Mark Cuban Investment Advise
Investors and non-investors appreciate a healthy net worth &/or saving account. Those who invest hope to get strong returns to turbocharge the growth of their nest egg. This is a good approach, but not necessarily the first one to try out. Some of you might actually be in a position to make safer and faster returns immediately.
Be sure. There are no secrets!
This is the simple approach suggested by Mark Cuban – an exceptionally successful American entrepreneur – to young investors. Are you seeking good returns in the stock market? Are you looking for a suitable real estate investment? Do you want to use the power of compounding interest and sweat your assets?
Mark Cuban suggests first looking at any debt with high-interest rates and paying it off as soon as possible! Indeed, in several countries, consumer debt (credit cards, personal loans, student loans, etc.) can easily reach between 7% and 16%. Quite often, these costs negatively compound unnoticed while we seek more volatile investment returns in the stock or real estate markets.
Bottom line: by prioritizing paying off “bad” debt with high-interest rates, you obtain immediate secure great, and safe returns: this is already a sound investment!
I make a point of differentiating between bad debt and good debt. In general, it is better to manage personal financial matters without debt. However, there is still the opportunity to cautiously use debt, as long as the interest rates are extremely low and the purchase is made under great terms (ex., purchase of an apartment). I strongly suggest controlling credit lines for most personal expenditures or personal investments.
Going back to Mark Cuban suggestion, it is worth paying the debt off as soon as possible before wandering into active investments.