Finance blog GetRichSlowly has an interesting article about an interview Forbes magazine did with Mark Cuban. In case you don’t know who Mark Cuban is, he’s the multi billionaire owner of the Dallas Mavericks basketball team.<br /><br />Forbes asked Mark a question - "If you came across $100,000, what would you do with it?" - The answer was quite surprising coming from a billionaire. To me, anyway.<br /><br />So what would he do with it?<br />
- Pay off his credit card debt
- Pay off his credit card debt
- Consider paying off other debts
- Stick the rest in the bank
<br /><br />Pretty much an everyman response, or at least a response from someone grounded in reality and fiscal sensibility. Mark expands further though - he hits the grocery sales:
I try to create as much transactional value as possible from that cash. I look at my annual budgets for everything and anything, and I look to see where I can save the most money on those items. Saving 30% to 50% buying in bulk — replenishable items from toothpaste to soup, or whatever I use a lot of — is the best guaranteed return on investment you can get anywhere. Then whatever I have left I keep in the bank and let it earn nothing. Why? Because then its available for when I get a good opportunity.
The old adage holds true, a penny saved is a penny earned!<br /><br />From <a href="http://www.getrichslowly.org/blog/2010/11/17/advice-from-a-billionaire-what-to-do-with-a-windfall/" target="new">GetRichSlowly