You Don't Need Emergency Savings, Says Grant Cardone – Claims That Three Months Of Savings In Case Of A Big Emergency Is Another Bank Myth

In a recent interview, Grant Cardone shared his unconventional view on emergency savings, calling the traditional advice of saving three months’ expenses for a big emergency a “bank myth.” 

Cardone's main point is that instead of letting money sit in a savings account, which he views as a slow path to financial security, people should hustle and find ways to increase their income.

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Cardone, who has made a name for himself in real estate and business, thinks that having emergency savings keeps people stuck in place financially. “If you have an emergency, you need to go to work. You need to go hustle is what you need to do,” says Cardone.

For him, having a financial cushion is less about security and more about playing it safe, which he argues can hold people back from achieving real wealth. “Savers stay broke,” he says and he recommends that people who are serious about building wealth always be on the lookout for new opportunities to earn, whether through side businesses, investments or other ventures.

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He also noted that the average interest rates paid on savings accounts have been at the lowest level for decades, with today’s average still being at 0.1% (in reality, it is 0.46%), which isn’t great for savers. However, his interviewer pointed out that some accounts offer a higher interest rate, including Apple’s, which offers more than 4%. Still, Cardone wouldn’t budge, saying there’s no point getting these accounts because they’ll only earn “$12” from the 4% interest rate – “It’s ridiculous.”

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While Cardone's approach could work for some people, many financial experts disagree with him about having emergency savings. Dave Ramsey, for example, has been telling people for years that having an emergency fund is fundamental. “It turns an emergency into an inconvenience,” he says and he points out that there’s no stress, freakout or drama associated with that because you have spare money for situations like these.

According to Ramsey, people who save up three to six months' worth of expenses can better protect themselves from unexpected situations that typically come up at the worst times, such as losing their job, medical bills or car repairs.

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