4 Simple Money Habits From Mark Cuban That Could Transform Your Life
Written by
Peter Burns
Edited by
Molly Sullivan
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For those trying to build wealth, Mark Cuban is a perfect example of how to get it done. From living in a shabby apartment with roommates to currently having a net worth of $6 billion, Cuban has made smart money moves that paid off big.
While some of the moves he made to get to where he is were complex, he used a lot of simple strategies as well. Here are four of Cuban’s most helpful money habits that can help you improve your finances.
Don’t Use Credit Cards
When asked about credit cards, Cuban has repeatedly said, “If you use your credit cards, you do not want to be rich.” It’s a valid point, as credit cards have left many in crippling debt. In 2024, the average consumer debt from credit cards was $6,730 per person. Adding a high interest rate to that amount each month can quickly derail any attempts you’re making to build wealth.
Cuban said the best way to invest is to pay off your credit cards and then cut them up. Currently, the average credit card interest rate is around 20%. As Cuban explained, if you pay off your credit card, you’ve just earned that amount of interest back instead of continuing to pay it.
Live Below Your Means
Even after Cuban had made millions, he was careful with his money. When he was just coming into his wealth, he read a book called “How to Retire by the Age of 35,” which told him to live like a student and save as much as he could. He then called his broker and told him to invest his money as if he were a 60-year-old, despite his young age. Cuban said he was worried that he would lose that money and wanted to live off of it for a long time.
Living below your means involves spending less than you earn. This will keep you out of debt and let you put more money toward your savings and investments. You can live below your means through careful planning and intentional spending.
One of the biggest challenges to living below your means is lifestyle creep. This is when you up your spending whenever you get a raise or salary increase. This may sound like a natural progression to success, but it often results in buying things you don’t need and missing savings opportunities. Instead of upgrading your car because you got a raise, keep the same car and invest the money instead. Instead of purchasing more streaming services that you won’t use, stick to one and save the rest.
Delay Gratification
Pushing back gratification can help you attain financial freedom because it requires making sacrifices now to better yourself later. One piece of advice Cuban gave is to skip the daily latte and invest that money. He received some pushback on social media, with users claiming that Cuban’s advice was ruining people’s day-to-day experience and joy.
Cuban’s response to them is that he’s just giving advice from his experience. He explained that if you want to have a latte every day for years, that’s fine. But, he said, “Five years from now you’re looking back and going, ‘That was a really good latte, I’m glad I’m broke.’ Or would you rather be okay? You know, ‘I’ve got a couple thousand dollars in the bank, and that gives me options.'”
Choosing to delay your gratification, whether it means saving up, reducing impulse spending, making better investment decisions or avoiding debt, can all help you become more financially independent.
Invest In Yourself
Investing in stocks, bonds or crypto can significantly increase your wealth over time, but Cuban also emphasized investing in yourself. Investing in yourself means putting time, money and effort into your personal development to better yourself. Educating yourself on specific areas of finance or business can help catapult you to another level of wealth.
Cuban said, “By putting in the effort, I taught myself technology. I taught myself to program. It was time-consuming, painfully so, but that investment in myself has paid dividends for the rest of my life.” If Cuban hadn’t taken the time to learn about emerging technologies, he might not have made the same decisions and investments that brought him the wealth he has today.
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