Kevin O'Leary, widely recognized for his straightforward investment perspectives, has delivered a clear mandate for individuals aiming to build wealth over time: regardless of the origin, commit 10% of every amount of money that reaches your hands to investment.
In a 2020 television interview, O'Leary specifically stated, "I don't care if it's a gift for your birthday present, you have to take 10% of your paycheck every two weeks and invest it." His directive extends beyond regular salary income, encompassing birthday gifts, earnings from side jobs such as scooping ice cream, or any other financial inflow. The principle is unequivocal: channel 10% of every financial gain into investments that can grow over time.
The simplicity of this investment habit belies its potential power. O'Leary illustrated its compounding effect with an example: beginning at ages between 18 and 21, consistently setting aside 10% of one’s income could result in an accumulation exceeding $1,000,000 by the time one reaches 65 years old. This exemplifies the long-term benefit of both early and steady investment, confirming that beginning sooner rather than later significantly amplifies the outcome.
O'Leary further emphasized personal responsibility for retirement planning, underscoring that if others are not prioritizing it on behalf of individuals, then individuals must take charge themselves. He stated, "If no one else is going to worry about your retirement, I want you to worry about it." This assertion highlights the necessity of proactive financial management.
Addressing anticipated objections grounded in perceived financial constraints, O'Leary confronted common justifications such as inability to afford investments due to basic living expenses like rent. He countered this by identifying discretionary spending as the real impediment: "People say, 'I can't afford that! I can barely afford my rent!' But it's not true, you buy crap you don't need every day." The term “crap” was deliberately used to underline unnecessary expenditures which divert funds away from wealth-building.
Illustrating this ethic of frugality, O'Leary recounted his personal efforts to minimize expenses, such as avoiding premium-priced coffee: "Do I pay $2.50 for a coffee? Never, never, never do I do that. That is such a waste of money for something that costs 20 cents." Although this example was from a few years prior to 2026—meaning inflation has since increased coffee prices—the core message remains valid. He suggested substituting expensive habits with cost-saving alternatives, for instance, brewing coffee at home to conserve funds for investment.
O'Leary also mentioned streamlining his wardrobe to reduce unnecessary spending. Instead of frequent impulse clothing purchases, he maintains a limited but functional assortment of approximately 20 black suits, 20 white shirts, and 20 black ties. This minimalist approach acts as a financial strategy to reduce frivolous expenses, thereby freeing more resources for investment.
On the question of suitable investment vehicles, O'Leary advocates for exchange-traded funds (ETFs), especially for those who are less experienced with stock picking. He advised against concentrating investments in a single stock, endorsing ETFs because they inherently provide diversification across sectors such as energy, technology, and commodities. This reduces risk and enhances the potential for more stable returns, making ETFs a practical starting point for novice investors.
His viewpoint aligns with prominent investors like Warren Buffett, who similarly recommend low-cost index funds for most investors due to their diversification benefits and cost efficiency. However, O'Leary also acknowledged alternatives beyond public equity markets for those with more advanced portfolios, pointing to platforms that grant access to venture capital-like investment opportunities or fractional ownership of real estate — options that historically required significant capital.
Examples provided include Fundrise, which opens access to private market investing once reserved for wealthy individuals, and Arrived, which permits fractional shares of rental properties starting at $100 along with the benefits of rental income without full landlord responsibilities. Also noted was fractional investing in blue-chip art, an asset class that has outperformed the S&P 500 since 1995, now accessible to ordinary investors due to fractional platforms.
For individuals uncertain about how to begin or optimize their investment plans, O'Leary suggested seeking professional financial planning services. Tools like Domain Money offer tailored advice, particularly valuable for higher earners who require more specific, nuanced strategies than generic guidelines provide.
Ultimately, the fundamental message O'Leary conveyed is not a call for eliminating all enjoyment from one's financial life, but rather an urgent reminder against the passive leakage of funds through avoidable spending. This leakage obstructs the accumulation of wealth. By consciously redirecting at least 10% of all income toward investments that compound over time, individuals can harness their financial potential even while asleep.
He summarized succinctly, "It's going to be invested and make money every year for me while I'm sleeping." The underlying principle is clear: no matter the source—employment, gifts, or side ventures—passive wealth generation requires deliberate action to allocate funds toward growth-oriented investments. O'Leary’s philosophy rests on the notion that money not actively working will remain stagnant or diminish, whereas deploying a consistent portion to diversified investments lays the groundwork for long-term financial security.