In his post, Cuban says the first step to getting rich is to stop spending. He advises cutting up your credit cards, going so far as to say, “if you use a credit card, you don’t want to be rich.” Cuban’s right to discourage people from leaning heavily on credit cards for day-to-day expenses, but when used correctly, they can also be a great way to maximize your spending power. The trouble is many people don’t use their cards correctly.
If you don’t pay your balance in full each month, you could pay upwards of 20% more for your purchases. But if you manage to close out your full balance in one payment cycle, you can take advantage of credit card cash back offers, rewards and discounts on purchases. And you’ll also be working to build your credit score.
“You aren't saving for retirement. You are saving for the moment you need cash,” Cuban writes. “Buy and hold is a sucker's game for you.”