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 high-interest debt 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 prioritising 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 an opportunity to use debt cautiously, as long as interest rates are extremely low and the purchase is made under favourable terms (e.g., an apartment purchase).
I strongly suggest controlling credit lines for most personal expenditures or personal investments.
Going back to Mark Cuban’s suggestion, it is worth paying off the debt as soon as possible before making any active investments.
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