Grant Cardone's Most Hated Advice: Does It Make Sense For You?

Yahoo

2 days ago

Grant Cardone isn't afraid to say what he's really thinking — even if it stirs controversy. The wealthy entrepreneur and real estate investor is frequently interviewed and always seems to give his raw, unfiltered take on subjects like personal finance.
For You:
Try This:
In an Instagram post, Cardone highlighted his two most hated pieces of advice. Keep reading to find out exactly what he said that's controversial and if it applies to your unique situation.
'Most People Should Not Go To College'
In 2024, 19.3 million students were enrolled in undergraduate programs at U.S. colleges and universities, according to the Education Data Initiative. This represents an 8.4% decline from peak enrollment in 2010.
Despite this, almost half of Americans have earned at least some type of college degree. As of 2022 — the most recent data available — 47% of Americans had an associate's degree or higher, according to the U.S. Census Bureau.
Many surely disagree with him, but Cardone doesn't necessarily believe earning a degree is important. 'Most people should not go to college,' he said on an episode of the 'Success Story Podcast.'
He said it's crazy that people spend years going to college — while spending money, instead of earning it — to acquire knowledge they could gain from an iPad.
See Next:
Worth noting that in 2021, approximately 68% of all jobs required at least some postsecondary education, according to the Georgetown University's Center on Education and the Workforce. By 2031, this number is expected to rise to 72%, with 42% of all jobs requiring a bachelor's degree.
Clearly, the decision on whether or not to go to college largely depends on your career goals. You might be able to learn a lot from an iPad, but it won't get you hired by an employer that requires a formal degree.
'A House Is a Terrible Investment'
Owning your home is long-been a cornerstone of the American dream. However, Cardone blatantly disagreed. On the 'Digital Social Hour Podcast,' he said owning your own home is a terrible investment, because it doesn't offer cash flow or big tax write-offs.
'You have no leverage,' he said. 'You're living in it, you're paying for it, you never own it.' Even if you do pay the mortgage off, he said you're still on the hook for costs like property taxes, insurance and maintenance.
'Saying that owning your home is a terrible investment is a blanket statement that dismisses what has been the primary source of wealth-building for nearly 70% of Americans,' said Jose Alvarez, founding advisor at Harvest Horizon Wealth Strategies. 'For someone who built a career in real estate, that stance seems like nothing more like marketing for traffic on his platforms.'
However, he did agree that you shouldn't consider your home an investment. Instead, he said it should be viewed as an item of consumption that serves as a place to live. 'You buy it to create stability — not to liquidate it later for income,' he said. 'That's not a home's purpose.'
Unlike traditional investments, he acknowledged that your home probably won't produce income — unless you're a real estate developer.
'When you factor in maintenance costs that don't improve your basis — new roof, windows, painting — plus insurance, property taxes and utility costs, the real rate of return — return adjusted for CPI — on a primary residence tends to hover around 2% to 3% over a 20-year period,' he said. 'That's barely outpacing inflation and it's tied up in an illiquid asset.'
Despite this, he said homeownership can definitely be part of a solid long-term financial plan. He also noted that calling it a terrible investment ignores the overall value its designed to offer.
More From GOBankingRates
Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard
5 Types of Cars Retirees Should Stay Away From Buying
Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy
This article originally appeared on GOBankingRates.com: Grant Cardone's Most Hated Advice: Does It Make Sense For You?