The lesson of getting rich from self-made billionaire Mark Cuban

DNHN - Mark Cuban has summarized his valuable lessons from many years of experience into 5 financial management tips for young people as follows:

After graduating from Indiana University, Mark Cuban returned to his hometown of Pittsburgh and went to work at Mellon Bank. For many people, it's a dream job, but for Mark Cuban, he doesn't want to stop there. “I wanted to be more of an entrepreneur, so I started being proactive,” he said.

He moved to work for a computer software company in Texas but was fired because he arbitrarily ended the contract without the CEO's permission and started having a startup idea. MicroSolutions, founded by Mark Cuban and acquired by CompuServe for $6 million in 1990, made Mark Cuban a millionaire at the age of 32.

Not stopping there, at the age of 40, he continued to co-found another company, Audionet (later renamed Broadcast.com). After a few months of being listed on the stock exchange, the company's stock has reached $200. In 1996, Broadcast.com was acquired by Yahoo for $5.6 billion, and he was officially a billionaire.

Mark Cuban has summarized his valuable lessons from many years of experience into 5 financial management tips for young people as follows:

Don't make yourself a "debtor"

Mark Cuban discourages people from accumulating credit. In his eyes, the worst investment is credit card interest. This is the lesson Cuban learned when the interest paid on his credit cards at the age of 20 skyrocketed. If you intend to use a credit card, make sure to pay it on time, he said.

Don't buy things you can't afford

This is the second financial management secret Mark Cuban shares. Live like a student, don't overspend, spend money only on necessities. Don't spend money on luxury, expensive, expensive brands just to impress others. Honor is of no use if we ourselves are empty.

Invest when you earn enough to spend in 1 year

Before the pandemic, Cuban often advised to save enough for living expenses for 6 months. For now, however, he recommends having enough reserves for a year. You should invest in diversifying your investment portfolio, prioritizing investment options with long-term profits.

"Once you've covered enough expenses for a year, you can invest in something profitable, like a low-cost mutual fund or index fund," he says.

Learn to bargain in spending

Mark Cuban loved to bargain when he was young. According to him, any product has the ability to negotiate and pay the price.

Of course, not everywhere we can bargain or bid, if you are shopping in the mall, it is very difficult for you to do this. However, if you buy goods at roadside markets, grocery stores, and street vendors, you can absolutely bargain for affordable prices.

Buy wholesale, buy discount

Mark Cuban has a habit of buying at wholesale prices through Amazon or other similar resellers.

“If you determine that you will have to spend money on these things, then when you save 20%, 30%, 40% of the price of the item, it is the best investment”, Mark Cuban said.

It's easier to be a "smart shopper" than investing in the stock market, he said. Therefore, if you only buy goods at wholesale prices for 1 year, you will save a considerable amount of money.

PV