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Personal finance advice usually starts with one rule: build an emergency fund with three to six months of expenses. But real estate investor and entrepreneur Grant Cardone says that guidance is completely wrong.
In a 2024 interview on “VladTV,” Cardone dismissed the idea that people should park months of living expenses in a savings account. He called the traditional safety net “another bank myth” and argued that keeping large amounts of cash on the sidelines slows down wealth building.
Cardone believes the real solution to financial problems isn't a cash cushion but the ability to generate more income when something goes wrong.
“If you have an emergency, you need to go to work,” he said. “You need to go hustle is what you need to do.”
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The outspoken Cardone has built a reputation in real estate and business for encouraging aggressive income growth. From his perspective, emergency savings encourage people to stay comfortable instead of chasing bigger opportunities.
“Savers stay broke,” he said, adding that people who want to build real wealth should constantly search for new ways to earn money, whether through side businesses, investments or entrepreneurial ventures.
For readers looking to balance aggressive income strategies with long-term security, platforms like Money Pickle can connect you with fiduciary financial advisors. They help design a plan for multiple income streams, prioritize investments, and map out contingencies beyond traditional cash savings.
While Cardone argues that savings hold people back, many financial experts say emergency funds exist for a simple reason: life is unpredictable.
Personal finance personality Dave Ramsey has often explained that a financial cushion can dramatically change how people experience unexpected costs.
“[An emergency fund] turns a crisis into an inconvenience,” Ramsey said on “The Ramsey Show.”
Ramsey typically recommends saving three to six months of expenses. According to him, having that money available removes the panic that comes when something breaks or an unexpected bill appears.
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The goal, Ramsey says, is simple: remove financial drama from everyday problems.
Even with an emergency fund, however, some situations can exceed what people have saved.
