3. Mark Cuban: «It doesn’t matter where you live… It doesn’t matter how you live. It doesn’t matter what car you drive. It doesn’t matter what kind of clothes you wear»
As you can surmise from the previous lesson, being able to control your spending is a valuable skill to have. Too often, we can get caught up in material consumption and the quest to own items that signal our social status. Cuban, like Ramsey, holds the view that material possessions and outward displays of wealth shouldn’t matter.
And indeed, according to Thomas Stanley in his book «The Millionaire Next Door», he found that most millionaires did not live the lifestyles we think they do. As Stanley put it, «Many people who live in expensive homes and drive luxury cars do not actually have much wealth. Then, we discovered something even odder: many people who have a great deal of wealth do not even live in upscale neighborhoods.»
Extra Money
Putting it into practice: The idea of the «5 Cs» may not be as prevalent in Singapore today as it was in the 1990s, but we can’t deny that some of us to get caught up in wanting to upgrade our homes, buy a fancier car, or take a holiday to that trendy destination. Growing your wealth means living well below your means so that you can use your excess funds to make your money work harder for you.
This could mean putting your extra money into investments, buying another piece of property, or starting a new venture. Instead of spending your discretionary funds on material items or upgrading your lifestyle, consider how you can grow that money instead.
