You might know Mark Cuban as the Dallas Mavericks NBA basketball team owner, but he’s also a brilliant businessman worth over $4.5 billion.
Years ago, Cuban published a short video of his 9 rules for getting rich. I agree with many of them, but two of his rules are flat wrong. And several others demand a little context.
What are Cuban’s rules for getting rich, and which two are wrong?
Rule #1: Live Like A Student
After high school or college graduation, it’s only natural to start enjoying the fruits of your labor. You’re making money now by working a full-time job, and you want to spend some of it on things that make you happy.
There’s nothing wrong with that, but it can get out of hand quickly. Living like a student, while not fun, will help you build wealth and achieve financial freedom very quickly.
Rule #2: You Shouldn’t Use Credit Cards
Cuban argues that you’ll never pay credit card fees if you never use credit cards. And while true, I wholeheartedly disagree with this rule.
But, here’s the catch: You need to be diligent about paying off your credit cards at the end of the month, without exception. If you are in the habit of running a balance, then Cuban’s right.
Rule #3: Save Six Months of Income
A 6-month emergency fund is critical. An emergency fund is money set aside for unexpected emergency expenses, such as a leaking roof, a car accident, or sudden medical bills.