If you really want to be rich, you need to do this, says Mark Cuban

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Recently, on his Maverick blog, we came across a simple piece of money advice from billionaire entrepreneur Mark Cuban that we felt resonated in today’s world where money is stressed. Cuban answers the question “so what do you have to do to get rich?” with this point first and foremost: “Save your money. Save as much money as possible. Every cent you can. Drink water instead of coffee. Instead of going to McDonald’s, eat mac and cheese. Cut up your credit cards. If you use a credit card, you don’t want to be rich. The first step to getting rich requires discipline. If you really want to get rich, you have to find the discipline.”

Many pros agree that saving money can make you, if not rich, then richer (and the good news is this: savings accounts now pay way more than a year ago, and you can get the best rates you can get here. to get). But, as Cuban says, saving money does require discipline. So what does it take to create the discipline to save money early and often?

Ask yourself this question – then do an in-depth follow-up

“The first step is to want to make changes,” says Bickling Financial Services Certified Financial Planner Spencer Betts. So ask yourself: do I really want to achieve this goal? If the answer is yes – really, really, yes – then you are on your way.

Then see why you answered yes – what does it mean for your life to save money? How will it improve your life in a meaningful way? Financial therapist Rick Kahler says he’s seen people go from saving nothing to $5,000 a month after examining their emotions and beliefs about money. “There are many things a person can do to advocate for a short-term behavioral change, but they often don’t last. This is a case where a person has to slow down to go fast. The results are that people who spend thousands of dollars and try to obtain for many years [wealth] via short [cuts]could have reached [that goal] much faster if they slowed down and looked under their psychological hood,” says Kahler.

Create a specific and reasonable goal

Then it can be helpful to have a specific goal in mind for making the change. “Every time you change how you spend money, it will feel weird. You’re going to have to change your lifestyle somehow, so it’s good to focus on if you have a good reason to make those changes,” says Betts.

Starting with small changes, rather than big ones, can help you stay on track without feeling out of control. Maybe it’s as little as an extra $100 in savings on each paycheck. Another tip: “Look at your monthly recurring expenses to see if there are any services you’re paying for that you no longer need. This is good to do periodically, for example every six months. Are there any costs that can be avoided in the future, such as late payments, ATMs or overdrafts,” says Betts.

Much like Cuban offerings, Betts says making coffee at home instead of picking it up, or cooking more at home instead of eating out can increase your monthly budget. “While these expenses may seem small, if you can reduce spending by $25 a week, that means an additional $1,300 in savings after 1 year,” says Betts.

Check out the best savings account rates you can get here.

Look at your past behavior to avoid future mistakes

Mistakes can derail us – and while you’ll make some, avoiding as many as possible helps to stay on track. So look at what has derailed your savings in the past. Betts says one of the most popular questions he gets from clients ages 16 to 60 is how they can develop the discipline to save more money. One of the first things he tells these customers? “Try to understand the why behind any past financial mistakes, why did you feel the need to make the purchase, sign up for the service or tax yourself financially? We need to understand our motivation to spend money , so we can make changes in the future,” says Betts.

Reward yourself along the way

“To build the habit of saving, every time a person saves, one of the senses needs to be rewarded,” said Julia Kramer, financial behavior and leadership consultant at Signature Financial Planning.

Use these easy hacks

Kramer says research has shown that simple techniques such as naming a savings account, visualizing a savings goal, or having a picture of a savings goal and looking at it for several minutes a day can cut savings by about 5% to 7%. to increase. “I joke with my clients that it’s free and has no calories, so why not try it,” says Kramer.

Automate your savings

Set up an automatic transfer from a checking account to a savings account for this. Check out the best savings account rates you can get here.

Be smart with windfalls

Should you receive money from a bonus or tax refund, it is important to watch your psyche. “When customers get a windfall, we think about some fun today and some fun in the future. In this way, customers have the opportunity to enjoy the present while making plans for the future.

Minimize temptations

Certified financial planner Marguerita Cheng says you can reduce the temptation to overspend by not storing your credit card information online. “You can also minimize the number of apps you have, which makes it harder to spend money,” Cheng says.

Know mistakes will happen – and have a plan to get back on track

Ultimately, Kramer says, be kind to yourself and understand that most of us are determined to discount the future. “We’re still wired for prehistoric life, so worrying about today at the expense of today is an evolutionary adaptation. Our brains aren’t quite adapted to today’s world,” Kramer says.

As for the things you should definitely avoid, Cuban wrote this in a 2015 blog: “There are no shortcuts. None. With all this madness in the stock and financial markets, there will be scams popping up left and right. you have, the more likely someone will come to you with a plan. The schemes will guarantee returns, use multi-level marketing, or be something crazy that is now “backed by the US government”. Please ignore them. Always remember this If a deal is a great deal, they won’t share it with you.”

The opinions, recommendations or rankings in this article are those of MarketWatch Picks and have not been reviewed or approved by our commercial partners.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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