‘Skip Coffee, Drink Water, Eat Mac And Cheese, Save Pennies’

In 2008, Mark Cuban famously shared on his personal blog that, to get rich, “Save your money. Save as much money as you possibly can. Every penny you can. Instead of coffee, drink water. 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 be rich, you need to find the discipline, can you?”

Nine years later, Tim Gurner, an Australian luxury property developer, implied that young people can’t afford to buy property because they’re wasting money on $19 toast and $4 coffee. He added that unemployment needs to rise from 40% to 50% and that “we need to see pain in the economy.”

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Mark Cuban’s advice to save money and be disciplined is similar to Tim Gurner’s tip for millennials about saving for a house. Both stress the importance of cutting back on daily spending to reach long-term financial goals, highlighting how small, seemingly minor expenses can add up over time and affect one’s ability to save for bigger investments.

In today’s world, Mark Cuban’s and Tim Gurner’s advice about saving money by being extremely frugal is less effective and relevant.

The economic landscape has changed significantly. The cost of living, especially in cities, has increased dramatically. Cutting out small luxuries like coffee or avocado toast doesn’t make much difference when housing, health care, education, and other essential costs take up most of your income. The gap between wages and the cost of living means that even strict savings from cutting minor expenses often aren’t enough for big savings goals like buying a house.

Trending: The average American couple has saved this much money for retirement — How do you compare?

Many people face systemic barriers that make accumulating wealth difficult, no matter how much they save. Issues like student debt, wage stagnation, and economic inequality can’t be solved by saving alone. Structural changes and policies are needed to reduce these barriers and create a fairer path to financial stability.

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Inflation makes saved money worth less over time. In today’s economy, investing wisely is often more important than just saving. Cuban’s advice to save money is good but doesn’t cover the need to grow that money through smart investments. Learning about and making investments can lead to better long-term financial results than saving.

“The 2nd Rule For Getting Rich Is Getting Smart”

In contrast, Mark Cuban’s second piece of advice about investing time in oneself and gaining knowledge in a chosen field remains highly relevant.

Here’s what he said: “The 2nd rule for getting rich is getting smart. Investing your time in yourself and becoming knowledgeable about the business of something you really love to do. It doesn’t matter what it is. Whatever your hobbies, interests, passions are. Find the one you love the best and GET A JOB in the business that supports it. It could be as a clerk, a salesperson, whatever you can find. You have to start learning the business somewhere. Instead of paying to go to school somewhere, you are getting paid to learn. It may not be the perfect job, but there is no perfect path to getting rich.”

He continues, “Before or after work and on weekends, every single day, read everything there is to read about the business. Go to trade shows, read the trade magazines, spend a lot of time talking to the people you do business with about their business and the people they buy from. This is not a short-term project. We aren’t talking days. We aren’t talking months. We are talking years. Lots of years and maybe decades. I didn’t say this was a get-rich-quick scheme. This is a get rich path.”

Skills and expertise are invaluable in today’s knowledge-based economy. Continuous learning and professional development can result in better job opportunities, higher income potential, and career satisfaction. By focusing on gaining practical experience and education through work, individuals can build a solid foundation for financial success.

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This article Mark Cuban’s Advice To Get Rich: ‘Skip Coffee, Drink Water, Eat Mac And Cheese, Save Pennies’ originally appeared on Benzinga.com

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