"An idiot" - Shark Tank investor Kevin O'Leary urges workers to limit their salary expenditure

Kevin O'Leary, the Shark Tank star, often shares financial advice on his social media and in one of those, highlights the importance of mindful spending. He talks about how purchases that feel very small daily, accumulate to a huge expense when looking at it annually.

He says that people living in metropolitan cities who have started working usually make these mistakes. They are just beginning their careers and spend a significant portion on unnecessary expenses that could be avoided if certain measures are taken.

Talking about the same, Kevin points out that these expenses include coffee, takeout meals such as sandwiches for lunch, and other convenience-based purchases. He says that this is a common financial mistake among young professionals.

Explaining about coffee, costs $5.50 every day, resulting in a spending of approximately $2000 a year. As for lunch, Kevin says that giving away $15 each day is not a good deal, as other small expenses ultimately make it a huge sum at the end of the year.

He says,

"Stop buying coffee for $5.50. You know, you go to work and spend 15 bucks on a sandwich. What are you, an idiot?"

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Shark Tank investor Kevin O'Leary talks about the impact of daily spending habits

After discussing the cost of all the daily expenses that sum up annually, Shark Tank investor Kevin suggested that meals be made at home as a cost-effective alternative. It is because, he says, the price difference between buying versus making meals at home is substantial. Elaborating on the point, he describes

"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."

By taking this step, individuals might reduce their annual food and beverage costs by thousands of dollars. This extra money could end up in savings, investments or essential purchases.

Kevin says that the cumulative impact of small but frequent expenses can lead to a huge reduction in disposable income if it is calculated annually. The Shark Tank investor highlights that an individual who earns $60,000 in a year, may end up spending about $15,000 on small purchases like these if they do not monitor their spending habits daily.

However, if this money is put towards savings or investments, it can result in long-term growth and financial stability over time.

Describing the same, Shark Tank's Kevin O'Leary says,

"Most people, particularly working in metropolitan cities that 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."

According to Kevin, every individual who is starting must be mindful about where their money is going even though it may seem insignificant when counted daily.

In one of his Instagram posts, he suggested that people should start investing earlier. Kevin suggests starting with this as early as possible with your first job itself. This would help in building a secure future for oneself.

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