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5 Frugal Habits of Kevin O’Leary

Kathy Hutchins / Shutterstock.com
Kathy Hutchins / Shutterstock.com

Kevin O’Leary — a well-known entrepreneur, investor and star of ABC’s “Shark Tank” — isn’t shy when it comes to financial advice. He tells it like it is, telling people to “stop spending money on crap you don’t need.” The multimillionaire is known for being frugal. He places a focus on value, such as investing in high-quality clothes that will last as opposed to trendy fashion items that you may not wear again.

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He regularly speaks about the importance of investing and taking the money you save from being frugal and investing it. While making decisions about what to cut from your spending can be tough, he says even little changes help and can go toward savings and investments. Here are five frugal habits of Kevin O’Leary that you may want to consider.

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Forgoing High-Priced Coffee

Mr. Wonderful, as “Shark Tank” watchers know him, is against paying $2.50 or more for a cup of coffee. “Never — never do I do that — never. That’s such a waste of money for something that costs 20 cents,” he told CNBC Make It. “I drink coffee, one cup every morning. It costs about 18 cents to make it, and I invest the rest,” O’Leary explained.

He applies this principle to other things too, stating that people should simply stop spending money on “crap” they don’t need, particularly if they are in debt.

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Not Paying For Expensive Dates

O’Leary is not a fan of paying for expensive dates either, unless it seems like a good return. He explained to CNBC Make It that people should look at dating as an investment. “You’re going to spend money and you’re going to spend time [on dates], so look at that significant other in the context of, ‘Do I want to spend time with them?’ And, ‘Do I want to invest money in them?'” he said.

He cautions against spending a lot of money on the date unless it is going to get a good return. He says you can do low-cost dates that don’t have to be cheap, such as cooking or taking a walk.

Not Buying Stuff You Don’t Need

“You buy crap you don’t need every day,” O’Leary said to CNBC Make It. He suggested avoiding this and continuing growth. “Every time I pick up something I’m going to buy, I say to myself, ‘Do I really need this?’ Because if I don’t buy it the money is going to be invested and make money every year for me while I’m sleeping,” he said.

“So, I don’t buy a lot of crap. I buy good stuff that I need and I invest the rest,” O’Leary continued.

Avoiding $15 Sandwiches

“You know, you go to work, you spend 15 bucks on a sandwich. What are you an idiot? 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,” he told his followers in a TikTok video (@kevinolearytv).

“Most people, particularly working in metropolitan cities, 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,” he said.

Staying Away From Fast Fashion

Finally, O’Leary said he doesn’t spend money on clothes he isn’t going to wear again. “Most people buy more crap than they use. This includes men and women alike, especially when it comes to clothes. They love the feeling of clothing shopping, but the truth is, if you actually look at your closet, you probably wear the same 20 percent 80 percent of the time, and the rest of the stuff you bought is wasted,” he told Entrepreneur.

Instead, he suggested investing in good-quality pieces and wearing them out. “I wear the same suit every day. I have 20 of them, so I don’t have to worry about my style anymore. I travel with four at a time and I burn them out. Then I throw them out or give them to charity,” he said.

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This article originally appeared on GOBankingRates.com: 5 Frugal Habits of Kevin O’Leary