BISNIS,JS- Success in wealth isn’t just about earning a lot—it’s about how you use your money. Entrepreneur and real estate mogul Grant Cardone recently shared strategies that the ultra-rich rely on to grow and protect their wealth. In an interview with content creator Jack Neel, Cardone revealed habits that go far beyond budgeting or saving, focusing instead on generating income that multiplies over time.
1. Create and Live Off Passive Income
Cardone emphasizes that passive income forms the foundation of financial freedom. Wealthy individuals generate income that doesn’t require daily work, which allows their wealth to expand consistently.
He personally receives monthly passive income and advises people to live entirely off this type of earnings. “Wealthy people don’t touch their personal capital—they live off passive income,” Cardone explains. By relying on money that works for them, billionaires keep their financial growth steady and predictable.
2. Invest Strategically in Real Estate
Cardone built a real estate empire valued at over $5.3 billion through Cardone Capital, primarily generating passive income from multifamily properties. However, he warns against buying a personal home as an investment. “Buying a house is one of the worst investments. It doesn’t earn anything and still costs you every month,” he says.
Instead, he recommends renting a home while purchasing multiple rental units in the same area.
3. Diversify Income Sources
Real estate offers significant opportunities, but Cardone points out that wealthy individuals rarely rely on a single income stream. They spread their earnings across interest from savings, stock dividends, bonds, royalties, and businesses that operate independently of their daily involvement.
4. Protect Your Principal Capital
A consistent pattern among the ultra-rich is that they never touch their principal wealth. Instead, they use passive income to fund their lifestyle and reinvest earnings to generate more wealth. By protecting their capital and focusing on income streams, they secure long-term financial freedom.
The Takeaway: Building lasting wealth isn’t about earning more—it’s about making your money work for you. Grant Cardone’s advice highlights three key practices: generate passive income, invest wisely, and diversify your earnings while safeguarding your principal. Following these habits can help anyone move closer to financial independence.(*)
