Mark Cuban Didn’t Own a Car That Cost More Than $200 Until He Was 25 — Here’s Why
Reaching billionaire status, or even working toward becoming a millionaire, generally means certain financial sacrifices must be made to grow one’s wealth. Self-made billionaire Mark Cuban is living proof of this as he started his journey to financial freedom by embracing frugality across all aspects of his life.
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One area of frugality the “Shark Tank” star swore by was owning “the worst possible car.” In an interview with Money Magazine, Cuban said he didn’t have a car that cost more than $200 until he was 25.
Not owning an expensive car, as it turns out, was part of Cuban’s strategic plan to build wealth.
Cuban’s ‘Why’ for Owning a Cheap Car
When Cuban was first getting started, he said he read the book “Cashing in on the American Dream: How to Retire at 35” by Paul Terhorst. The premise was that if you found ways to live on $50 a day and be disciplined in the way you saved and spent your money, you could retire.
Cuban has often been quoted as saying that living like a student can help you become rich. He put this advice into practice in his early years, telling Money he had five roommates and often lived off macaroni and cheese meals in addition to owning cheap cars.
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Just how cheap were these cars? Cuban said he drove a 1966 Buick LeSabre and a Fiat X1/9. The Fiat had a hole in the floorboard.
As crazy as it was not to have a car that cost more than $200, it was also Cuban’s decision. In previous interviews, he has said that while he saw lots of “cool cars” he wanted early in his career, he continued to keep driving the old cars instead.
“I was determined to save money. I was determined to be able to retire,” he said, adding that he valued time more than anything else. “I wanted enough money to be able to travel, have fun and party like a rock star, but still live like a student.”
Can You Save $1M? Here’s What Cuban Said
Want to save $1 million? Cuban said getting there requires discipline. You have to be careful not to get into debt and be comfortable with living within your means.
You also need to become a risk taker via investing. Cuban’s recommendation is to put some money you’ve saved up into a low-cost mutual fund, such as an SPX fund.
What if you only make around $30,000 to $40,000 a year? Cuban still recommends inexpensively investing in the market, and saving, as strategies to build your net worth.
“I’m not saying that it’s easy, particularly if you have a family,” Cuban said. “But if you can find that discipline, then you can save.”
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This article originally appeared on GOBankingRates.com: Mark Cuban Didn’t Own a Car That Cost More Than $200 Until He Was 25 — Here’s Why
