Close Ad

According to Mark Cuban, If You Use a Credit Card, You Don't Want to Be Rich
Mark Cuban attends entrepreneurship event
NEW YORK, NY - SEPTEMBER 23: Mark Cuban attends the Tribeca Talks Panel: 10 Years Of "Shark Tank" during the 2018 Tribeca TV Festival at Spring Studios on September 23, 2018 in New York City. (Photo by Dia Dipasupil/Getty Images)
Finance

According to Mark Cuban, If You Use a Credit Card, You Don't Want to Be Rich

We’re all guilty: We want to go out to dinner, buy those boots, or book that trip. We have no cash, so we throw it on a credit card. That’s what it’s there for, right?


Well, yes, but you are doing yourself no favors in the long term says self-made billionaire Mark Cuban.

"Cut up your credit cards. If you use a credit card, you don't want to be rich," the "Shark Tank" star wrote on his blog in 2008. "The first step to getting rich requires discipline."

This is advice even Cuban didn’t always follow. As he told Business Insider in 2014, "credit cards are the worst investment that you can make. That the money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market.

"I thought I would be a stock market genius. Until I wasn't. I should have paid off my cards every 30 days."

RELATED: Mark Cuban Reveals What He Thinks is the Meaning of Life – In 4 Words

Credit cards are very dangerous for those of us on a budget because they make it very easy for us to spend money we don't actually have. And as you only have to pay back a small portion of your balance each month that leads to tons of interest costs.

Cuban's solution is to ditch the plastic, in a way.

"Get the credit card because it's great to help you build your credit score early," the bestselling author and self-made millionaire tells CNBC Make It. But use it responsibly: "You don't have to use a credit card a lot to build your credit score -- you just have to pay your credit card bills on time and pay those cards off in full every month."

So it's not so dire. You can use those cards, but make sure you never carry a balance and only buy what you can afford.

Hot Stories

Pamela Anderson Opens Up About Her 9 Disastrous Weddings
Why Pamela Anderson Can't Stop Getting Married

Pamela Anderson has it all: beauty, fame and success. So why can’t the most famous blonde find her fairytale ending? Why is Pamela so unlucky in love and what dark secrets lie behind her seemingly glamorous life?

Keep ReadingShow less
Life Stories
Woman at a restaurant's window and two teen employees.

Teens Applauded For the Way They Handled This Angry Customer

Instagram/ @kekessnowballs

Working in customer service can be challenging, especially when you’re dealing with rude and demanding clients. That’s particularly true for some teens, who work these jobs for part-time money and are often bullied by adults. Perhaps that’s why people are applauding these teen girls for the way they expertly handled an over-the-top customer.

Keep ReadingShow less
Uplifting News
Elderly woman selling baking goods outside and an elderly woman with glasses.

Stranger's Video Helps Grandma Selling Baked Goods Go Viral

FOX13 News

Every Wednesday, Thursday, and Friday without fail, Inez Hudson can be found stationed outside Super Choice Foods supermarket in Lakeland, Florida.

The 73-year-old woman sells homemade pies and cakes to support herself as her fixed income isn't enough to cover her living expenses.

She has her good days and bad days. That is, until now. Because thanks to the kindness of a stranger and the power of social media she just became a viral sensation. And now? Her baked goods are selling like hotcakes.

Keep ReadingShow less
Uplifting News