3013: Mark Cuban Tells You How To Get Rich by J Money of Budgets Are Sexy on Wealth Building Advice

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[00:00:51] This is Optimal Finance Daily. Mark Cuban Tells You How To Get Rich by J Money of BudgetsAreSexy.com. There's a great article by Mark Cuban over on Positively Positive right now, though I'm not sure what it has to do with staying positive. And since a birdie told me you all want to be millionaires 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 stop listening now.

[00:01:18] They have things called the lottery for that, which I won the other day, by the way. I won all four slots. Also, for those who don't know Mark Cuban, he's one badass entrepreneur who owns the Dallas Mavericks and likes to appear in cult TV shows like Shark Tank and Entourage. So yeah, he's a smart dude and knows what he's doing.

[00:01:38] We'll start off with a quote from Mark. Quote, there are no shortcuts. None. With all 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 U.S. government.

[00:02:04] Please ignore them. Always remember this, if a deal is a great deal, they aren't going to share it with you. End quote. That last part sucks, but it's probably the truth. Though I promise to share any deals that come across my lap with you, as long as you're looking for coupons or money tips. I don't get my hands on business deals all too often, and I guess now we know why. I bet if you're good friends with Cuban or any others, though, they certainly keep you in the loop if they trusted you.

[00:02:31] But who knows? He also advises to, quote, save as much money as you possibly can. Every penny you can, no matter what. End quote. While I agree it does help you to 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 madman.

[00:02:58] 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 a million dollars. I know, I know, a million isn't a lot these days, but this is my dream, so you leave me alone. I'm sure I'd get there a handful of years sooner if I cut out all my discretionary spending. His other five main steps to being rich. He also lists five other main steps to getting rich, though the article he lists three first.

[00:03:26] Maybe he doesn't believe in editing, but here we go. Number one, having discipline to save, to be patient, to do everything you need to do in order to be rich one day. Number two, being a smart shopper. Learn to pass on things you don't need and invest and save in things you do. The greatest rate of return you'll ever earn is on your own personal spending, according to Cuban. Number three, have cash available.

[00:03:53] Cash is king in his eyes and is pretty much the biggest thing he advocates. Quote, you aren't saving for retirement. You're saving for the moment you need cash. End quote. Number four, 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, you won't see the opportunities when they arise.

[00:04:22] Quote, 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're getting paid to learn. It may not be the perfect job, but there is no perfect path to getting rich. End quote. Number five, waiting for change.

[00:04:49] This is where all the 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.

[00:05:19] If you've ever read The Millionaire Next Door or any other background on how the rich get to where they are, you will always find references to investing in or building 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.

[00:05:46] 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. Quote, if you use a credit card, you don't want to be rich. End quote. Quote, 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.

[00:06:15] 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. Either way, you should check out his blog 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.

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[00:08:03] It reminds me of a conversation I had with my friend Frank Vasquez over at Risk Parity Radio. He tirelessly answers personal finance questions that come up in the various Facebook groups we're a part of. So one day I asked him, which personal finance question does he see often that bugs him the most? And he answered that he commonly sees people who are looking for a magic button. Perhaps they haven't saved anything for retirement and now they're in their 60s and they want to retire.

[00:08:34] So they're looking for advice on which stocks are going to have the most aggressive growth that might allow them to do so. But there are no real shortcuts when it comes to funding a retirement with the stock market. You need time and regular contributions to allow compound interest to do its thing. This article also reminded me of a random call I got from a family member recently who was considering putting $100 per week into Dogecoin and wanted to know what I thought about that.

[00:09:01] Now, this is when Dogecoin was doing really well and this person saw their small investment of like a dollar double over a week or two. And so their inclination was to dump more money into it. However, this person is in their late 30s with credit card debt and no retirement savings. Look, it might not be sexy to get out of debt, fund your retirement vehicles and invest in tried and true index funds. I get it. It takes years and it can be like watching paint dry sometimes.

[00:09:31] The idea that you can bypass all that with Dogecoin is really appealing. But it's still not the most optimal strategy for that $400 per month. And I have nothing against speculative investing. It's just something I personally would do after the rest of my financial house is in order. That should do it for another edition of Optimal Finance Daily. Have a great rest of your day and I'll see you on the Wednesday show tomorrow where your optimal life awaits. Thank you so much. Thank you so much. Thank you.