and I would end up accumulating a house that was worth $200,000; I had cars that were worth $50,000; cash of about $50,000 sitting around; my 401(k)—that was a mistake, in my 20s—was worth, I dunno, $40,000; so that’s about $340,000 in gross assets. That was in five years.”
Subtract roughly $150k worth of debt, and Grant’s net worth was about $190,000 at age 28. Better, but not exactly the rockstar status he’d dreamed of. Eventually his uncle tells him, “Dude, if you wanna get rich, you gotta figure out how to get your money to work for ya.”
So Grant got rid of the house and instead rented a small condo. He got rid of the cars and leased a Toyota Camry. He cashed out his 401(k). And he turned all of his cash into money-making assets, starting with an apartment building which he bought with a $2.5 million dollar loan.
Do the math and, at age 30, for the first time ever, Grant Cardone, at least on paper, was a millionaire. “How’d I do that? It’s not because I reduced my spending or my debt. It’s because I increased my debt and increased my assets.”
He wasn’t working any harder. The only thing that changed was he quit buying homes and cars, quit saving cash, and became obsessed with acquiring “good assets.”
Fast forward to today. After rinsing and repeating that formula for three decades, Grant’s main business, Cardone Enterprises, will do $100 million this year. His other business, Cardone Ventures, he claims is a $50 million dollar business. His real estate portfolio is worth $2.2 billion dollars. He’s got a new business with “his boy” Brandon Dawson that’s probably worth $150 million.
Add it all up, then subtract roughly $1.3 billion in debt and money he would owe his partners should he sell any of the above assets, and Grant Cardone lists his net worth at about $2.6 billion at the start of 2021.
Grant admits it’s all based on a lot of assumptions that may never even come true in his lifetime. But the point he wants you to understand, once again, is this: “You cannot grow your net worth by simply reducing debt and expenses.”
“And you’ll never get rich if you simply just reduce your debt and expenses like your ‘millionaire next door’ friend told you. Remember, he is the millionaire next door, not the billionaire next door.” Here’s more: