In this edition of the Cardone Zone Grant gives a crash course on investing 101. Here are the 3 mistakes people make with investing.

1.Investing too early. Do you think about investing when you have no money? Of course not. People ask Grant all the time what they should invest in with the 10K they got. If all you have is 10K you are still broke and have no business investing. The best investment Grant made in his life is not investing. He waited until he had a more significant amount to put his chips down on the table.

2. You start too small. What are you going to do do, invest a nickel? $5 goes up 100 times it’s still just $500 bucks. The think is too small. The only reason to invest is to get rich, to have prosperity. Don’t do little tiny amounts. They won’t make a difference. Don’t invest to grow, invest for freedom. Wait until you have a significant amount to invest. Grant was 33 years old when he had over a million dollars in the bank before he made his first real estate investment.

3.Diversify: Rich people put all the eggs in one basket. They protect that basket. Don’t put a lot of different eggs in a number of different baskets. Rich people make 1 big deal. Wall street sells diversification. People don’t know what they are investing in. Accumulate cash so you can put it in one big deal. People keep gambling with little pieces and get torched. You have to reduce your risk by doing your homework. You should not give money to people you don’t know. You put $100 into a mutual fund and you don’t even know where it’s going.

Investing is a vital part to earning your freedom. Chances are you won’t inherit wealth.
A good investment is something you put your money in and it explodes. The bank tells you to put your money in a bank and it will grow. No it won’t. It will sit there. But you need to let your money sit there until you earn enough to save a significant amount.

If you have 100K to your name you don’t want to spend all that in one deal. You still need to have something left, you want to sleep at night. Get your income up and keep parking the money until you have enough to make a big play and still have some left over. I spent 350K on my first deal when I had over 1 million saved.

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122 comments
James K
James K

Guest - James Kuckie here... was on whatever it takes season 2... when it airs :) I like this episode of cardonezone. I have been living "Broke" this way since you booted me off your show last april. even before then I was living that way for 6 months. I think you may remember me G.C. when you think about it. I am glad you kicked me off and said/say the things you do. I have taken my company Spa Remedy  www.sparemedy.com and was announced one of the top 10 day spas in Illinois and now have 3 locations since my wife and I started the company 18 months ago. I know you are sad to have not recruited a great sales person, but I know it makes you even happier to hear how great I am doing because of that. In a way I think you made a mistake by eliminating you, but really you made the smartest move... thanks man. 


SmittySD
SmittySD

@GrantCardone your best # CardoneZone yet! Should be required to watch by all young people

stacyacross
stacyacross

Mentor, Coach and Leader - Thank you for all you do! 7 Billion SERVED. www.thecomfortkillers.com

Matthew
Matthew

I'm 20 years old and have just gotten my foot in the door as a car salesman and so far I'm doing pretty well. I was wondering when too actually start investing. I was actually going to wait till I had 10k in the bank and invest it all in one company that I had done a good bit of digging on. This has been so usefull.

FashionNY
FashionNY

During the 90s, I keep wondering why so many people were able to buy $400,000 houses and higher when the average American's income hovered around $40,000 per year. The old rule of thumb was that you don't buy a house that is more than three times your yearly income--which means that most Americans should not buy a house worth more than $120,000 to $150,000. Credit cards and refinancing was fueling the pre-2008 boom. Then it went bust. Build an economy on job and product creation--not credit or Wall Street. 


Frank Gonzalez
Frank Gonzalez

DIVERSIFICATION = Guaranteed way of getting average returns. Is that why you invest? You want average returns? Is a C good enough for you?


Jarvisj
Jarvisj

Thank you Uncle G!!!!

LonLinke
LonLinke

Thanks for all the help and tips gang...EVERYBODY...Big Claim and BELIEVE!!! happy Easter, ya'll...Lon. Out.

LonLinke
LonLinke

mybeachvacation123@gmail.com Thanks for the show!

breadandbutterhomes
breadandbutterhomes

Grant, who is your creative director spear heading the shows and products?

jamesbeiler
jamesbeiler

Want to save about 500 dollars per employee per year on your Fica Taxes? Contact me  jandradvisors@outlook.com

Ronaldhall
Ronaldhall

GC thank you so much for providing such awesome content!  Rocking my life @ www.obtainyouridlife.com  


beeznutzstl
beeznutzstl

chat is going off today, happy everyone is here


TakodaBrand
TakodaBrand

Choosing a Partner is hard, because it is almost like a marriage , so has to be the right person, plus keeping the biggest stake in your business is also important, or else you get what for example happened to Elon Musk, they throw him out at PayPal one time because of that, that's why he made sure now he has the biggest stake in his companies so it doesn't happens again!

LonLinke
LonLinke

BROKE NOW....Uber Motivated NOW!


Pierre-Olivier
Pierre-Olivier

That was the best show in a while, very good stuff :)

BrokeCollegeKid
BrokeCollegeKid

Big bets? What about small calculated bets!? When you know you can continue to sell 5K cars for 8K?

LonLinke
LonLinke

that's why I'm a BIG GC FAN!!!..Thx for the "shout out HELP!"

restakes.com
restakes.com

You have to invest smart and like the RICH. But you gotta ACT Broke!

New Life
New Life

Everyone that has money acts broke!! Everyone that's broke acts rich!!

LonLinke
LonLinke

BROKE is HUGE motivator!!!-Thx GC!


Vassil
Vassil

  Hey Grant!
First of all - you're amazing at pep talks! 
Secondly - You said you started investing in your 30s. I'm in my mid 20s and I'd love to hear your thoughts on the question:
Should I work for somebody for a few years and gain experience in what I do (engineering) or start my own company as soon as possible and learn how to manage resources and money the hard way?

Thanks in advanse!

Regards,
Vassil

beeznutzstl
beeznutzstl

pay the cost to be the boss. Like big Snoop Dogg says, Snoop was the inspiration for the Beez Nutz name. 


beeznutzstl
beeznutzstl

even BeezNutz has targets, lots of targets, a whole lot. 


David Monge
David Monge

@BarnettPiedPipe If you need help financing MULTI FAMILY homes I can assist with non-recourse loans.  

David Monge - NMLS 1145701

IsabelCChaves
IsabelCChaves

Pay yourself first. Where? LMAO I've asked so many people. Where does the pay yourself first

compound interest come from?

I have a rental property paid in full. Using the rent money to lease a larger house as I run two companies from home and homeschool!

Advice?

IsabelCChaves
IsabelCChaves

I get that. But where does the compound interest come from? Any general savings account? I truly appreciate understanding more about compound interest.

RonaldKobrya
RonaldKobrya

@IsabelCChaves I'm a financial advisor... this is what I help self-employed folks with. But only licensed to do business in Cali (for now).

triciastahl1
triciastahl1

What are your thoughts about Self-directed IRA's? 


restakes.com
restakes.com

Your goal is for 7 BILLION people to know who your are!

FLUSAcom
FLUSAcom

How much money do you consider to be rich?

Clint Maki
Clint Maki

I am a Realtor.  I want video branding done!  Where do I sign up?