This advice is brought to you by Grant Cardone.

You won’t believe what I was just told. It contradicts everything I hear in books, everything I hear on the news, and everything that my parents have told me.

“BUY THE BULLSHIT” Grant says in a laughing tone. He’s wearing a $40,000+ watch, sitting in his $250,000+ car. And by bullshit, he’s referring to the luxury toys.

But there is a catch to it…

Financial Literacy

Dan Marino was a great NFL player, earning multi-millions of dollars during his successful career. Vince Young – another NFL quarterback earned about $25 million during his career. Despite these two athletes having great careers, they have another thing in common: They both went bankrupt.

Did you know that about 60% of former NBA players go broke within 5 years of departing the league? And as for the NFL, that figure goes up to 78% of former NFL players go bankrupt or under financial stress in just 2 years after retirement.

This is all due to a lack of financial literacy and not having a healthy relationship with money. Often, people who earn large sums of money very quickly typically end up blowing it all in a few years (70% of lottery winners go broke). This is the cause of not building your intangible wealth tools in conjunction with your financial wealth.

As an analogy, this would be like a novice scientist with no experience given the opportunity to lead a project. It’s very unlikely that the scientist has the skills or wisdom on what to do in different situations, and he will have to rely purely on his intuition.

Spending Rule

Grant Cardone sees no problem with spending big money on an expensive watch, fast cars, or a big house. He says, just make sure that you only buy these luxuries with your passive income.

Your earned income is the wage you earn in return for your time. Your earned income should be used for bills and investments to earn you money while you sleep. How much you earn in your passive income is the determining factor on whether or not you can afford the luxuries.

By following this financial plan, you will be set for the future and never run out of money even while spending lavishly.

To watch Grant Cardone’s full video on this topic click here