Grant Cardone's Top Rules for Getting Rich

Summary

In this episode of 'Top Rules of Money,' Gran Cardone shares his wealth-building strategies, emphasizing the importance of setting life-changing targets, launching imperfect products to market quickly, saving 40% of gross income, treating cash as trash by investing in cash flow assets, and spending only passive income. His real estate investments, particularly in commercial properties with guaranteed rents, exemplify his approach to creating and sustaining wealth.

Takeaways

• 🎯 Set life-changing targets: Gran Cardone emphasizes the importance of setting ambitious goals that significantly impact your life rather than minor targets that won't make a difference.
• 🚀 Embrace discomfort: To achieve significant goals, one must be willing to do uncomfortable things and make sacrifices.
• 📚 Launch imperfectly: Cardone advises to release a product or idea to the market even if it's not perfect, as it can be refined later, but the initial momentum is crucial.
• 💰 Save aggressively: A key to wealth is to save 40% of your gross income, which is a challenging but essential habit for financial success.
• 🤑 Cash is trash: According to Cardone, cash should be viewed as a liability and actively invested into assets that can generate returns and protect against inflation.
• 🏦 Invest in cash flow assets: Focus on investments that provide a steady cash flow and have the potential for appreciation over time.
• 🏠 Real estate strategy: Cardone's real estate investments are chosen for their stability and the indestructible nature of the rental income they generate.
• 💼 Earn, don't spend: He suggests using earned income to cover taxes and other obligations, and spending only from passive income to maintain financial health.
• 👜 Luxury from passive income: Cardone personally buys luxuries like watches using passive income, illustrating the principle of living off the returns from investments rather than the principal.
• 📈 Continuous learning: The script suggests a potential new series on top advice from successful people, indicating the value of continuous learning from the experiences of others.
• 👋 Audience engagement: The script ends with a call to action for viewers to engage and suggest who to cover next, showing the importance of viewer interaction and feedback.

Q & A

What is the estimated net worth of Gran Cardone according to the transcript?

Gran Cardone is estimated to be worth over $300 million.

What is Gran Cardone's advice on setting targets for wealth accumulation?

Gran Cardone advises to set life-changing targets, not little targets, as they are more likely to motivate and lead to significant changes in one's financial condition.

Why does Gran Cardone emphasize the importance of starting as soon as possible with imperfections?

Gran Cardone believes that it's better to launch a product with imperfections and refine it later, rather than waiting for perfection, as this allows for early revenue generation and market presence.

What does Gran Cardone suggest as a percentage of one's income to save for wealth accumulation?

Gran Cardone suggests saving 40% of one's gross income as a key strategy for wealth accumulation.

How does Gran Cardone define 'cash is trash' in the context of wealth management?

Gran Cardone views cash as 'trash' because it doesn't generate income or grow in value, and he recommends investing it into assets that produce cash flow or appreciate over time.

What type of assets does Gran Cardone suggest investing in to ensure cash flow?

Gran Cardone recommends investing in cash flow assets that provide a steady income, such as real estate, and that also offer tax write-offs and depreciation benefits.

Why does Gran Cardone advise not to spend earned income but rather passive income?

Gran Cardone suggests spending passive income to preserve earned income for taxes and savings, ensuring financial stability and avoiding potential financial crises.

What is Gran Cardone's view on the importance of having multiple streams of passive income?

Gran Cardone believes in the significance of having multiple streams of passive income to support a lavish lifestyle without depleting one's savings or investments.

How does Gran Cardone describe the process of getting an idea to the marketplace?

Gran Cardone emphasizes the need to get an idea to the marketplace quickly, even if the initial product is imperfect, and to refine and improve it over time as revenue is generated.

What is the significance of the story about the first copy of 'Sell or Be Sold' according to Gran Cardone?

The story illustrates Gran Cardone's belief in launching a product despite imperfections, as it's more important to start generating revenue and gain market feedback than to wait for a perfect product.

What is Gran Cardone's perspective on the role of discomfort in setting and achieving wealth goals?

Gran Cardone believes that setting uncomfortable goals that require one to give up certain comforts is essential for significant wealth accumulation and life-changing results.

Outlines

00:00

💼 The Path to Wealth: Gran Cardone's Money Rules

Gran Cardone, a successful businessman, investor, and author, shares his insights on wealth accumulation. He emphasizes the importance of setting life-changing targets rather than small, inconsequential goals. Cardone illustrates this by comparing the impact of earning $50,000 to $55,000 versus $50,000 to $200,000, highlighting the transformative nature of the latter. He also stresses the need for uncomfortable goals that push one to give up comforts and adapt. Cardone's narrative includes his experience with publishing 'Sell or Be Sold,' which he launched despite its imperfections, underscoring the importance of getting a product to market quickly rather than waiting for perfection. His advice on saving involves reaching a point where 40% of one's gross income is saved, a challenging yet crucial step towards financial freedom.

05:00

💰 Maximizing Cash Flow and Investing Wisely

In this segment, Gran Cardone discusses the concept of treating cash as 'trash' and the importance of investing it wisely to generate cash flow. He shares his strategy of investing in assets that provide a steady income and are resilient to market fluctuations, such as commercial real estate with guaranteed rents. Cardone also advises against keeping money in the bank, advocating for the continuous investment of cash to acquire assets that appreciate over time. He further explains his rule of spending only passive income, which he generates from his real estate investments, to fund his lifestyle and purchases. This approach allows him to maintain and grow his wealth without depleting his earned income. Cardone invites viewers to share their thoughts on his advice and hints at a potential series featuring top money rules from other successful individuals.

Keywords

💡Wealth

Wealth refers to the abundance of valuable resources or material possessions that can be converted into money. In the context of the video, Gran Cardone's wealth is highlighted as a result of his successful business and real estate investments. The video discusses his estimated net worth of over $300 million, which exemplifies the accumulation of wealth through strategic financial decisions.

💡Lifechanging Targets

Lifechanging targets are ambitious goals that significantly alter one's life conditions or financial status. The video emphasizes the importance of setting such targets rather than minor ones, as they motivate individuals to persevere through challenges. Gran Cardone suggests that targets like increasing annual income from $60,000 to $66,000 are not lifechanging and are likely to be abandoned due to their minimal impact on life quality.

💡Uncomfortable Goals

Uncomfortable goals are objectives that push individuals out of their comfort zones, requiring them to undertake difficult or unfamiliar actions. The video script mentions that Gran Cardone believes in setting goals that necessitate giving up certain comforts and doing uncomfortable things, which is a key to achieving significant life changes and wealth accumulation.

💡Get Started

The concept of 'get started' in the video refers to the urgency of initiating actions or projects without waiting for perfect conditions. Gran Cardone shares his experience of publishing a book with errors, emphasizing that it's better to launch a product with flaws that can be fixed later rather than waiting for perfection, which can delay or prevent action.

💡Revenue

Revenue is the income generated from the sale of goods or services. In the video, Gran Cardone talks about the importance of getting a product to the market to start generating revenue, which can then be used to refine and improve the product. This approach is part of his strategy for building wealth through business endeavors.

💡Saving Money

Saving money involves setting aside a portion of one's income for future use rather than spending it all. The video script highlights Gran Cardone's advice to save 40% of one's gross income, which is a challenging but effective strategy for accumulating wealth and achieving financial independence.

💡Cash Flow Assets

Cash flow assets are investments that generate a steady stream of income over time. In the video, Gran Cardone discusses investing in assets that provide cash flow, such as real estate, which can offer tax benefits and long-term appreciation, thereby contributing to wealth growth.

💡Passive Income

Passive income is money earned with little to no effort after the initial work has been done, such as rental income or dividends. The video emphasizes the importance of spending only passive income for luxuries, as it allows earned income to be saved or reinvested, which is a strategy for growing wealth without depleting one's savings.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Gran Cardone in the video mentions trading 'trash' cash for assets that inflation will not hurt, implying that investing in assets can protect one's wealth from the eroding effects of inflation.

💡Real Estate

Real estate refers to land, buildings, and other immovable property. In the video, Gran Cardone discusses his real estate investments as a means to generate passive income and build wealth. He emphasizes the importance of choosing properties that are 'indestructible' in terms of their ability to provide consistent rental income.

💡Investment

Investment is the commitment of money or capital to an asset or venture with the expectation of generating income or profit. The video script illustrates Gran Cardone's approach to investing, focusing on cash flow assets and avoiding keeping money idle in the bank, which aligns with his philosophy of wealth creation.

Highlights

Gran Cardone emphasizes setting life-changing targets rather than small, incremental goals.

Cardone suggests that targets should significantly change one's life to maintain motivation and avoid giving up.

He shares his experience of publishing his book 'Sell or Be Sold' with numerous errors to illustrate the importance of getting started quickly.

Cardone advises that perfection is not necessary when launching a product; it's more important to start generating revenue and fix issues later.

Saving 40% of one's gross income is presented as a key strategy for wealth accumulation.

The importance of paying oneself first is highlighted, suggesting that the government often takes a significant portion of income before the individual can.

Cardone discusses the concept of 'cash is trash,' advocating for the constant investment of cash to avoid the negative effects of inflation.

He explains that investing in assets that produce cash flow and appreciate over time is crucial for wealth building.

Cardone stresses the importance of investing in 'indestructible' real estate with guaranteed rental income.

He advises against spending earned income and instead recommends spending only passive income for luxuries.

Cardone shares his strategy of buying assets like luxury watches using only passive income to demonstrate financial discipline.

The transcript includes a call to action for viewers to suggest successful individuals for future episodes of 'Top Rules of Money'.

Gran Cardone's wealth is estimated to be over $300 million, and he manages over a billion dollars in assets.

He discusses the importance of uncomfortable goals that require giving up certain comforts to achieve significant wealth.

Cardone shares his personal anecdote of driving a Camry despite being a millionaire to illustrate living below one's means.

He emphasizes the need to invest in assets that provide tax write-offs and depreciation benefits.

Cardone's approach to investing involves missing out on many opportunities to focus on a select few that provide consistent cash flow.

Transcripts

Gran Cardone is a businessman investor

and author who grew his wealth through a

series of businesses and investments in

real estate Gran Cardone is estimated to

be worth over $300 million and manages

over a billion dollar in assets so today

let's learn how Gran Cardone became

wealthy in today's episode of Top rules

of money number one don't set little

targets only set lifechanging targets I

was not setting the correct targets

because they weren't lifechanging ERS so

if you're making $60,000 a year and

you're like I need to make another six

grand a year D that Target you will give

up on that Target it does not change

your life targets that do not CH change

the condition of your life okay in a big

way shift it shift it like oh God damn

dude this is a whole new level right and

there's so many different levels a guy

going from guy going from a a uh making

a $500 a year to making 10,000 a year

big shift yeah means nothing to you

means nothing to me but it'd be a big

shift for him 50,000 to a million oh my

God massive massive 50 Grand to 200's a

shift right but 50 Grand to 55,000 you

will not detect an any change in your

life therefore you will give up on the

discomfort and this is what Jared's

saying the third thing is got to be an

uncomfortable goal that requires you to

do uncomfortable things which means you

got to give up some stuff

number two get started as soon as

possible and so I'm in my office I wrote

cby sold I'm like okay now I got to get

the book out okay if you got the first

copy of Cel be sold don't get rid of

that book okay it had hundreds of

misspelled

words okay it had grammar issues

semicolons where there should be a colon

commas I mean it terrible right I wrote

it in three hours okay and and uh wrote

it boom put a cover on on it and started

pushing out we started selling that book

door too like everywhere we could and

some guy calls me up and says this

book's got misspelled words everywhere

I'm like yeah what's your point and he's

like book's got misspelled words grandma

said it's a best-selling book

son it ain't a best written it's a best

seller fck

you love that that's good and and and

the point of that story and we still do

this today the point of that story is is

um dude you need to get an idea and get

a product you don't need to get a

perfect product you need to get an idea

and get a product to the marketplace and

start pushing it and get revenue and I

can fix stuff later things can be

cleaned up later every great business

gets cleaned up later it does not it

cleaned up in the beginning number three

save your

money number two you need to get your

income to a place this is a fascinating

concept right here okay if you can do

this I guarantee you'll be rich you need

to get your income not to what pays your

bills but to where you can save

40% of your gross income is

saved okay now you want to talk about

something difficult this is way more

difficult than that if you can do

this you will get

that all right so when you sit down and

do the math what would it take for you

to save 40% of your

income so watch what happened

if you make $10,000 a

month and you want to save 40,000 of it

you would pay yourself first the

government doesn't let you do that they

don't trust you they're like no no no

get that money from him first before he

blows it we know he's going to blow

it okay we know the IRS is going to take

they're going to withhold probably 40%

40 4,000 of it so look if you'll pay the

freaking IRS for a grand of 10 you need

to figure out how to pay yourself for

Grand what's the problem here you gotta

live on too yeah so just keep doing the

math out this is the math you need to do

with your spouse you need to keep

working it out until you're like he's

like let's go buy a new car yeah we

ain't got any money for a new car that's

why when I was 35 years old no one knew

that I was a millionaire nothing had

changed I was still running with [ __ ]

shoes you know buying $40 shoes and and

and and and working a shirt out as long

as I could and like nobody saw I didn't

have fancy cars I'm driving a Camry with

a million bucks in a bank number four

cash is trash hey every day first thing

I do every day is look at my cash

accounts to figure out where can I get

rid of this

trash cash is

trash so I'm trying to Cha again trying

to trade paper for something that

inflation will will help not

hurt uh so I'm I'm banking cash and I

had a million dollars I did the first

350 30 days later I went bought another

deal I think that deal took

400 uh and I was Off to the Races number

five invest in cash flow assets dude I I

get in the car on the way over here this

guy hits me he's like hey I got this da

da yesterday another one

da if it don't cash

flow I if it doesn't give me a tax write

off it doesn't cash flow next month

doesn't give me a tax write off if if I

can't put depreciating money in into

something that we'll appreciate over

time and I can go touch it I don't look

at it like this is what I look at I look

at this simple number I look at this I

look at I look at I look at real stuff

like I'm G to miss a thousand great

opportunities while I do that I'm gonna

buy 10,000 of those so I don't mind

missing all the shiny stuff everybody's

got to change you should never have

money in the bank so it do I buy gold no

no no [ __ ] no you only buy things that

produce cash flow that can't be

disrupted like uh like the real estate I

buy yeah the real estate I buy is in

like indestructible what about the real

estate that you buy makes it

indestructible commercials the the rents

are 1,500 bucks a month okay ah the

world comes to an end tomorrow a sh of

North Korea going

nuclear what are you going to do you're

you're not going to go below 1,500 bucks

a month your housekeepers renting from

me number six don't spend earned income

spend passive income

what I do is I take all the money from

my busting my ass income earned income

pay the

taxes so I don't get Wesley

sniped all right or Nicki caged stupid

these guys make all this money man and

they end up having to go to jail or they

got to file bankruptcy it's stupid what

are you doing how many ball players go

broke after they retire not because not

because they retired because they didn't

plan for the retirement that you knew

was going to happen anyway and they

spent a bunch of money on [ __ ] I buy

[ __ ] out of passive income only

7,000 Apartments let me show you this

building right here okay this's 250

units behind me it's going to it's going

to pay $2,200 a month for every person

that lives in one of those units every

10 to 14 months a person's going to move

out somebody else is going to move in I

own 7,000 of those if there's cash flow

from those 7,000 then and only then do I

buy something

stupid how stupid can you go well how

much cash

flow is the answer you can go as stupid

how stupid can you go you can go as

stupid as your cash flow as long as it's

free cash flow meaning passive income

watch out Johnny okay as long as it's

passive income this this watch there's

1,300 of these on the planet

1,300 okay the day I bought this I

bought it out of passive income and

while I bought this one I stacked up

another one right next to it two watches

same week both paddocks both new and

both out of passive

income all right guys let me know in the

comments if you enjoyed this video I am

thinking of starting a new series where

we go over the top advice from some of

the most successful people in the world

so if you like this idea let me know who

you want me to cover next and you might

Inspire the next episode of Top rules of

money and as always thank you for

watching and I will see you in the next

video