Grant Cardone Real Estate Guru – 9 Money Rules

Grant Cardone Real Estate Guru – 9 Rules To Get Your Money Right

Whether you love him or hate him, Grant Cardone has a HUGE following when it comes to playing the money game.

I first stumbled on to him after reading his book The 10X Rule. It inspired me to stop setting goals that were too low and instead, 10X them.

For instance, if I stated I wanted to make $100,000 more this year, instead, he’d recommend I 10x it and shoot for $1,000,000.

Now you may or may not achieve 10x your goals but you have to admit, it does start you thinking in a much different direction.

I’ve taken a much different direction with regards to investing. I used to focus on saving up and building my nest egg as large as possible before retiring.

Now that I’ve learned about passive investing, my focus is now on building streams of passive income to replace our expenses to retire sooner rather than later.

I recently saw Grant discuss 9 rules to get your money right. Some of them I agree with and others I don’t.

Here they are with my comments to go along with them.

9 Rules To Get Your Money Right – Grant Cardone Real Estate

#1 Never spend it until you get it.

This is great advice that I do agree with, never count money until it’s in your hands. Once it’s in your account then you can spend it.

You can also think about this regarding debt, especially consumer debt.

Remember, NEVER spend tomorrow’s money.

#2 The 40% Rule

I like this rule but for most of us that are already established in our jobs/practices, it maybe too difficult.

He explained it like this: You take 100% of your money and automatically knock off 40%. Why? Well the I-R and the S is going to get their hands on it before you do.

If you’re a high-income earner, I guarantee you that you’re paying at least 40% to Uncle Sam annually.

Related Article: 5 Smart Ways On How To Reduce Taxable Income For High Earners

Cardone teaches that if we pay the IRS 40%, then you should at least pay yourself 40% too, right?

Think about it, we’ve all figured out how to pay them. Heck, you see how much they trust us as they take their part out of our checks BEFORE we even get them in our hands!

The IRS knows how to get paid.

I get it. Jesus told us to pay Caesar what belongs to Caesar so we do that but this is where it becomes difficult for most of us. Cardone then teaches to live on the 20% left over.

So if you make $100,000 a year, you pay $40,000 to the IRS, $40,000 goes to grow yourself/business (can be advertising, marketing, conferences, etc) and then you live on the remaining 20% or $20,000 in this example.

He recommends you live on the 20% and don’t change your standard of living until the 20% changes.

You got to be disciplined with money.

  • If you cheat on your money, it will cheat on you.
  • You ignore your money, it will ignore you.
  • If you don’t take care of it, it won’t take care of you.

Now you maybe asking yourself, what can you do if you can’t live on the 20%? I think most of us are probably asking that question.

He suggests that you:

  • either lower your standard of living
  • control your standard of living
  • or you increase that 100% coming in

#3 If you can’t write if off, don’t buy it

I also like this rule as I’m always looking for ways to write off items I need but are also used in the practice.

This especially rings true for travel. I rarely travel anywhere if it’s not business related.


For example, if we want to take the kids to Disney, I’m going to find a conference that I can attend while there to be able to write it off.

#4 Rent and lease, don’t own

This is where Mr. Cardone and I depart on our thinking. I’m a Dave Ramsey fan and he teaches that we should pay cash for stuff to own it and Cardone is the opposite, rent or lease.

His thinking if that people don’t need to own any of this stuff. Only just use it.

#5 Stabilize & grow your 1st flow before adding a second one

For most of us, myself included, our main “flow” is our main jobs. For me, I’m a periodontist. Cardone suggests that we get good at and continue to grow our “first flow” before adding a second one.

This is also known as “investing in yourself“. The more money we can make at our day jobs, the more we’ll be able to invest in the future.

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#6 The “47” rule

The 47 rule means this, if you spend 40 hours a week working for somebody then spend at least seven hours working on yourself.

This boils down to only about an hour a day. One of the BEST ways to do this is what other millionaires, do….READ.

Warren Buffet talks about reading three and four hours a day.

Every super successful person that built billion dollar businesses are reading and they got smart people around them.

And if you don’t like reading, then you better learn to like it if you want to continue to learn and grow yourself.

#7 Stay broke

This was one of my favorite rules Cardone teaches. Stay broke. What he means is to NOT hoard cash by keeping it stock piled in a savings or checking account.

This is something that I had to relearn as I used to always keep piles of cash in a money market account.

Now, I’m not talking about not having cash saved for an emergency.

We all should have an emergency fund of 3-6 months (I like 12) of living expenses. Again, it’s your choice.

He states that cash is garbage and we shouldn’t make it a practice to have a bunch of it in low-interest accounts (savings accounts) paying next to nothing.

Money is worthless until it is put to work. It’s useless until it’s used.”

We’re taught early on that cash is sacred and we have to hoard it and protect it.

Take the word “currency“. If you look at the word, it comes from current, and guess what a current does? A current flows.

It has to be in circulation. It’s plentiful. It’s a piece of paper. It’s only valuable when we take it out of our pocket, get it out of the system and put it to work.

What do you think a bank is going to do if we deposit money in it? They’re going to convert it instantly into digits and then send it out to make more money. They’re not going to keep it lying around in a vault. They know they have to get it out in order to expand.

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#8 Never lose money

This rule was something I first heard from Warren Buffett:


Cardone ties this rule in with the previous rule in that if we have cash sitting around then yes, we’re losing money.

Speaking of losing money, a friend of mine is a local plumber. He said that his workers were in the attic of an old lady’s house changing out a hot water tank. When the removed it from the wall, a bank bag dropped down hanging from a rope.

The bag had a significant amount of cash in that they had been hoarding for years. Unfortunately, too many of us are taught that investing money in the stock market or real estate isn’t safe.

Instead, we should keep in under our mattress or put it in a savings account where it’s insured. What’s a savings account paying these days? 1/8 of 1%? How do you expect to capitalize on compound interest with those numbers? You can’t compound a fraction of a 1% and expect anything to happen.

Cash flow is what you want. You don’t want cash, you want cash to flow.

#9 Never quit until you achieve your goals

Never quit until you achieve your goals, your financial goals that is.

Do you have what it takes to become a billionaire with a “B”? You’re probably thinking, “No way. I’ll never have that MUCH money!”

Too many of us grew up being told things like:

  • A penny saved is a penny earned.
  • Save for a rainy day.

I heard these phrases and you probably did too. Unfortunately, many of us continue to pass this on to our kids even though we live in a country that’s rich yet the people have scarcity in their minds.


Grant Cardone real estate guru is one of the most prolific speakers in the world when it comes to investing. These rules can help guide you in the process of getting your money right.