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Mark Cuban’s big childhood dream was not to be a millionaire, but to retire at 35.
He lived as frugally as possible in his 20s to make that dream a reality, including driving “the worst car possible” with a hole in the floor, living on mac and cheese, and sharing his space with five roommates.
Speaking to Spanx founder Sara Blakely for Money.com, Cuban said, “Above all, you have to be disciplined in how you spend your money. When I first started, I used to read this book, ‘How to Retire at 35.’ The general premise of the book was that if you could save $1 million and live like a college student, you could retire. I believed a lot in that book. It was a great motivation for me. “
Say what you will about his lifestyle in early adulthood, but that commitment to frugality is exactly what paved the way to his financial success.
Cuban wanted financial independence, stat. He said: “I was determined to save money. I was determined to be able to retire. It wasn’t like I was thinking, ‘Okay, I’m going to get super rich.’ I valued time more than anything. I wanted enough money to be able to travel and have fun and party like a rock star while living like a student. That was my motivation.”
The key to achieving this was planning and saving for retirement from the start.
To make these dreams a reality, you must first know your financial goals. 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 match you with a few vetted advisors based on your answers.
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Cuban was not born rich. He had to build up his bank account, dollar by dollar, much like Blakely.
In the interview, she said: “What I did was start small, think big and scale quickly. I never got ahead of my spending. I only spent what I absolutely needed…I have that mentality about 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, or more. However, to benefit from this higher rate, you will need to park your money in the account for a certain amount of time.
Cuban said, “If you can find a way to save, if you can find a way to invest inexpensively in the market, you can start building your net worth. »
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Once you have set aside your short-term cash flow, you can invest in the stock market to get higher returns. Of course, keep in mind that the possibility of a better payout also comes with greater risk.
If you invest wisely and regularly, you improve your chances of earning better returns. 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 continue to use your hard-earned money toward that retirement goal.
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Diversifying your portfolio is also essential to weather the ebbs and flows of the market. One way to invest in gold that also offers significant tax benefits is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account, which combines the tax benefits of an IRA with the protection benefits of an investment in gold, making it an attractive option for those potentially looking to protect their retirement funds against economic uncertainties.
To learn more, you can get a free informational guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
If you prefer a passive approach to investing that can happen in the background while you spend on everyday items, then Acorns could be for you.
One way to make your purchases productive is to use Acorns, an automated investing and savings 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 to the nearest dollar and put the rest into a smart investment portfolio.
Plus, Acorns lets you customize how you record. With an Acorns Silver plan, you have 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.
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This article provides information only and should not be considered advice. It is provided without warranty of any kind.
