Kevin O’Leary: 2 Stupid Money Mistakes Most People Are Making
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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In a culture driven by consumption, everyday money mistakes can quietly sabotage your financial future. According to “Shark Tank” star Kevin O’Leary, two common habits are costing Americans more than they realize.
These are the “stupid” money mistakes many people are making that they need to stop now.
Living Above Your Means
Many Americans spend more than they earn to live the lifestyle they want — but this behavior often lands them in serious credit card debt.
“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.”
Instead, you should do what you can to cut down on expenses enough to dedicate 15% of your income to saving and investing.
“You can do it if you’re disciplined,” O’Leary said. “Don’t buy a $25 lunch. Don’t buy $9 coffees. That’s so dumb. You don’t have to do that. Instead, you save it and then invest it, and watch what happens.”
Overspending on Unnecessary Stuff
In addition to wasting money on expensive lunches and gourmet coffees, many Americans buy things they simply do not need.
“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.”
One of the most common areas where people tend to overspend is clothes — most people only wear a fraction of what they own.
“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 said this problem isn’t just personal — it’s systemic.
“Our entire economy is designed to market crap to you that you don’t need,” he said.
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