Tag: Grant Cardone

Using cash or using debt?

Are you a “cash” only person (like Dave Ramsey) or do you prefer to utilize debt on your behalf?

Honestly, I see the pros and cons to both sides. Being more financially risk averse/conservative, I get the appeal of only using “cash” (or, even if I’m putting it on a debit/credit card, only buying what I can afford to pay at that very moment). It’s a safer position from the standpoint that you aren’t going to get yourself into massive debt. This strategy makes a ton of sense for those trying to minimize spending on things they don’t need (mostly consumer products that contribute to lifestyle creep).

But if you leverage debt to buy assets (like real estate), where someone else is paying the loan down for you, you can scale much more quickly.

Imagine wanting to buy a rental property. Let’s say you’re looking to buy a single family home for $120,000. If you have to pay cash for it, it will take you a long time to save up $120k. Even if you’re investing it, unless it’s in a self-directed IRA, when you pull your money out to purchase the property you’ll get hit with taxes. But if you only had to save up $30k (for a 25% down payment on an investment property) or even $4,200 (for a 3.5% FHA loan, where you have to live in the property for at least one year), you can get started much sooner.

Leverage works both ways. It can help propel you to success or drive you into the ground. But as long as you’re taking on appropriate risks (preferably starting small unless you have a ton of experience and expertise in what you’re investing in), you can build wealth at a greater pace by leveraging debt as opposed to paying all “cash” for everything.

What are your thoughts/how do you prefer to invest?

Be obsessed or be average

“Be obsessed or be average.” ⁃ Grant Cardone

Have you ever met someone who was head and shoulders better at what they did compared to others in their field? Chances are, this didn’t happen by accident. Natural ability can give you a leg up when you’re starting out, but to stand out amongst the standouts, you have to be obsessed with improving your craft.

Malcolm Gladwell touches on this with his 10,000 hour rule, where he states it takes approximately 10,000 hours of doing something to master it. You have to put in the practice and gain the experience to master something.

But it’s not just about going through the motions. You have to intentionally plan out what you’re going to do. You have to look at your strengths, weaknesses, opportunities, and threats. You have to keep up with market trends and know the market so well that you can predict future trends. You have to eat, sleep, and breathe whatever it is you’re trying to be the best at in order to make it work. You need to read about it, talk about it, listen about it, connect with others who are experts, and go experience it for yourself. In short, you need to be obsessed or else you’ll end up “average.”

Setting goals and dreaming big

Don’t sell yourself short. You can accomplish so much more if you just set your mind to it. Most people just coast through life. They take the path of least resistance. What makes you feel comfortable? What makes you feel uncomfortable? What goals do you have (if any)? Do your goals scare you (“stretch goals”) or are they more of a checklist? Do you review your goals regularly? Do you set your intentions every morning to make sure you move a little closer to those goals every day?

Dream big. Set BHAGs (big, hairy, audacious goals)…at the very least, you’ll miss on your goal of 10X-ing where you’re at and maybe you only get to 7X or 5X. But that’s still better than setting a goal of 2X and not being motivated to hit it.

Big dreams, goals, and questions require big effort, radical thinking, and massive action. You’ll need a BIG answer to achieve what you want and are capable of achieving.

Thinking big when setting goals

Your only limiting factor is how quickly you can accept the expansion. Are you thinking big? Or are you thinking small?

If you set small goals, you might achieve them. But you’ll never truly be inspired to complete them. Without passion/desire, you’ll either achieve your goals and not care OR stop trying to reach your goals because you don’t care. Either way, thinking small leads to small actions.

If you set big, hairy audacious goals, you’ll get excited to work towards them. You’ll hit some bumps in the road, but that is to be expected. Keep going! If you can find ways to persevere and overcome obstacles, you’ll eventually make it to where you want to go. Whatever you think you need to do to achieve your goal, double the action. Some would even say to do 10 times what you think you need to do!

“Shoot for the moon. Even if you miss, you’ll land among the stars.” –Les Brown

Set big goals. They should excite you. They might make you nervous to say out loud. But speak your goals. Tell anyone who will listen. Write them down. Read them each morning. Think about them throughout the day and ask yourself at night what you did that day to get you closer to reaching your goal(s). Every journey of 1,000 miles begins with a single step. Keep walking in the right direction and you’ll get to your destination.