Thats what so many want. Right ? I’m certainly not going to lie and say it is not a whole lot better having lots of money. I had a whole lot of fun and loved my life when I was eating mustard and ketchup sandwiches and sleeping on the floor of a 3 bedroom apartment that housed me and 5 buddies.
I have a whole lot more fun now. It doesn’t suck to be rich.
The question everyone wants answered, is how to get there. There are ways to get there. But there is not a template that works every time for everyone. It works sometimes. Getting there requires being ready when opportunity presents itself.
IMHO, change and uncertainty create opportunity. Times like we are facing now, with complete financial uncertainty are perfect times to start on the road to getting ahead financially.
First, here is WHAT NOT TO DO:
There are no shortcuts. NONE. With all of 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 US Government”. Please ignore them. Always remember this. If a deal is a great deal, they aren’t going to share it with you.
I dont broadcast my great deals. I keep them all to myself. The 2nd thing to remember is that if the person selling the deal was so smart, they would be rich beyond rich rather than trolling the streets looking to turn you into a sucker. There are no shortcuts.
So what should you do to get rich ?
Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water. Instead of going to McDonalds, eat Mac and Cheese. Cut up your credit cards. If you use a credit card, you dont want to be rich. The first step to getting rich, requires discipline. If you really want to be rich, you need to find the discipline, can you ?
If you can, you will quickly find that the greatest rate of return you will earn is on your own personal spending. Being a smart shopper is the first step to getting rich. Yeah you have to give things up and that doesn’t work for everyone, particularly if you have a family. That is reality. But whatever you can save, save it. As much as you possibly can. Then put it in 6 month CDs in the bank.
The first step to getting rich is having cash available. You arent saving for retirement. You are saving for the moment you need cash. Buy and hold is a suckers game for you. This market is a perfect example. Right at the very moment when cash creates unbelievable opportunity, those who followed the buy and hold strategy have no cash. they cant or wont sell into markets this low, that kills the entire point of buy and hold. Those who have put their money in CDs sleep well at night and definitely have more money today than they did yesterday. And because they are smart, disciplined shoppers, their personal rate of inflation is within their means. Cash is king for those wanting to get rich
The 2nd rule for getting rich is getting smart. Investing your time in yourself and becoming knowledgeable about the business of something you really love to do
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 are getting paid to learn. It may not be the perfect job, but there is no perfect path to getting rich.
Before or after work and on weekends, every single day, read everything there is to read about the business. Go to trade shows, read the trade magazines, spend a lot of time talking to the people you do business with about their business and the people they buy from.
This is not a short term project. We aren’t talking days. We aren’t talking months. We are talking years. Lots of years and maybe decades. I didn’t say this was a get rich quick scheme. This is a get rich path
Now you wait for times of uncertainty and change in your business. The time will come. It may come quickly, it may take years and years. But it will come. The nature of our country’s business infrastructure is that it is destined to be boom and bust. Booms are when the smart people sell. Busts are when rich people started on their path to wealth.
You will know when that time is here for you because you will know your business inside and out. You will be ready because you will have been saving up for this moment in time
With all the change and uncertainty in the financial markets, there are people right now making more money than they ever dreamed of. They are the ones who have been living the real estate market and the financing behind it and understanding what actually what was going on. They re the one who understood the complexities of the credit markets. When everyone was following the crowd, they kept on saving their money and avoiding the temptation of groupthink.
Boom and busts happen to every industry. The question is whether you have the discipline to be ready when it happens for you ?
If you do, you will find out what it feels like to get lucky.
For more on how to get lucky, here is some additional reading for you
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Thank you, Mark.
Comment by Ilias Beshimo -
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I agree, Luck is not something that just happens to you. Luck is something that you really want in you life. You wan it really bad. And human energy attracts the thing that you want in life. All it is, is an attraction of once thoughts. Like a
law of attraction
Comment by Art -
Very good Article!
Now someone is taking the challange to write:
Why it is so wrong to be poor?
Have a Great Day,
Comment by Dror -
I can see why your wealthy. Great article. Any thoughts on high yield savings accounts? Do you believe in financial advisors? What is your take on Charles Schwab when it comes to investing?
Thanks
Comment by Omar -
Excellent post! I think some people get sucked into believing that they’ll get rich buying things which tells them they’ll get rich from buying it. The only way they will is to actually save their money and not buy it.
Comment by Catherina -
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Recently I started reading the richest man in babylon. I am 22 years old and I don’t need to be rich just comfortable… rich would be nice don’t get me wrong ha ha. I know a main point is to surround yourself with wealthy and intelligent people. I do plan on reading more of your blogs. This blog made a lot of sense to me and yet simple enough. I look forward to more of your advice and insight.
Thank you
Comment by Leona -
Great posts, yes its always nice to have money because that’s what makes the world go round and lets not forget its the root of all evil, well I certainly have made my share on the internet using all types of programs my website is called herbsack.com anyone interested can go there and get a site identical to mine.
Comment by Herbsack -
Excellent tips. It’s also important to note that there are other ways of getting rich. For me it was networking. Definitely check out sites like CareerCritique to get an idea of what jobs pay REALLY well and which professions have a lot of extremely wealthy people in them. Use this knowledge for networking with these people. A lot of rich people are friendly people like you and me who wouldn’t mind helping you out!
Good luck everyone!
xoxo
Comment by BimmerGirl -
Just like you stated, if someone is offering you something online that will offer you large amounts of money, then it is problem going to be a partial truth. Also as you have stated, it takes work. There is no substitute. I have taken that long path that you stated about learning the business that I am in, and it is paying off.
I found another great way of saving money and that is by “fasting”. It hurts sometimes, but it saves me money. Usually, I will fast until I get home. It is better to read up on “fasting” before fasting.
Comment by moneycometh -
Mark, those are awesome tips. Thx for sharing. I was actually encouraged by this because i do most of those things now EXCEPT for the putting money in CD’s thing. I’m going to start doing that now that you suggested it. Thx again.
Comment by Josh -
I have just started a free community website on recession hoping that people will be able to share advices and tricks to get out of this bad economy as soon as possible.
Comment by Jean Simmer -
I don’t know about “How to Get Rich,” but Mark sure knows “How to Stay Rich” by getting hundreds of people to post unprotected business ideas to his blog for him to review. Posters have know idea as to what his terms are or what his existing investments are that might benefit from their “fresh” ideas. Brilliant!
Actually, the concept is about 70 years old — it’s called venture capitalism. VCs never sign NDAs and you never know their terms before you send them your business plan. What Mark is actually “open-sources” is the rejects.
Comment by econ365 -
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nice article. But I do believe in shortcuts. Of yourse you must do the shortcuts right, but there are indeed some ways to achieve wealth in a short time, for example : good websites with advertisements. You must have lots and lots of ambition and motivation. Good luck everyone !
Comment by prospero -
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I’d say that the most important element in becoming rich is “timing” (the era of domestic spying, reality TV, and gotcha journalism) … just being at the wrong place at the right time (i.e., your bathtub, a mental ward full of sinister “phony” mental patients). And it doesn’t hurt if your attorney sister becomes involved at just the right time. Before you know it you have a fantastic story to tell and over a half-dozen juicy lawsuits ahead of you. Whatever became of old Richard Jewell (and what an ironic name huh?). I ascribe it all to “synchronicity”. And a whole lot of desire during my college years.
Comment by jaduyi -
Great advice. As a Realtor for 30 years, I experienced the first 2 major downturns prior to 2007-200? The high interest rate market of 1980-1981 and the recession in the early 90’s. Cash was king then and it will be in this cycle as well.
Comment by Fred Doleac -
That is such good advice…With all the uncertainty in the economic infastructure and the emergence of the get-rich schemes out there it is critical to have a clear focus and really be willing to sacrifice
Comment by MIkeH -
Thanks, the first thing I’m going to do now is cut up my credit cards.
I have been in debt far too long and am determined to be rich. I’ve just started a blog and every week and going to keep an update of how I’m getting a long and share any ideas I’ve had about getting rich. If you’re interested in how I’m doing, have a look here getrichinayear.blogspot.com
Comment by B13 -
Thanks, the first thing I’m going to do now is cut up my credit cards.
I have been in debt far too long and am determined to be rich. I’ve just started a blog and every week and going to keep an update of how I’m getting a long and share any ideas I’ve had about getting rich. If you’re interested in how I’m doing, have a look here getrichinayear.blogspot.com
Comment by B13 -
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Mr. Cuban: This morning, I discovered your blog and I’ve been reading non-stop for hours now. Thanks for sharing your insight. Much appreciated. You’re OK, man.
Comment by MikeInSedona -
Mr. Cuban: This morning, I discovered your blog and I’ve been reading non-stop for hours now. Thanks for sharing your insight. Much appreciated. You’re OK, man.
Comment by MikeInSedona -
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those are some useful tips to what to in life. even if you don’t become
very wealthy those are just really good to know. it’s what you want
to do to become secure with your financial assets and then grow.
Comment by Brian -
I have a company that is trying to expand without taking on partners. this has turned sour now that banks won’t even give out loans when i show them contracts that are worth millions. please let me know if you have any suggestions.
Comment by Pedro Morales -
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I totally agree on this one. I started my own business 10 years ago
Digital Networking and it
has been a rough ride in IT. Mostly just conserving resources and looking
for opportunities. I tried everything including door-to-door, flyers,
mailings, etc. It really boils down to how well you know the players in the
game and how much they perceive your value.
Comment by JS -
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I agree with your comments about saving as much as you can, learn as much as you can about what you really wanna do, and when the time is right – go for it !
Comment by Paul C -
Great post. I couldn’t agree more. Being cash rich and waiting for the perfect opportunity is the key.
Comment by Shahnaz -
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How to get rich? Just like you said in this post Mark – Work hard & believe in yourself. Sounds like it should be on a starbucks cup but its so true.
Comment by Daniel Lakstins -
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Great post, I like the credit card line. Basically, if you can’t pay for it with cash, don’t buy it
Comment by stocks -
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This is right on. I’m starting down this path myself. About 3 years ago I started an investment advisor company. I saw everything that was happening with housing and how that was driving the whole economy and that it was going to bust. We did well last year being defensive and short financials, this year being defensive and short commodities, also owning gold, and having a lot of cash available. Like you, I started to aggressively put that cash to work in the last couple of weeks. Buy and hold is for sucker’s because those guys are fully invested all the time and they don’t have cash available for times like this.
I think something has to be said about the marketing aspect too. That’s something that I’m working on right now.
Comment by Greg Feirman -
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Great read, Mark. It’s nice to read good advice from someone in Dallas on career-building techniques and attitudes. I hope someday you find time to comment on the atmosphere of Dallas, and why it is the way it is.
And a technical note — it looks like you might need to turn on comment captchas in WordPress 🙂
(along with word wrapping for this input box!)
Comment by dillon -
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Comment by nATE BOMAN -
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How to be rich? Well, read testimonials of rich people and read between the lines as they will not really reveal their secrets and detailed techniques. Rich people are smarter than we think is intelligent.
There may be shortcuts to be rich like winning the lottery, but I believe that they will not rich for long. This is because they did not really worked hard for it.
While it feels good to be rich, I would rather have exact money as long as I ma happy. After all, there are still things that money cannot buy.
Comment by Angel Cuala -
Another note on how not to get rich: investing in the stock market. Warren Buffett just took a bath on his GE(invested $3B at $22/share) and Goldman Sachs(invested $5B at $115/share) stock investments. Sure is guaranteed 10% dividends but he loses on the pricing of his future warrants. GE should open at $17 and GS will be at $80.
This goes to show you that if Buffett jumped in too early,(he can absorb the loss and afford to wait 10 years to recover) then how much smarter than him are you? The short sellers will help to normalize the markets in a few weeks but there is still too much volatility for the sub-millionaire investor.
Companies, specifically financial companies, will continue to drop as the third phase of the credit crunch hits their books. First Phase: Credit dries up and banks refuse to lend; Second Phase: Companies who cannot get loans beginning using up existing loans and credit facilities; Third Phase: Companies begin to default on those loans and credit lines. This is bad news for all public stocks. Based on my research, I see 1Q2010 as a good time for sub-MM investors to enter the public stock markets. Follow Mark’s advice and stick to CDs.
Comment by TomH -
^.^ Everybody probably tells you to buy their sports franchise.
so, here it goes…
it seems the San Diego Padres are for sale..
PLEASE buy them.
Comment by Pedro -
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You talked about saving up your money not for retirement but for that
perfect moment to act. Cash is King! I couldn’t agree more. More
money can be made in economic crisis that when it’s going up. Look
at how many millionaires the great depression made. Following right
with what you said, look at Warren Buffet. He has been realitivley
idle for the past few years and now he is dropping down BILLIONS.
Cutting up a credit card for the average person who can’t controll
their debt is sound advice. But for those who can stay on a budget
credit cards can be a very healthy mix. An excellent credit score
may not be the end all, but it sure can’t hurt! Keep on posting
these great articles! We need to continue raising our financial IQ’s!
Mike Roberts
How to Rich
Comment by Mike Roberts -
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Mr Cuban, you are 100% correct…….I gotta say its good to see other people have the same perspective on life that I do. Everybody around me thinks I am insane, Because I don’t use credit cards or take out car loans. They think I am crazy for investing into the stock market. They keep telling me to get a job for health insurance. I think its kind of funny actually. I am 25, Been digging hard to get my business going.. Recently its been running a lot smoother than in days past. Mostly because I’ve been focused, and I have not been listening to them. They distract me and I allowed it to move me off course……I respect you and your opinions 100%
Comment by JP -
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I’d disagree with you on the credit card statement.
Credit cards are fine if you only buy what you can afford.
If you pay them off every month, you can derive added benefit
for yourself (cashback, airmiles, etc.) or an affinity
group. Not to mention get additional warranties, etc.
The challenge is that the US,as this crisis makes painfully apparent,
a nation of people who don’t want to wait until they can afford
that new house, new car, new home theater, etc.
I don’t blame mortage brokers, banks, or credit card companies
for this. This is clearly a parenting and education issue.
Comment by Marc -
Love it
Good stuff dude
Comment by Moneymonk -
Great post, Mark! And I couldn’t think of a better time to remind people to avoid many of the trappings that have brought this economy to its knees. If we collectively took your advice decades ago we wouldn’t be drowning in consumer debt and have a negative savings rate. We just cannot continue to borrow our way out of problems.
Comment by JW -
wait a second, are you trying to say that I can’t just go to Trump
University to get rich?
Comment by David -
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Refreshing read after all the blame and victimization reported in the media.
Speaking of blame, How did Fuld get in a hearing yesterday? When is it Fannie and Freddie’s turn on the hot seat?
Comment by EG -
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I love NBA basketball. Is Mark Cuban hiring?
Comment by Todd Hoskins -
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nice post mark. i’ll start saving right this moment. :]
http://www.jdiazblog.wordpress.com
Comment by jdiaz -
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Thank you! (In particular, about my request for another “kick your own butt” article to be successful).
And to Jerry “Get rich????…How about get by???”, yeah, take a look around you and in the mirror. I look around my neighborhood/city, $40K SUV’s and 52” plasma’s and wonder how, since I make double the average family income and wouldn’t even consider these item’s within reach. Maybe that’s not your case and you have other issues, but I don’t see most Americans “suffering” over the last few years of declining incomes. Piss it away, I’m waiting with my cash to “help” you out.
Comment by MikeH -
Well, that was inspiring! Thankyou ^-^
Comment by Kimby -
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Mark, you are right. I know it first hand, reading your advice was like reading my mind 10 years ago.
I felt a stupid for not buying my home here and even more stupid staying in a $900 montly rent apartment and with my old Ford Escort while all of the other guys I know were buying Mini Coopers.
Thing is, that allowed me to save some bucks, bought a home in my native country and I’m on the way to fullfil my dream, which is to buy a small apartment close to the beach. For people like you would sound an achievable goal, but for me, 10 years ago was unthinkable.
Thank you Mark for sharing, I really appreciate you sharing your wisdom, this is a piece for the ages I would gladly put in my son’s home for him to read it every day (your only problem is that you like the Mavs, I’m a Spurs fan, sorry ☺)
Comment by Ariel -
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Writing to you Mark because I was on the FACEBOOK site visiting my friend Bob that had you as a friend. Then I read your blog. Interesting! Very interesting! I also read the comments, some of them I must say were fairly STUPID. All I know is that you can not blame anyone for being indebted except yourself, period. I fell prey to that myself and now I am in deep poo poo BUT, I’m not blaming anyone else. Getting rich on the other hand will come one day but the one thing I love about what you said was to do something that you love. When I look back at the opportunity for doing exactly that many years ago but chose to go the conventional route,that was probably the biggest mistake I had made. But now, after all the Real Estate and Mortgage problems that affected me directly, I am going to try to go back to my love and that was singing and writing my music. So there, that is how I will get rich in life. Martine
Comment by Martine -
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Wow, you just described me.
Comment by Leo Horie -
Hello Mr. Cuban,
Back in May, you posted a blog that was reprinted in the Dallas Morning
News. The title was “With Ceo lottery ticket, workers lose” and it
was the most sensible explanation I’ve ever seen of what CAN be done
and SHOULD be done about CEO compensation.
Even if the government fines and/or tries in court the CEOs of Wall
Street, we will not recover from this debacle until the Boards of
major corporations restructure the compensation packages of Upper
management. I have always been a believer in Risk and Reward, but
in corporate America, there seems to be only reward, even when a CEO
has done badly and is asked to leave. Between 1996 and 2002, CEOs
who were fired, walked with and average package of 15.1 million dollars
and were free to send out their resume and do it all over again.
Manipulating the bottom line has become an art form, and it almost
always involves firing those who you refer to as being in the “cash
zone”. These same people most likely had a sub-prime mortgage and
when they lost their job, also lost their house.
What can we, as tax payers and many times stock owners as well,
do to get Corporate America’s attention? I would gladly sign up to
support any new law that might result in a smaller gap between the
average wage earner and the ones who make the rules.
Let us send you to Washington, Mark Cuban. You make much more sense
than the Clowns who are running things in Congress.
Thanks for you insight.
this changed?
Comment by Kay -
Again, great read. Thanks so much for this!
Now if “the people” would just listen to the part about discipline and not panic and throw everything out the window we’d be better off for it. 🙂
Thanks!
Comment by Blakely -
I love what you have to say about credit cards. If you have a chance, you may enjoy reading, “A Green Tale” at http://www.financialtales.com I would love to get your input.
Comment by carlossera -
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Mark,
Your butt should be nice and soft after all this kissin!
To tell people today to be patient with their money when
you have billions is like a fat guy telling us how to properly
exercise and diet…I don’t want to hear it! Middle America is
getting pushed down into poverty because of today’s leaders.
Get rich????…How about get by???
Comment by Jerry -
Mark, interesting post especially the point about eliminating your
credit cards. Unfortuntately, I think most of your readers completely
missed the point you were trying to make. Correct me if I’m wrong, but
I think this is what you meant:
People think and act differently when they spend cash vs credit.
Period. And since getting rich is the product of making intelligent
decisions, then your readers need to know that if they want to get
rich, they need to be always thinking as if they’re spending cash.
Next, your point about saving your money was key? You’re not saving
your money so that you can buy a non-revenue producing item, you’re
saving your money so that you can buy something that will make you
money. Easier said than done in a consumer-driven economy…
I love how the traditional banking system confuses people with this
otherwise simple notion. For instance, unless you pay cash for your
house, it’s not an asset. It’s actually the “bank’s asset” not yours.
It never ceases to amaze me how banks distort the issue by reframing
it in a questionable way. It seems to me that until and unless
someone out there start’s disspelling some of these misleading and
unchallenged ways of thinking, we’re all in for a continued spiral
downward. Would love to hear your response on this Mark.
Shayne Mauricette
http://www.intelligentmomentum.com
Comment by Shayne Mauricette -
Mark’s ideas are great for people who want to get rich 20 or 30 years from now. Although there are no shortcuts on the road to success, you can choose the car you drive to get there. From concentrated observations over the past 15 years, I would like to add three additional elements to getting rich: Goals, People, and Position.
“If you don’t know where you are going, then how will you know when you get there?”
-Unknown
Goals are needed first and foremost because you need a target to shoot at. If your goal is to be rich then you need to specify what rich means to you. Is having $1mm in the bank rich to you or is a person that has a $2.7B net worth what you consider rich? Of course this threshold can change but you have to start somewhere. Warren Buffett wanted to be a millionaire by the age of 35.(he made it) He set this goal when he was 10 years old! Because he started with some goal in mind, it allowed him to be on the right track to become the richest man in the world 30 years later. If you want to be rich, pick a 1yr, 5yr and 10yr money goal and shoot for it. All your actions from this day forward should align with at least one of those money goals.
You are who you hang around so consider your friends carefully. Do these people aspire to be successful as you do? Are they already successful now? Are they taking more from you than they are giving back? You only have a limited amount of time on this earth and since we don’t know when God will say, “Time’s up,” we need to take better control of life’s most precious resource. Hanging out with your buddies is fun but, as Mark said, hanging out with your buddies “rich” doesn’t suck. If they believe in you and you can trust them, they will help or at the very lest, not hinder you in achieving your goals. Don’t be afraid of making someone else rich on your journey to being rich yourself. Master salesman Zig Ziglar says, “You can have everything in life that you want if you help enough other people get what they want.” Please note that being in the “physical” presence of people is not necessary to surround yourself with greatness. Books and the internet can keep your “Money Mentors” closer than any other time in history. For the billionaires-in-training, I recommend going back a few generations and read about Rockefeller and JP Morgan. Ron Chernow has the best books out there. Also read about the world history during that time so that you can place the stories and fortunes in context. Keep abreast of current news and trends both inside and outside your desired industry. This will keep your mind open to outside-the-box ideas on how to get rich.
Positioning might be more abstract than the other two entries. Mark talks about going to work in the industry in which you desire to be successful. This is part of positioning. The Marines use what is called the OODA Loop. (Observe-Orientate-Decide-Act) Once you observe where you want to be, you must orientate yourself to benefit from your current surroundings or move to a better position. Sometimes you are moved by others. Consider Mark getting fired from his job at your Business Software. All he was doing was helping a customer and his manager was too short sighted to see it. However, Mark had already “positioned” himself as a trusted and knowledgeable resource to his customer so when he decided to put out his own shingle, he was able to prosper. One of those customers, Martin Woodall, trusted him enough to give him office space and other resources to help him launch his small business. This goes back to the entry on surrounding yourself with the right people. As Mark indicated, saving money is another form of positioning yourself for success. Only when you have the right cash position, can you fully capitalize on the opportunities that cross your path.(thus making yourself rich in the process)
Comment by TomH -
Great advice, something to think about and apply.
James
Comment by James -
Great post! I was planning on writing something along these lines for my blog but now I think I will just forward my readers to this! lol
Comment by BeyondRandom -
Another great insightful post Cubes.Really sound advice. Keep up these awesome posts!
Comment by aussie_dion -
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I totally disagree with what you say: “If you use a credit card, you dont want to be rich”.
Smart investors avoid destructive debt, but leverage constructive debt to build their wealth.
Can you tell me how to build your credit history without using your credit card at all?
http://team803.com/blog/2008/08/credit-score-myths-vs-facts/
Comment by Yosia -
Nice post. Thanks!
Comment by x2 -
Pingback: 10 Ways To Make More Money « The Life & Times of The Renzie Man
damn, that’s great advice. (wish i’d heard it when i was younger 😉
1) save your cash [in very liquid securities]
2) become an expert [at something]
3) wait for volatility to arrive, & then…
4) pounce on opportunity
i’ve never really heard it laid out that succinctly. not the typical balanced portfolio / active vs passive crap, but probably the best summary i’ve seen. vintage buffet, if you will.
thanks mark.
Comment by Dave McClure -
Mark, you inspire more than you know.
Dedicated reader.
Comment by Jonathan Gallegos -
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Thanks for sharing your opinion with us. We all need to be reminded that shortcuts may get you by today but not tomorrow. -Betty
Comment by Stargazeen -
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Luck comes to those who prepare for it and this is exactly
how to prepare.
— Karl Lingenfelder
Comment by Karl Lingenfelder -
Spot on. Many people, from an outside perspective, will quickly state that something was luck when they don’t know how much work went into preparation. Living below your means is fundamential and all you need to be successful is discipline. Even if you don’t save yourself to wealth, as some people do, it does give you options. Options are what you need. Then work hard to be the best at what you love and the oppotunities will present themselves eventually.
Comment by Todd -
Straightforward, no nonsense advice, I love it, excellent!
Comment by Baby -
“If you use a credit card, you dont want to be rich”
That is such an over-statement. You’ve got to spend money to make money. Using credit wisely might be the only way for some people to break out of their financial status. Using a credit card is important to establish credit.
Comment by Lucas -
Typos in last comment: I meant to say “you are extremely intelligent.”
Comment by JT -
Mark, I’m impressed. For a man who doesn’t support network neutrality,
you are extremely support. But then again you are a business man.
I really wish you would consider the moral hazard behind neutrality.
Aside from that, you wrote a wonderful article, and I agree with
everything mentioned in it.
Comment by JT -
Success is when preparation meets opportunity !
Comment by marshal sandler -
Good insights Mark. Another thing I find valuable that I do personally is hang out around rich people. Thanks to the internet, it’s surprisingly easy to do this if you can’t find people in “real life.” I’m not going to say where I go, but it’s a great experience being surrounded by people with the right mentalities and who can give insights with real value. I think a lot of getting rich is being around people who support the idea. A lot of people tend to be pessimistic by nature and will try and bring you down no matter what you do. If you have to block out everyone and go it alone, it’s worth it.
Comment by Steven Kovar -
I’m not sure I completely agree with Mark on his advice. There are lots of super-wealthy individuals who did not save all their money and put it into 6-month CDs, waiting for the “pefect opppurtunity”:
1. Hank Paulson (former head of Goldmach Sachs)
2. Lloyd Blankenfein (current head of Goldmach Sachs)
3. John Doerr (partner of venture capital firm Kleiner Perkins)
4. Mike Moritz (partner in venture capital firm Sequoi)
These guys didn’t come from a life of hardship to a life of riches. The point is that there are many ways to get rich, and there are ways to do it quickly also. Look at the number of hedge fund managers who have ENORMOUS amounts of wealth, only a few years in the business.
Comment by Jack -
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Great post, thanks!
dusan952@hotmail.com
Comment by dusan952@hotmail.com -
Thanks Mark, great article.
My own changes to face these challenges. Most of my start up ideas are shelved.
I am refocusing my efforts in the mobile/embedded markets as there is a real
need popping up for programmers to modify/rewrite Mobile Linux kernels and the
packages/applications on top as full stack for new devices as a lot of firms
are choosing to avoid the higher premium priced solutions like LiMo which is
at $400,000 to get a license before you do any modifying of their code base
into a stack for a device.
I fully believe that the web programming market will be slow for awhile. The
change allows me to be stable money wise while I work long term towards a
new startup idea.
I am not putting deal specific about my first project deal that may get awarded
on Monday or Tuesday lets just say I am banking most of the bonus
and saving that cash to have ready for an opportunity.
Once again MArk thanks for the article as its filled with all the right advice
we need to follow at this time if we want the opportunity that the
advice provides.
Comment by Fred Grott -
Pingback: How to Get Rich, Cuban Style - BurningBoats.com
Yeah…i’m totally agree with you. Getting rich is something that need effort and descipline. Anyway I like Your article.
Comment by Lonelytribe85 -
Best way to get rich is to start your own bank.
You will need several million dollars capital. Then you can live off
the stupidness of others.
Comment by frogtoad -
I agree it takes time to get rich, we need to be patient and do our best in every opportunities we got.
Comment by Hanstaruna Invest Tools -
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True words – and if you like here are some more http://www.fourmilab.ch/etexts/www/barnum/moneygetting/moneygetting.html
Comment by Mike -
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Hello there,
It is my first time on this blog and I guess I will come back again! Advice about money are always
good to take! Especially at the moment with this crazy financial crisis. What you say is so obvious, but so
many people (and I must admit, even me right now…) are not following these simple rules: save
and no shortcuts! Your advice here will be added to my new resolutions (we do not need to be on
January 1st to add more!).
Thanks Mark,
Cheers,
Dotty
Comment by dottyculture -
Become a senator and ask for earmarks and pocket at least half, then borrow all you can from Fannie Mae until they go under! 🙂
Comment by goodtimepolitics -
Pingback: Dave’s Information Marketing Blog » How to Get Rich
Mark makes a great point.. If u spend money wisely we would be
ahead.. The problem is.. this is america where the government tells u to spend
beyong your means to save the economy… On making money tho a bad economy will lead
to opportunities… I think if you noticed the other day when the
market went down after the first vote on the bailout.. The house voted NO.. Then what happened the market went down a trillion dollars!.. but guess what happend the next day it went back up..
So somebody made ALOT of money.. we need to be on that side… To me the house senate and congress knew this would happened probably made alot of money by voting NO then when they voted yes later in the week.. got out of the stock market.. lol .. of course this is my theory… But people you will see bargins deals and now is the time to get into the market! So save money! and spend it in the market we will see a rebound.. when im not sure..
Comment by NateinSpace -
I have been following my passion for years and I am sure
I’ll also become rich someday 🙂
Comment by Peteris Krumins -
Mark,
You’re definitely my favorite billionaire.
One of my long term goals is to pitch you a deal.
I’m 3-4 years away from that right now. I probably
have the capability (I know I do), but I don’t yet
have the experience to recognize opportunities!
@Hop: there are stranger ways to attract opportunity!
Comment by Dave -
Pingback: So You Want To Be A Rich And Famous Blogger Eh - WinExtra
Pingback: Mark Cuban on How to Get Rich - Start-Up News | Internet Startups
Not everyone defines being ‘rich’ the same way. Personally, I am in the process of selling most of my belongings on eBay. Beyond the daily necessities and a few other small items, I am only keeping a laptop computer, my guitar, my weight lifting equipment and my mountain bike. To be fair, I do not have a family to consider or to worry about; still I have numerous financial concerns. I am ‘selling’ partially out of necessity, partially out of desire. I have a certain disdain for the excessive materialism of our modern times. (Roman Empire revisited?) …In my opinion, I will feel ‘richer’ with ‘less’.
I believe there are a lot of folks that would be happy with a modest level of financial success.
Still, it is somewhat comforting to know that one of the richest people in the world used to struggle just like the masses. You have to admit that there is a certain amount of ‘luck’ that goes along with becoming super-rich. In your case, Mark, there was the ‘luck’ of the timing, and the luck of the over-valuation of most companies and stocks during that (bubble) period. That isn’t meant to take away from the fact that you put yourself in the position to capitalize on those times. You did. The ‘luck’ was in the timing of the unusual markets.
Beyond life, love, friendship, peace of mind, and pieces of happiness… What truly is worth billions of dollars? Broadcast.com? I suppose Yahoo! thought so at the time.
If I were wealthy I would give most of my riches away. I would help as many people as I possibly could. I know it is easy to say, and talk is ‘cheap’ …But…
Just imagine how truly rich you would be.
P.S. Mark, I have a US Design Patent for a unique guitar pick. If you would consider helping me to bring this idea to market, I would like to give ALL proceeds to charity. And we can put that in writing. Thanks.
Jim Parham
Yuba City, CA
Comment by Jim Parham -
Yes!
This is one of the best blog posts ever.
The two most important things you mentioned were the first two:
1) NO SHORTCUTS;
2) SAVE!
Look, some people get lucky, but there’s a greater chance of getting
struck by lightening than winning the lottery; this isn’t just a
proverb, it’s been mathematically proven.
Don’t get me wrong; there’s nothing wrong with a taking a few small
risks here and there, and yes, it’s good to dream.
But that being said, you need a healthy balance of reality and fantasy
(both are fine, so long as you keep the mix). And also, of hard work
and fun. Again, it’s OK to spend a little extra here and there, but
at the same time, make sure you have enough to save and invest. (By
invest, I don’t mean in scams! Cuban is right: DON’T BUY INTO
ANYTHING THAT IS REMOTELY SHADY!)
Cuban, I give this post an A+!
Comment by the-cuban-responder -
One more commitment: write a blog, gain credibility, attract opportunities…
Comment by Pat Kitano -
Having started reading Warren Buffet’s new book, Snowball, he follows this blog post to the extreme.
Reads voraciously, ultimate spendthrift, independent thinker, takes massive advantage in times of turmoil.
Comment by Hop -
As I’ve always said, luck is just the right mix of opportunity and preparation. Gotta make your own.
Great post, Mark. Good to see some down-to-earth advice on this subject.
Comment by Tom -
Word, brotha. I would never have read an article with a title like this, but since it was YHN, I took a look, not b/c my goal is getting rich, but because I wanted to see what uyou had to say. And you hit on most/all of what I believe. I quit a $100k finance job in the USA and moved to Europe two years ago. I haven’t worked for anyone but myself since then. But what’s let me do that is watching every penny. Not stupid cheap, I spend money on positive ROI projects, especially investing in learning, teaching myself. I’ve learned more in this two years than I have in my Georgetown MBA and years in venture finance and commercial banking, having invested over $1 billion. I eat ramen noodles a few days per week (the good kind of ramen, not the super market scrap). But I also spent money recently to crash Seedcamp week in London and sponsor a TechCrunch event. And I’m goin to Web 2.0 Expo in Berlin later this month (for free). Invest in yourself, save, study, learn, disregard the doubters, be bold. Right on. Cheers, Chris http://buzzpal.wordpress.com
Comment by chrisco -
One of your best ever posts, Mark.
I made my fortune in a very mundane business that I happened onto as a part-time job in college. In three years I learned everything there was to know about the business and, when I left to do a similar business on my own, it was “instantly” successful. While I have worked, I haven’t needed to work since, and it’s now 27 years later.
Comment by Tom Kelly -
Is that how you got rich, Mark?
Comment by Zahara Mossman -
First step: do not listen to people telling you how to get rich, including Mark Cuban 🙂
So, in short, do not put you money in CDs, do not save, figure out a way to make money on your own.
Comment by Joe -
Two thumbs up!
Comment by TaeWoo -
Thanks for the advice Mark, love the blog -J
Comment by Jay -
one of my favorite posts you’ve made. good stuff. thanks
Comment by Todd -
Great read Mark; Thanks for this.
Go Raptors.
Comment by Jim K -
I really needed to read this today.
Thanks.
Comment by Ryan -
According to our tracking of deposit interest rates, 6 month CD rates have spiked over the past few days to historical highs.
we totally agree, NOW is the time to save cash, the higher rates
are just another sign that the advantage is towards those who have the cash to save.
Lenka
RateZip.com
Comment by rate maverick -
Why do you include multi level marketing in your assessment of “schemes to avoid”? Network marketing is a very legitimate way to earn money, provided it is a reputable company with a product that is in demand. Is it a get rich quick scheme? Absolutely not. Like anything of value, it takes time and effort to enjoy the financial rewards and time freedom. It is a way for someone to start a home based business with a relatively small investment, but it does require discipline and effort to make it successful. So please, correct your assessment of multi level marketing by recommending people check out the company, product, and management carefully, to be sure it is not an illegal pyramid. Thank you.
Comment by Vivian Greene -
I’ve been following the blog for about 4 months now and your posts on the current economic situation have been very impressive, as is this post. Thanks for the great blog.
Comment by Kevin -
There’s really no way someone else can outline to you on how to get
rich. It’s equivalent to someone writing out a plan on how you
should live.
“Getting rich” is something a person can only create
for themselves.
Comment by Omar Chowdhury -
Also Bloomberg states, the “harder you work the luckier you get.” He sumesup
sums up that question with that answer, from time to time. As you are
breaking down, discipline and effort and one just might be luckier
than they were…and the potential to be luckier than imagined.
Comment by Rich -
wow. that was amazing advice. mark, can you send us a bailout package too
Comment by Mike Walsh -