Personal Finance

Grant Cardone firmly states that "cash is not king" - this is instead

Joey Frenette

Published: March 9, 2025 11:06 am

If you’re a risk-averse saver who wouldn’t dare dip a toe into the stock market waters amid tariff volatility, you must understand that there are also risks of hoarding cash in savings accounts amid the threat of rising inflation. Undoubtedly, we’ve been through high inflation before and it was not pretty for those who hoarded cash, with little to nothing in the way of equities or real estate.

It’s impossible to know if a “second wave” of inflation is waiting for us around the corner. And it’s unknown if tariffs can do to inflation what lockdowns and stimulus did back in 2020 and 2021. In any case, for the ultra-conservative savers (especially for those who are still young) out there, do know that the risks you don’t take could be the biggest risks of all to the purchasing power of your nest egg.

But don’t take it from me; take it from Grant Cardone, the author behind 10x Your Business, who stated that “Cash is not king; cash flow is king” on several occasions. He’s right on the money to drive home the point. A sustained cash flow stream beats a stash of cash every single time, especially if an era where inflation is on the ascent again.

Cash flow: It’s the real king, according to Cardone

Even without a second surge of high inflation, Cardone advocates owning income-producing assets that can work for you. If it’s sitting in a low-interest savings account at your bank, it’s not working for you. If you don’t put it to work, it’ll simply erode away every single year, and you’ll be fighting an uphill battle as you aim to retire as a saver rather than an investor.

Of course, savers are content not growing their wealth at the fastest rate possible. For many, it’s more about peace of mind and a slow, steady move towards retirement.

While getting 1% or less in interest may have cut it in the past, it may not in the latter half of the decade, given the magnitude of inflation risks we’ll need to grapple with. Such savers stand to be hit hardest by tariff-fuelled price surges on a wide range of goods, ranging from food to fuel and even big-ticket discretionary purchases.

Inflation erodes the case for holding cash

If Cardone’s short, sweet, and powerful quote isn’t enough to influence savers to start investing in cash cows, perhaps the fear of inflation will. Indeed, market volatility is something that’s startled many in the past week.

However, another risk that I view as discounted is the risk of a return to 6-8% inflation we witnessed in 2021 and 2022. Such inflation fears have caused a rush to gold (a popular inflation hedge and alternative store of value).

While gold is a pretty investment that can hold its value, it’s not a cash producer. For those who wish to follow Cardone’s words of wisdom, it’s time to start thinking about cash that will flow into your pocket in the form of dividends, rental income, distributions, royalties, and all the sort.

And the good news is you don’t need to start a business or be a landlord to have an asset that produces cash flow. In fact, it’s as easy as buying a dividend stock or income ETF product. And for aspiring landlords out there, there are always REITs (Real Estate Investment Trusts) that can help line your portfolio with monthly distributions. 

The bottom line

Grant Cardone’s cash flow quote may be short and simple, but it packs a punch. Savers who opted for cash flow-generative assets over cash would be much better off, not only through inflationary surges, but over the long haul, as they aim to build their wealth rather than getting guarantees with cash.

Remember, another guarantee of cash that’s seldom discussed is the guaranteed loss of purchasing power over time.