Kevin O’Leary shares a tip on investing (Image Source: Inc. YouTube)
Highlights:
- In a latest Instagram post, Kevin O’Leary shares a simple yet important tip on how to grow your money.
- He believes that the current education system must include lessons on financial literacy.
- The Canadian businessman points out how financial knowledge is a basic life skill and can help people in the long run.
They say money doesn’t buy happiness, but it certainly pays the bills. And in today’s day and age, making a fixed amount of money every month isn’t enough. One must know the art of wealth creation. The current education system barely lays any focus on financial literacy. The result? People end up making poor financial decisions when they grow up and start earning.
Kevin O’Leary emphasizes that financial knowledge should be given to children at a young age so that they know how to handle and build their wealth. The Canadian businessman, who has reportedly accumulated a net worth of $400 million, shares hacks of how anyone can multiply their money.
Kevin O’Leary Shares Golden Tip To Grow Money
Kevin’s tip about money isn’t something you haven’t heard before. He emphasizes the importance of investing. In a short clip shared on his official Instagram handle, The Shark Tank judge points out that a person can’t grow money simply by keeping it in a savings account.
In the 24-second clip, Kevin says, “Start investing now. Not savings. Savings account is not the same as investing. Investing means you put it in the market which gives you 8-10% a year over your entire lifetime. So if you have an average salary of $58,000 and you try and get 15% of it and put it away even into a market index, an ETF or something, it’ll grow with you.”
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In another clip, he says he gave his children the same advice, asking them to invest 10% of their paychecks in ETFs. Kevin tells that his children initially ignored his advice but they have started investing now.
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Kevin O’Leary Is Unhappy With Current Education System
Kevin believes that there’s a huge gap in the current education system. Calling it a mess, the business tycoon asserts, “We should be teaching our kids about investing day one. You start by putting your money to work! Get it in the market, and learn all you can.”
While sharing the clip on Instagram, Kevin mentions that the rule of diversification worked for him in his past 30 years of investing. One of the basic rules of investing is that you should never put all your eggs in one basket.
Here’s an example – If someone puts all their money in one stock and it goes down, they’ll lose all the money. Therefore, one must spread out their investable amount of money across multiple options. This includes investing in real estate, gold, multiple stocks, mutual funds, etc.
Financial knowledge is an important aspect in everyone’s life, no matter how much money you make. While it’s a full-fledged subject, children should be imparted with the basics of it. Knowing the simple concepts of savings, responsible spending, budgeting and investing are now essential life skills as an adult. Introducing children to these concepts at an early age will make them more aware and interested in learning about it as they grow up.
Hearing it from Kevin O’Leary should certainly prompt people to learn about investing and the benefits they can reap from it in the long term.
