5 Pieces of Practical Advice From Mark Cuban for Staying Financially Secure
You probably know Mark Cuban from his tenure on 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.
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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.
1. Build a Strong Emergency Fund
Cuban has emphasized the importance of having several months — and ideally more — of living expenses saved to prepare for uncertainty. Why more? Especially during the pandemic, he expressed that everyone needs to be prepared for the unexpected, explaining to Men's Health in 2020, "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."
The idea, ultimately, is that if you have money in the bank, you can weather whatever storms life throws at you.
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2. Live Cheap and Invest in Your Future
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, Americans hundreds of dollars each year on subscriptions they don’t fully use. Cuban would likely advise you to cut out those unnecessary expenses and redirect the money toward future goals.
3. Use Credit Cards Carefully — or Avoid Debt Entirely
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 that 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.
4. Don't Splurge on Windfalls
Tax refund burning a hole in your pocket? Bonus check making your wallet bulge? Cuban has said to 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.
5. 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.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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