Mark Cuban is a wealthy billionaire who built his fortune as an entrepreneur and investor, but his money rules are surprisingly simple. Over the years, he has spoken in interviews, blog posts and features about the importance of living frugally, staying out of debt and avoiding risky bets. For retirees, these lessons are super valuable and can save you from financial disasters.
Explore Next: Mark Cuban: Trump’s Tariffs Will Affect This Class of People the Most
Trending Now: How Much Money Is Needed To Be Considered Middle Class in Your State?
Here are Cuban’s top financial tips.
Live Below Your Means
Cuban is a big believer in living below your means, even when you have money, according to an interview he did with Spanx founder Sara Blakely for Money.com.
“You’ve got to have discipline in how you spend your money, first of all. When I was getting started, I used to read this book, “How to Retire at 35,” Cuban said. “The whole premise of the book was that if you could save up $1 million and live like a student, you could retire. I believed heavily in that book. It was a big motivator for me.”
He said that when he was younger, he drove old cars, shared apartments and lived off cheap meals until his businesses took off. “I’m not saying that it’s easy, particularly if you have a family. But if you can find that discipline, then you can save,” he added.
If you’re a retiree living on a fixed income, it’s even more important to live below your means so you won’t run out of retirement funds.
Read Next: Mark Cuban Says Trump’s Executive Order To Lower Medication Costs Has a ‘Real Shot’ — Here’s Why
Avoid Credit Card Debt
Cuban is also adamant about staying away from credit cards if you’re not in a great financial situation already.
“For me, the hardest lesson I learned was getting my credit cards ripped up,” he said. “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 have ripped up.”
That said, he’s not totally against it. He recognizes that it could be a great credit-building tool as long as you pay it off at the end of the month. “[If you don’t,] the 18% or 20% or 30% you’re paying in credit card debt is going to cost you a lot more than you could ever earn anywhere else,” he explained.
So if you’re not confident that you could handle credit card debt in retirement, you might want to stick with debit or cash to prevent interest charges from draining your savings.
Build a Strong Emergency Fund
Cuban has consistently said that before anyone invests, they need a solid safety net. “If you don’t like your job at some point or you get fired or you have to move or something goes wrong, you’re going to need at least six months’ income,” he said to Vanity Fair, as reported by CNBC.
For retirees, this cash cushion helps cover things like home repairs or medical bills without forcing you to sell investments at the wrong time. Having liquid savings will also make your retirement plan more resilient.
Stick To Low-Cost Mutual Funds
Cuban isn’t opposed to investing, but he is careful about where money should go. He suggested putting savings into low-cost mutual funds. “Saving money and putting some into a low-cost mutual fund — like an SPX fund — and living as inexpensively as you possibly can, will pay off dividends,” he said in the interview with Money.com.
SPX fund refers to any index fund that holds all the stocks in the S&P 500 index, which represents around 80% of the broad U.S. equity market.
Retirement Does Not Mean Stopping
Cuban has made it clear that he does not plan to retire in the traditional sense. “I’m just getting started,” Cuban said to CNBC. “There’s no retirement in my book. I’ll go until I drop.”
For retirees, the takeaway is not necessarily working until you “drop,” but to embrace the same mindset of staying active and curious. Keeping your mind and body engaged by starting a side hustle can also help you stretch your savings and provide more security in retirement.
More From GOBankingRates
- 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025
- I Paid Off $40,000 in 7 Months Doing These 5 Things
- 6 Big Shakeups Coming to Social Security in 2025
- 8 Common Mistakes Retirees Make With Their Social Security Checks
This article originally appeared on GOBankingRates.com: Mark Cuban’s Top 5 Tips That Will Save Retirees From Financial Disaster
