Mark Cuban House

Mack Cuban is a billionaire investor, personality and tech enthusiast. In under a minute he shares 5 steps to get rich on this Youtube clip. I will break them down and share my thoughts on why these steps are effective and why some are controversial.

Why start a budget?

29% of Americans spend more than they earn. You will never become rich with spending habits like this. There is a reason 78% of NFL players become financially stressed 2 years after retirement. It's because they didn't learn to budget.

Spending less than you earn isn't rocket science. It's all about habits. All habits can be broke and you can break the bad ones and become more effective at managing your money. The wonderful part is there are so many resources to learn how manage your spending.

Why you shouldn't Use Credit Cards

54% of Americans hold credit card balance that isn't paid off by the end of the month. The average credit card balance is over $5,500. Credit card debt is one of the worst kinds of debt to carry. The interest rate on credit cards is crippling and makes them very difficult to pay off.

The controversial point of credit cards is that credit cards are an okay way to build credit. Numbers don't lie, most people shouldn't have credit cards because they aren't being paid off. So where is the happy middle ground?

Here is a link to the Chase card if you're interested in using the Chase Freedom Unlimited.

Emergency Fund

Having an emergency fund will allow you to sleep better at night knowing you can cover unexpected situations. Losing your job, flat tire, medical emergency are all situations that add a new layer of stress into your life that is not necessary.

Save up and give yourself a pillow to land on when you fall.

why Invest into S&P 500 index.

The average return from the S&P 500 since inception has returned 10-11%. Most financial institutions use the S&P 500 as a benchmark when making plans for your investments. Extremely good investors aim to beat the S&P 500 and are very proud when they do.

investing into the S&P 500 is a solid plan when it comes to putting your money to work. If you're following all the previous steps mentions you will be earning 10-11% interest instead of paying interest. Index fund investing is very simple and you can eliminate the stress of picking stocks and running the fairly high risk of not beating the S&P 500.

Educate yourself

The higher your level of education the higher your pay. Here is a scale that shows on average how much you can earn based off your education.

I know there are always exceptions to this rule. Also vocational certificates and experience go a very long way that isn't shown on this chart. The traditional college route doesn't work for everyone but you can still educate yourself and earn much more than you would.

How to be wealthy

1. Live on a budget
2. Use credit wisely
3. Keep savings account
4. Invest in the S&P 500
5. Educate yourself

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