Mark Kuban, a Cuban billionaire who owns the NBA franchise, star of the Shark Tank American startup show, shared a secret recommendation. He himself was able to become a successful businessman, so he is well versed in the world of finance. The wealthy Cuban admitted that the advice he shares with the rest has become one of the best ways to develop in his life. The information is especially relevant for those who have loans, but will be useful to other people.
Becoming a Cuban Entrepreneur
A Cuban who takes part in a show of American business startups is good at business. He himself promoted his business and dealt with various spheres of society.
Like any revenue-generating business, Mark Kuban's business required investment. At the stage of formation, the billionaire had to go to the bank to get a loan.
But even the right amount did not bring satisfaction to the Cuban. Analyzing his expenses over the course of the year, Kuban understood why he was unable to accumulate extra money. A friend gave the entrepreneur good advice, which Mark adheres to so far.
Brand Tip
Advice for financial success from the Kuban: for business development and the ability to accumulate equity, you need to pay off loans as quickly as possible. It would seem that this advice does not make much sense, since all debtors want to get even with their debts as quickly as possible. But no more than 3% of borrowers really strive for this.
After analyzing his credit card, the billionaire realized that every year from his income you can safely deduct 16% for paying a commission to a bank. This is not a prohibitive amount, but lost funds could be invested in a more useful business.
According to the businessman, people are used to living on credit. They make unnecessary purchases on credit, not noticing how they drive themselves into Kabbalah with constant payment of interest. As a result, banks are increasing profits, and customers remain with financial obligations.
Kuban is sure that the constant "life on credit" is addictive. Every month, credit card debt will only grow. Repaying one part of the debt, the borrower is forced to use a credit card again in the next period to pay bills and buy products. The principle is called "revolving debt" - fast, progressive and irrevocable.
The billionaire from Cuba asks everyone to immediately start paying off loans, cards and all loans if they really want to save personal funds. He argues his opinion this way: “If you want to develop, direct all your efforts to repaying loans! You will have to sacrifice a lot: rest at sea, get-togethers in a cafe on weekends and even ordering food at home. But just a year later, having checked your expenses, you You’ll be pleasantly surprised how much you can save on bank fees. "