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The 40-40-20 Rule That Will Make You RICH (No One Talks About This)

The 40-40-20 Rule That Will Make You RICH (No One Talks About This)

Mike Thurston
May 27, 2025

People often think success comes from playing it safe.

But real wealth comes from thinking bigger and doing what others won't do.

This week, we're breaking down the hard-earned wisdom from Grant Cardone, who went from drug addiction and broke at 25 to building a multi-billion dollar real estate empire.

Let’s get into the lessons…

→ WATCH THE FULL PODCAST HERE:

Grant's Wealth-Building Formula:

#1 - The 40-40-20 Financial Foundation

Success isn't about earning more—it's about strategically allocating what you earn.

40% to Taxes: Set aside what you owe immediately.
40% to Investments: Use this money to make investments that offset that 40.
20% to Live On: Force lean operations while building your foundation.

Following this method transforms earned income into passive income through strategic investments.

#2 - The Investment Vehicle Hierarchy

Not all investments are equal, and not all investment advice is worth listening to.

Grant learned this after studying the wrong mentors early on.

Here’s what Grant thinks are essential investments of time and energy:

Real Estate: Grant made $3.1 million off a single deal.
Audience Building: Build so big you can afford to lose customers.
Sales Skills: Essential foundation to have, but a limited skill on its own.

"I'm going to operate like a corporation even though I'm an individual."

- Grant Cardone

#3 - The 10X Scaling Strategy

When 2008 nearly destroyed Grant's business, he discovered: go bigger, not smaller.

Shift from survival mode to dominance mindset:

→ 10X Your Thinking: "How big would I have to be to survive this?"

→ 10X Your Actions: "When I find something that works, I hit it again and again."

→ 10X Your Reach: Multiple revenue streams across different industries.

#4 - The Compound Consistency Method

Grant's transformation from terrible to master came through obsessive repetition.

Find the Best Model: Study one expert intensively.

Extended Practice: Master what you’ve learned before you modify.

Then: Adapt to your style and teach others.

Daily improvement creates exponential results over time.

Grant's journey proves that Clear expectations eliminate confusion and create better outcomes.

That’s it for today’s write up, hope you enjoyed and stick around for the next one.

Yours truly,