Money experts have it all, don’t they? All that financial knowledge right at their fingertips. The fame and fortune of being everyone’s go-to resource for all things money-wise — because they’re so money-wise. It’s easy to assume they’re so above it all, you could never reach their level.
Well, what if the money experts who dominate your TV and social feeds started out on ground level? What if they’re still learning, often through the process of making mistakes — just like you? Barbara Corcoran, real estate mogul and Shark Tank star, is no stranger to acclaim, but she’s also well-acquainted with errors.
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The difference between Corcoran and someone who stays mired in financial pitfalls is that she’s willing to learn from her mistakes. Better yet, she’s down to share where she erred so you can avoid the same missteps.
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One of Corcoran’s original claims to fame is the $66 million sale of her real estate firm, The Corcoran Group, in 2001. You might assume she immediately jumped to make some investments or find other ways to grow her income further. You’d be wrong.
In a podcast interview, Corcoran admitted stashing her cash in her checking account, saying she was scared since she didn’t have her “golden goose laying any eggs anymore.” Her anxiety compelled her to keep everything in one place. Given that the limit on FDIC insurance is only $250,000 per depositor, per bank, per ownership category, a huge chunk of Corcoran’s money wasn’t insured.
By acting too conservatively, Corcoran not only left part of her wealth unprotected but also limited her options to invest and further grow her fortune. While the odds of you coming into $66 million in one sale aren’t as likely as they were for Corcoran, you should still avoid stashing your entire life’s savings in one checking account. Instead, consider high-yield savings accounts, CDs, or exploring the stock market to turn your financial seed into a flourishing garden of green. And if you’re not sure where it is best to put your money, consider meeting with a financial advisor to get some expert input.
As someone who made her name in real estate, Corcoran might seem like she’d have all the smooth moves down when it came to her own home purchases. However, she’s fallen to the same pitfalls that plague many homebuyers, including not having the closing costs ready when buying a home.
