October 6, 2022

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Mark Cuban says, if you really want to be rich, you should do it

Mark Cuban says, if you really want to be rich, you should do it

Slaven Vlasic / Getty Images for New York Advertising Week

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Recently, we came across a simple tip to get a piece of money from billionaire entrepreneur Mark Cuban regarding Maverick Articles We felt an echo of him in today’s financially stressed world. Cuban answers the question, “What do you need to do to get rich?” With this point first and foremost: “Save your money. Save as much money as you can. Every penny you can. Drink water instead of coffee. Instead of going to McDonald’s, eat macaroni and cheese. Cut out 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 discipline.”

In fact, many professionals agree with him that saving money can make you, if not rich, at least richer (the good news is that savings accounts pay much more now than they did a year ago, and You can find the best prices you can get here). But, says Cuban, saving money requires discipline. So what does it take to create a system to save money early and often?

Ask yourself this question – then do a deep dive for it

“The first step is that you want to make changes,” says certified financial planner Spencer Bates of Bickling Financial Services. So ask yourself: Do I really want to achieve this goal? If the answer is yes – really, really, yes – then you are on your way.

Then look at why you answered yes – what does saving money mean for your life? How will you improve your life in a meaningful way? Financial therapist Rick Kahler says he has seen people go from saving just about anything to saving $5,000 a month after exploring their emotions and beliefs about money. “There are a lot of things a person can do to aggressively arm themselves to change behavior in the short term, but they often don’t last. This is the case where a person needs to slow down to go fast. The result is that people who spend thousands of dollars and many years trying to get it [wealth] indicate [cuts]can reach [that goal] “A lot faster if they slow down and look under their psychological hood,” Kahler says.

Create a specific and reasonable goal

Then, having a specific goal in mind for making the change can be helpful. “Anytime you change the way you spend money, it’s going to feel weird. You’re going to have to change your lifestyle somehow, so having a good reason to make that kind of change is a good thing to focus on,” says Bates.

Starting with small changes, rather than big changes, can help keep you on track without feeling like you’ve lost control. Maybe it’s something as simple as saving an extra $100 per paycheck. Another tip: “Look at your recurring monthly spending to see if there are services you pay for that you no longer need. It’s a good idea to do this periodically, like every six months. Are there any fees that can be avoided in the future such as late payments or ATM fees?” Or an overdraft, says Bates.

Making coffee at home instead of picking it up, or cooking more at home instead of eating out, can increase your monthly budget, as do many Cuban patrons, Bates says. “While these expenses may seem small, if you can spend $25 a week less, that means you save an extra $1,300 after one year,” Bates says.

Check out the best savings account rates you can get here.

Look at your past behavior to avoid future mistakes

Mistakes can derail us – and while you do make some mistakes, avoiding as many mistakes as possible will help you stay on the right track. So look at what has derailed your money in the past. Bates says one of the most common questions he receives from clients aged 16 to 60 is how they can develop the discipline to save more money. What are the first things he says to these clients? “Try to understand the reason for any past financial mistakes, why did you feel the need to purchase or sign up for the service or increase your financial capacity? We need to understand our motivations for spending the money so we can make changes in the future,” says Bates.

Reward yourself along the way

“To build the habit of saving, each time a person saves should reward one of the senses,” says Julia Kramer, financial behavior and leadership advisor at Signature Financial Planning.

Use these simple hacks

Kramer says research has shown that simple techniques like naming a savings account, visualizing a savings goal, or getting a picture of a savings goal and looking at it for several minutes a day increases savings rates about 5% to 7%. “I joke with my clients that it’s free and has no calories, so why not try,” Kramer says.

Automate your savings

To do this, set up an automatic transfer from a checking account to a savings account. Check out the best savings account rates you can get here.

Be smart with windfalls

If you get paid with a bonus or a tax refund – it is important to pay attention to yourself. “When customers receive unexpected gains, we think of having some fun today and having some fun in the future. This way customers have the opportunity to enjoy the present while planning for the future.

Reduce temptations

Certified financial planner Margarita Cheng says you can do this to reduce the temptation to overspend by not storing your credit card information online. “You can also reduce the number of apps you have which makes it more difficult to flaunt them,” Cheng says.

Know that mistakes will happen – and have a plan to get back on the right track

In the end, Kramer says be kind to yourself and understand that most of us are forced to rule out the future. “We’re still excited about prehistoric life, so worrying about today at the expense of today is an evolutionary adaptation. Our brains haven’t fully adapted to the current world,” Kramer says.

As for things you should be sure to stay away from, Cuban penned this in a 2015 blog post: “There are no shortcuts. Nobody. With all the madness in the stock and financial markets there are going to be scams popping up right and left. The less money you have , the more likely someone will come up with a scheme to you. Schemes will guarantee returns, use multi-level marketing or be a crazy thing that is now “subsidized by the US government”. Please ignore them. Always remember this. If the deal is a great deal, They won’t share it with you.”

The tips, recommendations or ratings in this article are those of MarketWatch Picks, and have not been reviewed or approved by our trading partners.

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