Although there is no magic trick or series of steps to follow to become a millionaire, there are many people who have become benchmarks for the fortune they have accumulated. Thus, they are usually individuals whose advice is listened to and taken.
From young people who have managed to be millionaires to successful businessmen who are among the richest in the world, like Warren Buffett, there are many cases of people who in one way or another share the golden rules to earn a lot of money until they accumulate a fortune.
Mark Cuban, an American businessman and investor, owner of the NBA’s Dallas Mavericks and with stakes in dozens of companies, is one of them. His fortune amounts to 4,500 million dollars, according to Forbes.
These are some keys of the billionaire Mark Cuban that can help you to be rich in the future, earning more money little by little, according to his statements in an interview with Vanity Fair and other events:
Live Like A Student
“Wealth is relative, so there are certain things you have to do to put yourself in the best position to be rich,” Mark Cuban begins.
“The first thing you have to do is live like a student ,” he explains, referring to fleeing the temptations of spending more money as soon as you start earning more than before.
“When you get that first job, it’s really cool. I remember looking at the cars and thinking, ‘I want this car.’ Fortunately, I kept my scrap [car],” recalls the now billionaire.
The Importance Of Learning
The ability to acquire new knowledge throughout life has been pointed out by many experts as a key skill in the labor market. Mark Cuban has also highlighted on several occasions, both the importance of learning new things and learning from mistakes.
“It’s not about money or connections, but the willingness to work and learn more than anyone else when it comes to your business. And if it fails, you learn from what happened and do a better job next time,” he said.
“We have to teach our children how to learn, because that will be the greatest skill in the future,” Cuban said on another occasion, during a question-and-answer session at the US George W. Bush Center.
He has acknowledged applying this maxim throughout his successful career, in an interview by Men’s Health.
“I recognized that learning was really a skill, and by continuing to learn, to this day, I can compete and keep up and get ahead of most people. The reality is that most people don’t spend time keeping up. up to date and learn. That has always given me a competitive advantage,” he explains.
Don’t Use Credit Cards
The credit card does not have to be a problem in itself, but the use that is given to it is.
For some people, having a credit card can end up spending more than you have and should, and ultimately accumulating debt.
Mark Cuban went through it too (“I remember collectors calling me every 2 minutes”), so now he says ” you shouldn’t use credit cards .” He uses cash, and when you need an alternative, “it’s better to use a debit card,” the businessman recommends.
Save At Least The Equivalent Of 6 Months Of Income…
“Life takes many turns” is a typical phrase and a topic, but it does not stop being valid in many situations. No matter how well you’re doing, you have to prepare for what may come, whether it’s an economic crisis, a pandemic, an unexpected layoff, or a sudden need for more income due to a change in life.
“If you don’t like your job at some point or you get laid off or you have to move or something goes wrong… you’re going to need at least 6 months of income,” recommends Cuban.
… and invest that money
Once you’ve managed to save enough money, Mark Cuban recommends investing it “in the cheapest S&P 500 (SPX) index fund” you can find.
An S&P 500 fund is an investment vehicle that invests in the 500 stocks that make up the S&P 500 index, in market-capitalization-weighted proportions, and has also been recommended by other millionaires, such as Warren Buffett.
As reported by Medium, in 2020 The Balance, a top 10 financial property, noted these as the cheapest S&P 500 index funds to consider:
- Fidelity 500 Index Fund
- Schwab S&P 500 Index Fund
- State Street S&P 500 Index Fund
- Vanguard 500 Index Fund Stocks for Investors
- T. Rowe Price Equity Index 500 Fund
- USAA S&P 500 Index Fund Member Stocks
For the more “adventurous” people who aren’t afraid to take more risks, Cuban goes one step further: “You could take 10 percent and put it in bitcoin or ethereum. But if you do that, you have to pretend you’ve already lost your money.” warns.
“It’s like collecting art,” he compares: “Something is worth what someone else will pay for it.”
Doing Nothing Can Be A Smart Move
Mark Cuban has also recommended caution in some respects, such as advising that investments in bitcoin or Ethereum be limited to 10%. Another millionaire known for avoiding unnecessary and excessive risks is Warren Buffett. In his own words: ” Rule number 1: never lose money. Rule number 2: never forget rule number 1 “, collects Inc.
“If you don’t fully understand the risks of an investment you’re contemplating, it’s okay to do nothing,” Cuban said in 2010. “In times of great uncertainty, doing nothing is a valid investment strategy and, in my opinion, , preferable. Just put your money in the bank,” he adds.
An easy way to save money and spend less is to buy products that are on sale. promotions or offers, or buy them in bulk so that the price is lower.
Mark Cuban gives the humble and simple example of toothpaste: you are going to use it every day, several times a day, throughout your life. So if you see a sale or discount on toothpaste, buy for 2 years. “That’s an immediate return on your money,” he says.
“Any of your reusables, any of your must-have consumables, when they’re on a hot sale on Amazon, buy them because chances are their prices will go up, [and] that’s real savings you can put in your pocket.”, he points out.
Trade With Cash
“Deal in cash, I tell people all the time. If you’re out, you’re going to take a yoga class and they want to charge you 30 bucks say, ‘Look, I’m 20.’ You know what? They’ll take it. How to become a millionaire according to Warren Buffett, one of the 10 richest people in the world, explains in an interview with Vanity Fair.
In addition, operating more with cash instead of with a card (especially if it is a credit card) can help you save more easily each week or month.
Read
There are many millionaires and successful entrepreneurs who read frequently, from economics books to novels, biographies, and newspapers: Bill Gates, Mark Zuckerberg, Oprah Winfrey, Warren Buffett, and Richard Branson, among others.
Mark Cuban has also declared his love of books: “I loved wandering through bookstores when there were bookstores everywhere. If there was something that caught my eye and I thought it might give me an idea,” spending $30 on a book “for get an idea that could help boost me, improve my business…, it was a bargain,” he says.
“I would read for hours every day, because all it takes is one little thing to propel you to the next level,” says Cuban.
Be Nice
Knowing how to surround yourself with the right company and treating it with kindness and education is also a basic element in business and life. Contrary to what one might think, it is not about surrounding yourself with “sharks” to grow at all costs.
That’s the way Warren Buffett thinks, and so does Mark Cuban, who says that “kindness works.”
“When you are kind to the people around you, when you care, when you are empathetic, you will always get more results. Running a company is not easy, it is difficult, but the only thing you can control in life is your effort, work hard”, concludes the millionaire.
