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Mark Cuban’s great childhood dream was not to be a millionaire: it was to retire at 35 years old.
He lived as frugally as possible in his 20s to make this dream a reality, including driving “the worst possible car” with a hole in the floor, living on macaroni and cheese, and sharing his space with five roommates.
Speaking to Spanx founder Sara Blakely for Money.com, Cuban said, “First of all, you have to have discipline in how you spend your money. When I started, I used to read this book, ‘How to Retire at 35.’ The whole premise of the book was that if you could save $1 million and live like a student, you could retire. I was a big believer in that book. It was a big motivation for me.”
Say what you will about his lifestyle in early adulthood, but this commitment to frugality is exactly what paved the way for his financial success.
Cuba wanted financial and statistical independence. He said: “I was determined to save money. I was determined to be able to retire. It wasn’t like I thought, ‘Okay, I’m going to be super rich.’ I valued time more than anything. I wanted enough money to be able to travel, party and party like a rock star, but still live like a student. That was my motivation.”
The key to achieving this was planning and saving for retirement from the beginning.
To make those dreams come true, you first need to know what your financial goals are. FinancialAdvisor.net is a free online service that helps you find a financial advisor who can help you create a plan to achieve your financial goals. Simply answer a few questions and their extensive online database will connect you with some vetted advisors based on your answers.
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The Cuban was not born rich. He had to build his bank account, dollar by dollar, just like Blakely.
In the interview, he says: “What I did was start small, think big and scale quickly. I never got ahead of myself when it came to spending. I only spent what was absolutely necessary… I have that mentality in everything. If I can save money here or there, I will.”
One of the easiest ways to save is to take advantage of the higher rates on certificates of deposit. A certificate of deposit is a low-risk savings account that could earn as much interest as a high-yield savings account, possibly more. However, to get that higher rate, you’ll need to deposit your money into the account for a set period of time.
Cuban said, “If you can find a way to save, if you can find a way to invest cheaply in the market, you can start building your net worth.”
Read more: US auto insurance costs increased 50% between 2020 and 2024; This Simple 2-Minute Check Could Put Hundreds of Dollars Back in Your Pocket
Once you’ve set aside your cash for the short term, you can invest in the stock market for higher returns. Of course, keep in mind that the possibility of a better payout also comes with greater risk.
By investing wisely and consistently, you will improve your chances of making better profits. Cuban notes that he is a big fan of low-cost, diversified stock index funds. These tend to charge much less than other stock funds, meaning you can keep your hard-earned money working toward your retirement goal.
If you’re looking for easy-to-understand stock advice, you can become a smarter investor in just five minutes thanks to Moby’s team of former hedge fund analysts and experts.
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Their superior research can help you reduce the guesswork when selecting stocks and ETFs. In four years, across nearly 400 stock picks, Moby’s recommendations have outperformed the S&P 500 by nearly 12% on average.
Diversifying your portfolio is also key to weathering the ebbs and flows of the market. One way to invest in gold that also offers significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially protect their retirement funds against economic uncertainties.
For more information, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
If you prefer a passive investing approach that can be done in the background while you spend on everyday items, then Acorns could be for you.
One way to make your shopping productive is with Acorns, an automated savings and investing platform that simplifies the process of setting aside additional funds.
Every time you make a purchase with a credit or debit card, Acorns will round it up to the nearest dollar and put the rest into a smart investment portfolio.
Plus, Acorns lets you customize how you save. With an Acorns Silver plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. With Acorns Gold, you get a 3% IRA match on new contributions and the ability to customize your portfolio by selecting your own stocks.
For a limited time, sign up here for an additional $20 investment to get started on the right foot.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
