Barbara Corcoran is a big believer in the liquidity of her money. Living by the wise words of her mother, she believes that letting the money flow around fetches you more as compared to hoarding it. Let us look at Barbara Corcoran’s financial playbook and learn how to manage money from her sayings and experiences.
Who is Barbara Corcoran?
Barbara Corcoran is a real estate mogul, investor, and television personality. She is well-known for her role as a Shark Tank judge.
Barbara’s career took off on a loan, on which she built The Corcoran Group into one of New York City’s leading real estate firms.
Beyond her business success, she has become a sought-after speaker, author, and mentor, admired for her kind and straightforward advice and sharp eye for opportunities.
The Barbara Corcoran Philosophy for Savings
Barbara has built a career around bold decisions and lives by saying, “I’m just not a believer in saving money; I’ve never saved a dime my whole life.”
While many financial advisors stress the importance of building a savings cushion, Corcoran has openly said she doesn’t believe in saving money (not in the traditional sense).
Her school of thought sounds risky superficially, but a deeper look reveals that it is more about taking chances and not letting money sit idle and unattended.
From $1,000 Loan to a Real Estate Mogul
Barbara initially inculcated her way of financial thought process from her mother. Barbara’s mother raised 10 kids on a tight budget and had a what-comes-around-goes-around mentality regarding money.
Corcoran comes from a working-class family in New Jersey and was plagued by financial issues.
Barbara started a small real estate business in New York City in 1973. She initially took a $1,000 loan that eventually became The Corcoran Group. It went on to become one of the most well-known brokerages in the country.
She sold The Corcoran Group in 2001 for $66 million, which cemented her as a self-made millionaire. That was a return of nearly 6.6 million percent on her $1,000 starting amount.
Why Barbara Doesn’t Believe in Saving
Instead of using money and savings as a cushion, Barbara preaches and practices using them as rocket fuel for her next endeavor.
Barbara believes that money should circulate into businesses, property, and other ventures that have the potential to grow. Letting money collect dust in a savings account is a wasted opportunity.
When Barbara Corcoran’s business was about to go under, she told her mother she was ready to close the doors after 12 years. Her mother’s reply was blunt: “Don’t worry about the money. It’s a waste of time.”
That simple line snapped her out of panic, and within a week, she came up with an idea that brought in a million dollars. It shaped her belief that money grows when you’re not afraid to use it.
The Bold Strategy That Saved Her Business
Barbara Corcoran was stuck with 88 apartments that had gone unsold for three years, and they were draining her business.
She tried something bold wherein she launched a one-day sale where every apartment was priced the same, no matter its size or location. To spark urgency, she told brokers to invite only their best buyers.
The plan worked, and the gamble paid off. By the end of the day, all 88 apartments were sold, and Corcoran walked away with a million dollars in commissions.
The Power of Spending on the Right Things
Barbara Corcoran doesn’t see money as something to guard. Whenever she makes extravagant gains, she loves giving them away and using them.
She describes her experience, saying, “When I sold my business for $66 million, I immediately thought of what I could spend it on,” “I gave half of it away to family, friends, education funds, charities, because I really believe if you spend, money comes back to you.”
She talks about not being overly strict with money and believes that spending is justified when it creates value or supports the people and causes that matter.
Key Learnings from Barbara Corcoran’s Financial Playbook
Corcoran’s millionaire status didn’t come from saving pennies. It came from reinvesting, expanding, and believing that money in motion creates momentum.
Barbara’s approach isn’t a one-size-fits-all kind of thing. A good finance strategy for the common man should be a balanced approach that includes saving for emergencies, retirement, and short-term needs, as well as investing for long-term growth.
She took this approach because she has acquired the skills, network, and, hopefully, some savings to handle setbacks. Putting every dollar into reinvestments could be financially dangerous for someone without those factors.
Quick Recap on Barbara Corcoran’s Handling of Savings
- Money as Fuel, Not Security: Barbara Corcoran believes keeping money in motion creates more wealth than saving it.
- From $1,000 to $66 Million: Her journey from a small loan to selling The Corcoran Group proves the power of bold reinvesting.
- Creative Risk-Taking: When Barbara’s business struggled, she launched a one-day apartment sale that generated $1M in commissions.
- Spend on What Matters: She gives freely to family, friends, and causes, trusting that money will flow back.
Barbara’s advice is subject to market risks and luck; do you believe the financial Gods’ favor you the same way they favor Barbara? Proceed with caution and at your own risk.
