Mark Cuban / Mark Cuban
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Mark Cuban may be a billionaire, but his money advice is surprisingly practical for the spending habits and investing strategies of everyday Americans. The “Shark Tank” star built his fortune by following simple financial principles and, more importantly, avoiding costly mistakes.
Cuban believes that wasting money on unnecessary expenses, taking on debt, and ignoring smart investments can derail your financial future. If you want to build real wealth and improve your financial health, here are six money habits Cuban said you should stop right now.
1. Saving without investing
In Mark Cuban’s juggernaut of financial advice, he constantly warns that you’re not going to grow your money just by depositing it in a savings account. This should be avoided, because depending on interest rates, even high-yield accounts may not always keep up with inflation, reducing your purchasing power.
Instead of making this common money mistake, once you’ve set aside three to six months of living expenses in an emergency fund, put further savings to work. He recommended investing in assets such as index funds, real estate or other vehicles that historically appreciate faster than inflation.
2. Taking out high-interest loans
Cuban has been outspoken about high-interest debt, especially credit card debt – he sees it as one of the fastest ways to stay broke. Every dollar you pay in interest is a dollar that could have been invested instead. He urges people to pay off these balances as quickly as possible and then redirect their income into wealth-building strategies.
3. Paying more for everyday items
Although they have room to get away with it, even the super-rich avoid wasting money. In fact, one of the Cuban billionaire money tips is that he still buys staples like toothpaste in bulk because paying less per unit is like an immediate return to your smart money management. He recommended looking for ways to cut costs on items you purchase regularly rather than wasting cash on convenience purchases.
4. Overspending on status symbols
Cuban may not be as humble as Warren Buffett, but he also doesn’t flaunt luxury like other billionaires. He avoids expensive watches and suits, preferring T-shirts and casual dresses. Follow their lead and put your money into assets that grow, not items that empty your wallet just to signal some hollow state of affairs.
5. Taking on excessive student loans
Education is becoming less affordable, but still, Cuban cautions students against paying more for their education. He enrolled at Indiana University because it was the most affordable of the top business schools, not a prestigious or expensive Ivy League school. With tuition costs rising, he cautioned young people against taking on massive debt burdens that take decades to repay.
6. Outsourcing you can do yourself
Despite being able to afford a driver or butler, Cubans prefer to drive themselves and keep their household expenses simple. He also values privacy and control. As great as it is to have other people do the work for you, he advised against outsourcing tasks that you can manage affordably on your own and instead put that money toward bigger goals.
Caitlin Moorehead contributed reporting to this article.