many people know how earn Pennies, but this is only a small part of the equation. You also need to know how to multiply it over time, and when you should—and Do not want To spend on something.
It took me 20 years of trial and error before I achieved a multimillion-dollar net worth. I had to exercise tremendous discipline and invest as much money as possible in income-generating properties.
Now, I get income from the 18 companies I started, and income from the 12,000 apartment units I own. passive income,
Here are four unpopular money and spending rules I followed at a young age that helped me get rich:
1. Don’t buy big unless you have 2x it’s worth.
As some of my friends started making more money, they would reward themselves with fancy cars, boats, and trips to Paris.
But I set a rule for myself: to buy an expensive watch or a house, I had to double its price. It kept me from spending more on something, while also giving me time to consider whether I really needed it.
Instead of giving up cash on big one-time purchases that had limited impact on my overall quality of life, I focused on channeling my earnings toward improving my businesses.
2. Don’t buy anything you can lease.
Working my way to becoming a millionaire, I would only buy big-ticket items that could increase my cash flow, such as commercial property that I could rent.
I never bought anything I could lease—like a primary residence or car—so that I could avoid the high monthly payments and maintenance costs associated with ownership.
For example, in 2012, I sold my house and lived in a rental house for about 10 years. This freed up more money for me to invest in money-generating real estate. Once I had saved a huge amount, I bought a house with cash.
To this day, I still lease my cars. However, I would never extend the lease for more than 24 months, even if it would make the bill more affordable. A lot can change in two years, and I try to avoid getting stuck with a car that doesn’t meet my needs.
3. Don’t spend to impress others.
My goal has always been to create a legacy of generational wealth for my family. It was more important to me than buying things I didn’t need.
So while I could buy something, I still didn’t buy it just to impress my teammates. Instead, I invested at a higher rate and built my wealth privately.
Even though I now have money to buy expensive things, I still consider myself quite frugal. I don’t care about being attractive, and I try to live below my means.
4. Spend only your passive income.
If I made $100,000 a year from my job and $20,000 a year in passive income, I would try to spend only $20,000 on things beyond my basic living expenses.
All of these rules require a great deal of discipline, and they may not be for everyone. Sometimes, I wonder why I was working so hard but not enjoying the fruits of my labor.
But since I have followed these rules for two decades, I have successfully withstood several major recessions and global pandemics.
grant cardone is the CEO of Cardone Capitalbestselling author of “10X Rule,” and founder of The 10X Movement and The 10X Growth Conference. He owns and operates a $3.6 billion portfolio of seven privately held companies and multifamily projects. follow him on twitter @grantcardone,
Don’t miss: