"$2.5 million error" - Shark Tank's Kevin O'Leary advises staying alert about bank mistakes

Kevin O'Leary, an investor and Shark Tank personality, recently advised through his Instagram videos not to be complacent about mistakes that banks often make. This could cost an average person a huge amount of money.

He believes that financial vigilance is not just a practice, but a necessity. His advice is to take full ownership and "be on top of" monitoring their money because banks and financial institutions make mistakes all the time.

Kevin has a simple approach to managing his finances, which helps him stay in routine and enforce discipline. He claims to have reconciled every position and account that he holds using digital tools.

Some people may believe that the statements given by their banks or brokerage are correct, however, the Shark Tank investor insists that blind faith in these institutions is not good.

According to him, errors are not just a one-time thing; in fact, they happen now and then, and thus, an average citizen needs to be alert. Recalling his own experience of the same, Kevin revealed,

"So I've been doing this for 20 years, and I find errors every month. I recently found a $2.5 million error in a position of a stock that I should have received out of escrow, and it wasn't there, so I called their compliance officer, and within about a month, it was resolved.

He added,

Happens all the time. Do not assume banks don't make mistakes. They make them every day. And if you're not on top of it, it's never in your favor."

Shark Tank investor Kevin O'Leary focuses on the power of diligence

Kevin O'Leary, the Shark Tank investor, says that to manage his various accounts, he uses online platforms that help him. There are tools available that provide him with a financial dashboard that gives an update about the positions daily.

They provide a clear picture of assets and are also used to spot any discrepancies in charges. Explaining, he said,

"Every single charge on every single credit card is available online daily. You can set limits by which they trigger, you know, if a large charge goes through, or if it's a charge they have never seen before, it sends you a text. I mean, I'm all over that stuff.

He added,

There's so much productivity in terms of these tools that you can really manage. It doesn't matter how much you've saved, you want to stay on top of it."

Kevin was then asked how an avarage American citizen with a 401K and a mortgage manage their finances or stay alert about bank's mistakes. Kevin, apart from all these financial tools available electronically, advised to be alert about the random fee charges.

These could on any financial transfer or wire payments. By complaining to the bank, these charges can be reduced to zero.

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Shark Tank season 16 episodes release weekly on ABC at 8 PM Eastern Time on Fridays. They are later available to watch on Hulu.

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