Grant Cardone isn’t one to shy away from making bold statements, especially when it comes to money. He feels $10 million is the new $1 million.

In a TikTok video titled “If You’re A Millionaire You’re Broke – Get To $10 Million To Be Considered Rich,” Cardone breaks down his belief that having a million dollars in 2024 is barely enough to keep you afloat, much less make you rich.

Don’t Miss:

“If you have a million dollars and you want to buy a house, well then you’re down to $200k,” Cardone explains, highlighting just how quickly money can disappear when faced with life’s big expenses. He takes it a step further, saying, “Your mom has cancer, you’re out of $200k in 45 days. You’re back to zero again.” His point? A million dollars isn’t what it used to be.

See Also: I’m 62 Years Old And Have $1.2 Million Saved. Is This Enough to Retire Stress-Free?

Cardone even dives into some historical context, noting, “A million was a lot of money in 1960. If money deflated at the rate that it has in my 65 years, money is worth 10% of what it was then. So, if a millionaire was rich in 1960, you need $10 million in 2024 to be considered rich.” According to him, if you’re still using the idea of $1 million as a benchmark for wealth, you’re behind the times.

His math is correct. According to inflation calculators, $1 million in 1960 is actually equivalent to $10,635,000.00 in 2024.

Trending: Founder of Personal Capital and ex-CEO of PayPal re-engineers traditional banking with this new high-yield account — start saving better today.

Is $1 Million Still Enough?

In his book The Wealth Creation Formula, Grant Cardone states, “A million dollars isn’t enough” and “$10 million is the new $1 million.”

In a GoBankingRates interview, Cardone explains what life is like for someone who retires with $1 million. He says that if you stretch that money over 35 years of retirement, it equals about $28,571 per year or roughly $2,381 a month.

As Cardone told GoBankingRates, “The average rent in America is $2,000. You have $500 a month left over. You haven’t eaten, you haven’t gone out, you haven’t bought one pair of shoes, you don’t have health care, you don’t have insurance and you definitely don’t have a car payment. You have one car payment, you’re negative $200 a month. So you’re the millionaire that can’t afford anything.”

Story continues

Trending: How do billionaires pay less in income tax than you? Tax deferring is their number one strategy.

Building Wealth Beyond $1 Million

So, what is Cardone’s solution to this problem? Building passive income. In his eyes, the key to long-lasting wealth is finding ways to make money while you sleep. Whether investing in real estate or creating other income streams, he focuses on ensuring your money works for you – not the other way around.

He emphasizes creating enough passive income to match or exceed your earned income, ideally between $400,000 and $500,000 annually. That’s a tall order for most people, but it’s the kind of financial security Cardone says you need to live comfortably today.

Trending: Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.” Here’s how you can earn passive income with just $100.

Criticism and Realities

Of course, not everyone agrees with Cardone. Plenty of people think $1 million is still a solid goal, with some surveys suggesting a net worth of around $2.2 million is enough to feel wealthy. However, Cardone’s point is that aiming for $1 million might leave you struggling to keep up in the long run.

Whether you agree with his $10 million target or not, financial security looks a lot different now than it did in 1960.

Read Next:

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga?

This article Grant Cardone Says ‘You Need $10 Million To Be Considered Rich’ – $1 Million in Retirement Won’t Cut It If You Want To Afford Anything originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.