When it comes to building wealth, billionaire Mark Cuban’s advice might surprise you. He says you should stop focusing on saving and start aggressively investing your money. While having an emergency fund is important, Cuban argues that leaving cash in a savings account is essentially leaving money on the table.
Even if it happens to be a high-yield savings account with an above-average annual percentage yield (APY), it won’t keep up with inflation and could cost you thousands over time. Instead, Cuban recommends putting your money to work by putting your money in stocks, real estate and alternative assets. Here’s why saving alone won’t make you rich, and how smart investing strategies can help you build long-term wealth.
Mark Cuban’s Investing Philosophy
Cuban emphasizes that the top 1% don’t just save, they make their money work for them and invest aggressively. This includes investing in examples such as the following:
- Stocks and index funds for long-term growth
- Real estate for passive income and appreciation
- Alternative assets like gold individual retirement accounts (IRAs), for diversification
The goal is to make your money work harder than a savings account ever could. Even though saving is important for short-term needs and emergencies, investing offers significantly higher long-term returns. This means you should balance your strategy based on risk tolerance and goals to make sure you don’t let inflation erode your wealth.
Check Out: Mark Cuban: Trump’s Tariffs Will Affect This Class of People the Most
Read Next: 6 Things You Must Do When Your Savings Reach $50,000
Take Mark Cuban’s Advice With a Grain of Salt
Leaving your money in a savings account, even one with higher-than-normal yields, might not be the best idea. After all, those yields may not even keep up with inflation. This means the value of your savings might fall rather than rise (depending on the account and how much you’re contributing).
But you might still want to have a little saved for emergencies.
“Every individual should have [three to six] months of lifestyle expenses in savings — a checking account and a high-yield money market account. Once they have this money in savings, they should start investing,” said Richard Craft, CEO of Wealth Advisory Group.
You can save money for short-term goals — anything that takes under a year. But if you have long-term goals — anything over a year — investing is generally smarter.
Saving Could Cost You Millions
Say you have a savings account with 4.00% APY and a $50,000 balance. After one year, you’d have roughly $52,000. In 10 years, you’d have around $74,000. This assumes nothing changes in that account — no withdrawals, deposits or changes in yield.
Now, say you invest $50,000 in the stock market instead. According to Investors.com, the stock market has seen an average annual return of 10.8% over the past decade. Assuming average returns and no additional contributions, you’d have nearly $140,000 after 10 years.
That’s nearly double — all because you invested. When you think even longer term, you could potentially be losing out on a lot more than that.
“I think of investing and saving as one in the same,” said Paul Gabrail, founder and host at Everything Money. “Saving for a ‘rainy day’ or for an emergency fund is not a wise financial move in my opinion. This could cost you millions in retirement.”
He continued, “Instead, all savings should go into investing. Essentially, you are still saving; you’re saving for retirement.”
Consider Opportunity Cost
While many experts suggest having an emergency fund, some take a different approach — one that may more closely align with Mark Cuban’s. Saving comes with an opportunity cost, meaning the loss of a potential gain.
“If we’re talking about saving for something like an emergency fund, then I think they should stop immediately and consider the opportunity cost,” said Gabrail. “You can always use a credit card for a true emergency. Put that money towards investing in your retirement instead.”
Take Your Risk Tolerance Into Account
Not everyone has the same risk tolerance. And not everyone is in the same place in life financially. While going straight to investing might work for some, it’s not the best move for everyone.
Consider your goals and needs when choosing what to do with your money. When in doubt, speak with a professional for advice.
More From GOBankingRates
- 12 Costco Deals for 2026 To Grab as Soon as Possible
- I Retired a Millionaire: The Best $30,000 I Ever Spent Preparing for Retirement
- 5 Clever Ways Retirees Are Earning Up to $1K Per Month From Home
- 9 Low-Effort Ways to Make Passive Income (You Can Start This Week)
This article originally appeared on GOBankingRates.com: Why Mark Cuban Says Stop Saving Your Money and Invest Instead
