Mark Cuban is an entrepreneur and business magnate famously known for his investments, such as the NBA’s Dallas Mavericks. According to Forbes, the tycoon’s estimated net worth is around $6.2 billion in combined wealth, which puts him in the ranks of the wealthiest Americans. The billionaire wrote the bestseller How to Win at the Sport of Business and is a frequent guest on the widely watched television program Shark Tank.
Since becoming a billionaire, Cuban has revealed his secrets about how he became wealthy on various platforms, from television interviews to his book. In addition to being one of the wealthiest people in the US, he has amassed huge amounts of knowledge regarding personal finance across his various business ventures. Here are some of his best tips on how to make money, build your net worth to become the richest you can be, and protect your assets.
Getting Rich Is Getting Smart
As a wealthy person and a businessman, Mark Cuban believes that investing time in gaining a deeper knowledge of your interests and passions can be influential in the long run. He made his fortune doing what he loved to do and advised others to do the same. “Whatever your hobbies, interests, passions are, find the one you love the most and get a job in the business that supports it,” he says.
As long as you clearly understand your interests and passions, Cuban argues, you can find success in your career and net worth.
In his blog post “How to Get Rich,” Cuban claims there are no shortcuts to making the billionaires list. He believes there is no specific template to follow when it comes to making money and warns that publicized deals are unlikely to be worthwhile. As he puts it, “If a deal is great, they aren’t going to share it with you.”
Therefore, regardless of the publicity and hype surrounding the latest trends in employment, he advises not to trust shortcuts as a reliable means of making money.
Make Sure You Have Cash on Hand
To become wealthy, you need to have money to begin with, which can be complicated for many people—even those in the middle class. Cuban states on his blog, “The initial step towards becoming rich is having cash readily available. You’re not saving for retirement, but for the moment when you need cash.”
The More You Owe, the More You Stress
In one of his blog posts on Blog Maverick, Cuban discusses the importance of managing your finances wisely. The mogul emphasizes that bills can be your worst enemy and advises against trying to impress others by spending more than you can afford, no matter how rich you are. Even the super-rich, most affluent can lose it all by being careless.
According to the post, “The cheaper you can live, the greater your options,” claiming that opting for a frugal lifestyle rather than a wealthier one can provide you with more significant opportunities and freedom. He believes setting your income requirements too high can limit your options and create unnecessary stress, distracting you from achieving your wealth creation goals.
Rich people don’t become rich overnight. In short, Cuban suggests you strive to live as cheaply as possible to increase your options, reduce financial stress, and save a lot of money.
Save Your Money
Saving money for retirement is crucial, but it’s also essential to have enough money in the present to invest in a business that generates revenue and opens up new opportunities. Cuban’s blog emphasizes the significance of saving money and advises to save as much as possible.
He suggests cutting up credit cards to avoid using them if becoming wealthy is the goal. According to him, exercising discipline is the primary step toward becoming wealthy.
For someone making more money than they spend, rich or poor, Cuban has a strategy to build wealth. According to CNBC, he advises individuals to save enough money to cover their expenses for a year before investing in low-cost mutual funds or the S&P 500 Index. “You also have to be a little bit of a risk taker. Part of the risk is maybe putting money into a low-cost mutual fund.”
However, even if someone has less than a year’s income saved, they can still invest in the stock market. They can use 401(k) retirement accounts or learn to buy and sell stocks independently. Even a modest investment can make a significant difference if it becomes profitable.
Diversify Your Assets Now
Billionaires know you shouldn’t put all your eggs in one basket, especially when investing. During the 1990s and leading up to the 2008 market crash and financial crisis, Cuban and a handful of wealthy businessmen maintained their positions as rich individuals. This is because they diversified their assets, meaning they invested in multiple kinds of products and business ventures to stay very rich.
Effectively Build Wealth
Despite the changes and uncertainty created by financial markets, it’s clear that the richest people are still making money and achieving their dreams. However, for the richest individuals, knowledge of the industry and understanding the nature of the business are crucial steps toward achieving wealth. As Cuban says, “Boom and busts happen to every industry,” but having the discipline to succeed is what matters.
Staying positive and motivated is your most valuable asset. Cuban’s spot-on advice on building billions in wealth involves simple habits with which you can start taking action to reach your goals today. Taking chances and putting in effort are the keys to being rich and successful.
This article was originally produced and syndicated by Financially Well Off.