CNBC make it 2024-12-22 00:25:32


How Mark Cuban protected his wealth after becoming a millionaire: I invested ‘like a 60-year-old’

When serial entrepreneur and investor Mark Cuban became a millionaire, he had a simple goal: Don’t spend all his newfound riches at once.

Upon selling his software company MicroSolutions for $6 million in 1990, Cuban — who took home roughly $2 million, after taxes — quickly called a broker, he told social media personality Jules Terpak in a video interview released Monday.

“I want you to invest for me like a 60-year-old. I don’t want you to invest like I’m young, because I want to live off this for a long time,” Cuban, now 66, recalled telling the broker.

Cuban, the son of an automobile upholsterer near Pittsburgh, didn’t grow up rich. He also knew wealth could be fleeting — he nearly went broke at age 27, after starting MicroSolutions — and dedicated himself to living more like a frugal student, he said.

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Early in his career, that meant living with five roommates, sleeping on the floor and driving a 1966 Buick LeSabre. After becoming a millionaire, it meant living somewhat below the stereotype of his newfound means.

“By the time I sold [MicroSolutions], I had just bought the worst house in the best neighborhood, but I wasn’t big into that,” said Cuban. “I wasn’t big into cars. I wanted to live like a student and just have fun.”

His frugality had exceptions: While celebrating the sale with his friends, Cuban bought a $125,000 lifetime pass at American Airlines, he said on the “Club Shay Shay” podcast in October. He also indulged in another aspect of living like a student, he told Terpak: getting drunk and partying.

“I bought this lifetime pass so I could go to any city, anywhere [and] party like a rock star,” said Cuban. “I literally would [say] I want to get drunk with as many people as I could.”

Experts encourage young investors to take risks

Cuban’s strategy of prioritizing low-risk investment strategies essentially became a non-factor in 1999, when he sold his second tech company, an audio streaming service called Broadcast.com, for $5.7 billion.

Becoming a billionaire helped him feel like, “OK, I’m set,” he said, giving him breathing room to take on more risky investments. He’s known to take bold chances as an investor on ABC’s “Shark Tank,” and has said that taking smart risks is essential to becoming wealthy.

His mindset today is much closer to most experts’ investing advice for young people. Younger investors can generally afford to take bigger risks with higher potential gains than older investors, because they have more time to ride out market fluctuations and recover from any potential losses before they’re ready to retire.

Nasdaq CEO Adena Friedman, for example, specifically encourages young people to get comfortable with taking risks. Even experimenting with pocket money can help you learn the realities of the stock market, she said last month while speaking at the Fortune Global Forum 2024.

“Learn by doing — with small amounts of money, or even on platforms where you don’t actually have to use real money,” said Friedman. “As you get more engaged and more educated, you can start to take more risks … and then get more confidence.”

As for Cuban’s habit of living like a student, his party-heavy days are largely behind him, he tells CNBC Make It. He remains committed to not overspending, relatively speaking: He doesn’t own yachts, have butlers or hire house cleaners — though he did buy a $40 million jet upon becoming a billionaire, setting a record for largest single e-commerce transaction in history.

He now spends most of his time with his family or running his pharmaceutical startup Cost Plus Drugs, an online pharmacy that aims to make prescription drugs more affordable, he says.

“I think less about making money and more about direction and f—ing things up to benefit as many Americans as I can,” says Cuban.

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This in-demand, work-from-home side hustle can pay up to $1,000 an hour—or become a full-time job

If you enjoy teaching and are looking for a side hustle — or full-time job — that you can do from home, you might want to consider tutoring. 

Demand for online tutors has surged in recent years, driven by pandemic disruptions to in-person learning, declining test scores in core subjects, and increasingly competitive college admissions.

While the need for online tutoring services “might not be as intense” as it was during the height of the pandemic, “it’s still strong,” Kathy Kristof, founder and editor of SideHusl.com, tells CNBC Make It

“Tutors can earn anywhere from $15 to more than $150 an hour, depending on the subject that they teach,” she adds. 

‘It’s a great side hustle’

Tutoring is a popular because it allows you to “set your own rates and availability,” says Kristof. There’s no shortage of subjects to teach, whether academic or non-academic, and a variety of platforms to choose from. “It really is a great side hustle,” she says.

On Outschool, a marketplace for virtual classes for children, for example, one tutor offers sessions on Dungeons & Dragons, while another teaches tambourine and hand drum lessons.

That said, “there’s especially strong demand” for tutors in STEM subjects and for helping students prepare for standardized tests like the SAT and ACT, Kristof notes.

Alicia Carpenter, a tutor and president of Forum Education, a New York-based tutoring agency, says Forum has seen an increase in requests for writing and analytical reading support post-pandemic. “The aftereffects of remote schooling and isolation have created a real writing skills crisis, affecting students from grade school all the way through college,” she explains.

Among the platforms Kristof recommends is Wyzant, which she describes as “well-established” and capable of attracting “millions of visitors” each month. That makes it easier to find clients. 

Other popular platforms include Varsity Tutors and Udemy, where you can create and sell pre-recorded courses.

How to start tutoring without a teaching background

Steve Menking was working as an equities trader at SMB Capital with no background in education before he became a full-time tutor in 2014. The years he spent on Wall Street prepared him well to tutor high school and college students in subjects such as accounting and calculus, he says. 

He’s built a thriving career with two main income streams: contracting with Forum Education and running his own online business, Menking Tutoring LLC, which he launched in 2020.

In 2023, Menking earned more than $500,000 through private tutoring, a number he’s on track to match in 2024. His current rate is about $1,000 an hour.

His advice for aspiring tutors? Find a niche subject you excel in. For example, if you work in marketing, you might specialize in English tutoring or helping students craft college admissions essays.

Before committing to one platform or agency, Menking recommends exploring multiple options to see which offers the best rates and access to students.

After leaving finance, Menking submitted his resume to dozens of tutoring agencies in New York and created a profile on Wyzant. He initially set his rate at just under $100 an hour but increased it as he gained experience and referrals. By 2017, he was charging $150 an hour.

The “most important” skill for successful tutoring, Menking says, isn’t a degree in education — though that can certainly help. Instead, “what’s helped me the most is a willingness to understand how different people learn.”

“You can upskill in a number of subjects with books, podcasts and other resources, but what sets the best tutors apart is their ability to actively listen, be patient and genuinely care about helping someone learn the material,” Menking adds.

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MacKenzie Scott announced $2 billion in 2024 donations—she’s given away $19 billion since 2019

It’s the season of giving, and billionaire philanthropist MacKenzie Scott just announced she’s handed out more than $2 billion to 199 different organizations this year.

That brings the total amount donated by Scott since 2019 to $19.2 billion, based on her past public announcements of her charitable giving. Forbes still estimates a $31.6 billion net worth for Scott, who became one of the world’s wealthiest women following her 2019 divorce from Amazon founder Jeff Bezos. Scott received a 4% stake in Amazon in the divorce settlement.

Much of this latest round of donations went to organizations focused on alleviating poverty, Scott wrote in a blog post on Wednesday.

“Roughly 75% of them are non-profits that support the economic security and opportunity of people who are struggling,” she wrote, adding that the organizations offer services ranging from access to affordable housing, healthcare and financial counseling to child development and post-secondary education.

Other organizations that received gifts from Scott focus on areas like “human rights and natural resources conservation,” she wrote.

In 2019, not long after her divorce settlement, Scott signed The Giving Pledge and committed to giving away the majority of her wealth in her lifetime. Since then, she’s routinely ranked on Forbes’ list of the most generous billionaires, giving away roughly one-third of her net worth, according to the publication’s most recent list, published in February.

One goal of her philanthropy is “to de-emphasize privileged voices” such as her own, “and cede focus to others,” she wrote in a 2021 blog post.

“People struggling against inequities deserve center stage in stories about change they are creating,” she wrote at the time. “This is equally — perhaps especially — true when their work is funded by wealth.”

In that same vein, Scott has tasked her investment advisors with identifying “funds and companies focused on for-profit solutions to these challenges” she tries to address through her philanthropy, Scott wrote on Wednesday.

In doing so, Scott would be following in the footsteps of other notable billionaire philanthropists who have embraced what’s known as “impact investing.” That includes the Bill and Melinda Gates Foundation’s Strategic Investment Fund, which focuses on the global health space, and Walmart heir Lukas Walton, whose Builders Vision investing and philanthropy platform shifted 90% of its billion-dollar endowment into impact investments in 2022.

For Scott, the goal is make a difference by investing with funds and companies offering solutions to societal issues before she takes her returns and donates them to non-profit organizations. 

“When I make gifts, rather than withdrawing funds from a bank account, or from a stock portfolio that increases the wealth and influence of leaders who already have it, I’d like to withdraw them from a portfolio of investments in mission-aligned ventures, with leaders from the populations they are serving, or from generally undercapitalized groups like women and people of color,” Scott wrote.

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Self-made billionaire: 3 holiday gifts I’m giving loved ones this year—2 cost just $13 each

What’s on Richard Branson’s shopping list this holiday season?

The billionaire Virgin Group co-founder says there are a few items his friends and family can expect to receive from him — and that he recommends to CNBC Make It’s readers as well.

Because Branson is a consummate salesman, it should come as little surprise that he recommends products from his own company and from brands with ties to the Virgin Group. Still, Branson tells CNBC Make It via a spokesperson that he genuinely endorses these products.

1. Change Please Coffee

Branson, who once admitted to drinking 20 cups of tea every day, says he’s now trying to cut back on caffeine. Still, he just “can’t resist sharing” this impact-focused coffee brand, he says. It launched in 2015 with a loan from Branson’s non-profit Virgin StartUp business development arm.

The London-based Change Please Coffee, which has 10 locations and sells bags of coffee online starting at $13 apiece, is dedicated to “tackling homelessness through the power of social enterprise and great tasting coffee,” according to the website.

“Change Please is doing incredible work beyond just serving up great coffee,” says Branson.

The business puts 100% of its profits toward a barista training program that “trains and employs homeless people as baristas, giving them the tools and support to build a stable future,” he adds. “The profits go straight into housing, mental health support, and paying a fair wage to baristas. It’s a brilliant way to enjoy your coffee while making a real difference.”

2. Virgin Points

Virgin Points can be put toward items and experiences from across the family of Virgin Group brands, like flights on Virgin Atlantic, cruises on Virgin Voyages and stays in the group’s hotels, meaning “there’s something for everyone to enjoy,” Branson says.

Customers accrue points by making purchases from the Virgin family or partnered brands. You can also buy points directly or donate them to others. “Virgin Points always make a brilliant gift because they give people the freedom to choose what suits them best,” Branson says.

For 2 million Virgin Points (which would cost around $50,022 to buy directly), you can earn a week-long stay for two people, minus airfare, on Branson’s own private Necker Island in the British Virgin Islands. 

3. Made51

If you’re looking for a “truly special” gift, Branson recommends a “favorite” from his own list: holiday ornaments from Made51. Launched by UNHCR, the United Nations’ Refugee Agency, Made51 sells jewelry, accessories and home décor crafted by artisans who happen to be refugees.

Branson’s company is a longtime partner of Made51, selling the products in its retail stores. The proceeds from each Made51 sale go directly to refugees, helping them earn an income in their new host countries.

Their holiday collection features ornaments made by refugees from East Africa, Syria, Afghanistan, Mali and Myanmar who now live in countries around the world.

The ornaments start at $13 apiece and are “beautifully handcrafted,” says Branson. “They not only add a bright touch to your tree but also support a brighter future for those who need it most.”

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This cruise line is offering an unlimited pass for $120,000—and you can pay in bitcoin

The demand for cruises continues to rise, and Virgin Voyages has found a unique way to get travelers to choose them.

In December, the adults-only cruise line launched an unlimited cruise pass for 2025 sailings with a base fare of $120,000. With this pass, travelers can hop onto any ship, at anytime, from anywhere — for an entire calendar year.

“We’re offering unlimited opportunities for adventure in a way that has never been done in cruising before,” Richard Branson, Virgin Group Founder, stated in a press release shared with CNBC Make It.

The pass can be purchased for a start date of January 1, February 1, March 1, or April 1 and is valid for one full year after that date. Passholders must still pay taxes and fees for the cruises they book.

Virgin Voyages also announced that the annual pass may be purchased using bitcoin.

Travelers can board any of the three Virgin ships currently sailing and the fourth ship, Brilliant Lady, which will launch in September 2025.

The annual pass allows holders to book a Sea Terrace Cabin with a balcony and iconic red hammock. Other perks include complimentary laundry, a $100 bar tab credit per voyage, unlimited premium Wi-Fi, priority boarding, and exclusive events and experiences onboard.

As a bonus, annual pass holders are welcome to add a plus one to their cabin and can swap that person out throughout the year.

The pass will be available on a first-come, first-served basis. Travelers must be 21 and book the pass by inquiring via Virgin’s “Contact Us” page by March 31, 2025. Travel advisors who sell the annual pass will earn a commission of $10,000. 

In addition to the annual pass, Virgin Voyages offers an unlimited seasonal pass. This pass allows travelers to take cruises for 24 to 40 nights, starting at $14,999 for two travelers.

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