Warren Buffett famously said: Do not save what is left after spending, but spend what is left after saving.
Shark Tank star Barbara Corcoran disagreesshe spends it all.
The real estate mogul says shes never saved a penny in her lifea philosophy installed in her by her motherand that by investing it in business or other people the returns have kept coming back.
Corcoran, who earned her millionaire title courtesy of her New York Real Estate business The Corcoran Group, told CNBC her best advice for making money is to spend it in the first place.
Im just not a believer in saving money. Ive never saved a dime my whole life, she said.
I had a mom who raised 10 kids on a shoestring budget, and she always said money is meant to be spent. And she didnt have much to spend.
The lesson stuck with the property mogul, who having sold her business for $66 million in 2001, immediately began plotting how she could spend it.
And thats fine, she believes, as long as youre spending your money on the right things.
The 74-year-old said she gave half the sale proceeds to family, friends, education funds, charities, because I really believe if you spend, money comes back to you.
I think the carefree attitude of believing that money makes money, if youre willing to share it and spend it, really works, or at least it has certainly worked for me, she continued. And I dont believe in hoarding money, saving money, everything like that. Because for meit would take my spirit away.
Investing is certainly a key component of her role on Shark Tank, with Corcoran having offered up an estimated $16 million according yo Humblerisea website dedicated to the show.
Even then, Corcoran has previously been open about the fact that not many of her businesses have provided huge returnsshes simply in it to support passionate people.
Ive invested in 150 businesses, and Ive made money on about 10%, she revealed earlier this year. Im looking for ambition. Someone who envisions where theyre going, and I fall for it when they tell me theyre going there.
The TV mogulwho nearly lost her spot on the panel before an episode even airedadded shes nearly gone bankrupt five times and always managed to bounce back.
The last timeduring the 1990-1991 recessionCorcorans mother told her: Dont worry about the money. Its a waste of time. I thought of an idea that made me a million dollars the next week.
What do the other sharks say?
The other sharks on Shark Tank have other ideas.
Mark Cuban, for one, has the opposite mentality to his panel peer.
In 2015, Cuban shared his tips on how to get rich, and his advice was pretty simple: Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water. Instead of going to McDonalds, eat mac and cheese.
Cut up your credit cards. If you use a credit card, you dont want to be rich. The first step to getting rich requires discipline. If you really want to be rich, you need to find the discipline.
Fellow panelist Daymond John is also a fan of saving, encouraging members of the public to think before [they] spend.
3/Think before you spend. Ask yourself if you really need something before you buy it. If its not a necessity, consider saving your money instead.
Daymond John (@TheSharkDaymond) March 11, 2023
Speaking on Youtube John explained: Every time you get a dollar or a pay chequethere are three ways to spend that money and people always use them backwards.
Number one: you pay for what you absolutely need. Number two [is] really critical: invest. Number three treat yourselves to the things you dont need but you would like to have.
People usually do number three as number one they never do number two and number one is number three.
And Canadian businessman Kevin OLeary is also a fan of savingthough not to the same extent of other professional finance experts.
OLeary suggests individuals should have three months of salary on hand in case of emergency but not the six or even 12-months worth personal finance expert Suze Orman suggests.
Speaking to CNBC, OLeary explained this is because of high inflation rates relative to interest, meaning money left in the bank isnt getting the gains it traditionally should.
Instead he suggests investing: Savings in cash in a bank account make basically no interest, certainly after inflation. Investing is keeping pace with the equity and stock markets. And I think youve really got to understand the difference between the two.
