Kevin O'Leary of Shark Tank Says Stop Making Needless and Impulse Purchases, Part 2

December 13th, 2023 by Team Sammy

Kevin O'Leary Shares ...

Getting in the habit of making smart spending choices is a challenge for everyone, but it is additionally difficult when your cash is constrained. Yet, it is a habit that must be mastered to both advance and sustain one's financial security, stability, and independence.

So, if there are helpful tips or tricks, we want to know about and share them.

In Part 1 of the series we shared insights from Warren Buffett and a variety of personal finance experts on imprudent spending mistakes that often burden those with limited financial resources.

In Part 2 of the series we provide more insights from money management experts and note that Shark Tank star Kevin O'Leary gave these thoughts in a post on LinkedIn:

Stop making needless and impulse purchases! The truth is, people don't need a lot of the crap they buy and money wasted paying credit card debt is money not growing on your behalf.
Credit cards are a major financial burden that destroy opportunities to grow wealth for millions of people. Paying off your credit cards immediately is the best thing you can do to set yourself up for financial success.

And, if one believes it is a struggle today to be a diligent and conscientious consumer, consider what Ben Franklin advised more than 200 years ago:

...Beware of little expenses - a small leak will sink a great ship...better to go to bed supperless than rise in debt...

Now, let's examine what are experts thoughts when it comes to spending smart and common spending mistakes.

Kate Mielitz, PhD, AFC® Program Manager

Spending smart means choosing healthy habits! Drink water when you go out to eat. You'll save between $3-$5/person if you drink water instead of a fountain drink!

Also, consider sharing a meal. So many restaurants make portions that are just too big for one person! If one is not inclined to take home leftovers ask for a "lunch-sized" portion or split your entree with a friend or loved one.

Learn to cook! There are a lot of great cookbooks that have "copycat" recipes where you can get the comfort of a meal at your favorite restaurant right in your own home--and for a fraction of the price!

Finally, if you and your friends/family enjoy going out for dinner/entertainment...do a potluck OR (for a little get out of the house fun) do a "progressive dinner" at each others' homes. Appetizers at one house, main meal at the next, and then dessert at the final home. This is a great way to change up the scenery and save some money!

Dr. Severine Bryan, Accredited Financial Counselor® & Financial Educator

It's unlikely that anyone wakes up with the intention of jeopardizing their financial well-being. However, many of us unconsciously make decisions that negatively impact our finances, and one such decision is being a loyal customer. When we prioritize loyalty to companies over our financial health, we may overlook alternative options that could save us money. This loyalty can result in additional expenses, such as increased interest and fees.

Individuals with lower incomes typically work hourly or low-paying jobs and need to maximize every income-earning hour. They also often face additional stressors associated with limited earnings. As a result, they are less likely to compare costs, either due to loyalty or a lack of time for such comparisons.

In essence, while our intention may not be to harm our financial well-being, our loyalty can inadvertently lead us to neglect crucial financial assessments. This oversight may particularly affect those with lower incomes, who are already grappling with the challenges of limited earnings and additional stressors.

Discover more about Dr. Bryan on her website Dr. Sev Talks Money

Stoy Hall, CFP®

Let's get real about your food budget! There's a big myth out there that dining out is a wallet-destroyer. Wrong! You can totally enjoy a meal out. But here’s the catch: you can't be splurging at restaurants AND filling your house with a week's worth of groceries. That's where the budget blows up.

So, what's your style? Are you the 'eat out and skip the kitchen' type, or do you get a kick out of cooking your own meals? It's cool to be either, or even a mix of both. The key? Fuse your dining out and grocery budgets into one solid 'Food' budget. This way, you’re in control, tracking every dollar that goes into feeding you, whether it’s a home-cooked meal or your favorite takeout.

Remember, it's about balance and being smart with your money. Eating out is part of life's joys – no need to cut it out entirely. Just align it with your overall food spending. Keep it real, keep it balanced, and enjoy every bite, guilt-free!

Learn more about Stoy on his website: BlackMammoth.com

Romy A. Pickron, CFP®

Lower income individuals are more likely to waste money on high-interest credit options, such as credit cards or loans with steep interest rates. This form of borrowing is costly due to higher interest rates and can lead to a cycle of debt that is hard to break free from. It is wise to prioritize building or maintaining a good credit score by making timely payments and keeping your debt to income ratio low, under 36%. This practice ensures that when borrowing becomes necessary, it can be done at a lower rate, potentially saving significant amounts in the long run, hundreds or even thousands of dollars.

Find out more about Romy on her website: AssetAchievers.com

Gene Natali, CFA, CEO Troutwood

Here is one I've observed countless times, and maybe a bit different than others: "One of the more common money mistakes I've observed in low income areas, is students NOT BELIEVING a brighter (or better) financial future is possible. Not believing that they can achieve their financial goals, let alone financial independence makes it difficult to take an interest in or relate to a topic.

Ascertain more about Gene at Troutwood.com.

Pamala MCcoy, CEO, BONA5D CREDIT CONSULTANTS, LLC and B5 ReAffirm

Eating out … fast food specifically. Additional adverse affect is it is not healthy.

Shopping without a shopping list … spontaneous purchases add up.

Attain more information about Pamala on her website: Bona5dcc.com

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