‘I Don’t Believe In Saving Money,’ Says Entrepreneur Barbara Corcoran
Kathy Hutchins | ShutterstockSince most of us were old enough to understand what money was, we’ve constantly heard about how essential it is to save as much of it as we possibly can.
Because of how our society champions the idea of saving, you would think that most of the wealthiest people out there did a whole lot of it to get to where they are now. However, ultra successful entrepreneur and “Shark Tank” star Barbara Corcoran said she amassed her wealth by doing the exact opposite.
Corcoran revealed that she was raised to simply not believe in the value of saving money.
She was the guest on a recent episode of Phoebe Gates and Sophia Kianni’s podcast "The Burnouts," and among all of the interesting stories and wisdom she shared, she dropped what a lot of people would undoubtedly call a hot take. Corcoran said, “I don’t believe in saving money.”
The hosts looked at her in confusion and asked her to explain what she meant. Corcoran continued, “I’ve never saved a dime in my life. When I sold my business for $66 million, my first thought was, ‘What can I spend it on?’”
Apparently, she gave a significant portion of the money away because her philosophy is, “When you spend money, it comes back to you.” Somewhat surprisingly, she learned this from watching her mom raise her and her nine siblings with little money to spare.
“She always said, ‘Money is meant to be spent,’” Corcoran recalled. “One time I was almost going bankrupt, for maybe the fifth time! I told my mom I had to shut the business down and tell everyone they no longer had jobs. She said, ‘Don’t worry about the money. What a waste of time.’”
Corcoran knows what it’s like to experience financial hardship, but her comments are still probably going to rub a lot of people the wrong way.
Clearly, her childhood was not luxurious, and that lasted into her early adulthood. At 23-years-old, Corcoran had already cycled through 20 different jobs. She was working as a waitress when she decided to open a real estate company with a $1,000 loan, which led to her success.
Kathy Hutchins | Shutterstock
One could argue that Corcoran is a bit more in touch with the average person than many other wealthy entrepreneurs because she does know what it’s like to struggle. The fact that she has never tried to save money and started a booming business with a small loan seems like an exception and not the rule, though.
On the podcast, she insisted, “I never got rich by saving. I got rich by allowing money to come and go.” That might be some kind of unique take on an abundance mindset, but it’s hard to take seriously when her net worth is believed to be $100 million. She definitely doesn’t need help now. And, technically, if she has $100 million amassed, wouldn’t it mean that money is actually … saved up?
Everyone’s situation is unique, but people might want to refrain from adopting Corcoran’s financial motto.
It sounds like starting a business with just $1,000 is not a common occurrence, and no one should think that it’s universally possible because it worked for Corcoran. Every business is different, and there are some small startups you can launch at home with just a few hundred dollars. The average small business requires $2,000 to $5,000 to get up and running, though.
Leeloo The First | Pexels
Additionally, saving money not only gives you a fund you can access in case of emergencies, but also helps you reach your goals and feel less stressed. It’s the key to being able to retire as well, although that probably feels far off for some.
But, I guess those things aren’t really on your mind if you’re sitting on a $100 million net worth. Corcoran was lucky to become very successful very young. Not prioritizing saving money might be feasible for her, but in an increasingly unstable economy, it could lead to absolute ruin for a lot of other people.
Mary-Faith Martinez is a writer with a bachelor’s degree in English and Journalism who covers news, psychology, lifestyle, and human interest topics.
