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To understand wealth – not just how to earn it, but how to preserve and grow it – younger Americans can turn to the advice of those who have gone through a rags-to-riches success story and achieved financial freedom. Someone like Grant Cardone.
The multimillionaire real estate entrepreneur sat down for an interview on author Lewis Howes’ podcast, The School of Greatness, and shared the best lessons he’s taught his kids about money.
Here’s a closer look at Cardone’s biggest financial tips — and how younger Americans can adopt similar disciplines to generate more income.
Cardone revealed that the biggest lesson he taught his children is that “money is a people game.” This sentiment echoes the adage that “your network is your net worth.”
Simply put, meeting people and expanding your social circle — including those who are wealthier and more successful than you — can lead to more opportunities and, potentially, better financial results.
You may have a hard time making friends with a billionaire, but that doesn’t mean you can’t expand your circle of trust to include those with financial expertise.
Consider connecting with a qualified financial advisor who can help you grow your wealth.
Research from Vanguard shows that working with a financial advisor can add about 3% to net returns over time. That difference can become substantial. For example, if you started with a $50,000 portfolio, professional guidance could mean more than $1.3 million in additional growth over 30 years, depending on market conditions and your investment strategy.
Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.
A professional advisor can also help you determine how much you have left to invest before retirement and assess your comfort level with market fluctuations—two key factors in building the right mix of assets for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
Cardone repeated a famous quote from investment legend Warren Buffett: “The first rule of investing is not to lose. [money]. And the second rule of investing is: don’t forget the first rule. And these are all the rules there are.”
Losing money while investing is difficult to recover from. For example, if you lose 20% on a $1,000 investment, you would need a 25% return in order to get back to $1,000.
Meanwhile, any dollar you lose in investing reduces your ability to take advantage of the opportunities that come along. Losing $200 on a bad investment is $200 less than what could have been better spent growing elsewhere.
Read more: Warren Buffett used 8 solid and repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)’
If you want to avoid bad investments, choosing safe investment vehicles, such as a certificate of deposit, is one way you can grow your money with peace of mind.
You don’t always have to put away large sums to move towards your savings goals. Ten dollars a week can make a difference – if you’re smart about what to do with your spare change.
One of the easiest ways to invest is to open a self-directed trading account with SoFi. This DIY approach allows you to invest without paying a commission, as well as, for a limited time, you can get up to $ 3,000 in stock when you fund a new account.
SoFi is designed to help you learn to invest as you go, with real-time investment news, curated content and the data you need to make smart decisions about the stocks that matter most to you.
“If you get 7% or 8% on your money every year, you’ll be so rich when you need it,” Cardone said. “If you don’t miss it.”
Investors need to balance risk and reward; however, they are often prone to chasing rewards while exposing themselves to too much risk.
Another study published in Nature showed that the probability of an investor’s failure increases with the frequency of their leveraged trades.
Unfortunately, investors accumulated more than $809.431 billion in margin debt to trade stocks as of May 2024, according to FINRA.
Active investors also tend to look for other relatively risky investments, such as leveraged funds and cryptocurrencies. However, they also know that a diversified portfolio ensures a reduced risk of over-indexing on any one asset class.
For example, you can use Moby, an investment research platform launched by former hedge fund analysts, which provides easy-to-understand investment advice. Every week, Moby collects their top three stock picks and delivers them directly to you – and without too much financial jargon.
So far, the platform has already helped more than five million users uncover stocks before delivering multibagger returns.
Moby’s success speaks for itself. The platform’s stocks have outperformed the S&P 500 index by an average of 11.95% over the past four years. And that’s on top of S&P’s already consistent annual gains – about 10% a year, on average, since the index’s inception in 1957.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
