6 Things Mark Cuban Says You Should Do With Your Money
Mark Cuban, billionaire investor, owner of the Dallas Mavericks and mainstay of the hit show, "Shark Tank," is known for his business savvy, work ethic and penchant for turning fledgling startups into multimillion dollar ventures.
Before becoming a self-made billionaire, however, Cuban worked a series of odd jobs as a student at the University of Indiana, including giving dance lessons and hosting disco dance parties. After graduating, Cuban transitioned into a sales job at a Dallas software company before getting fired.
Seeing an opportunity to make a huge deal, Cuban pursued it, even though the CEO told him not to. "I thought when I showed up with a $15,000 check, he'd be cool with it," Cuban told Forbes. Instead, the CEO fired him on the spot for insubordination.
Cuban told Forbes that this unpleasant encounter served as the catalyst for his first major self-driven business endeavor, MicroSolutions, which he sold in 1990 for $6 million. His next venture, Broadcast.com, made him a billionaire after selling to Yahoo in 1999 for $5.7 billion in stocks. With Mark Cuban's net worth now estimated at $3 billion by Forbes, he has remained an icon of entrepreneurship and financial success ever since.
This self-made business mogul also has quite a bit to say about fiscal responsibility and money management. Cuban is known for being outspoken and often shares his thoughts on personal finance. With a strong track record of self-driven financial success, it's certainly advice worth considering. Here is money advice from Mark Cuban that you can put into action today.
Mark Cuban's Top Money Management Tips for 2015
1. Live cheaply so you can use resources to pursue opportunities. Before his billionaire days, Cuban spent his early adulthood living on the cheap -- crashing on the couch (or floor) with five roommates in Dallas and splitting the $750 rent six ways. In his book, "How to Win at the Sport of Business," Cuban wrote:
Cuban is a reminder that living within, and even below your means when possible, is less about sacrifice and more about opportunity. Find ways to cut expenses, both luxuries and the necessities, to reduce your total cost of living and free up your resources -- time, energy and money -- for the pursuit of greater goals.
"It doesn't matter how you live. It doesn't matter what car you drive. It doesn't matter what kind of clothes you wear. The more you stress over bills, the more difficult it is to focus on your goals. The cheaper you can live, the greater your options."
2. Prioritize paying off debt for a guaranteed return. In a 2014 interview with Business Insider, Cuban revealed what he wished he'd known about saving money in his 20s:
Cuban not only emphasizes the importance of paying off of debt and using credit responsibly, he also warns against overzealous investing. Getting loan and credit card balances down to zero is a straightforward strategy for increased wealth that, as Cuban notes, requires no investment risk for a great return.
"That credit cards are the worst investment that you can make. That the money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market. I thought I would be a stock market genius. Until I wasn't. I should have paid off my cards every 30 days."
3. Use the job you have now to get the job you want in the future. Cuban's journey -- from his first job selling garbage bags, to teaching disco, to getting fired, to founding a business and becoming a billionaire -- is a reminder of the power of the "hustle" and the importance of constant growth. On his blog, Cuban quoted an interview in which he said:
Every job is an opportunity to develop a new skill set and learn about a new industry, both of which can be leveraged for future career success while getting paid in the present. Reap the benefits of diverse work experience by staying open to any and all job opportunities – engaging in your career, income and personal growth throughout.
"I worked jobs I didn't like. I worked jobs I loved, but had no chance of being a career. I worked jobs that barely paid the rent ... I knew I would end up owning my own business someday, so I figured my challenge was to learn as much as anyone about all businesses. I believed that every job I took was really me getting paid to learn about a new industry."
4. Stick to what you know when investing. Cuban is notoriously skeptical of traditional financial advice and investment vehicles. "I create offbeat advice; I don't follow it," Cuban said in an interview with Forbes. "I rarely take third-party advice on my investments."
Instead, he encourages saving and puts money into ventures he knows well -- benefiting from the "information advantage." While seeking advice from financial professionals can be helpful, be sure to build an understanding of the accounts and investment vehicles holding your assets to ensure they serve your best interests. Handing complete financial control over to anyone and agreeing to a strategy with blind trust can result in big fees at best, and huge losses at worst.
5. Cultivate wealth for yourself -- and others. It's unsurprising that as a man of means, Cuban is an advocate for cultivating wealth. But his position is not just about what wealth affords him personally, but the power it gives him to help others. In a 2011 blog post titled "The Most Patriotic Thing You Can Do," Cuban wrote:
Building wealth enables meaningful giving as much as meaningful living. When you have wealth, you're better positioned to make an impact. Foster prosperity through the pursuit of increased income endeavors, investment growth strategies and financial education. In cultivating your own monetary success, don't forget to give back to others.
"Being rich is a good thing. Not just in the obvious sense of benefiting you and your family, but in the broader sense. Profits are not a zero sum game. The more you make, the more of a financial impact you can have."
6. Use money as a tool to meet your goals. When asked if money can buy happiness Cuban replied, "Absolutely not," reports Entrepreneur magazine. He continued:
These days Cuban can basically buy whatever he wants, whenever he wants -- but his happiness began long before by setting goals and accomplishing dreams, like being the first in his immediate family to graduate college. Why else would a man worth billions continue working?
"To me, success isn't defined by your wallet. It's defined by waking up with a smile on your face, knowing it's going to be a great day. But, sure, money can make your life a whole lot easier."
Don't count on an arbitrary financial threshold to hold the key to happiness. Money should be what helps you reach the goal, not the goal itself. Instead, work toward goals and dreams with concrete actions you can implement immediately. Acknowledge and celebrate your progress toward future prosperity, and find happiness in each small step toward success.
This story originally appeared on GOBankingRates.com.