5 Frugal Habits of Kevin O’Leary

Contents

Forgoing High-Priced Coffee Not Paying for Expensive Dates Not Buying Unnecessary Stuff Avoiding $15 Sandwiches Staying Away From Fast Fashion

Kevin O’Leary — the well-known entrepreneur, investor and star of ABC’s “Shark Tank” — isn’t shy when it comes to financial advice. He tells it like it is, so you should listen when he says “stop spending money on crap you don’t need.” Despite being a multimillionaire, O’Leary is known for his frugal habits to save money.

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He places a focus on value, such as investing in high-quality clothes from thrift stores that will last, as opposed to trendy and disposable fashion items that you may not wear again. He regularly speaks about the importance taking the money you save from being frugal and investing it.

While making decisions about what to cut from your spending can be tough, he stresses that even little changes help and can go toward savings and investments. Here are five frugal habits of Kevin O’Leary that you may want to consider for yourself.

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Forgoing High-Priced Coffee

Mr. Wonderful, as “Shark Tank” fans know him, is against paying $2.50 or more for a cup of coffee.

“Never — never do I do that — never. That’s such a waste of money for something that costs 20 cents,” he said. “I drink coffee, one cup every morning. It costs about 18 cents to make it, and I invest the rest.”

He applies this principle to other things too, stating that people should simply stop spending money on “crap” they don’t need, particularly if they are in debt. He forgoes this kind of extravagant coffee ordering so often that it helped him be able to start his own vintage with O’Leary Fine Wines.

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Not Paying for Expensive Dates

O’Leary is not a fan of paying for expensive dates, unless it seems like a good return. He explained that people should look at dating as an investment. “You’re going to spend money and you’re going to spend time [on dates], so look at that significant other in the context of, ‘Do I want to spend time with them?’ And, ‘Do I want to invest money in them?’” he said.

Though it may sound a little cold-hearted, O’Leary errs on the side of practicality. He says you can do low-cost dates that don’t have to be cheap, such as cooking or taking a walk.

Not Buying Unnecessary Stuff

“You buy crap you don’t need every day,” O’Leary told CNBC Make It. He suggested avoiding this and continuing growth.

“Every time I pick up something I’m going to buy, I say to myself, ‘Do I really need this?’ Because if I don’t buy it the money is going to be invested and make money every year for me while I’m sleeping,” he said. “So, I don’t buy a lot of crap. I buy good stuff that I need and I invest the rest.”

Avoiding $15 Sandwiches

“You know, you go to work, you spend 15 bucks on a sandwich. What are you, an idiot? It costs you 99 cents to make a sandwich at home and bring it with you. You start to add that up every day, it’s a ton of money,” he told his followers in a TikTok video.

“Most people, particularly working in metropolitan cities, are just starting out on their job, making their first $60,000, piss away about $15,000 a year on stupid stuff. And that’s what they should stop doing,” he said.

Staying Away From Fast Fashion

Finally, O’Leary said he doesn’t spend money on clothes he isn’t going to wear again.

“Most people buy more crap than they use. This includes men and women alike, especially when it comes to clothes. They love the feeling of clothing shopping, but the truth is, if you actually look at your closet, you probably wear the same 20 percent 80 percent of the time, and the rest of the stuff you bought is wasted,” he said.

Instead, he suggested investing in good-quality pieces and wearing them out. “I wear the same suit every day. I have 20 of them, so I don’t have to worry about my style anymore. I travel with four at a time and I burn them out. Then I throw them out or give them to charity,” he said.

Caitlyn Moorhead contributed to the reporting for this article.

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