Mark Cuban Says To Get Rich, Invest 10% Of Savings In High-Risk Investments – But If It's Bitcoin, 'Throw a Hail Mary' And Pretend It's Gone

Mark Cuban, the billionaire entrepreneur, once shared his "9 Rules To Get Rich" in a Vanity Fair video posted to YouTube in 2018. 

One rule that stands out is his advice to allocate up to 10% of your savings to high-risk investments. If you're feeling adventurous, he suggests investing in Bitcoin or Ethereum. But he offers a critical caveat: if you choose to make this move, you should mentally prepare as if you already lost the money. 

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Cuban describes this strategy as a "Hail Mary" play – a risky, last-ditch effort with the potential for high rewards. He compares investing in high-risk assets to collecting art, shoes, or baseball cards. He explains that these investments’ value is determined by what someone else is willing to pay for them, making them a "flyer" or a speculative gamble. 

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Cuban advises limiting this type of investment to 10% of your savings, ensuring that your financial foundation remains solid even if the gamble doesn't pay off – hence treating it as if it's already gone. 

But why take the risk? Why not just play it safe? 

Cuban’s advice may be eye-opening for those who have built a stable financial base. Incorporating high-risk investments into a portfolio might seem a little scary, but it also presents an opportunity for big returns.

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Cuban isn't advocating exclusively for cryptocurrencies. There are plenty of other high-risk investments you could opt for, such as:

• Startup Capital: Investing in a new business or side hustle could potentially yield substantial profits in the future.

• Riskier Stocks: Small or micro-cap stocks offer the chance for high returns, but they also come with higher risks compared to established companies.

• Real Estate Crowdfunding: This lets you invest in real estate projects through online platforms. While it offers access to potentially profitable deals, the risk of project delays or failures is higher.

• Venture Capital Funds: Investing in venture capital allows you to back startups or early-stage companies. While the potential returns can be significant, the risks are high, as many startups fail to reach profitability.

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Cuban does not advocate for reckless approaches. Instead, he's suggesting that a small portion of your portfolio – up to 10% – can be allocated to high-risk, high-reward investments. The key is to treat this money as if it's already gone, allowing you to take calculated risks without jeopardizing your financial stability.

Here's a complete list of his nine rules:

1. Live Like a Student. 
2. Don’t Use Credit Cards. 
3. Save six Months’ Worth of Income. 
4. Put Savings Into SPX Mutual Funds. 
5. Invest up to 10% in High-Risk Investments. 
6. Buy Consumables in Bulk and on Sale. 
7. Negotiate Using Cash. 
8. Read Books.

For those looking to spice up their investment strategy, Cuban's rule might just be the nudge needed to explore new, adventurous avenues – while keeping both feet firmly on the ground. However, not everyone wants to take a risk, which is fine too. There are plenty of low-risk ways you can grow your nest egg. Consider consulting with a financial advisor to find the best approach for you. 

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