It’s hard not to know who Grant Cardone is in the entrepreneur world. The guy is literally everywhere. He even has his own private jet to fly him and his associates around, the guy has it made. With a net worth of over $350M and company assets ranging above $1B the guy sure knows how to create wealth for himself.
I read an article that Grant posted a few years back called “How to Become A Millionaire By 30” Which he later turned into a pocket-size life guide called, “The Millionaire Booklet” in the article he laid out the 10 steps that made him a millionaire and you can follow these steps too to become a millionaire.
Step One: Follow the Money
As Grant points out, saving your money just to save it will never make you rich. With low-interest rates on savings accounts, you would never be able to save up to a millionaire dollars by saving a few thousand dollars on the average household income in the average lifespan. Not only that but by the time you got halfway there your money would be worth even less due to inflation. The rich build wealth by finding ways to increase their income potential. If you make only $10 an hour you need to find a way to 10X that income to make $100. It’s a start.
Step Two: Don’t Show Off, Show Up!
I see so many people make this mistake when they start to make money and it destroys their long term potential. Grant talks about how this step allowed him to get rich.
Grant recommends that instead of going out and buying a luxury new car or fancy clothing and accessories, wait until your businesses and investments are producing you multiple sources of cash flow.
When Grant Cardone was worth a millionaire dollars he was still driving his beat up Toyota Camry. You must learn to sacrifice your short term temptations to provide the necessary investment capital to fuel your long term future.
Step Three: Save to Invest, Don’t Save to Save
We brushed on this in step one but the expression is the same. You must learn to save your money to re-invest it. As Grant recommends, the only reason you should be saving money is to invest it, period. You must learn to have emotional intelligence over your money. Money doesn’t like to sit around it likes to be spent. Make sure you spend it correctly.
You must learn to manage your money if you ever want to be successful. In fact, if you can’t afford the lifestyle you are living right now I urge you to spend a day figuring out what is costing you so much to where you can’t afford to live. If it is something you can go without (a luxury) then go without it. You have to learn to live like you are broke so you can invest and become rich.
Step Four: Avoid Debt That Doesn’t Pay You Back
Grant talks about this all the time on his YouTube channel. Buying a home, a new car on a loan, are examples of liabilities. In order to create wealth for yourself you must learn to manage your debt but only create debt when it will pay you back in the future.
A loan on a motor vehicle that depreciates in value year after year is a bad investment. A real estate loan for a down payment on a property that will generate you thousands in revenue after a few years of ownership is an asset. Learn the difference and you will set yourself up for success.
The only time you should borrow money (debt) is to spend it on cash-producing assets. As Grant likes to say, “rent where you live, own what you can rent“
Step Five: Treat Money Like A Jealous Lover
This may sound silly but Grant has a good point. Treat your money like a top priority. You must learn to manage your wealth, this means paying attention to your cash in-flows and cash out-flows. Make a simple spreadsheet and track your incomes and debts. You will be amazed at how often money flows through your account. It is your duty to make sure that the money is flooding into your bank instead of leaking out of it.
If you ignore your money, it will leave you. Money gets bored too, give it something productive to do. Bankers do this with your money all the time in what is known as “fractional reserve banking“. Banks borrow your money and place some of it on hold for you to use but the rest is put towards investments that will grow.
Step Six: Money Doesn’t Sleep
Grant’s right. Money never sleeps. It has no boundaries. Money is a 24/7 game. It’s not restricting to sleep schedules, holidays and time zones. Which is why money prefers to hang around people who are good at producing it. Grant mentions how work ethic helped him grow his income. When the store he worked at closed he was working past closing time making extra sales. He knew that no matter how talented or smarter his competition was, he could always beat them by outworking them if he was consistent.
Oh and also, having a good work ethic, it doesn’t cost you anything!
Step Seven: Poor Doesn’t Make Sense
Grant grew up poor and he hated that. After losing his dad at a young age he became the man of the house before he was even a teenager. I guess you could say this had a profound effect on him. Grant says the best way to avoid being poor is to avoid negative thoughts or ideas. Turning your mindset from a poor mindset to a rich mindset can be the world of a difference.
You have to act like you can accomplish big things and believe in your potential to make it happen too. It’s like the famous quote from Bill Gates, “If you’re born poor, it’s not your fault. But if you die poor, it is your fault”.
Step Eight: Get a Millionaire Mentor
In my opinion, this is the hardest step to creating wealth for yourself. Finding a mentor can be a difficult challenge. Believe it or not, the world’s most successful people have built their success by helping others, so it isn’t out of question to find someone who is successful that is willing to be a mentor. However, don’t expect them to fall right on your lap. You have to be willing to go out into the world to find a millionaire mentor and build a connection.
A mentor should be a lifelong relationship where you both gain something from the time you spend together. The purpose of a mentor is to transfer their knowledge to their mentee. The purpose of the mentee is to absorb the knowledge being provided by the mentor by listening and learning from them.
Step Nine: Make Your Money Work for You
If you are clocking in at a job for money, you are doing what 99% of the world’s population is doing to make money. The one trait found commonly with the world’s most successful people is that they don’t work for money. This is why you must learn the value of saving your money to later reinvest it. You save your money to invest in assets that will do the heavy lifting for you. Grant’s favorite investment is real estate. He buys large-scale real estate developments and uses the income to pay his staff to manage it and maintain the properties. The only thing Grant has to do for himself is head to the bank to cash in the checks.
Grant recommends you save $100,000 before making investments. You can’t make any serious plays without a large amount of capital. $100,000 is a great start.
For some of you reading this $100,000 may sound like an incredibly large amount of money. I’m here to tell you that it’s not. Dividing it down that’s only $1,666.66 per month over the course of five years. If $100K is a high number for you, dream bigger.
Step Ten: 10X Your Goals
In Grant’s book, “The 10X Rule” he talks about taking your goals and multiplying them by ten. If your goal is to make $1,000,000 Grant recommends you 10X this goal to $10M. If you fail to reach $10M you will at least be higher than $1M. That’s the whole point. Even after Grant Cardone managed to purchase himself a Gulfsteam 550, his biggest regret in life was not thinking big enough when he was younger.
Don’t be afraid to think big. It will make you rich.