There’s a GREAT article by Mark Cuban over on Positively Positive right now (though, not sure what it has to do w/ staying positive? Haha…) and since a birdy told me you all wanna be a millionaire one day, I thought I’d pass along a few of the nuggets :) Though I must warn you – if you’re looking for an overnight success you might as well click away now. They have things called the lottery for that (Which I won the other day btw!! Check this out – I won ALL FOUR slots!!)
Also, for those who don’t know Mark Cuban, he’s one bad a$$ entrepreneur. Who owns the Dallas Mavericks and likes to appear in cult TV shows like Shark Tank and Entourage ;) Which is now over! Booooo… so yeah, he’s a smart dude and knows what he’s doing. We’ll start off w/ a clip of his:
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.
That last part sucks, but it’s probably the truth ;) Though I promise to share any deals that come across MY lap with you! Haha… as long as you’re looking for coupons or money tips ;) I don’t get my hands on many biz deals all too often, and I guess now we know why! (I bet if you’re good friends w/ Cuban or any others though, they’d certainly keep you in the loop if they trusted you. But who knows.)
He also advises to “Save as much money as you possibly can. Every penny you can.” no matter what. While I agree it DOES help you get further and further along to the “rich” point, I think it’s also liable to drive you crazy. At least if you do it every single hour of every single day. There are plenty of times I spend more than I probably should – and also times I hoard my money like a mad man! – but then again I’m also not in a race to hit my first million anytime soon (which is my personal sign of “being rich” – having 1 million dollars. (I know I know, “a million isn’t a lot these days” but this is my dream so you leave me a lone ;))). I’m sure I’d get there a handful of years sooner if I cut out all my discretionary income.
His Other 5 Main Steps to Being Rich
He also listed 5 other main steps to getting rich (though in the article he lists three “1sts” haha… guess he doesn’t believe in editing?):
- Having discipline — To save, to be patient, to do everything you need to do in order to be rich one day.
- Being a smart shopper — Learn to pass on things you don’t NEED, and invest/save in things you do. “The greatest rate of return you will ever earn is on your own personal spending,” according to Cuban.
- Having cash available — Cash is king in his eyes, and is pretty much the biggest thing he advocates. “You aren’t saving for retirement. You are saving for the moment you need cash.”
- Getting smart — Invest your time in whatever you’re passionate about, and learn learn learn! Don’t stop educating yourself in whatever hobby or industry you’re in. If you don’t know what’s going on in your ‘hood (my word, not his, haha) you won’t see the opportunities when they arise.
“It doesn’t matter what it is. Whatever your hobbies, interests, passions are—find the one you love the best and GET A JOB in the business that supports it. It could be as a clerk, a salesperson, whatever you can find. You have to start learning the business somewhere. Instead of paying to go to school somewhere, you are getting paid to learn. It may not be the perfect job, but there is no perfect path to getting rich.”
- Waiting for change — This is where all those previous steps come together and the magic happens. When an opportunity presents itself (because you know everything there is to know about your industry) and you’re prepared to jump on it. You’ve been saving up your money this whole time, being smart with it and DISCIPLINED, and now you have it available for the big chance sitting right there in front of you. Which I assume is some sort of business deal, though he doesn’t get specific.
It’s an interesting take on building wealth for sure. Concentrating on storing up cash for the second you find an opportunity. If you’ve ever read The Millionaire Next Door, or any other backgrounds on how the rich get to where they are, you will always find references to investing in, or buying up, of assets as the bulk of their financial game plan. Cuban certainly isn’t the first to recommend that. But what I like about him is that he just lays it all out there for any of us to learn from. He’s pretty feisty from what I hear, but it seems like he keeps it as real as possible without giving away *all* his secrets ;) Haha… and I really like that “cash is for when an opportunity arises” over “retirement” mentality too, as scary as it comes across.
The only thing I didn’t agree with all the way is his stance on credit cards: “If you use a credit card, you don’t want to be rich.” I’m assuming he means *irresponsibly* and not for leverage purposes (which I like to do, as well as for budgeting), but knowing him he could be just as hardcore against that as he is about get-rich-quick schemes. Though the audience reading his articles are also regular human beings, so it wouldn’t be the worst thing in the world to tell them to stay away from credit cards, eh?
Either way, you should check out his post if you have a chance (he also has his own blog over at Blog Maverick). I pretty much summed up the bulk of it here, but he has a way with words and motivating you better than I. Plus, you get to learn things about him like how he used to eat mustard and ketchup sandwiches before he “made it” ;) We all have to start somewhere!
(Photo by Simon Davison)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!