ENTREPRENEUR Mark Cuban may be one of the world's most famous billionaires, but his road to success wasn't always a smooth ride. The investor, businessman, and fan-favorite "shark" on ABC's Shark Tank credits his frugal spending habits – including cheap cars – for helping him become a member of the three comma club. Mark Cuban was born to a working-class family and raised in the suburbs of Pittsburgh, Pennsylvania .
Cuban's drive for success began at an early age, when, instead of splurging on material items, he turned his attention to saving as much money as possible. "I did things like having five roommates and living off of macaroni and cheese, and I was very, very frugal," Cuban said during an interview with Money.com .
He credits Paul Terhorst's 1988 book, Cashing in on the American Dream: How to Retire at 35, for giving him the "discipline of saving." Read More On Mark Cuban Cuban revealed that one of the easiest ways to cut expenses was by forgoing a fancy vehicle. "I had the worst possible car—those types of things," he continued.
Cuban shared that he drove a "Fiat X1/9 with a hole in the floorboard" and a "1966 Buick LeSabre" back in the day. Back in the late 1970s and early 1980s, the average price of a brand-new Fiat X1/9 was between $6,800 and $16,200. Most read in Motors It also wasn't unheard of for used models to sell for under $3,000 or $4,000.
Similarly, a 1966 Buick LeSabre – in the late 1970s and early 1980s – would cost just a couple thousand compared to newer models. "I didn't have a car that cost more than $200 until I was 25, I think," Cuban said. "It was crazy.
But that was my decision. I was determined to save money. I was determined to be able to retire," he added.
Cuban even said he found some unorthodox ways of cutting costs, like when he ended up driving that Fiat X1/9. In a 2022 episode of the Club Random Podcast, Cuban revealed he found the car on the side of a road , clearly abandoned. When looking to buy a used car, U.
S. News & World Report experts have a few tips before walking onto the sales lot. Set a realistic budget.
Some cars are more expensive to insure and register than others depending on engine type, body style, weight, and the amount of doors. Before being swindled by a crafty salesman, it's important to know what you can and can't afford. Researching what car would fit best into your lifestyle can save a lot of time.
Would a sedan work better for your garage or narrow street? Would a truck meet hauling or towing needs? Knowing what suits your needs can narrow down your options. Look into certified pre-owned cars. Certified pre-owned cars are backed by the manufacturer and come with comprehensive warranties at affordable prices.
Some manufacturers have better deals on CPO cars, so research diligently. Not all financing options are created equal. Depending on where you look to finance, if that's on the table, be very careful about who you finance with.
Your best option would be to get preapproved by your bank before going in to give you an idea of what rates are affordable, and to give a dealership incentive to meet or beat those rates. Consider a used car inspection. Depending on where you're buying a vehicle from, you can opt to pay roughly $200 for a used car inspection to have key components examined by an expert.
Consider a vehicle history report. When things get close to signing, buying a vehicle history report based on the VIN can help clarify the previous owners, maintenance records (if it was taken to a dealership), title status, and more. Source: U.
S. News and World Report The car was unlocked, there were holes in the floorboards, and loan papers were scattered across the backseat. I knew from my own personal experience that someone had abandoned it because they couldn't make the payment," he said.
Cuban then called the bank who'd issued the loan, telling them he found the car and was interested in taking over the remaining payments. The bank agreed, and he was able to secure the car for just a few hundred dollars. Cuban admits, however, that his penny-pinching thought process back in his younger days wasn't because he wanted to be super-rich.
"I valued time more than anything," Cuban said. "I wanted enough money to be able to travel, have fun, and party like a rock star, but still live like a student," he added. Read More on The US Sun Financial discipline is the key to building wealth, and unlike Cuban, you may not necessarily have to live off of boxes of macaroni and cheese or drive a beat-up car to hit a realistic savings goal.
However, incorporating some thrift spending and savings habits into your routine – like purchasing a used car or a more basic, affordable model – may just help you achieve financial freedom sooner than you would if you go with a more expensive, luxury model..
