Mark Cuban’s “9 Rules to Get Rich” include allocating up to 10% of your savings to high-risk investments. He suggests investing in Bitcoin or Ethereum, but advises mentally preparing as if you’ve already lost the money. This strategy is likened to collecting art, shoes, or baseball cards, where the value is determined by what someone else is willing to pay for it.
Cuban emphasizes that this approach should be limited to 10% of your savings, ensuring that your financial foundation remains solid even if the investment doesn’t pay off. He’s not advocating exclusively for cryptocurrencies; other high-risk investments include startup capital, riskier stocks, real estate crowdfunding, and venture capital funds.
The key is to treat this money as if it’s already gone, allowing you to take calculated risks without jeopardizing your financial stability. Cuban’s advice may be eye-opening for those who have built a stable financial base. Incorporating high-risk investments into a portfolio might seem scary, but it also presents an opportunity for big returns.
Here are Mark Cuban’s 9 rules:
1. Live like a student.
2. Don’t use credit cards.
3. Save six months’ worth of income.
4. Put savings into SPX mutual funds.
5. Invest up to 10% in high-risk investments.
6. Buy consumables in bulk and on sale.
7. Negotiate using cash.
8. Read books.
For those looking to spice up their investment strategy, Cuban’s rule might just be the nudge needed to explore new, adventurous avenues while keeping both feet firmly on the ground. However, not everyone wants to take a risk, which is fine too. There are plenty of low-risk ways you can grow your nest egg. Consider consulting with a financial advisor to find the best approach for you.
Source: https://www.benzinga.com/personal-finance/24/08/40318568/mark-cuban-says-to-get-rich-invest-10-of-savings-in-high-risk-investments-but-if-its-bitcoin-thr