Mark Cuban rules for finance: 1. Be a Little Bit of a Risk Taker - Sometimes, risks and rewards go h

• 11/13/21

Mark Cuban rules for finance: 1. Be a Little Bit of a Risk Taker - Sometimes, risks and rewards go hand-in-hand, as Cuban pointed out in a 2017 interview with Money magazine while discussing the value of investing your savings. 2. But Only Invest Up To 10% in Risky Investments - If you do take risks in the investment realm, limit the amount you contribute. 3. Put It in the Bank - Rather than put all your eggs in the stock market, Cuban encourages keeping some money in a savings account for a rainy day so you're protected if something goes wrong. 4. Save 6 Months of Income - "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. 5. Find a Way To Invest Inexpensively in the Market - investing in a low-cost mutual fund. These are investments that let you pool your assets with the assets of other investors, which provides a cheaper way to diversify your portfolio. 6. If You Don't Fully Understand the Risks of an Investment You're Considering, It's OK To Do Nothing - If you have doubts -- or if there's too much uncertainty surrounding an investment -- there's nothing wrong with holding onto your cash until the right opportunity comes along. 7. Don't Let Fear Be a Roadblock - Fear is a natural feeling, but it's also one of the worst enemies to success. If you want to get ahead, get out of your own way and stop hiding behind fear -- it keeps you stuck in the same place and stifles growth. 8. Be a Smart Shopper - He encourages analyzing how much you spend over the course of a year and then suggested taking advantage of cash, quantity and discounts to get a better return on your money. In other words -- it's best to buy in bulk. 9. Rarely Take Third-Party Advice on Investments - don't give someone complete control over where your money goes. Learn the ins and outs of investing for yourself so you can have a say in how you invest your money. If you're just starting out, pick up a book to start learning. 10. Go To the Cheapest School Possible for Your Freshman -- and Maybe Sophomore – Classes - Enroll in a local or community college for the first couple of years of your undergraduate education. Some might argue for the benefits of attending a prestigious school, but Cuban encourages young people to go to a school they can actually afford. 11. Have Disciplined Spending - Live beneath your means and reduce spending to help build your savings. Consider driving an older car, buying secondhand goods, living with your parents a little longer or getting a roommate to lower housing expenses. 12. Pay Off Credit Cards After 30 Days -- or Don't Use Them at All - He doesn't discourage using a credit card, but he does encourage paying off balances in full every month to avoid wasting money on interest. 13. If You Have Credit Card Debt -- or Any Debt -- Pay It Off Before Making Other Investments - "The best investment you can make is paying off your credit cards, paying off whatever debt you have." 14. Negotiate Using Cash - "Negotiating with cash is a far better way to get a return on your investment." 15. Books Are Always a Good Investment - One book that got Cuban "all fired up" is "The Only Investment Guide You'll Ever Need" by Andrew Tobias, he said. "I'll read hours every day because all it takes is one little thing to propel you to the next level." 16. Keep Your Money to Yourself - Feel free to help some, but talk to your accountant before you do anything. And remember this: No one needs $1 million dollars for anything. No one needs $100,000 for anything. Anyone who asks is not your friend." 17. Don't Make Rash Money Moves Based on Market Fluctuations - Remember, I follow the No. 1 rule of investing: When you don't know what to do, do nothing." 18. Avoid Taking Out Bank Loans - If you want to start your own business, he recommends doing it without relying on bank loans. "If you take a loan, you are no longer the boss," he told Dave Ramsey. "And your customers are no longer the bosses. Your banker is the boss.” 19. Use Your Money To Buy Time - "I can make things happen more quickly by paying a little bit more," he said. "And that's important, because time is the one asset you can't own, buy or get back." 20. Refinance Debt When Interest Rates Are Low - Although there are numerous downsides to a recession, one of the silver linings is low interest rates. https://finance.yahoo.com/news/20-genius-things-mark-cuban-190751259.html #fiscalresponsibility #budget #investing

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