Mark Cuban invested his first $2M ‘like a 60-year-old’ so he could ‘just have fun. Here’s what he did (and how to build your own income for life)

“I read this book, it was called How to Retire at 35. And the whole foundation of this book was: save your money, live like a student,” he said on a podcast, “And that was my mission (2).”

Paul Terhorst's 1988 book, Cashing in on the American Dream: How to Retire at 35, changed his perspective on life.

Two years after reading it, he sold his company, MicroSolutions, walking away with $2 million, which he quickly invested and retired on at 30.

“I literally remember calling up my broker, and I said, ‘I want you to invest for me like a 60-year-old, cause I want to live off this for a long time,’” he continued.

At the time, American Airlines offered a (since discontinued) lifetime pass, which he bought, as his goal was to “live like a student, just have fun.”

“I bought this lifetime pass on American Airlines so I could go to any city anywhere, party like a rockstar,” Cuban said. “Literally, I would tell people my goal is to get drunk with as many different people as I could.”

And for five years, he did just that — but he eventually found out retiring so young didn’t suit his competitive nature. Soon enough, he was overseeing the audio streaming company Broadcast.com, which Yahoo eventually acquired in 1999 for $5.7 billion.

If you’re hoping to retire many decades ahead of schedule, you might not have the same $2 million windfall as Cuban, but the major steps he followed back in the late 80s can still work today.

How living like a student can help you retire early

The basic rules of FIRE require serious saving and investing early on, and the sooner you plan to retire, the more intense those rules can be.

While Cuban talked about living “like a student” in retirement, in that he wanted to party every day, he also mentioned that the premise of the book was “save your money” and live like a student — financially — meaning even when your career gives you enough to say goodbye to ramen noodles every night, you don’t upgrade your dinner, as that extra cash can allow for enough invested early on to accelerate retirement.

The more you save and invest, the faster your investments meet your FIRE number. For Mark, that was $2 million, but many advocates of FIRE do it on much less.

Start Investing now

If you’re new to investing and still working within the limited confines of a student budget — but want to begin saving for retirement — platforms like Acorns can help.

Acorns makes investing early easy for even the novice investor by turning extra change from your purchases into investments.

For example, if you buy a coffee for $5.30, Acorns will round up the price to $6.00 and invest the 70-cent difference. Throughout the year, these coins can snowball into a sizable investment, with zero work on your end.

Sign up today, and you can get a $20 bonus investment when you set up a recurring monthly deposit.

Build a better budget

And if you really want to understand your spending so you can see where cuts can be made, you need a budget. But for many, budgeting in a spreadsheet can feel like a tediously boring task that never ends, making it hard to stick with it.

If managing a budget feels overwhelming or dull to you, apps like Rocket Money can simplify the process.

Rocket Money tracks and categorizes your expenses, providing a clear view of your cash, credit, and investments in one place. It can even uncover forgotten subscriptions, helping you cut unnecessary costs and save potentially hundreds annually.

Even better, for a small fee, the app can negotiate lower rates on your monthly bills, making it a valuable tool for keeping your finances on track.

Since every penny counts, it’s vital to ensure you’re not overpaying for things like car insurance, as unfortunately, many companies raise rates regularly and without warning. Shopping around can help.

By using OfficialCarInsurance.com, you can avoid overpaying by comparing quotes from multiple insurers like Progressive, Allstate and GEICO. You could even find rates as low as $29 per month, depending on your location and needs.