This is a good rule to follow.
- Mark Cuban is a billionaire who probably doesn’t have to worry about money.
- Despite this, he thinks consumers would be wise to adopt a frugal mindset.
shark tank Personality Mark Cuban has billions of dollars under his belt, but that wasn’t always the case. Like many wealthy people, Cuban was not born into wealth. On the contrary, he learned to be a savvy investor and built his own wealth over time.
As such, Cuban understands what it means to have to live on a budget. And he also knows that getting rich often means making sacrifices.
To that end, he has some great advice for everyday consumers. And this is a rule worth following.
Live like a student
Many people spend their days in college feeling cash-strapped and money-stressed. And students usually have to resort to frugal decisions, like eating instant noodles for dinner, to save funds.
Cuban says one financial tip he likes to give is to live like a student, even if you’re not a student. What he means by that is that consumers should make a conscious choice to avoid overspending and buying things they can’t afford. They should also be discreet when shopping and avoid spending money on things they can live without.
Cuban is well aware that it takes money to make money. And so those who seek to create wealth must start by building up savings. From there, they can invest money they don’t use immediately and turn it into something bigger over time.
What student life might look like for you
When Cuban suggests living like a college student, he’s not necessarily saying you should sell your house, find a roommate, and live in an apartment that amounts to a cramped dorm room. And you don’t even have to resign yourself to eating a bowl of high-sodium instant noodles every night. It’s more about being careful with your spending and avoiding wasting money on things that don’t really make sense to you.
There are different ways to incorporate Cuban’s advice into your own life. You could, for example, stop wasting money on fancier electronics when your current phone, laptop, and tablet are working perfectly. Or, you can stop spending money on clothes when you have a robust wardrobe that gives you plenty of variety.
Living like a college student can also mean renting a studio if a room costs an extra $300 a month and you’re not sharing your space with anyone. Giving up some acreage could mean taking in $3,600 a year, or investing that money and growing it into a bigger sum.
If you’re willing to live more frugally even for a few years, it could do wonders for your finances. You may have the opportunity to increase your savings, set aside money for an important goal, like buying a house, or pay off any debt you’ve accumulated so far. And while living like a college student might not seem like an easy thing to do, if you’re willing to make sacrifices for at least a limited period of time, you could find yourself on a financially secure path.
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