Kevin O’Leary, renowned for his role on ABC’s “Shark Tank,” is known for his investments in small businesses as well as for his personal finance advice. O’Leary, who has invested in numerous ventures, is against spending on daily coffee shop visits.
In a 2017 CNBC interview, O’Leary talked about everyday spending, specifically targeting the routine purchase of coffee.
“Do I pay $2.50 for a coffee? Never, never, never do I do that,” he said, labeling such spending as excessive for something that costs merely 20 cents to make.
His comments reflect the price disparity seen at popular chains like Starbucks or Dunkin, where even coffee can be costly. O’Leary’s approach counters the inflation-driven price hikes, advocating for home-brewed alternatives as a financially prudent choice.
O’Leary’s advice goes beyond personal habits; it encompasses a broader perspective on financial health. He advocates investing 10% of each paycheck, challenging the notion that such saving is unaffordable.
He argues that regular, even small, savings are crucial for financial well-being, noting that many people often spend on nonessential items. His guidance is straightforward and impactful, as highlighted in his comments on the “Erika Taught Me” podcast earlier this year.
“You buy crap that you don’t need every day — stuff that you look at now in your closet you haven’t worn in two years,” O’Leary said.
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O’Leary said a significant portion of income — up to 20% — is often squandered on what he terms “stupid stuff.” He reiterates his stance on coffee expenditures as an example of unnecessary spending, although he now acknowledges they are $5.50 and up.
O’Leary believes in purchasing only what is necessary and investing the rest. This strategy isn’t merely about saving money; it’s about making money work for you. He highlights the potential of investments like dividend stocks or funds to provide steady income and capital appreciation, exemplifying the concept of money earning while one sleeps.
His financial principles are personal, stemming from lessons learned from his mother, Georgette O’Leary. She instilled in him the value of living within your means and the significance of conscientious spending. This foundation is evident in his recommendation for people to monitor their income and expenses, ensuring they live within their financial capacity.
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