While many are looking to shed weight in the new year, some are looking to gain money.
2018 is a new year and a new opportunity for many to start looking at money differently.
Mark Cuban, the famed investor and one of the stars of “Shark Tank” on ABC, has some advice for those who are looking to save.
he billionaire has three suggestions on how people can see more money in their bank accounts in the new year. He told CNBC Make it the following rules:
1. Do not use credit cards.
Cuban’s first rule is, “Don’t use credit cards.” In a 2008 blog post, Cuban had said, “If you use a credit card, you don’t want to be rich.” He explained “I would charge something and think I would be able to pay it off and then not be able to. I can’t tell you how many credit cards I had ripped up. ”
He told Money, “T]he 18 percent or 20 percent or 30 percent you’re paying in credit card debt is going to cost you a lot more than you could ever earn anywhere else.”
2. Be a smart shopper. Cuban wrote on his blog, “You will quickly find that the greatest rate of return you will earn is on your own personal spending. Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water. Instead of going to McDonald’s, eat mac and cheese.”
3. Put your money to work. Cuban told Make it, “Once you have at least six months salary saved, put what you can in a low-cost SPX mutual fund every month.” It must be sound advice considering Warren Buffett also suggests this.
Buffet had once said, “Consistently buy an S&P 500 low-cost index fund. I think it’s the thing that makes the most sense practically all of the time.”