5 Best Money Lessons From Barbara Corcoran
When it comes to personal finance success stories, there is no one like Barbara Corcoran . You might know her from her starring role on “ Shark Tank ,” but Corcoran wasn’t just handed the job. From her humble working class beginnings to now having an estimated worth around $100 million, she has seen her shares of ups and downs, successes and failures.
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As far as taking money lessons from highly regarded business people, Corcoran is unique. She can speak on issues that others don’t necessarily address, namely to not let one thing define you. Corcoran herself was once labeled “dumb” as a child, which ignited the flame in her to pave her own path using non-traditional methods.
Here are a handful of the best money lessons shared by Corcoran that you can take with you on your path to achieving any financial goal you set .
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Do a Variety of Jobs
At age 23, Corcoran was on to her 23rd job as a diner waitress. It was there that she struck a bit of luck, taking a $1,000 loan and spinning that into one of the most rags-to-riches successful real estate ventures.
While being interviewed on “The Ellen DeGeneres Show,” Corcoran noted that when the typical customer enters a department store, they have no idea what they want until they try several selections on for themselves. She relates this back to the usual way of thinking about resume building and holding onto a job for a small handful of years.
“The idea is to try on as many jobs as you can, so you can find out who you are,” she said.
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Budget for ‘Mad Money’
Addressing a young audience member’s question on budgeting during her “Ellen” guest spot, Corcoran broke it down into two categories: money going out is “expenses,” and money coming in is “income.” However, there was another tip Corcoran shared about “mad money.”
“There’s one thing more important than any budget,” she said, “and that is the money you’ve got to give to yourself.” She went on to explain that this concept of “mad money” — which she got from her mother — is a focus to do “something for yourself that is going to make you feel like a million bucks, even if it costs $10.”
Don’t Save Money — Spend It
This goes against the grain of what many typically think — when you get money, put it in a savings account so you can get something you really want later or in case of a rainy day fund. Corcoran has a different take on this notion: instead of saving, spend the money.
“I’m just not a believer in saving money ,” Corcoran shared with CNBC. “I’ve never saved a dime my whole life.”
Corcoran says that when you have money, the goal is not to hoard it to reach new heights of wealth. Rather, she views money as a thing to be shared to enhance your life and the lives of those around you whom you care about.
“When I sold my business for $66 million, I immediately thought of what I could spend it on,” she said. “I gave half of it away to family, friends, education funds, charities, because I really believe if you spend, money comes back to you.”
Rethink Failure
Corcoran had a mother who raised 10 children on what she described as “a shoestring budget” and said that “she didn’t have much to spend.” Corcoran herself shared that her high school grades consisted of straight D’s.
Growing up without money or academic success might sound like failure, but Corcoran flipped that notion in her famous TEDx talk at Barnard College by comparing her most successful employees to the most unsuccessful ones.
“The only difference between the people that were hugely successful and those that were not [was] that they took less time feeling sorry for themselves,” Corcoran told her audience. “Because if you can take the hit and keep coming back, you always hit the finish line.”
Corporations Aren’t People — People Are People
When it comes to being a good boss or leader, Corcoran has expressed that love and respect win out every single time over anything else.
“The minute you start thinking people work for you, you’re not a good boss,” Corcoran described in an Inc. interview. “If you focus on building others’ success, they reward you with loyalty and extra work — and they drag you up the ladder with them.”
Corcoran said that the best thing you can do for anyone is to love them, including yourself. And when it comes to yourself, “get out of your own way.”
“Your biggest enemy in business is not your competitor,” Corcoran shared. “It’s the negative tapes you have in your head from some other era, some injury, some insecurity. It took me… probably 20 years to replace those negative tapes. It’s key! People get held back by themselves.”
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on Single Sparkle : 5 Best Money Lessons From Barbara Corcoran
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