"15% of your income" — Shark Tank's Kevin O'Leary shares how investing in your 20s leads to lasting stability

On May 20, 2025, in a podcast interview with David Meltzer shared via Instagram, Shark Tank’s Kevin O’Leary emphasized the importance of saving and investing in one’s 20s, noting that investing early can significantly influence long-term financial stability. He stated:

“The key to success on saving is to take 15% of your income when you're in your 20s and invest it in the index.”

According to O’Leary, consistent investment in a basic portfolio, such as the S&P 500, even without understanding stocks, can accumulate wealth over time and lead to financial security by retirement.

---

How Shark Tank investor Kevin O’Leary’s 15% rule guides young investors toward financial security

The 15% investment rule explained

Kevin O'Leary explained that regularly investing 15% of your income is the foundation of this approach. The Shark Tank investor said:

"You don't have to pick stocks, you don't even have to understand what a stock is."

His recommendation focuses on simplicity and consistency over complex stock selection. By investing in the S&P 500 index, individuals can leverage the overall market growth instead of trying to beat it. O'Leary added that if someone earning an average salary contributes 15% every two weeks or a month, the result is significant. He noted:

"You'll end up a millionaire when you're 65 plus, a million five maybe."

This amount, he explained, is enough to sustain retirement without debt. The core of his advice lies in starting early and maintaining the habit over decades.

---

Avoiding unnecessary spending to save more

Furthermore, Kevin O'Leary stressed the importance of controlling spending habits to maximize savings. The Shark Tank investor emphasized:

"It's kind of like learning how to not buy shit you don't need, because there's a lot of shit."

O'Leary encouraged people to reflect on their spending by examining possessions that have little use. He said:

"Look in your closet, look at all the crap you don't wear. Just look at all the crap you haven't put on in a year, why don't you just throw it out?"

He explained that adopting this mindset helps shift focus from short-term consumption to long-term investment. By avoiding unnecessary purchases, individuals can redirect funds into their investment accounts. O'Leary’s approach links behavioral changes in spending with improved financial outcomes, reinforcing the idea that money spent unnecessarily could be invested instead.

---

Simplifying investment through technology

O'Leary discussed how technology can simplify investment for people without financial expertise. He mentioned a product he developed called Bean Stox, which converts the investment process into a straightforward experience. He said:

"I turned bean stox into the most simple product that you can download," emphasizing the need for accessible tools.

The Shark Tank investor also pointed out that there are multiple applications available for investing, stating:

"You don't have to use bean stox, use anything, and just put something into an index, an ETF."

He encouraged users to stay engaged by monitoring their investments, explaining that the process is accessible and can be managed through a device as simple as a phone. He emphasized that individuals can easily "watch" their money grow over time. He explained that this approach lowers the barriers to entry and empowers people to take control of their financial future.

Kevin O'Leary’s advice centers on the discipline of consistently investing 15% of income starting in one’s 20s, avoiding unnecessary spending, and utilizing accessible investment tools. He summarized:

"If you don't do that, bad things can happen to you, because money is a part of your life."

---

Stay tuned to Shark Tank every Friday at 8 PM ET on ABC.