Mentioning Mark Cuban, many people know him as the boss of the NBA team.
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Editor’s note: Referring to Mark Cuban, many people know him as the owner of the NBA team. In addition, he is one of the billionaires and one of the most well-known investors in the United States. In 2019, Forbes ranked 478th in the global billionaire list, with a wealth of $4.1 billion. Today we will share some of his financial and investment advice and hope to help you. The article is translated from Medium, by Blake Lazur, originally titled Mark Cuban’s 9 Steps for Efficiently Building Wealth.
We don’t always seem to have enough money and time. If we have more money, there will be more time. It’s safe to say that spending money in the company’s time does not make most of us rich – unless you are a CEO.
You must find different ways to accumulate the wealth you have been seeking, not just the trading of time and money.
Fortunately, you can learn how to make your bank account grow to billionaires like Mark Cuban.
Let’s get started.
1. Live like a student
This is very simple. You must pretend that you have no money, no cars, no watches, no high fashion, and so on. Don’t waste money on material.
Most people fall into materialism just to impress people they don’t like. Don’t be too rich before you really have money.
Save the money on the old iPhone, used cars, clothes, shoes, and you will see a significant drop in spending.
2. Use less credit cards
We all see that consumer debt has seen a second round of growth due to easy access to credit. You should only use your credit card to build your credit score, not to expand your purchasing power. We all need a high score to buy a house and other things, and to minimize the purchase just to maintain a high score.
Buy only with cash or debit cards. If you have no money to buy, don’t buy it.
3. Save 6 months of income
There is aAnti-emergency “blankets” are very important. At some point, you may be laid off, fired, have to move, pay for medical expenses, and so on. Having a deposit that can pay for a few months can greatly reduce your stress during difficult times.
4. Investing in SPX Mutual Funds
Put your savings into a low-cost S&P 500 index fund and start increasing your money at low risk. Through some research, you will be able to invest in the stock market and accumulate your funds for a long time.
It is important to invest from a young age. Most Americans did not start saving for retirement until they were in their 40s. From the age of 23 to 65, you invest 10% of your salary every year, get a 10% return every year, and you will get $3 million when you retire. (starting salary of 40,000 US dollars, an annual increase of 3%.) (Note: Standard & Poor’s 500 Index (SPX), English abbreviated as S&P 500 Index, is a stock index of 500 listed companies in the United States.)
5. Invest in 10% of high-risk investments
He recommends high-risk investments such as Bitcoin and Ethereum. If you can buy when the stock price is low and then another bubble, then you may be lucky to get a high return. (Note: Ethereum is an open source public blockchain platform with smart contract functionality.)
But he warned that you must consider that due to the volatility of these investments, this 10% has been lost. So only 10% is worth it.
6. Buying consumables in bulk
Everyone needs toothpaste, shampoo, conditioner, cleaning products, paper plates, etc. every month. When you see these items at a discount, buy them in bulk. Anyway, you will eventually buy it, so save some money when they discount.
Assuming the price of toothpaste is $5, half price is for sale. Buying a year’s toothpaste costs $30 instead of the full price of $60. Now, save $30 on your consumables. Needless to say, the price of the product will increase every few months. That is a big deposit.
7. Counter-offer when using cash
It depends on where you shop. This system is not suitable for grocery stores, supermarkets, etc. Good places for bargaining should be roadside markets, flea markets, yoga classes, food vendors, and more. This also applies to services such as mowing, covering, snow removal, painting, etc.
Try it, they can only say no.
8. Reading
Learn from someone else’s experience is a great way to find ideas. Whether you’re running a business, spending $15 on a marketing book to promote your ad, or $20 to buy a cookbook for your YouTube channel. Your profits will be bigBig than the cost of this book.
If you don’t have a business or sideline idea, reading more books may help you find one.
9. “Work well.”
This is very simple. Be kind to everyone. The better you are to others, the more empathy you have, the more likely they are to help you, maybe they will help you run the business, invest in you, become friends, and so on. You should always give people goodwill and tolerance, and show your concern so that you will get more rewards.
The ending of the mark is: “In life, what you can control is your hard work… work hard.”
When a billionaire tells you how to make more money, you should generally listen to it. I have implemented most of these steps in my life and have seen the rewards.
I hope you are the same! Thanks for reading.
Translator: Yoyo_J