Kevin O’Leary Calls Spending Your First Big Paycheck “Sheer Stupidity” and Explains What to Do Instead
Kevin O’Leary says spending your first big paycheck is “sheer stupidity” and urges young earners to save 15% and invest it to build real wealth early.
When that first big paycheck hits your account, it’s tempting to splurge. But Shark Tank investor Kevin O’Leary says doing so is “sheer stupidity.”
In a recent viral Facebook video, O’Leary delivered one of his signature no-nonsense money takes:
“What’s the worst thing you could do with a big paycheck? Spend it. You’ve got to get in the discipline of saving at least 15% of it… Let your money work while you sleep. That’s how wealth begins.”
Kevin O’Leary
O’Leary’s advice echoes what many financial experts have long emphasized. Building wealth isn’t about how much you earn. It’s about how you use what you earn, especially when you’re just starting out.
Why Saving Just 15% Could Be Your Smartest Move Yet
Financial platforms like Gainbridge support this logic with proven strategies for first-time earners who want to grow wealth consistently. Here are five ways to make your first paycheck work for you:
1. Buy-and-Hold Investing
Pick solid investments and hold them for the long term. This strategy cuts down on trading fees and shields you from short-term market swings.
2. Passive Index Fund Investing
Don’t want to spend hours studying stocks? Index funds offer simple, diversified exposure to the market’s growth.
3. Dollar-Cost Averaging
Invest a fixed amount regularly, regardless of market highs or lows. Over time, it averages out your purchase cost.
4. Income Investing
Focus on assets that pay you, like dividend stocks or bonds. It’s a way to earn while your investments sit.
5. Active Investing
This is more hands-on and riskier, but it has potential for higher returns if you’re willing to do the research.
Smart Habits That Build Real Wealth
Kevin O’Leary’s message isn’t just about saving. It’s about mindset. Here are five essential habits to start with:
- Start Early: Compound interest favors the young. Even small amounts grow over time.
- Set Clear Goals: Define what you’re investing for, whether it’s a home, retirement, or financial freedom.
- Diversify: Don’t put all your eggs in one basket. Spread the risk.
- Keep Learning: Understand what you’re investing in. Blind bets rarely win.
- Stay Disciplined: Markets rise and fall, but your long-term plan should remain steady.
Bottom Line: Don’t Just Spend. Build
That first paycheck is more than money. It’s an opportunity. Kevin O’Leary’s advice may sound harsh, but it’s rooted in financial truth. Your habits today shape your wealth tomorrow.
Save at least 15 percent. Invest with intention. And let your money grow quietly, even while you sleep.
TL;DR (Too Long; Didn’t Read)
Kevin O’Leary urges new earners to save at least 15% of their first big paycheck instead of spending it. Building this habit early leads to lasting wealth.
