Kevin O’Leary, star of Shark Tank, has criticized people for wasting a significant portion of their income on unnecessary purchases like coffee and sandwiches. O’Leary claims that individuals are spending 15 to 20% of their earnings on what he calls “stupid stuff.” He advises people to make changes to their spending habits to avoid falling into debt.
According to O’Leary, small everyday purchases can quickly add up and contribute to financial struggles. He points out that food-away-from-home costs have increased by 6% compared to a 2.4% increase in food-at-home costs. O’Leary suggests that individuals should stop spending money on expensive lunches and start making their own meals at home. He emphasizes that these seemingly insignificant expenses can accumulate to a significant amount over time.
To support his argument, O’Leary cites a report from Owl Labs, which reveals that workers spend approximately $31 more each day when working in an office compared to working from home. This spending habit could become even more problematic as more companies abandon remote work policies implemented during the COVID-19 pandemic.
O’Leary believes that many Americans, particularly those in big cities, waste around $15,000 per year on unnecessary purchases, despite earning a modest income. He attributes his own financial discipline to the lessons taught by his mother, Georgette O’Leary, a small business owner. She advised him never to spend more than what he earned, and he encourages others to adopt the same principle.
To help individuals manage their money better, O’Leary recommends saving about 20% of their income and investing it in the market over a 20 to 30 year period. This strategy can yield a return of approximately 6-8% and provide a solid nest egg for retirement. Additionally, he advises people to be intentional with their purchases, opting for quality items over cheap, fast fashion. O’Leary also encourages individuals to treat themselves occasionally as a reward for their financial discipline.
Lastly, O’Leary suggests starting a side hustle to increase income and develop valuable skills. He believes that the traditional 9-to-5 job market is no longer the only path to success, citing his experience with entrepreneurs on shows like Shark Tank and Dragon’s Den.
While O’Leary’s advice may be valuable, readers should note that this article provides information only and should not be considered as financial advice.
