Life is unpredictable so that financial literacy and management skills are important to manage your money effectively. All financially educated person knows how to deal with the changes in life and economic. They will have enough money to live comfortably during the retirement period.
The earlier you know financial literacy, the better financial management you will have. This is the reason that financial literacy can be future protection and make stability for your life. This is 5 pieces of financial advice from Mark Cuban, the American billionaire and the owner of the NBA's Dallas Mavericks. In his early life, He started his first career when he was 12 and owned a software company. He ranked #177 of 400 the richest people in America by Forbes 20
1. Try not to accumulate credit card debt
If you want to use a credit card, please ensure that you have a total amount of cash to pay at the end of the month. It is worth to use credit to buy a house because the interest from a mortgage loan is much lower than the credit card interest. Mark Cuban said "The interest rate from the credit card debt can be your biggest financial burden"
The most important Mark Cuban's financial lesson learned "You can use the credit card if you can pay off the debt in 30 days. if not, you shouldn't use it"
2. Don't buy the thing you can't afford.
It is not necessary to buy all stuff, especially the thing you can't afford because of the higher amount of money you have in your account, the higher protection you have in the crisis. Another Mark Cuban lesson learned is "living like a student" and if you can save 1 million dollars you can retire when you are 35. However, You should know the principles of saving money. Cuban gets this idea from the book name "Cashing in on the American Dream: How to retire at 35".
3. You should know how to save your money for year's expenses, then invest.
The financial suggestion from Cuban after the Covid-19 pandemic and economic crisis is saving money to cover the year's expenses and then invest in a mutual fund or S&P500. These investments give a good rate of return in long term.
4. You should know how to negotiate.
The lower price you get from negotiation means your expense is lower. Cash can be the most powerful negotiation tool for Cuban. For example, You want to attend the yoga class that cost 30 dollars but you have cash for 20 dollars, they are going to take it anyway. Negotiation by cash can be better than getting the return from the investment. This American billionaire frequently uses negotiation skills when he was young and broke.
5. You can save money from buying in bulk
When you buy the thing in bulk, you can save your expenses for 20%, 30%, or 40% which may better than invest in the stock because it's difficult to choose the high-dividend stock or the right mutual fund. Cuban said "If you buy household consumables that cost 2,000 dollars in bulk, you can save up to 40% which is 800 dollars", so to be a smart investment is to be a smart shopper.
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