Mark Cuban maintained his wealth after becoming a millionaire by investing like a 60-year-old and living like a student.

Mark Cuban, a serial entrepreneur and investor, aimed to avoid squandering his wealth when he became a millionaire.

In 1990, after selling his software company MicroSolutions for $6 million, Cuban, who received approximately $2 million after taxes, immediately contacted a broker and shared his experience with social media personality Jules Terpak in a video interview released Monday.

The broker recalled that Cuban, now 66, instructed him to invest for him as if he were 60 years old, rather than like a young person, because Cuban wanted to live off the investments for a long time.

Despite being the son of an automobile upholsterer near Pittsburgh, Cuban did not grow up wealthy. He learned that wealth could be transient and experienced financial difficulties at the age of 27 when he nearly went bankrupt after starting MicroSolutions. As a result, he committed to living frugally, like a student, he stated.

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In his early career, he lived with five roommates, slept on the floor, and drove a 1966 Buick LeSabre. After becoming a millionaire, he lived somewhat below the stereotype of his newfound wealth.

"When I sold MicroSolutions, I had recently purchased the worst house in the best neighborhood, but I wasn't interested in that," Cuban stated. "I wasn't into cars and preferred to live like a student and enjoy myself."

Although he was known for being frugal, Cuban made an exception during a celebration with friends by purchasing a $125,000 lifetime pass at American Airlines. He also revealed that he enjoyed another aspect of living like a student, which was getting drunk and partying, as he shared with Terpak on the "Club Shay Shay" podcast in October.

"Cuban stated, "I purchased this lifetime pass to travel to any city and party like a rock star." He added, "I would literally say, 'I want to get drunk with as many people as possible.'""

Experts encourage young investors to take risks

In 1999, the Cuban's strategy of prioritizing low-risk investment strategies was no longer relevant after he sold his second tech company, Broadcast.com, for $5.7 billion.

He said that becoming a billionaire made him feel like "OK, I'm set," giving him the confidence to take on more risky investments. He's known for taking bold chances as an investor on ABC's "Shark Tank," and believes that taking smart risks is crucial to building wealth.

Younger investors can typically take greater risks with higher potential rewards than older investors, as they have more time to recover from market fluctuations and achieve their long-term financial goals.

Adena Friedman, CEO of Nasdaq, advised young people to embrace risk-taking, even with small investments like pocket money, to gain a better understanding of the stock market.

"According to Friedman, learning by doing can be achieved through small investments or on platforms that don't require real money. As you become more involved and knowledgeable, you can gradually increase your risks and gain more confidence."

Cuban has given up his party-heavy lifestyle and is now more financially responsible, as he tells CNBC Make It. Although he did buy a $40 million jet after becoming a billionaire, he doesn't own yachts, have butlers or hire house cleaners.

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

Cuban says, "I focus more on direction and helping as many Americans as possible, rather than just making money."

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