Shark Tank investor Kevin O’Leary has a blunt message for first-time high earners: “Don’t spend it. That’s the worst move you can make.”
What Happened: In an X post that racked up hundreds of thousands of views this week, the TV personality urged rookie wage-earners to “build the habit early, save at least 15% and invest it. Let your money work while you sleep.”
O’Leary, who often credits his mother for teaching him that every paycheck is seed corn for the future, argues the initial windfall sets a lifelong pattern. Blow the cash on lifestyle upgrades, he says, and you hard-wire spending, but if you’re able to squirrel away a slice and compound growth does the heavy lifting.
O’Leary, also often known as ‘Mr. Wonderful’, has long pushed the 15% rule, telling young professionals that consistent, automatic contributions to an S&P 500 index fund can deliver seven-figure wealth by retirement. The S&P 500’s 10% long-term annualized return would indeed turn a $10,000 yearly contribution into seven figures.
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Why It Matters: The advice echoes broader themes O’Leary has shared in recent times, where he warned founders to treat a first funding check “like it’s your last” and urged consumers to slash impulse buys.
He also rails against credit-card balances carrying “21 percent interest,” calling them “the real silent killer in America.”
Meanwhile, Warren Buffett, his late partner Charlie Munger, and famed stock-picker Peter Lynch all urge young earners to save hard instead of splurging their first fat paycheck. Buffett calls unnecessary spending “dumb,” Munger says the “no-brainer” is to “spend less than you make,” and Lynch warns Americans are “not saving enough money.”
Personal-finance star Dave Ramsey echoes that view. Ramsey advises high earners to funnel every raise into debt payoff and investments rather than lifestyle creep.
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Photo courtesy: Kathy Hutchins / Shutterstock.com
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