Money Tips From Mark Cuban
Have you tried some of these?
TV personality and billionaire Mark Cuban has just given some money tips that Americans should consider following if they want to “level up” their bank accounts.
According to Yahoo, here are some money tips Cuban recommends:
Only Invest Up To 10% when things are risky
If you are a risk taker hoping to make big gains don’t risk too much.
“If you’re a true adventurer and you really want to throw the Hail Mary, you might take 10% and put it in bitcoin or Ethereum, but if you do that, you’ve got to pretend you’ve already lost your money,” Cuban warned. “It’s like collecting art, it’s like collecting baseball cards, it’s like collecting shoes — something’s worth what somebody else would pay for it. I’d limit (risky investments) to 10%.”
Keep most of your money in the bank!
Cuban warned not to risk too much money by investing most of it in the stock market.
“The idiots that tell you to put your money in the market because eventually it will go up need to tell you that because they are trying to sell you something. The stock market is probably the worst investment vehicle out there.”
Always have 6 Months of income saved up
It is generally a good idea to always half at least half a years worth of income in your bank account.
“If you don’t like your job at some point or you get fired or you have to move or something goes wrong, you’re going to need at least six months income,” he said.
Be smart when shopping
Learn how much you spend in a single year and try to take advantages when they are presented. It would be wise to buy something in bulk that you will probably need all year long.
“Saving 15% on $1,000 worth of items you know you will absolutely spend money on is a better return on your money than making 15% in a year on a $1,000 investment because you don’t pay taxes on it,” said Cuban.
Pay off credit card debt in one month
If not properly managed, you will find yourself in immense credit card debt. Make sure to pay off debt as fast as possible so you have good credit and aren’t buried in debt.
“Using a credit card is OK if you pay it off at the end of the month,” Cuban says. “Just recognize that the 18% or 20% or 30% you’re paying in credit card debt is going to cost you a lot more than you ever could earn anywhere else.”
Clear up debt before investing
“The best investment you can make is paying off your credit cards, paying off whatever debt you have,” Cuban told MarketWatch. “If you have a student loan with a 7% interest rate, if you pay off that loan, you’re making 7%, that’s your immediate return, which is a lot safer than picking a stock, or trying to pick real estate, or whatever it may be.”
Avoid bank loans
If you plan on starting a business, try your best to avoid taking a bank loan.
“If you take a loan, you are no longer the boss,” said Cuban. “And your customers are no longer the bosses. Your banker is the boss. And if you hit any adversity, like every startup does, the priority becomes taking care of your banker… You’re no longer in a position to do whatever it takes to survive.”
* Additional Disclaimer: All content provided by this newsletter is for informational and educational purposes only and is not meant to represent trade, investment, or healthcare recommendations.
