When money management is concerned, there are essential steps to manage your money the right way.
A good personal finance planning can create several financially opportunity for you to invest in; This is because your money is not just spent but well planned.
A lot of people out there want to know how to manage money and make good use of every penny they earn, therefore, I will be sharing some money management tips from Mark Cuban.
In addition, I believe this post, can also help you make good financial plans as a couple looking for information on how to manage money in marriage.
What is Personal Finance
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Personal finance is the financial management which an individual or a family unit budget, save, and spend monetary resources over time, taking into account various financial risks and future life events.
Personal money management or planning can range from (checking, savings accounts, credit cards and consumer loans) or investment in private equity, (stock market, bonds, mutual funds) and insurance (life insurance, health insurance, disability insurance) products or participation and monitoring of and- or employer-sponsored retirement plans, social security benefits, and income tax management.
Money management tips from Billionaire Mark Cuban
Mark Cuban, is a billionaire investor, owner of the Dallas Mavericks and mainstay of the hit show, “Shark Tank,” He known for his business savvy, work ethic, and he is fond of turning small start-ups into multi-million-dollar ventures.
With a strong track record of self-driven financial success, his financial advise is certainly worth considering for personal finance management. Here is money advice from Mark Cuban that you can put into action today on how to manage money.
1. Live cheaply and use your resources to pursue opportunities.
In his book, “How to Win at the Sport of Business,” Cuban wrote: It doesn’t matter how you live, the car you drive, It doesn’t matter what kind of clothes you wear. The more you stress over bills, the more difficult it is to focus on your goals. The cheaper you can live, the greater your options.
Before his billionaire days, Cuban spent his early adulthood living on the cheap; crashing on the couch or floor with five roommates in Dallas and splitting the $750 rent six ways.
Cuban is a reminder that living within, and even below your means when possible, is less about sacrifice and more about opportunity. In other words, the money you sacrifice can create opportunity for investments.
Therefore, we can see that finding ways to cut expenses, both luxuries and the necessities, do reduce your total cost of living and free up resources such as time, energy and money. This can then be used for the pursuit of greater goals.
2. Prioritize paying off debt for a guaranteed return. Continue
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In a 2014 interview with Business Insider, Cuban revealed what he wished he’d known about money management in his 20s:
That credit cards are the worst investment that you can make. That the money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market. I thought I would be a stock market genius. Until I wasn’t. I should have paid off my cards every 30 days.
Cuban emphasizes the importance of paying off debt and using credit responsibly, and also warns against overzealous investing.
Getting loan and credit card balances down to zero is a proving strategy for increased wealth. Cuban notes, that doing this won’t require you to make investment risk for a great returns for loans you have taken.
3. Use the job you have now to get the job you want in the future.
On his blog, Cuban quoted an interview in which he said:
“I worked jobs I didn’t like. I worked jobs I loved, but had no chance of being a career. I worked jobs that barely paid the rent … I knew I would end up owning my own business someday, so I figured my challenge was to learn as much as anyone about all businesses. I believed that every job I took was really me getting paid to learn about a new industry.”
Mark Cuban believed that every job he took was really him getting paid to learn about a new industry.
His journey from his first job selling garbage bags, to teaching disco, to getting fired, to founding a business and becoming a billionaire is a reminder of the power of “hustle” and the importance of constant growth.
So working a job is an opportunity to develop a new skill set and learn about a new industry, both of which can be leveraged for future career success while getting paid in the present.
Therefore, reap the benefits of diverse work experience by staying open to any and all job opportunities – engaging in your career, income and personal growth throughout.
4. Stick to what you know when investing.
While seeking advice from financial professionals can be helpful, Mark Cuban is seriously sceptical of traditional financial advice and investment vehicles. “I create offbeat advice, I don’t follow it,” Cuban said this in an interview with Forbes. “I rarely take third-party advice on my investments.”
Instead, he encourages saving and puts money into ventures he knows too well — benefiting from the “information advantage.
Similarly, be sure to build an understanding of the accounts and investment vehicles holding your assets to ensure they serve your best interests.
Giving someone complete financial control over your money and agreeing to a strategy with blind trust can result in big fees at best, and huge losses at worst.
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5. Cultivate wealth for yourself and others.
It’s unsurprising that as a man of means, Cuban is an advocate for cultivating wealth. His position is not just about what wealth affords him personally, but the power it gives him to help others.
In a 2011 blog post titled “The Most Patriotic Thing You Can Do,” Cuban wrote:
Being rich is a good thing. Not just in the obvious sense of benefiting you and your family, but in the broader sense. Profits are not a zero sum game. The more you make, the more of a financial impact you can have.
Also Warren Buffet also said someone is sitting under the tree today because someone planted a tree. Therefore, building wealth enables meaningful giving as much as meaningful living; not just for your immediate family but also several other people in the world.
Having wealth, will position you to make an impact. Foster prosperity through the pursuit of increased income endeavours, investment growth strategies and financial education.
This will help you in cultivating your own monetary success and as a result help you give back to others in the society.
6. Use money as a tool to meet your goals.
When asked if money can buy happiness Cuban replied, “Absolutely not,” reports Entrepreneur magazine. “To me, success isn’t defined by your wallet. It’s defined by waking up with a smile on your face, knowing it’s going to be a great day. But, sure, money can make your life a whole lot easier.”
Although Cuban can basically buy whatever he wants, whenever he wants it. But, his happiness began long before by setting goals and accomplishing his dreams, like being the first in his immediate family to graduate college.
Don’t count on an arbitrary financial threshold to hold the key to happiness. Money should be what helps you reach the goal, not the goal itself. Instead, work toward goals and dreams with concrete actions you can implement immediately. Acknowledge and celebrate your progress toward future prosperity, and find happiness in each small step toward success.
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How this Money management tips helped me
I came across this piece mid last year and this has helped me a lot to manage my money and make futuristic plans.
Several persons can really become millionaire if not billionaire, if they have no bills to pay. However, bills are something we can’t avoid.
So from reading Cuban piece of advise, I focused so much on “live cheaply”. So, I eliminated several expenses from my bills. I started saving so much and spending so little for luxuries and necessities.
Knowing that Cuban did spent his early adulthood living on the cheap; crashing on the couch or floor with five roommates in Dallas and splitting the $750 rent six ways; was real inspiration for me.
I made money from side hustles however, I decided to manage my funds well and save them rather than spend it on bills like accommodation and other luxuries.
Getting good money from side hustles didn’t trigger me to leave my parents home because I was staying with them even at my early thirties. However, I decided to continue to live with them till I could save a lot of money for myself.
With his approach, I was able to rack up so much money in savings within a short period and budget funds for investment into digital assets.
Conclusion
Money should be what helps you reach the goal, not the goal itself. Instead, work toward goals and dreams with concrete actions you can implement immediately. Acknowledge and celebrate your progress toward future prosperity, and find happiness in each small step toward success.
You can become a billionaire if you will follow this money management tips wholeheartedly. So envisage the kind of future you want and the quality of life you want to create for yourself and people around you and begin to makes good money management plans to achieve it.
Source: Business Insider
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