Many people work hard to earn money, but credit card debt and small daily spending habits can quietly drain their finances. According to “Shark Tank” star Kevin O’Leary, two common money mistakes are preventing people from saving, investing, and building long-term wealth.
He believes these habits may seem harmless at first, but over time they can lead to debt, unnecessary spending, and missed opportunities to grow your money.
Kevin O’Leary’s Biggest Money Warnings
Here are the two costly mistakes he says people should stop making:
1. Living Above Your Means
One of the biggest financial mistakes people make is spending more than they earn. Many people rely on credit cards to maintain lifestyles they cannot truly afford, which often leads to expensive debt because of high interest rates.
“You don’t want to live off credit card debt and pay 21% interest,” O’Leary told GOBankingRates while discussing his partnership with HelloPrenup, an online prenuptial agreement platform. “That’s stupid.”
He recommends aiming to save and invest 15% of your income whenever possible. This goal is achievable with discipline and smarter spending choices.
He argues that skipping expensive daily purchases like a $25 lunch or $9 coffee can free up money for investing.
Kevin O’Leary says small daily savings may seem insignificant, but when invested consistently, they can compound into meaningful long-term wealth. Even small adjustments in spending can make a difference over time.
2. Buying Things You Don’t Really Need
Another habit O’Leary believes is draining wallets is buying unnecessary items. Many people spend money simply because they are tempted by marketing or sales.
“If I could just sit on your shoulder and watch you shop, I would stop you from buying crap,” O’Leary said. “You know it’s crap. You don’t need it.”
Clothing is one area where O’Leary believes people often overspend. He points out that most people own more clothes than they actually wear.
“Go into where anybody keeps their clothes,” O’Leary said. “They’ve got 12 [pairs of] jeans, but they only wear two. They only wear four of the 90 T-shirts they have. Ask yourself when you’re picking something off the rack, ‘Do I really need this?’”
O’Leary encourages consumers to pause before every purchase and ask whether the item solves a genuine need or simply satisfies a temporary impulse. This simple habit can help avoid unnecessary spending and keep finances on track.
Kevin O’Leary has a simple warning for anyone earning big money for the first time: don’t spend it. The Shark Tank investor said the biggest mistake new earners make is upgrading their lifestyle before building financial discipline.
In a recent post on X, O’Leary urged people to… pic.twitter.com/GpFp7lrGHi
— Benzinga (@Benzinga) October 26, 2025
Why It’s So Easy To Overspend
O’Leary believes overspending is driven not only by personal choices but also by constant advertising and impulse buying. He says consumers are constantly surrounded by advertisements that encourage them to buy more.
“Our entire economy is designed to market crap to you that you don’t need,” he said.
Kevin O’Leary’s advice comes down to two simple changes: avoid living beyond your means, avoid high-interest credit card debt, question unnecessary purchases, invest consistently, and let compounding work over the long term.n
