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Kevin O’Leary, a longtime investor on ABC’s Shark Tank, is known for offering sharp financial advice both on and off the show. On May 7, O’Leary posted a video on his official Instagram account warning consumers about holding on to loyalty points, calling them “worthless” due to inflation.
“The most important thing to do with any loyalty program is spend the points immediately. The second you get them, do not hold on to them,” he said.
He emphasized that airline points, in particular, have suffered from significant devaluation. As a prominent voice on Shark Tank, O’Leary’s financial insights have helped shape consumer behavior, and his latest comments target a popular belief that hoarding points leads to free travel and long-term benefits. According to him, the smarter move is to redeem rewards as soon as they are earned.
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Shark Tank star Kevin O’Leary on saving money with loyalty bonuses
On May 7, 2025, Shark Tank investor Kevin O’Leary used his Instagram platform to criticize the loyalty points system, particularly pointing out the rapid devaluation of airline rewards.
“Worthless, worthless. The inflation in points from airlines is absurd. Just look at what you got 12 months ago for what you get now,”
O’Leary said in the video. Highlighting an example, he pointed out,
“Two years ago it was 30,000 points. Now it's 170,000 points. There's nothing you can do about it.”
O’Leary advised that the smartest approach is to use loyalty points quickly by converting them into tangible purchases, such as goods and services on platforms like Amazon, rather than holding onto them as their value declines with inflation. A recurring figure on Shark Tank, O’Leary advises a strategic, proactive approach. He admitted,
“I sign up for every single loyalty program, every single one, any retailer, and I blow them out the second I get them.”
He prefers to use his points right away instead of saving them for bigger rewards later. “I redeem them for whatever is redeemable,” he said, explaining it helps keep value before rewards lose worth over time.
O’Leary added that smart consumers can reduce their monthly spending by about 2.5% by using loyalty programs wisely. However, he warned that many programs are built to make spending harder.
“They're going to send you loyalty and they want you to never spend them. You don't want to do that. You want to blow them out the second you get them,” he noted.
This advice aligns with the common-sense strategies often heard on Shark Tank, where investors like O’Leary push entrepreneurs to be clear-eyed about value, timing, and financial risk.
How Kevin O’Leary suggests building wealth on an average salary
In addition to his warnings on loyalty programs, Kevin O’Leary has also shared a range of financial advice for average earners aiming to build long-term wealth. During an appearance on the show Wake Up with Marci and Hilary, O’Leary outlined his plan for how a person earning an average income could build a $1.5 million retirement fund.
As a veteran of Shark Tank and chairman of O’Leary Ventures, he has consistently emphasized disciplined financial behavior. “It’s not easy, but it’s doable,” he said during the segment, discussing the strategy of saving 15% to 20% of your paycheck.
He encourages starting early, ideally from the first paycheck, and investing regularly. O’Leary emphasized the importance of tracking income and expenses. His method involves using two sheets of paper:
“On one, write down every source of income over 90 days. On the other, every penny you spend.”
He believes this practice is key to understanding and adjusting spending behavior, a principle that frequently comes up in Shark Tank negotiations where cash flow management can determine a company’s viability.
“You have to modify behavior,” he stated, adding that building a large nest egg requires more than savings—it requires a mindset shift. O’Leary also stressed the importance of financial independence throughout life:
“You must keep your own personal financial identity for your whole life.”
Maintaining good credit is another pillar of O’Leary’s approach. He recommended starting with a credit card early and managing it responsibly: “Put a $100 on it each month and pay it off.” This strategy helps build credit history while avoiding debt.
O’Leary also addressed managing big monthly costs like rent, groceries, and utilities. He advised using rewards credit cards for these purchases to simultaneously accumulate benefits and strengthen credit.
When it comes to investing, O’Leary advised putting savings into reliable vehicles like the S&P 500. “You get anywhere from 7 to 9% returns a year,” he said. For those seeking less risk, he mentioned treasury bills as an alternative, especially during periods of high interest rates.
Shark Tank airs every Friday on ABC at 8 pm EST.
