4 Things Mark Cuban Says You Should Do With Your Money


 ‘Shark Tank’ investors and Dallas Mavericks owners offer some very surprising personal financial advice.


If you’re going to take personal financial advice from anyone, you can’t do better than Mark Cuban. Shark Tank shark and owner Dallas Mavericks sold its first startup to CompuServe in 1990 for $ 6 million. Then he sold his second business to Yahoo for $ 5.9 million in 1999. Since then he has started or acquired several other businesses and invested in many more. The current net worth is estimated at around $ 4.2 billion.



For someone who is very rich at risking a lot of investments, Cubans have some very surprising advice to share. The personal finance site GOBankingRates has carefully reviewed Cuban books, blogs, and interviews, compiling 20 financial advice it has offered over the past few years. You can get the full list here. Here are some of his best tips.



1. Start by paying off all debts.

“The best investment you can make is to pay off your credit card, pay off the debt you have,” Cuban said in an interview with MarketWatch. "If you have a student loan with a 7 percent interest rate, if you repay the loan, you earn 7 percent, that's your immediate return, which is much safer than picking stocks, or trying to pick real estate, or whatever the case may be."



Credit cards, of course, have much higher interest rates, so there are even greater benefits to getting them. “Using a credit card doesn’t matter if you pay it off at the end of the month,” Cuban told an interviewer from Money. "Know that the 18 or 20 or 30 percent you pay in credit card debt will cost you more than you earn elsewhere." For debts that can’t be paid off quickly (e.g. mortgages or student loans), he suggests taking advantage of low interest rates during times of economic downturn to refinance.





2. Save six months income.

You should try to save six months ’income and save it, Cuba told Vanity Fair. “If you don’t like your job at some point or you’re fired or you have to move or something goes wrong, you need an income of at least six months,” he explained.



3. It is okay to make risky investments, but the amount is only 10 percent of the total.

Millionaires and homemade millionaires get there by taking calculated risks, Cuban admits. So investing in something really risky is good - as long as you limit it to just 10 percent of your total investment. "If you're a true traveler and you really want to throw a greeting, you might take 10 percent and put it into bitcoin or Ethereum, but if you do, you have to pretend you've already lost your money," Cuba said in the video. The same Vanity Fair. "It's like collecting art, like collecting baseball cards, like collecting shoes." In other words, "This is a pamphlet, but I will limit it to 10 percent."



What should you do with the other 90 percent? Put it into the cheapest S&P 500 -tied index fund you can find, he said.



4. Buy at a discount.

Is this personal financial advice? Yes, said Cuba. It’s hard to get a high rate of return in today’s investment climate, so you might be better off, say, buying a two -year -old toothpaste if you get a 50 percent discount.



“Saving 15 percent for a $ 1,000 item that you know you’ll actually spend money on is a better return on your money than making 15 percent in a year for a $ 1,000 investment, because you don’t pay taxes for it,” the blog posts.



You don’t really think of taking home bulk items from Costco in the same way as you put money into a mutual fund. But look at the way Cuba does, and it suddenly makes sense.
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