Mark Cuban was born in America on July 31, 1958. He is a well-known television celebrity, media personality, and last but not least a billionaire with a net worth of $4.3 billion. According to Forbes, he is rated #177 on the list of 2020. He is the owner of the Dallas Mavericks, an NBA professional basketball club. He is also an investor on the ABC reality show Shark Tank.
Mark Cuban’s businesses are so profitable that he earned his first million dollars after selling one of his companies to CompuServe in 1990. After selling his internet streaming music service to Yahoo in 1999, In return, he earned a $5.9 billion paycheck.
As a result, we may say that Mark understands how to generate money with little talent. He is not afraid to share his knowledge with others. As a result, everyone should focus on the good aspects of his life to achieve success. Money is essential to everyone. Cuban wants everyone to be successful and wealthy. He thoroughly discusses each issue to make money easy for everyone. So, without further hesitation, let’s just get started.
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1. Save money
When someone wants to be wealthy, he knows the significance of saving money, which is one of the key points that Mark Cuban focuses on. You should save every single penny you spend in your life! If you want to spend money on coffee, try water. If you want to have a burger, maybe choose a simple burger that is less costly rather than Hardees or the Big Tasty at McDonalds. If you learn these tactics in your life, you will easily find your way to become on top in the future.
The first step to being wealthy is to have money at hand. You aren’t putting money down for retirement. You are putting money aside for the day when you will need it. You’re a fool if you only buy and hold. This market is a good illustration. People who have a buy-and-hold attitude and do not save money miss out on a lot of offers in the market. People with extra cash on hand have a lot of chances they may take advantage of, at the right time. Cash is important in a man’s life since it may change his fortune. It gives them greater confidence to stand in the company of the world’s richest person.
2. Taking Risk
When we read about billionaires or renowned self-made people from the world, we know they understand the importance of taking risks. When we want to change our lives, we must be willing to take a chance to do it. We might say that risk and profit are intimately connected.
Cuban stated in a Money magazine interview in 2017 when addressing the importance of investing your savings. He emphasized that saving a million dollars is achievable, but only if you are disciplined and willing to take risks. Many people who reach higher degrees of financial success aren’t hesitant to invest for the benefit of their bright future, whether it’s in the stock market, a business, or anything of their choice.
3. Getting Smart
The third rule that plays a vital part in being rich is to become more innovative. The rule is investing time in your favorite business or any other activity that you enjoy and learning everything about it. It makes no difference what others think. You concentrate on your task and give it your best. The essential thing is that enjoying your career and recognize its potential, may be any job you can find. Instead of paying to attend a school, you are being paid to study. It may not be the ideal profession, but there is no such thing as the perfect road to wealth.
After work, you must read about your business or meet with the individuals who run it. Spend time with them and discover everything from where they purchased things. To learn more about business, read business publications. It is not a question of days or months; it is a lengthy process that may take years or decades. However, in the end, this is the best road to success.
4. Live Like a Student
Living as a student has a significant influence since the life of a student is full of learning and the desire to ensure one’s future. As Mark Cuban says, “When you get that first job… it’s cool… I remember looking at cars going AAAH… I want that car. Fortunately, I kept my clunker.”
Mark Cuban places a high value on the idea of becoming wealthy. We all know that, in reality, life as a student wasn’t all that awful. Most people consider their college years to be some of the finest of their lives. Even though delaying purchasing a car does not make Mark Cuban the richest man in the world on the spot. However, it provides him financial assistance, allowing him to invest his money in a business and benefit from it. It would be the first step in the right direction.
Perhaps you can utilize the extra income flow to pay off the rest of that troublesome debt. You can put that money into a simple, low-risk plan that almost guarantees you’ll become a billionaire or more realistically a millionaire, and be able to retire decades before your contemporaries. Following Mark Cuban, you will use your lack of financial commitments as an excuse to launch a couple of world-changing businesses.
5. Do Not Use Credit Cards
We’ve heard Mark Cuban insist on not using credit cards several times in interviews. He argues that credit card interest rates are so high that you’re better off avoiding the temptation altogether.
You’re better off using a debit card when you don’t want to use cash.” – Mark Cuban
Mark also stated that anyone who wishes to use a credit card must pay it off within 30 days. Credit cards are convenient, but they may also lead to debt if they are not used appropriately, which is why Cuban advised customers to avoid them. He doesn’t advise against using a credit card. However, he does recommend paying off bills in full every month to minimize interest charges.
Cuban said in an interview, “Just recognize that the 18%, 20% or 30% you’re paying in credit card debt costs you more than you could earn anywhere else.”
6. Save Six Month Income
“If something goes wrong, you’re gonna need at least six months’ income.” – Mark Cuban
It is one of the essential points that may assist you in difficult situations. If anything awful happens, the six-month savings will help us during our difficult times. This is sound starting advice that may be tweaked to fit your risk tolerance and circumstances.
With the recent COVID19 events, having a solid emergency fund strategy is more essential than ever. COVID19 generates much turmoil in everyone’s life. Demolish every person’s existence. As a result, the individual who has been saving will find it easier to go through that difficult period.
It can also assist individuals who do not want to stay at their current work and wish to leave; this decision will be easier to make if the person saves some money. In addition, Mark Cuban stated that
“If you don’t like your job at some point or you get fired, or you have to move, or something goes wrong, you’re going to need at least six months income,”
7. Invest up to 10% of Savings in High-Risk Investments
“If you’re a true adventurer and you want to throw the Hail Mary, you might take 10% and put it into Bitcoin or Ethereum. But if you do that, you’ve got to pretend you’ve already lost your money.” – Mark Cuban
From Mark Cuban’s arguments, we may conclude that we should put 10% of our entire savings into a business or something else that will profit us. Our society has given us many concepts, such as cryptocurrency, internet investments, and riskier tiny or micro-size stocks. Invest your money in those businesses where you are delighted and know everything about them. However, if you don’t understand the business, don’t invest in, since it could cost you money and wipe out all of your savings.
8. Buy consumables in bulk and on sale
“It’s so hard to make a return on your regular investments. You’re better off buying two years’ worth of toothpaste when it’s at a 50% discount. That’s an immediate return on your money.” – Mark Cuban
At this point, Cuban would want to emphasize that earning money is one of the most challenging things to do; therefore, we must be careful while investing it in goods, even if they are necessities for our everyday lives. Invest that money in the stock market, and you’ll receive an estimated return of 7%. That’s a $350 return in a year on a $5,000 investment. As a result of the long hours spent analyzing a stock, investing in items on sale, such as a two-year quantity of toothpaste at a 50% discount, is preferable. Investing in essential goods and taking advantage of sales is a timeless and straightforward process.
Mark Cuban outlines how cash generates transitional returns in one of his blog articles on the most fantastic investing advice. He recommends calculating how much you spend over a year and then using cash, quantity, and discounts to obtain a greater return on your investment. To put it another way, it’s preferable to buy in quantity.
9. Negotiate using cash
“I tell people all the time. If you’re out, you’re gonna take a yoga class, and they’re gonna charge you $30, and you say, “look, I’ve got $20.” They’re gonna take it.” – Mark Cuban
Companies are frequently paid a fee of 2% to 3% for processing credit card transactions. As a result, many businesses have a policy of giving cash buyers a discount. And, in many cases, that discount is greater than the value of your credit card rewards points.
This is very useful when making large purchases. If you’re purchasing a bed and your credit card only gives you 1% cash back, but the furniture manufacturer will give you 5% off simply for paying cash, you’ve just gotten yourself a free meal.
“Negotiating with cash is a far better way to get a return on your investment.”
10. Read books
Cuban is a book addict, and he encourages everyone to read. According to him, books provide you new ideas that might assist you in making money.
Even though Cuban believes in living on the cheap and conserving as much as possible, he feels that a good book is always worth the money. He is the author of ‘How to win at the Sport of Business, If I Can Do It, You Can Do It.’
“I used to love to walk through bookstores when there were bookstores everywhere, and if there was something that caught my eye, and I thought it could give me one idea, to spend $30 to get one idea that could help propel me, make my businesses better — it was a bargain,” he told Vanity Fair.
One book that got Cuban “all fired up” is “The Only Investment Guide You’ll Ever Need” by Andrew Tobias, he said. “I’ll read hours every day because all it takes is one little thing to propel you to the next level.”
Final takeaway:
There is no ideal route to being wealthy, as Cuban put it. We must wait for the correct time. It may happen fast, or it could take years and years. However, the day will arrive! With commitment and arduous effort, you can transform your life. It is now up to you to decide which rules to follow and to realize your ambition to become rich and someday maybe even ending up on the list of the world’s wealthiest people, or just living the financially free and luxurious life you always dreamt of!
Related: Why You Need Passive Income Streams First Before Living A Luxurious Lifestyle
