In 2008, Mark Cuban Famously Shared On his personal blog, he writes that to get rich, “Save money. Save all the money you can. Save every penny. Drink water instead of coffee. Eat macaroni and cheese instead of going to McDonald’s. Cut up your credit cards. If you use credit cards, you don’t want to be rich. The first step to getting rich is discipline. If you really want to be rich, you need to find the discipline. Can you do it?”
Nine years later, Australian luxury property developer Tim Garner suggested young people couldn’t afford property because they were wasting their money on $19 toast and $4 coffee. Added He said unemployment needs to rise to 40% to 50% and “there needs to be pain in the economy.”
do not miss it:
Mark Cuban’s advice to save and be disciplined is similar to Tim Garner’s advice to millennials about saving for a home: both emphasize the importance of cutting back on everyday expenses to reach long-term financial goals, and how seemingly small expenses can add up over time and impact your ability to save for larger investments.
In today’s world, Mark Cuban and Tim Garner’s advice on being extremely frugal and saving money is no longer very effective or relevant.
The economic situation has changed dramatically. The cost of living, especially in cities, Increased Dramatically. When housing, healthcare, education, and other basic necessities take up most of your income, forgoing little luxuries like coffee and avocado toast doesn’t make much difference. Wage and cost of living gap This means that even if you save rigorously by cutting back on small expenses, it’s often not enough to reach a big savings goal like buying a home.
Trending: This is how much the average American couple is saving for retirement — How do they compare??
Many people face systemic barriers that make it difficult for them to accumulate wealth, no matter how much they save. Problems like student debt, stagnant wages, and economic inequality cannot be solved by savings alone. Structural changes and policies are needed to reduce these barriers and create a more equitable path to economic stability.
Inflation is The value of the money you save goes down Over time, investments become more effective. In today’s economy, it is often more important to invest wisely than simply saving. Cuban’s advice to save money is good, but he fails to mention the need to grow your money through smart investments. Learning about investing and investing will lead to better long-term financial results than saving alone.
“The second rule to get rich is to get smart”
In contrast, Mark Cuban’s second piece of advice about investing time in yourself and gaining knowledge in your chosen field is still highly relevant.
Here’s what he said: “The second rule to getting rich is to be smart. Invest your time in yourself and become knowledgeable about the business of something you really love. It doesn’t matter what that is. It can be a hobby, an interest, a passion. Find what you love most and get a job in a business that supports that. An office job, a salesperson, anything is fine. You have to start learning a business somewhere. You’re not paying to go to school somewhere, you’re getting paid to learn. It may not be the perfect job, but there’s no perfect path to getting rich.”
He continues, “Read everything you can about the business every day – before and after work and on weekends. Go to trade shows, read trade magazines, and spend a lot of time talking to your business contacts about their businesses and their suppliers. This is not a short-term project. Not a few days. Not a few months. I’m talking years. Years, even decades. I never said this was a get-rich-quick scheme. This is the path to getting rich.”
In today’s knowledge-based economy, skills and expertise are crucial. Continuing learning and professional development leads to better job opportunities, higher earning potential, and career satisfaction. An emphasis on gaining practical experience and education through work helps individuals build a solid foundation for economic success.
Continue reading:
“Active Investors’ Secret Weapon” Step Up Your Stock Market Game with the #1 “News and Everything Else” Trading Tool: Benzinga Pro – Click here to start your 14-day trial now.
Want the latest stock analysis from Benzinga?
This article Mark Cuban’s advice on getting rich: “Don’t drink coffee, drink water, eat macaroni and cheese, and save your pennies” Originally Benzinga
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
