The entrepreneur who stars on the well-known Shark Tank TV show, Mark Cuban, has billions of dollars to his name, but that wasn't always the case. Like many rich people, Cuban was not born rich. Rather, he has learned how to be a experienced investor and has grown its wealth over time.
As such, Cuban understands what it means to have to live on a tight budget. And he also knows that growing wealth often means making sacrifices. To that end, he has great advice for everyday consumers. And it's a rule worth following.
Live like a student
Many people spend their college days without money and stressed about money. And college students usually have to resort to frugal decisions, like having instant noodles for dinner, to conserve funds.
Cuban says one financial piece of advice he likes to give is to live like a student - even if you're not a student. By this he means that consumers should make an informed choice to avoid overspending and buying things they cannot afford. They should also use discretion when shopping and avoid spending money on things they can live without.
Cuban is well aware that it takes money to make money. And so those looking to build wealth must start by building some savings. From there, they can invest the money they don't use immediately and grow it into a larger sum over time.
How could it be for you to live as a student
When Cuban suggests living as a student, he's not necessarily saying you should sell your house, find a roommate, and live in an apartment that's the equivalent of a cramped dorm. And you don't have to resign yourself to eating a bowl of high-sodium instant noodles every night either. Rather, the point is to be aware of your expenses and avoid wasting your money on things that aren't that significant to you.
There are several ways you can incorporate Cuban advice into your life. You might, for example, stop wasting money on more sophisticated electronics when your current phone, laptop, and tablet are working fine. Or, you might stop spending money on clothing when you have a sturdy wardrobe that gives you loads of variety.
Living as a student could also mean renting a studio apartment if a studio apartment costs $ 300 more a month and you're not sharing your space with anyone. Giving up a few square feet could mean setting aside $ 3.600 a year, or investing that money and growing it into a larger sum.
If you're willing to live more frugally for even just a couple of years, it could work wonders for your finances. You may have the opportunity to inflate your savings, put your money away for a big goal, like buying a house, or paying off any debt you have accumulated to date. And while living as a student doesn't seem like an easy thing to do on the spot, if you're willing to make some sacrifices at least for a limited time, you could end up putting yourself on a financially secure path.