There are many bloggers out there showing you how to get rich. In fact, there’s an industry behind this get-rich-quickly trend. When this topic comes up, billionaire Mark Cuban is the right guy to talk about it. In his Maverick blog, Mark Cuban explained on how to get rich.
According to him, you should not trust anyone with any get-rich-quick scheme as there are no shortcuts. To get rich, you should focus on two main thing. First, find the discipline in your life to control your spending and to save every penny as you can. Secondly, invest into yourself and be the best you can be in your work life. The rich path is simple but it will take months, years or even decades to fulfill your dream.
As he explained in the interview presented by Bloomberg Game Changers, Mark Cuban never calls timeout. Cuban says, in football you play 60 minutes, in basketball 48 minutes, but in business it’s 24/7/365 and the whole world is trying to kick your ass. With that entrepreneur spirit, he parlayed his passion for Indiana basketball into a company worth 5.7 billion dollars. So what’s the story behind his incredible wealth?
How Did Mark Cuban Get Rich?
Mark Cuban, the famous owner of the Dallas Mavericks, is worth $3.4 billion. From a young age, Cuban always tried to find ways to make profit. While studying at Indiana University in Bloomington, Indiana, Mark Cuban took a risk with his $15,000 to buy a bar. He turned it into the most successful student bar in his college town. That venture was an excellent way as he’s getting his undergraduate studies in Business Administration to prepare for future money-making sucess. Even his professor was impressed with the young student’s business savvy.
When Cuban graduated from Indiana University’s Kelley School of Business in 1981, he started from scratch all over again with just $60. On July 4, 2017, Mark Cuban tweeted that it was the anniversary of the date he left Indiana University in Bloomington in 1981 at the age of 23 “with $60, hole in my floorboard, case of oil in the trunk & a floor to sleep on in Dallas.”
— Mark Cuban (@mcuban) July 4, 2017
However, within a decade later, Mark Cuban became a multi-millionaire by creating a startup MicroSolutions, a computer company. He sold the company to CompuServe in 1990 for $6 million at the age of 32.
Most people would take an early retirement and enjoy for the rest of their lives with that much money, but that’s not for Cuban, an extremely talented entrepreneur. He correctly predicted there’s a huge demand for internet radio by creating another startup AudioNet. At the beginning, his new company broadcasted only his former university’s basketball games, the Indiana Hoosiers. AudioNet went on to cover hundreds of sports channels, radio programs and fashion shows.
Cuban took the company public with the IPO of Broadcast.com in 1998. The stock was a big hit during the dot com period. Mark Cuban became a billionaire from his company’s shares when Yahoo acquired Broadcast.com in 1999 for $5.9 billion in stock. He smartly diversified his wealth to avoid the dot com burst. His net worth reached $2.6 billion in 2011 and ranked number 211 of the World’s Richest People by Forbes.
Even as a billionaire, Mark Cuban is always looking for his next big move. Using his tremendous wealth, Cuban spent $280 million to become the majority owner of the Dallas Mavericks and turned the NBA team into a championship team with a valuation of $1.15 billion. Cuban also invests and stars on television show Shark Tank.
Mark Cuban’s net worth of $3.4 billion is still growing everyday. He’s a great example of self-made billionaire, who loves good business deals. With an abundantly of knowledge, he also shared with us incredibly honest insights on how to get extremely wealthy.
Tips to Get Rich by Mark Cuban
Cuban has some great tips for those looking to build wealth. Don’t pursue any get-rich quick schemes. He wrote on his blog: “There are no shortcuts. NONE.”
He explains: “The less money you have, the more likely someone will come at you with some scheme. … Please ignore them. Always remember this: If a deal is a great deal, they aren’t going to share it with you.”
Cuban doesn’t broadcast his deals and he suggests being skeptical of anyone who does. “I keep them all to myself,” he writes. “If the person selling the deal was so smart, they would be rich beyond rich rather than trolling the streets looking to turn you into a sucker. There are no shortcuts.”
From his article of how to get rich, here are the 7 tips helping you to get rich by mark Cuban:
- “There are no shortcuts. NONE. With all of this craziness in the stock and financial markets, there will be scams popping up left and right. The less money you have, the more likely someone will come at you with some scheme . The schemes will guarantee returns, use multi level marketing, or be something crazy that is now “backed by the US Government”. Please ignore them. Always remember this. If a deal is a great deal, they aren’t going to share it with you.”
- “So what should you do to get rich? Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water. Instead of going to McDonalds, eat Mac and Cheese.”
- “Cut up your credit cards. If you use a credit card, you don’t want to be rich. The first step to getting rich, requires discipline. If you really want to be rich, you need to find the discipline, can you?”
- “If you can, you will quickly find that the greatest rate of return you will earn is on your own personal spending. Being a smart shopper is the first step to getting rich. Yeah you have to give things up and that doesn’t work for everyone, particularly if you have a family. That is reality. But whatever you can save, save it. As much as you possibly can. Then put it in 6 month CDs in the bank.”
- “The first step to getting rich is having cash available. You aren’t saving for retirement. You are saving for the moment you need cash. Buy and hold is a suckers game for you. This market is a perfect example. Right at the very moment when cash creates unbelievable opportunity, those who followed the buy and hold strategy have no cash. They can’t or won’t sell into markets this low, that kills the entire point of buy and hold. Those who have put their money in CDs sleep well at night and definitely have more money today than they did yesterday. And because they are smart, disciplined shoppers, their personal rate of inflation is within their means. Cash is king for those wanting to get rich.”
- “The 2nd rule for getting rich is getting smart. Investing your time in yourself and becoming knowledgeable about the business of something you really love to do… Before or after work and on weekends, every single day, read everything there is to read about the business. Go to trade shows, read the trade magazines, spend a lot of time talking to the people you do business with about their business and the people they buy from.”
- “This is not a short term project. We aren’t talking days. We aren’t talking months. We are talking years. Lots of years and maybe decades. I didn’t say this was a get rich quick scheme. This is a get rich path.”