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Mark Cuban’s big childhood dream wasn’t to become a millionaire, it was to retire at 35 years old.
He lived as frugally as possible in his twenties to make that dream a reality, including driving the “worst car possible” with a hole in the floorboard, living on macaroni and cheese, and sharing his space with five roommates.
Speaking to Sarah Blakely, founder of Spanx, for Money.com, Cuban said: “You have to have discipline in how you spend your money, first and foremost. When I was starting out, I was reading this book, ‘How to Retire at 35’. The whole premise of the book was that if you can save a million dollars and live like a student, you can retire. I really believed in that book.” “It was a big motivation for me.”
Say what you will about his lifestyle in early adulthood, but it is precisely this commitment to frugality that paved the way for his financial success.
Cuban wanted financial independence, stat. “I was determined to save money. I was determined to be able to retire. It wasn’t like I thought, ‘Okay, I’m going to get super rich,'” he said. I valued time more than anything else. I wanted enough money to be able to travel, have fun, and party like a rock star, but still live like a student. “That was my motivation.”
The key to achieving this was planning and saving for retirement from the beginning.
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Cubans were not born rich. He had to build his bank account, dollar for dollar, much like Blakely.
She said in the interview: “What I did was I started small, I thought big, and then I scaled quickly. I never got ahead of myself with spending. I only spent what I needed most… I have that mindset for everything. If I can save money here or there, I will do it.”
One of the easiest ways to save is to take advantage of the high rates on certificates of deposit. A certificate of deposit is a low-risk savings account that can earn just as much interest as a high-yield savings account, perhaps more. However, to get this higher rate, you will have to keep your money in the account for a certain period of time.
“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,” Cuban said.
Once you set aside your short-term funds, you can invest in the stock market for greater returns. Naturally, keep in mind that with the potential for better returns also comes greater risk.
If you invest wisely and consistently, you increase the odds of achieving better profits. Cuban says he’s a big fan of diversified, low-cost equity index funds. These funds tend to charge much lower fees than other stock funds, which means you can keep your hard-earned money toward that retirement goal.
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Diversifying your portfolio is also key to weathering the ebbs and flows of the market. One way to invest in gold that also offers significant tax advantages is to open a gold IRA with assistance Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the precautionary benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.
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If you prefer a passive approach to investing that can happen in the background while you spend on everyday items, then Walnut It may be yours.
One way you can make your shopping productive is by using Acorns, an automated investing and savings platform that simplifies the process of setting aside extra money.
Every time you make a purchase using your credit or debit card, Acorns will round up the amount to the nearest dollar, and put the rest into a smart investment wallet.
Additionally, Acorns lets you customize how you save. with Silver walnut plan, you get access to Acorns Later, a retirement investment account with a 1% IRA match on new contributions. with Golden walnutyou get a 3% IRA match on new contributions and the ability to customize your portfolio by picking your own stocks.
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This article provides information only and should not be construed as advice. They are provided without warranty of any kind.
