‘Savers stay broke': Grant Cardone calls the concept of emergency savings a ‘bank myth’ — and argues your house should never be included in your net worth. Here's why

“I don’t need emergency savings,” he said in a recent interview with YouTube personality DJ Vlad. “This was another bank myth — you need three months of savings in case of a big emergency. Dude, if you have an emergency, you need to go to work, you need to go hustle is what you need to do.”

Cardone also foresees gloomy outcomes for those who practice saving money, stating, “Savers stay broke.”

The ‘big scam’

Cardone’s aversion to maintaining an emergency fund may be rooted in his perspective on fiat currency.

“This is the big scam right here,” he told DJ Vlad, holding up a $100 bill.

He explained that if the bill had been printed in 1973, the year DJ Vlad was born, it would still have "$100" printed on it today. However, due to the impact of inflation on the U.S. dollar's purchasing power, the bill wouldn't buy nearly as much today as it did in 1973.

“It should say $11,” Cardone remarked.

Over the decades, inflation has indeed eroded the purchasing power of money for Americans. According to the inflation calculator from the Federal Reserve Bank of Minneapolis, $100 in 2023 was equivalent to just $14.57 in 1973 dollars.

Given this stark reality check, one might wonder how to hedge against inflation. Real estate — a favorite of Cardone’s — is one well-known option. As the price of raw materials and labor increases, new properties are more expensive to build, driving up the price of existing real estate.

However, if you think owning a home means you are all set, Cardone has a surprising message for you.

Home vs refrigerator?

Home equity is often a substantial component of American households’ net worth.

A study by the Pew Research Center found that the median net worth of U.S. households was $166,900 in 2021 when all assets were included. However, when home equity was excluded, the median net worth dropped significantly to just $57,900.

Cardone, however, believes that home equity shouldn’t be included in the calculation at all.