4 Ways To Protect Your Wealth Like Mark Cuban
Mark Cuban has been determined to make his wealth last even since his early days as an entrepreneur. He became a millionaire at age 32 when he sold his first company, MicroSolutions, for $6 million -- leaving him with approximately $2 million after taxes -- in 1990. Instead of becoming a stereotype and spending his newfound fortune without abandon, he practiced serious restraint.
The discipline Cuban used after earning his wealth can apply to anyone, but it's far from the only money lesson the average person can take away from the billionaire investor. Keep reading to learn four ways he protected his fortune, as they offer valuable insight that could benefit your financial situation.
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1. Investing Like a 60-Year-Old
When he received his $2 million payout, Cuban told social media personality Jules Terpak in a YouTube interview that he called up his broker and told him to invest his money as if he were a 60-year-old. Despite being in his early 30s, Cuban said he decided to take this investment approach because he wanted to live off the money for a long time.
2. Living Like a Student
For many people, having $2 million land in their bank account would immediately inspire them to adopt a rockstar lifestyle -- but not Cuban. In the interview with Terpak, he said despite having $2 million in the bank, he decided to keep living like a student.
However, he did indulge in at least one lavish expense. During an interview on the "Club Shay Shay" podcast, he revealed he purchased two American Airlines lifetime passes, allowing him and a companion to fly first class anywhere in the world for $125,000.
3. Owning a Cheap Car
Instead of running to the nearest car dealership and buying a sports car with his newfound fortune, Cuban told Terpak he continued to own cheap cars after becoming a millionaire.
This aligns with his previous behavior, as he revealed in a Money interview that he didn't own a car that cost more than $200 until he was 25.
4. Buying the Worst House in the Best Neighborhood
Upon becoming a millionaire, Cuban did buy a house. However, he told Terpak it was the worst house in the best neighborhood, which is long considered a sound financial decision.
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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