Grant Cardone on net worth & billionaire status. One of the most searched categories of successful and famous people is the term “net worth”. People are fascinated with peoples supposed net worth.
Just search my name, Grant Cardone and before you even hit enter, you will see the second most searched term after my name is “net worth,”
then, age, height, wiki, wife, quotes, books, real estate. For the record, I am 62, 5’8”, killed my wiki page, my wife’s name is Elena, I have a lot of quotes, 21 best selling books and business programs and some $2b in real estate.
Now let’s talk about net worth. I doubt most people even know what the term “net worth” means or how to calculate it for themselves.
Net worth is the value of the assets a person or corporation owns, minus the liabilities (debt). It can be a somewhat meaningful metric to gauge a company or individual’s financial health but in truth net worth means very little with regards to how a company or individual can spend money.
I will explain below.
When I was 25 years old my net worth calculation was:
Grant Cardone Net Worth
Total Assets 500
College Loan – 40,000
Personal Loan – 3,500
Total Debt 43,500
Net Worth -43,000
This is called being in the red. Clearly, I wanted to change my financial condition and get myself out of the red, so I started asking questions. In the beginning I reached out to anyone who knew more than me, almost everyone, which resulted in me getting a lot of bad advice.
The financial planner and banker told me the way to increase net worth was to reduce spending and get rid of debt. Between you and me, I didn’t just want to increase my net worth I wanted to get rich.
Later, I discovered there are two ways to increase net worth and only one of them creates real wealth;
1) reduce debt and save money
2) increase assets (specific kinds of assets), that increase in value.
When I started studying those who had achieved wealth, I realized they all invested in assets to do so, even borrowing money to buy specific types of assets that increase (appreciate) in value over time.
Assets like houses, cars, cash, and retirement accounts don’t create wealth, they simply create a false sense of security. Cars, houses and retirement accounts give you a way to get around, place to live and a way to retire.
Investments, inventory, businesses, property, plant, equipment, patents, trademarks, royalty, accounts receivable, and partnerships are assets that can grow in value. While my friends were paying off their cars and homes, I started investing in assets rather than cars and houses.
If you are going to create real net worth and real wealth, you have to invest in the right kind of assets. All assets are not created equal, and all debt is not bad debt.
Some assets actually go down in value and others grow in value. An apartment building that produces income will probably appreciate more than a house you live in. Buying a car will not provide appreciation in most cases, but an investment in a successful car dealership probably will.
Consumer debt to purchase toys and trips is probably not a good idea but business debt to grow your business can be. Taking on debt to invest in business partnerships will probably prove to be a better retirement account than a 401K.
So remember, there are two ways to grow net worth,
1) save money and reduce debt.
2) grow assets and use debt to do so.
Regarding my net worth today, it depends on a few things:
Is the real estate worth 2.2B?
Is Cardone Enterprises worth 15X earnings or is it 25 times?
Is my partnership at Cardone Ventures where we invest in startups worth more with my brand than without and worth more together than separate?
Is the Cardone Brand worth worth 10X more than its net profits?
Would there be a buyer for any or all of them?
But the most important thing about my personal net worth is how many people I can help improve their net worth. No one is going to remember you or me for how much we have, but they will remember how many people we helped.
If you are one of those people interested in creating real wealth for yourself and your family, let me help you. Join my coaching program for FREE so I can help you make 2021 your best year ever and get you on your way to creating the kind of wealth you and your family deserve.