Grant Cardone, author of “The 10X Rule,” has been educating people about real estate for decades. He preaches investing your money so you can multiply it and is not a fan of keeping money in the bank where it will earn a low interest.
While stocks and real estate have been popular investments for decades, alternative investments like crypto have been gaining steam. Alternative investments give people more choices, but Cardone believes that some people are a bit generous with how they define alternative assets.
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The real estate mogul recently published an X post reacting to a video of a woman buying six Birkin bags. She referred to them as investments, but Cardone wasn’t having it.
“Birkin bags are not investments. Those are ‘look at me’ expenditures,” he stated in the post.
Cardone explains in his post that using the same money to buy real estate could have generated cash flow every month. Real estate also has the potential to double every seven years.
Luxury items, in the simplest terms, are items that display luxury. They aim to show off a perceived prestige and make the buyer look more impressive to others.
Some people call them investments in an effort to justify a purchase or appear smart. This trend extends beyond handbags.
One X user responded to Cardone’s post asking if he views Richard Mille watches as investments. Cardone simply said, “Stupid – watches are not investments. [They’re] watches.”
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Consumers are free to buy luxury items, but you should have your finances in order before you make those types of purchases. It’s better to prolong those purchases and put your money into stocks, real estate, or another true investment.
Luxury items display wealth, but who are you displaying it to? Most people glance at luxury items and then continue with their days. Instead of aiming to impress others by displaying wealth, Cardone is an advocate of building real wealth.
