Mark Cuban’s Top 8 Tips That Will Save You From Financial Disaster
You probably know Mark Cuban from the business reality show “Shark Tank,” but the billionaire made his big bucks far before the ABC hit ever aired. From his humble beginnings selling garbage bags door-to-door to his massive success as a major investor, his journey has been filled with highs and lows. And it’s safe to say he’s learned a few things.
Lucky for us, he’s been pretty forthcoming with what has (and hasn’t) worked for him — and we can all learn a thing or two by studying his moves.
Here are Mark Cuban’s top eight tips that’ll save you from financial disaster.
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Beef Up Your Emergency Fund
In 2017, Cuban told Vanity Fair that you should have “at least six months income” saved up. But times change and so does advice. In a 2020 interview with Men’s Health, Cuban upped the ante: “Once you’re able to save, I used to say six months, now I want you to have a year of expenses saved up because there’s so much uncertainty with COVID.”
Why the increase? Cuban thinks everyone needs to be prepared for the unexpected. If you have money in the bank, you can weather whatever storms life throws at you.
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Invest In Your Future, Not Your Present
Cuban’s success didn’t come from splurging on luxuries. His advice? Live as cheaply as possible. You don’t need fancy lunches, a luxe car or a spendy apartment. Keep those living costs low and invest in yourself instead.
Look for big-ticket items you can reduce and comb through your entire budget for potential savings. For instance, did you know the average American spends $348 per year on unused subscriptions? Cuban would probably advise you to cut out those unnecessary expenses and redirect that money towards your future goals.
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Use Credit Cards Wisely — or Not at All
Unsurprisingly, Cuban isn’t a fan of credit card debt. His advice is simple: if you’re going to use a credit card, only spend what you can pay back immediately. The thought behind this is: High interest rates add up and are a recipe for debt.
If you must use credit cards, treat them like cash. Pay off every purchase right after it posts — that way you can have good credit without the debt.
Consider Community College
Before you ball out on an ivy league education, Cuban thinks you should reconsider. A good way to save money? Go to community college for your first year or two of college. Why? The first couple of years of college are often dominated by prerequisite courses and general education requirements. These classes are typically similar across institutions but are much cheaper at a community college.
By starting at a community college and then transferring to a four-year university, you could save a significant amount on your overall education costs while still earning the same degree. Win-win.
Try Negotiating With Cash
In a world of digital payments, Cuban thinks we need to do more with good old-fashioned cash. He believes that using cash creates natural negotiating opportunities, especially when paying for services.
Cuban’s reasoning? If you show up with cash, you create a binary choice for the service provider: accept the cash you’re offering or get nothing. While this technique should be used thoughtfully, especially with small business owners, it could lead to some surprising discounts.
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Invest in Books
Cuban is all about learning and he sees books as an excellent investment. Reading, whether fiction or non-fiction, makes you a more well-rounded, savvy and empathetic person.
Plus, in business and investing, the more you read, the better equipped you’ll be to think through new challenges. So next time you’re considering a purchase, maybe grab a book instead.
Save Strategically
Cuban thinks about savings in different “buckets.” There’s retirement savings, emergency savings and then there’s saving for, well, whatever you might need cash for. For these non-specific savings, Cuban suggests using short-term savings tools that offer easy access when needed.
Look into short-term CDs, high-yield savings accounts and other vehicles that allow you to earn some interest without locking your money away or complicating your taxes.
Don’t Splurge on Windfalls
Tax refund burning a hole in your pocket? Bonus check making your wallet bulge? Cuban says: pump the brakes. Instead of going on a shopping spree, use that cash to turbocharge your financial goals. Pay down debt, beef up your savings or invest in your future. Your future self will thank you.
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Consistency Is Key
Cuban’s money mantra isn’t rocket science. Live below your means, save like you mean it and always be learning. Will it make you a billionaire overnight? Probably not. But it might just help you build a financial foundation that can weather any storm.
Remember, this is the guy who turned a garbage bag sales gig into a billion-dollar empire. If he can do that, imagine what you could do with these tips in your back pocket. So why not give ’em a shot? Your bank account might just do a happy dance.
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