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Grant Cardone’s 3 Money Habits for Achieving Financial Freedom

Grant Cardone

Grant Cardone, a renowned real estate mogul and financial guru, has built a significant following by sharing his wealth creation and financial management insights. Cardone's journey from a struggling salesman to a multi-millionaire is a testament to his disciplined approach to money. In his teachings, Cardone emphasizes three core money habits that he believes are essential for achieving financial freedom.

These habits revolve around earning passive income, prudent use of cash, and strategic tax planning. Let's delve into each of these principles to understand how they can be applied to enhance financial stability and growth.

Financial Freedom

1. Earn Passive Income

Cardone's first and foremost advice is to generate passive income. He advocates for the principle of "never use earned income to improve quality of living, only passive income." This means that the money you earn from your job should not be used to elevate your lifestyle. Instead, it should be invested in assets that generate passive income—money that you earn with little to no effort.

How to Earn Passive Income

  • Invest in Real Estate: Cardone's preferred method for generating passive income is through real estate investments, particularly multifamily properties that provide consistent rental income. He often uses crowdfunding platforms to pool resources with other investors, making real estate investment more accessible.
  • Stocks and Bonds: Investing in dividend-paying stocks, bonds, and mutual funds can also be a source of passive income. These investments can provide regular returns that can either be reinvested to grow wealth or used to enhance your living standards.
  • Other Investment Vehicles: Other avenues include peer-to-peer lending, creating digital products, or any venture that continues to pay you without ongoing effort.

Benefits of Passive Income

Earning passive income allows for financial growth independent of your active working hours. This financial freedom can lead to a more secure future, as your investments work to generate income even when you're not actively working.

2. Cash is King

The second habit Cardone emphasizes is the strategic use of cash. He is a firm believer in avoiding the use of credit cards for personal expenses, advocating instead for paying with cash. Cardone's mantra, "Cash is king," highlights the importance of liquidity and financial discipline.

Benefits of Using Cash

  • Avoiding Debt: By using cash, you can avoid the high-interest debt associated with credit cards. This helps in maintaining a healthy credit score and financial stability.
  • Spending Discipline: Paying with cash can curb unnecessary spending. It's often harder to part with physical cash than to swipe a card, leading to more mindful spending.

Responsible Credit Card Use

While Cardone's advice is rooted in avoiding debt, it's important to note that responsible use of credit cards can offer benefits such as rewards, fraud protection, and the ability to build credit. The key is to pay off the balance in full each month to avoid interest charges.

3. Be Tax Savvy

Cardone’s final principle is to be tax efficient. He advises against making not tax-deductible purchases, emphasizing the importance of understanding and utilizing tax laws to your advantage.

How to Be Tax Efficient

  • Business Expenses: Many business-related expenses can be deducted from your taxable income, reducing the amount of tax you owe. This includes costs associated with running a business, such as office supplies, travel, and utilities.
  • Investment Accounts: Contributions to retirement accounts like IRAs or 401(k)s and Health Savings Accounts (HSAs) are often tax-deductible. These accounts not only provide tax benefits but also help in building a secure financial future.
  • Tax Deductions and Credits: Familiarize yourself with tax deductions and credits available to you. This might include deductions for student loan interest, mortgage interest, charitable donations, and more.

Leveraging Tax Laws

By maximizing deductions and credits, you can significantly reduce your taxable income, allowing you to keep more of your earnings. Cardone's approach to tax efficiency involves strategic planning and staying informed about tax laws and opportunities.

Who is Grant Cardone?

Grant Cardone is a real estate investor, sales trainer, author, and motivational speaker. He is known for his investment strategies and his "10X Rule," which encourages people to set ambitious goals and take massive action to achieve them.

What is passive income?

Passive income is money earned with minimal effort. It typically involves investments in assets like real estate, stocks, or bonds that generate regular returns without requiring active management.

Why does Grant Cardone prefer using cash over credit cards?

Cardone prefers using cash to avoid debt and the interest charges that come with credit cards. He believes that paying with cash helps in maintaining financial discipline and prevents overspending.

How can I start earning passive income?

You can start earning passive income by investing in assets such as rental properties, dividend-paying stocks, or creating products that generate royalties. The key is to invest in opportunities that require minimal ongoing effort but provide regular returns.

What are some common tax deductions I can claim?

Common tax deductions include contributions to retirement accounts, interest on student loans and mortgages, charitable donations, and business-related expenses. These deductions can reduce your taxable income and lower your tax bill.


Grant Cardone's financial habits offer a blueprint for achieving financial freedom. By focusing on earning passive income, using cash wisely, and being tax-savvy, you can build a stable and prosperous financial future. While these principles are tailored to Cardone's experiences and preferences, they provide valuable insights that can be adapted to your financial strategy. Embracing these habits requires discipline and a long-term perspective, but the potential rewards in financial security and independence are well worth the effort.

Also Read: Steve Schwarzman’s 5 Essential Investing Rules Everyone Should Follow

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Meet Amit Ahuja, a passionate and driven individual with a multifaceted interest in business and finance. Amit's curiosity for the world of commerce knows no bounds, as he eagerly delve into market trends, investment strategies, and entrepreneurial success stories. Always on the lookout for opportunities to grow his knowledge, Amit avidly follows financial news and actively participates in networking events to gain insights from industry experts.