'You Are Not Wealthy... You Are Worried': Grant Cardone Calls Single-Digit Millionaires The New Middle Class
The man who boldly predicted that America would become a nation of renters and that the Federal Reserve forced the general public out of the housing market is back with more calculated claims that, upon further investigation, feel like more uncomfortable truth than the attention-grabbing headline.
Cardone Capital CEO Grant Cardone has spread the word that the single-digit millionaire is the new middle class.
His point is proven with a few basic math problems and bucks the stereotypical notion that a cool million would leave you set for life. He explains that a 30-year-old with $1 million dollars would be broke by 51. He conservatively suggests a spending budget of $4,000 each month. With no other income, you’re dead broke in just 21 years.
“If you are a single-digit millionaire, you are not wealthy... you are worried,” Cardone said. “Millionaires are basically middle-class people who are worried about money.”
Seems fair.
The notion of single-digit millionaires being susceptible to the same things as those making one-tenth of them isn’t new. Cardone’s quote actually stemmed from the words of billionaire entrepreneur Peter Thiel, who famously said, “Single-digit millionaires don’t have access to the legal system in the U.S.,” when he helped professional wrestler Hulk Hogan in a lawsuit against Gawker Media LLC in 2016.
Years later and the words still ring true. One of several reasons for heightened worry may be the pending recession or outright depression, depending on who you talk to. Elon Musk and Jeff Bezos share some of Cardone’s fears as each has made claims that a recession is inevitable.
So, how do you make money when facing economic turmoil? How much do you need when Cardone says $1 million simply isn’t enough?
One of Cardone’s answers is to invest in real estate. Cardone always pushes for you to go broke investing. Put all your chips in on something you believe in. For him, it’s almost always real estate. His belief has served him well. His net worth (depending on your source) has him somewhere between $600 million and $2.6 billion.
How can you invest like a billionaire, without the same fortune? There are several ways.
Crowdfunding platforms: Cardone Capital is Cardone’s own real estate crowdfunding company. These platforms allow you to invest what you can (sometimes with a minimum required balance) into one or several different properties. Fractional ownership allows you to diversify your portfolio and still reap the long-term benefits of real estate ownership. (Check out Benzinga’s Real Estate Offering Screener to find passive real estate investment opportunities, including options to invest in rental properties with as little as $100)
Real estate investment trusts (REITs): REITs are stocks that specialize in real estate. There are tons of niche markets to get into. Whether it’s farmland, residential or storage, you can invest in real estate you believe in. Benzinga has highlighted several of the Best REITs to invest in.
Outright ownership: If you have the means, certainly one of the best options is to mimic Cardone in the closest way possible. Outright ownership of rental properties and multiuse buildings can be lucrative with the right investments.