Mark Cuban’s 9 Rules For Getting Rich, And Why Two Of Them Are Wrong


Mark Cuban is best known for owning the Dallas Mavericks basketball team (he sold the team in late 2023) and is worth over $6 billion. Several years ago, Cuban published a short video with his 9 rules for getting rich. I went through his video and agree with most of them, but two of his rules are wrong.

Here are Cuban’s 9 rules and why two of them are wrong, and a couple need more context.

Rule #1: Live Like a Student (Correct!)

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Living like a student means you’re banking a lot of your salary. Your wealth will increase drastically if you are saving and investing the majority of what you make. I like this rule, though it will take discipline to get it right for your life.

Rule #2: You Shouldn’t Use Credit Cards (Wrong!)


Cuban is wrong here. When used responsibly, credit cards offer a wealth of benefits. From cash back to travel points and even warranties on the things you buy, credit cards are a great way to spend money. However, credit card debt is debilitating. Always pay off your credit cards every month to avoid high-interest debt.

Rule #3: Save Six Months of Income (Correct!)


Having an emergency fund saved in a HYSA (High-Yield Savings Account) is a great way to prevent credit card debt with unexpected expenses. I always recommend at least three months’ worth of living expenses, but six months is even better.

If you don’t have an emergency fund, here’s how to start one.

Rule #4: Put Savings Into SPX Mutual Fund (Wrong!)


The point of your savings is to keep that money safe. While mutual funds do offer a certain degree of risk tolerance, a high-yield savings account offers much greater safety for your savings. Remember, the purpose of your savings isn’t for it to grow. It’s to keep it safe. Only invest your savings if you are an extremely risk-tolerant person.

Rule #5: 10% Of Savings in High-risk Investments (Sorta!)

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I believe 10% is much too high, but I do believe there is value in exposing your investment portfolio to higher-risk investments, such as cryptocurrencies, IPOs, and REITs. I would never invest more than about 4 or 5% of my savings into high-risk investments.

Rule #6: Buy Consumables in Bulk & on Sale (Correct!)

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Buying in bulk is always a great way to shop, provided you aren’t buying perishable food items that might go bad before you have a chance to use them. When something you use often goes on sale (soap, coffee, toothpaste, etc), buy more than one to reap the savings.

Rule #7: Negotiate Using Cash (Correct!)

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The phrase “Cash is king” still rings true today. When you can, use cash in negotiations to get a much better price on things you buy, such as cars or even a new home. This technique can even work with smaller items if you’re shopping at a place where haggling is expected.

Rule #8: Read Books (Correct!)

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There’s almost no downside to reading books, both fiction and non-fiction. It stimulates the mind and helps many people relax after stressful days at the office or with their kids. I’m a big fiction reader because it gets my creative juices flowing.

Rule #9: “Nice Works” (Correct!)

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The phrase “Nice guys finish last” is simply wrong. Being nice has its place, and people want to work with nice people. “When you’re nice to people around you, you’ll always get more results,” Cuban said. He couldn’t be more right. Other people want to associate with friendly people.

Watch the video here


The video is published on Vanity Fair’s YouTube channel here. Watch the whole thing (it’s short) and see what you think.