'I don't believe in saving money': Barbara Corcoran built a fortune by spending — but can Canadians afford to follow her lead?

For context: Corcoran is worth around US$100 million — approximately C$138 million at current exchange rates (2). She built a real estate empire, the Corcoran Group, and sold it in 2001 for US$66 million (approximately C$91 million) (3).

When the sale went through, her first instinct wasn't to invest the proceeds. "What can I spend it on?" she recalled thinking. She gave half of it away — to friends, family, charities and investment funds (4).

Her philosophy was passed down from her mother, who raised 10 children on a tight budget: "Money is meant to be spent." In turn, Corcoran says she "never got rich by saving," but by "allowing money to come and go (4)." Her personal belief: "When you spend money, it comes back to you."

Her story is inspiring.

However, it's also not a financial blueprint most Canadians can realistically follow — here’s why.

Where most Canadians actually stand

Corcoran's relationship with money reflects a world that's far out of reach for ordinary Canadian households. The Financial Consumer Agency of Canada (FCAC), a federal body that oversees consumer financial protection, reports roughly 2 in 5 Canadians cannot cover three months of expenses from savings alone (5).

A 2025 report from Financial Wellness Lab at Western University found that over 60% of respondents had no emergency fund at all, and a $1,000 emergency would send them straight into debt (6).

Meanwhile, Statistics Canada data shows that the national household savings rate declined to approximately 6.1% in 2024 (7) — a figure that, while higher than the historical lows of around -0.10% in 2018, still reflects how little room many households have to build a financial cushion after covering housing, groceries and transportation (8).

The Bank of Canada's Financial System Review 2024 reinforced these statistics, noting that lower-income Canadians are particularly vulnerable when it comes to covering repayment of interest and principal on outstanding debt, and the high cost of living continues to crowd out any ability to save (9).

It's unlikely that these households believe money circulates back to them in the way Corcoran describes. Instead, it's far more likely that they simply have nothing left over.

Does Corcoran's strategy actually work?

Can Corcoran's "don't save" strategy work? Sometimes — but only in a very specific set of circumstances.

Her argument is that spending money on people, opportunities and reinvestment creates more value than hoarding it. The money she gave away after the sale of her company presumably generated goodwill, created relationships and opened doors to new business deals.

That's a version of an idea that is somewhat legitimate. Economists distinguish between consumption spending — buying things that don't generate returns but meet short-term needs — and investment spending, which is where Corcoran's career is largely built (10). Reinvesting in a business, hiring good people or funding new ventures can generate compounding returns in ways that a savings account never will.

The important distinction is that Corcoran has always been putting money into high-upside bets, not simply spending freely because she feels like it. She had income, assets and a very high tolerance for risk — a safety net that most Canadians, particularly younger ones, don't have (11).