Barbara Corcoran’s No-Nonsense Guide to Saving Yourself From Financial Disaster
There are countless personal finance gurus out there, but few speak with the blunt, pull-no-punches honesty of Barbara Corcoran. The real estate mogul and investor, who famously built a billion-dollar business from a $1,000 loan, doesn’t peddle conventional wisdom. Instead, her advice focuses on bold action, informed risk, and eliminating the financial habits that quietly drain your wealth.
Corcoran’s perspective is particularly timely in an economy where high costs and fluctuating markets leave many feeling stuck. We’ve broken down her top eight, often unconventional, tips to help you take control and avoid financial disaster.
1. Obliterate High-Interest Debt Immediately
Before you dream of investing, you need to deal with the debt that’s actively “eating you alive,” as Corcoran puts it. Her number one target is high-interest credit card debt. This isn’t just theory; the average annual percentage rate (APR) on credit card accounts accruing interest has recently hovered around 22% to over 25%. That kind of interest can make a small balance balloon out of control. Her tip is simple: Make a list of all your debts and aggressively pay off the highest-interest cards first to stop the bleeding.
2. Stop the “Small Leaks” in Your Budget
Corcoran warns against ignoring the “little things” like subscriptions, food deliveries, and constant Amazon orders. These expenses, which can seem insignificant individually, add up to an astonishing amount. Studies suggest the average American is spending around $273 per month on subscriptions alone, and an additional $1,850 per year on food delivery. Taking the time to audit these automatic payments can free up significant capital to put toward debt or investment.
3. Invest, Don’t Just Save
This is perhaps Corcoran’s most provocative piece of advice: she famously claims to have “never saved a dime” in her life. Rather than letting money sit idly in a low-interest savings account, she believes in immediately investing it into ventures or assets that have the potential for growth. For her, that meant investing in her business; for the average person, it means seeking growth opportunities that compound wealth over time instead of just letting cash lose value to inflation.
4. Get Your Chip in the Real Estate Game Now
Corcoran made her fortune in real estate, and she advises everyone to get into the housing market as soon as possible. Her rule: Don’t wait for rates to drop, or for the “perfect time.” She argues that waiting on lower rates will only lead to a rush of buyers, driving prices up significantly. This proactive stance is supported by recent data showing that U.S. house prices have continued to rise nationally, up 2.2 percent year over year in the third quarter of 2025, with experts predicting continued growth.
5. Don’t Confuse Refinancing With Reducing Debt
One of the most common mistakes people make is viewing a refinance as a financial win. Corcoran stresses that refinancing a loan, whether it’s a mortgage or student debt, merely restructures the debt. It changes the interest rate or the term, but unless you aggressively pay down the principal, your total liability remains unchanged. The focus must always be on the total amount you owe.
6. Be the Highest Bidder on Quality Assets
When it comes to buying property or starting a business, Corcoran is willing to “overspend.” She advocates for being the highest bidder on any property or asset that you know is genuinely good. This isn’t about reckless spending; it’s about recognizing high-growth potential. Paying a premium for a quality asset ensures you secure the best opportunity, and you will eventually make the money back.
7. Act Now, Don’t Wait for Perfection
The “perfect time” to start a business, buy a home, or invest rarely, if ever, arrives. The fear of an imperfect market or an incomplete plan is a major roadblock to wealth creation. Corcoran’s advice is to do your due diligence and then simply take action. Calculated, informed risk-taking is necessary to achieve big financial wins.
8. Cut the Frivolous Spending
Even as a multi-millionaire, Corcoran maintains a level of frugality. She openly shares that she refuses to waste money on certain expensive items, like thousands of dollars for designer bags or high-end jewelry, preferring inexpensive, durable options instead. Her lesson is that practical spending is key: every dollar saved on a luxury item is a dollar that can be invested to grow your future security.
