Mark Cuban, best known for his time on the TV show “Shark Tank,” is an entrepreneur, investor and a minority owner of the Dallas Mavericks with a net worth of around $5.7 billion, and he knows a thing or two about building wealth.
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While a fortune like Cuban’s is rare, he has a wealth of actionable tips that can help anyone grow their money bit by bit.
Read on for eight tips to help you begin to build wealth in 2025.
Live Frugally
While it’s easy for billionaires to advise frugality, Cuban is someone who has walked the talk in his life while building wealth and even still, though he certainly can afford not to. He’s on record telling CBS Sunday Morning that his happiness is not tied to his net worth and he’d be happy to be worth significantly less.
Frugal living may look different for everyone, but in a nutshell: Always try to live below your means, cut unnecessary expenses and focus on building up your savings.
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Prioritize Saving and Emergency Funds
If you take Cuban’s first tip above, you have a much better chance of achieving this second one: to accumulate as much savings as possible. Make building an emergency fund a priority, which will keep you from having to put emergency expenses on interest-accumulating credit cards, and then additional savings can go toward investments and other opportunities that will grow your wealth.
Avoid High-Interest Debt
Cuban is no fan of debt, particularly the high-interest sort that you rack up on credit cards. By paying down debt, you don’t hold yourself back from your goals or burden yourself with unnecessary financial stress. A debt-free life is a clean slate.
Invest In Low-Cost Index Funds
When you’re ready to begin investing some of your savings, especially if you’re newer to it, Cuban recommended putting money into low-cost index funds, such as those tracking the S&P 500. These funds are the most likely to provide steady, reliable returns and keep your portfolio diversified.
Limit High-Risk Investments
If you’ve been investing for a while, you might start to feel like taking bigger risks. Cuban warns to keep riskier investments — such as cryptocurrencies or anything that doesn’t have a solid track record — to a minimum, no more than 10% of your investments. Go into such investments with full awareness that you could lose that money, as well.
Kick Off a Side Hustle
While not every side hustle is worth the time or energy you spend on it, Cuban does believe that some of them can help you build wealth. However, trying to capitalize on a hot trend or big idea is not a great way to spend your time. He recommended you stick with those side hustles that lean into your strengths or existing skills, something you’re excited about so that giving it extra time doesn’t feel like a burden.
Invest In Your Education
Cuban is a big fan of self improvement, especially in areas where the skills or knowledge you gain can translate into better earnings in some way. This ranges from college degrees to online courses or certifications.
Don’t Be in a Hurry
Lastly, Cuban has reminded people that building wealth is a long-term endeavor. You’re not likely to get there in a hurry, so bring extra doses of patience and discipline into 2025. Focus, frugality, saving and debt reduction are your best tools for eventual wealth building.
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This article originally appeared on GOBankingRates.com: 8 Tips From Mark Cuban That Will Help You Build Wealth in 2025
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