Yes, Black Friday has come and gone, but there are still a lot of big holiday discounts going on. You should be taking advantage of these deals to maximise the value of your cash, according to Mark Cuban.
Last year at our IGNITION conference, Cuban laid out his ideas about how people should invest their money. He thinks people with $25,000-$100,000 should first pay off any debt they have “because that’s a guaranteed return.” After that, you’re better off using the “transactional value of cash.”
He thinks people should hold on to their cash instead of putting it in the stock market, which he doesn’t trust.
Won’t you lose your money to inflation, though? Cuban says you can fight inflation by using cash to get discounts. So, if you hold onto your cash through the year, then go shopping on Black Friday and get 30%-40% off of stuff, you’re going to beat inflation. Or, if you go to a store and offer to pay cash, if you can get a discount, you can avoid inflation. That’s what he calls the “transactional value of cash.”
If you’re over $100,000, then think about investing in public or private companies. Here’s a clip with Cuban explaining it all:
Business Insider Emails & Alerts
Site highlights each day to your inbox.