We all know that handling money isn’t just about numbers—it’s about the balance between saving smartly and living fully.
Sometimes, your wallet and your heart just don’t get along.
That’s where Kevin O’Leary, the Shark Tank star, steps in with his straightforward financial advice to help solve your money dilemmas.
Let’s dive into some real questions from readers and see how Kevin breaks down the tricky balance between being financially responsible and enjoying life.
How to Balance Being a Saver with Having a Social Life
Dear Kevin,
I’ve always been super careful with money. Since I was young, I worked minimum wage jobs to pay for school and my own car.
Now, with a well-paid job, I’ve built solid savings that could cover rent for months and an investment portfolio I’m proud of.
Financially, I’m in a good spot.
But personally, I’m struggling.
My girlfriend is frustrated because I’d rather stay home than spend on expensive nights out.
I constantly look for free activities, only buy clothes on sale, and my biggest treat is the occasional takeout when I don’t want to cook.
I get it. I’m starting to feel stir-crazy from always staying in too.
Still, I’m terrified that spending more will wreck my financial goals, especially buying a house.
How can I find the sweet spot between being responsible and having a social life?
— Penny Pincher
Kevin’s Take
Penny, here’s a simple rule I live by: keep your fun spending to 5% of your income.
That means dinners, vacations, and nights out should fit into that budget.
But the core issue here isn’t just how you spend. It’s about finding someone whose financial mindset matches yours.
If your girlfriend doesn’t share your values around money, you might need to rethink the relationship—especially if you’re thinking long-term like marriage or living together.
Let’s look at your budget basics first. Your rent or mortgage shouldn’t be more than one-third of your take-home pay.
If it’s higher, it puts serious pressure on your lifestyle.
Next, set aside 5% of your income for fun stuff like vacations or going out.
Then aim for saving 15% into investments, like an index fund, for your future.
Imagine you make $100 a month after taxes. That’s $30 for rent, $5 for fun, and $15 for savings.
If you want to free up more money for social life, start by cutting unnecessary expenses.
Subscriptions are sneaky money drains—go through your bank statements and cancel anything you don’t use. Usually, about a third of subscriptions are just wasting money.
Then, negotiate your cable or phone bills. Call the retention department and ask for discounts or freebies.
Many companies offer temporary deals to keep you as a customer.
And don’t be shy about bargain shopping. But also don’t be afraid to spend more if the item is worth it—quality matters.
Sometimes spending a bit more on a good watch beats buying a cheap knockoff that won’t last.
When FOMO Is Costing You a Fortune
Dear Kevin,
I’m drowning in FOMO and my bank account is paying the price.
Every weekend and many weeknights, I’m out with friends spending way too much—from caviar appetizers to $20 cocktails.
I act like I have more money than I do just to keep up.
My motto has been “You only live once,” especially in a big city.
Plus, I figure homeownership is impossible anyway, so why not enjoy now?
— Serious Spender
Kevin’s Response
Serious Spender, if you’re dating Penny Pincher, that’s a recipe for disaster!
But jokes aside, spending beyond your means leads straight to credit card debt—and fast.
This kind of “money dysmorphia” is like an addiction. You need an intervention.
Here’s an easy first step: write down all your income over the past 90 days, then track your spending for the same period—including all the fancy nights out.
If you’re spending more than you make, that’s the problem right there.
Your first goal: break even. It’s going to be tough and that FOMO will hit hard, but it’s the only way to get control.
Once you’re breaking even, shift gears to paying off your credit cards.
Cut another 15% of your spending and use that money to chip away at debt.
It won’t be easy at first, but stick to it—you can be debt-free in about 18 months.
After that, start saving aggressively—put aside 20% of your income in a savings account just for your home down payment.
This isn’t an investment account; it’s your safety net.
Then, when you buy a home, keep your mortgage under one-third of your income.
Ask yourself this: in 5 or 10 years, what will you value more—a handful of expensive caviar or a place you can call home?