Yahoo Finance Mark Cuban Reveals Why He Keeps a Strict Budget Everyday
It’s known, per Mint, that more billionaires are self-made than legacy heirs. Less recognized is the fact that many of the world’s richest people stick to ordinary financial routines, possibly remembering how difficult it was to achieve the phenomenal level of success they enjoy now.
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Despite his immense wealth, Mark Cuban — billionaire entrepreneur, investor, minority owner of the National Basketball Association’s Dallas Mavericks and “Shark Tank” television personality — knows the importance of having a solid, almost economical, financial plan. Budgeting is what keeps the wealthy, wealthy.
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Mark Cuban Is All About the Budget Strategy
When asked by GQ about the turning point from being successful millionaire and an ultra-successful billionaire, Cuban conceded there is a huge difference when you jump wealth levels. But in the day-to-day, Cuban still does a lot of things he was doing when he was a novice businessman with a paltry bank balance.
“Oh, yeah, trust me, there’s a huge difference between being a millionaire and a billionaire, or even having $10 million or $25 million,” said Cuban. “After I sold my first company, and I had like two and a half million dollars in the bank, I still kept a budget. I still have that budget, actually. And I kept a strict budget every day.”
“Then I went back to Dallas, but I was trading stocks,” he continued. “And I was starting to make a lot of money trading stocks. But even then, I didn’t feel like, ‘Okay, whatever I want, I can be extravagant.’ Same house, same everything, same car.”
The truly wealthy don’t waste their wealth — they grow it. For example, that’s why the sixth richest person in the world, Warren Buffett, eats breakfast at McDonald’s every day and lives in the same Omaha home he bought for $31,500 in 1958.
It’s not self-punishment — it’s pragmatic living and part of what makes billionaires a rare breed. This includes the frugal spender, Cuban, who is currently worth $5.4 billion and ranks 542nd on Forbes’ Real-Time Billionaires list. By spending conservatively and saving where you can, you can make a better return than competing with the risk-takers.
“I look at my annual budgets for everything and anything, and I look to see where I can save the most money on those items,” Cuban told Forbes years ago. “Saving 30% to 50% buying in bulk — replenishable items from toothpaste to soup, or whatever I use a lot of — is the best guaranteed return on investment you can get anywhere.”
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This article originally appeared on GOBankingRates.com: Mark Cuban Reveals Why He Keeps a Strict Budget Everyday
