Can You Afford It?

Here’s some situations of people asking me recently whether they can afford something or not. I’m enclosing them in this article for your benefit:

John, 27, Sioux City, Iowa— Hey Grant, I have $12,876 in my checking account and no investments yet—but I’m also now officially debt free! I’m renting an apt for $700 a month and my job pays me a fixed $52,000 a year.

I got engaged this past year and would love to take a honeymoon to France early next spring, and I figure I’d be looking at probably taking well over half my savings out. You’ve said in the past if you’re broke, you might as well make it official, right?

Answer: I’m all for experiences, and many times you can’t put a price on something like a honeymoon. That said, just tell her you’ll take her to France after another year, or until you bank at least $100K, whichever comes first. That way when you do go you can do it in style.

But now the question becomes, how do I make 100K over the next year? Take that 12K you have sitting there and begin to use it to invest in yourself. The only way to increase your income is to gain new skills you can use in the marketplace.

Keith, 42, Pasadena, California—Grant, love your material. I know you’re against buying houses, but I’m really tempted to buy a small “starter” place. I hate paying rent. I make $90,000 a year but sometimes more (you know, depending on how the company goes) and I got close to $200K liquid cash.  

I think with the possibility of appreciation it’s a solid move, but I keep hearing you say NOT to buy a home. There are exceptions, right?

Answer: Look, of course there are always some exceptions in life—but still, nobody needs to be buying a home! You can’t afford to have dead money somewhere just hoping for appreciation when you could be cash flowing.

And what makes you “hate” renting? It’s because you’ve been told over and over NOT to rent.

You’ve been sold the idea your entire life to buy a home.

Don’t do it! Use whatever money you have an invest in multifamily assets like Cardone Capital does. Rent where you live, own what you rent.

Kelly, 55, Tampa, Florida—Dear Grant, I have no income skills, I’ve been a homemaker for the last 20 years while raising our 3 kids. My husband passed last year, and he left me with a nest egg just over $600,000.

The kids are now all in college, I want to help them but I’m scared. I still have 6 years left on the mortgage and I’m still only 55 years old. I’m worried I’m going to run out of money by the time I’m 70.

The question I have for you is not whether I should go get a job (I know I should start working), but what kind of job do you think I should pursue at this stage given I haven’t been in the workforce since the 1990s. I don’t want to just be a cashier!

Answer: First off, you need to get that 600K working for you so that it will start growing. For me, real estate does that—and it can for you too. With 600K and just 6% returns, you can enjoy about $3,000 monthly cash flow while you wait for appreciation if you invest in the right vehicle.

I’d also sell your house so you get your cash out of it and find some nice apartment complex to live in for $1,500 a month.

I’d encourage you to invest in my sales training materials. Anyone can learn sales, and ALL businesses need people who can sell. You may have to take a low position without much pay at first, but if you bring a great attitude and show you can start to bring the company more revenue, you can work your way up quickly!

Would you too like to ask me something?

Get yourself to 10XGrowth Con 3, you might just find your answers.   

Be Great,

GC

Grant Cardone is a New York Times bestselling author, the #1 sales trainer in the world, and an internationally renowned speaker on leadership, real estate investing, entrepreneurship, social media, and finance. His 5 privately held companies have annual revenues exceeding $100 million. Forbes named Mr. Cardone #1 of the "25 Marketing Influencers to Watch in 2017". Grant’s straight-shooting viewpoints on the economy, the middle class, and business have made him a valuable resource for media seeking commentary and insights on real topics that matter. He regularly appears on Fox News, Fox Business, and MSNBC, and writes for Forbes, Success Magazine, Business Insider, CNBC, and Entrepreneur. He urges his followers and clients to make success their duty, responsibility, and obligation. He currently resides in South Florida with his wife and two daughters.