20 Genius Things Mark Cuban Says To Do With Your Money

20 Genius Things Mark Cuban Says To Do With Your Money Fashion Model Secret

You may have heard the name of this billionaire, but who is Mark Cuban and how did he make his money? You may know him as one of the sharks on the hit show Shark Tank, but Cuban is more than just a TV host: He's also the owner of the Dallas Mavericks and a successful investor. In fact, the Cuban company was so successful that it made its first million in 1990 after selling its business to CompuServe and earned a $5.9 billion salary after selling its audio streaming service. online at Yahoo in 1999..

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The Cuban knows how to become rich and successful and is not afraid to share his knowledge. Check out Mark Cuban's tips to learn how to plan and think like a billionaire.

1. Be a little risky

Talk to self-made millionaires or billionaires who can preach about the importance of taking risks. Sometimes risk and reward go hand in hand, as Cuban noted in a 2017 interview with Money magazine when discussing the value of investing your savings. Explain that you can save a million dollars, but only if you are disciplined and take risks. Many of those who are achieving higher levels of financial success are not afraid to invest to improve their future, whether it be investing in the market, in business, or in their education.

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2. But only invest up to 10% in risk assets

When investing at risk, limit the amount you invest.

“If you're a real adventurer and you really want to leave Hail Mary, you can take 10% and invest in bitcoin or ethereum, but if you do that, you have to pretend you lost your money. The Cubans told Vanity Fair. "It's like collecting art, like collecting baseball cards, like collecting shoes, something that's worth as much as other people pay for it. I'll limit (investing in risk) to 10%."

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3. Put it in the bank

In an exclusive interview with Young Money, a personal finance education and media company, Cuban shares this general investment advice, then continues: "Idiots tell you to invest in the market because sooner or later they'll tell you why." . trying to sell you something. The stock market is probably the worst investment vehicle."

While some investors believe that the stock market is the ticket to riches, others believe that the market is too risky and volatile. Your actions may win one day, but it only takes one drop to lose them all. Instead of pocketing all your balls, Cuban recommends stashing some cash in a savings account for a rainy day so you're covered if something goes wrong. In his own words: "Buying and holding sucks…Those who put their money into CDs sleep well at night and definitely have more money today than they did yesterday."

4. Save 6 months of income

Try to keep six months of income in that bank account, Cuban told Vanity Fair.

"If at any point you don't like your job, or you get laid off, you have to move, or something goes wrong, you need at least six months of income," he says.

5. Find ways to invest cheaply in the market

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If you want to enter the market, Cuban recommends doing it safely to minimize risk. In his conversation with Money, he suggested investing in cheap mutual funds. These are investments that allow you to combine your holdings with those of other investors, providing a more profitable way to diversify your portfolio. As Cuban says, "once you find a way to invest in the low price market, you can start building your capital."

6. If you don't fully understand the risks of the investment you're considering, don't do anything.

Cuban gave this advice in a blog post titled "The Best Investment Advice You'll Ever Get." While investing can increase your net worth and put you on the path to financial freedom, there's no guarantee that an investment strategy will pay dividends.

Before you invest, make sure you understand the risks and be prepared for the possibility of losing money. When in doubt, or when the investment uncertainty is too great, there's nothing wrong with holding your money until the right opportunity arises.

7. Don't let fear get in your way

Cuban shares this statement in his book How to Win in Business: If I Can, You Can Fear is a natural emotion, but it's also one of the worst enemies of success. If you want to move on, step aside and stop hiding behind your fear: it keeps you in one place and stifles your growth.

If you are new to investing, fear and worry are natural. Instead of falling behind, explore different investment strategies to boost your confidence – when you're ready, start with cheaper and safer investments.

8. Be a smart shopper

There is a certain relationship between a smart buyer and an experienced investor. In one of Mark Cuban's best investment advice blog posts, he explains how money creates transition results. He recommends analyzing how much you spend throughout the year, then suggests taking advantage of cash, amounts and discounts to get better returns. In other words, it is better to buy in bulk.

"Saving 15% of $1,000 on things you think you'll spend money on is a better return than 15% a year on a $1,000 investment because you don't pay taxes," says Cuban.

9. You rarely listen to outside investment advice.

Cubans aren't afraid to set their own pace, especially when it comes to money and investments. In an interview with Forbes, Cuban said he rarely listens to third-party advice about his investments, and he emphasized an important point: Don't trust anyone completely.

This does not mean that you should not seek the advice of a financial advisor. Understanding them is invaluable when you are just starting out and have limited investment knowledge. At the same time, don't give anyone complete control over where your money goes. Learn about the investment details yourself so you can have a say in how to invest your money. If you're just starting out, grab a book to start learning.

10. Go to the cheapest school for freshmen and maybe sophomores.

College can be a great investment in your future and can give you the skills and knowledge you need to improve your financial prospects, but acquiring that knowledge comes at a cost. Cuban offers a more affordable approach: Enroll in a local or community college for the first two years of your degree. Some may support prestigious schools, but Cuban encourages young people to attend schools they can afford.

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"The most important consideration when choosing a college is affordability," he tweeted in May 2019. "Community colleges that offer transferable loans are always smart. There isn't much value added for freshmen or sophomores at the best schools. especially when motivated students can supplement their learning with free online courses from renowned companies.

11. Manage your expenses

Cuban knows discipline and saving: After college, he moved into a house with five roommates, lived on mac and cheese and drove an old car. Instead of investing in expensive things, he invests in himself and his future goals. Likewise, Lean Thinking can encourage you to achieve your goals. When you earn money and save, you have the resources to invest wisely.

Live within your means and spend less to increase your savings. Consider driving an older car, buying used cars, living with your parents longer, or renting a roommate to lower housing costs.

12. Pay off the credit card after 30 days or don't use it at all

Credit cards serve a useful purpose, but they can also lead to debt if not used responsibly, which is why Cuban offers this advice to consumers. This doesn't stop you from using your credit card, but it does encourage you to pay off your debt in full each month so you don't spend money on interest.

"Using a credit card is fine as long as you pay it off at the end of the month," Cuban told Money. "Remember that the 18%, 20% or 30% you pay on your credit card debt will cost you more than you can get anywhere else."

13. If you have credit card or other debt, pay it off before making another investment.

"The best investment you can make is to pay off your credit cards by paying off all of your debt," Cuban told MarketWatch. "If you have a student loan with an interest rate of 7% and pay off the loan, you get 7%, which is your immediate income, which is much safer than raising stocks or trying to cash in on real estate or whatever. ."

14. Cash Trading

Cuban has long preached that money is everything, telling Vanity Fair that cash can save you money in the long run.

“I always tell people, when you're not home, you go to a yoga class and they want to charge you $30 and they're like, 'Look, I've got $20.' You know? You're going to get it," he told Vanity Fair. "Cash trading is a much better way to get your money back."

15. Books are always a good investment.

Although Cuban is an advocate of living cheap and saving as much as possible, he believes that a good book is the only thing that ever has value.

“I love going to bookstores when there are bookstores everywhere and if something catches my eye and I think it might give me an idea, spending $30 on an idea that might help me get my business off the ground: that's great. ”. Cheap," he told Vanity Fair.

According to him, the book that "inspired" Cuba is The Only Investment Guide You'll Ever Need by Andrew Tobias. "I read a few hours a day because it only takes a few things to take you to the next level."

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16. Keep your money to yourself

Cuban doesn't seem to believe in the old adage "share your concerns." In an interview with The Dallas Morning News, he advised potential lottery winners to think twice before lending someone money. His advice applies to anyone facing unexpected financial fortunes.

"Say no to all your friends and family," Cuban said. "You'll ask. Tell them no. If you're around them, you already know who needs help and what they need. Feel free to help a few people, but talk to your accountant before you do anything. And remember: no one needs $1 million for nothing. $100,000 for everything. Anyone who asks is not your friend."

17. Don't move your money recklessly due to market fluctuations.

The coronavirus pandemic has hit markets, but Cuba says now is not the time to panic.

"Remember the market was less than a year ago," he shared on LinkedIn. “No one goes crazy if they grow too fast. There is no reason to go crazy when they fall fast. Remember, I have rule number 1 for investing: if you don't know what to do, don't do anything."

18. Avoid bank loans

Cuban works hard to avoid debt, whether it's credit card debt or bank loans. If you want to start your own business, it is better to do so without relying on bank loans.

"When you take out a loan, you're not the boss anymore," he told Dave Ramsey. “And your client is no longer the boss. Your banker is the boss. And if you have a problem, like other startups, you have to take care of your banker first… You can no longer do anything "necessary to survive".

19. Use your money to save time

“I value my time more than my next dollar,” Cuban told Barbara Corcoran on her 888 Barbara podcast.

That's why he doesn't mind spending money on "time-consuming stuff," which for him means buying a private plane, but for most people it might mean paying more for little perks like cutting vegetables or rent. Cleaning service to spend more time with your family.

"I can speed up the process by paying less," he said. "And that's important, because time is the only commodity you can't own, buy or give back."

20. Refinance debt when interest rates are low

While a recession has many downsides, one of the upsides is low interest rates. In a question and answer session on Twitter, Cuban said that one of the best things to do during a recession is to take advantage of these low interest rates.

"Refinance your student loans and any other debt you have," he says.

For financial advice on money and investments, look for people with a track record. Your chances of getting a one-on-one with Mark Cuban may be slim, but that doesn't mean you can't take advantage of his wisdom. Through her blog, interviews, and Q&A sessions, she has shown that she is more than willing to share her money advice.

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Gabriel Olya contributed to the coverage of this article.

This article originally appeared on GOBankingRates.com: 20 Brilliant Things Mark Cuban Said To Do With Your Money

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