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Before Mark Cuban became a billionaire with an estimated net worth of $6 billion, he was a dedicated money maker — and many of those habits stuck with him.
The real question is: can you use them in your life?
Here’s a look at the frugal steps Cuban credits with helping him make his fortune, and how you can apply them today.
They drove cars that cost less than $200
Cuban said he didn’t own a car worth more than $200 until he was 25 yahoo finance. One of them, the Fiat X1/9, had a hole in the floorboard.
“It was crazy. But that was my decision. I was determined to save money,” he said.
The goal was simple: keep fixed costs low so he could focus on building wealth rather than maintaining appearances.
He lived with roommates to reduce housing costs.
According to GOBankingRates, at age 24, Cuban lived in a three-bedroom Dallas apartment with five other roommates.
“I didn’t have my own bedroom,” he said. “I slept on the couch or the floor, depending on when I got home.”
Housing is typically the largest expense in any budget, and Cuban’s willingness to sacrifice comfort for savings gave him capital to invest elsewhere.
They treated loan repayment as an investment
“The best place to invest is to pay off all your credit cards and burn them. If you’re paying 15% or 20% in interest, if you make that payment, you’ve only made 15% or 20%,” Cuban told Dave Ramsey. yahoo finance.
According to , the average annual percentage rate on credit cards reached 21.47% in the third quarter of 2024. federal Reserve – Making loan repayments one of the highest guaranteed returns available to everyday consumers.
he bought essential commodities in bulk
“Saving 15% on items you know you’ll definitely spend the money on is a better return on your money than earning 15% a year on a $1,000 investment because you don’t pay taxes on it,” Cuban wrote on his blog. yahoo finance.
When asked how he would invest the $100,000, his first answer was to pay off debt – and his second answer was to stock up on discounted essential items at wholesale retailers.
they bought groceries at midnight
In an episode of Bill Maher’s podcast “Club Random,” Cuban said he used to go grocery shopping at midnight in his twenties because, according to GeoBankingRates, that was the best time to find deals on food.
This habit reflects the overarching philosophy that Cuban has maintained throughout his career: the best financial wins often come from small, disciplined choices made consistently over time.