3 Kevin O'Leary Personal Finance Tips You Should Stop Following in 2024

Image source: Getty Images

Kevin O'Leary, aka Mr. Wonderful from "Shark Tank," is synonymous with business savvy, bold investments, and the occasional stingy comment about saving money. While he's built a reputation for dishing out tough love and sometimes valuable financial advice, not all of his tips are as timeless as his crisp suits. In fact, some of them could use a refresh for 2024.

Here are three pieces of O'Leary's personal finance wisdom that you might want to rethink in the year of AI-driven stock predictions and avocado toast being declared actually affordable by millennials. (Yes, we've come a long way.)

1. You should never buy coffee out

Ah, the infamous anti-latte stance. O'Leary is adamant that buying coffee every morning is a stupid financial decision that can ruin your budget. He believes you should brew it yourself, save that $5 a day, and let it grow into an early retirement.

But here's the thing: In 2024, coffee is practically a utility. It's not just about the caffeine (though, yes please), but about the mental break, the social interaction, and even the free wifi. And let's not forget: Personal finance is about balance.

If your $5 coffee habit is the only thing keeping you from becoming the next Warren Buffet, then sure, maybe rethink your priorities. But if grabbing a cup of joe while scrolling through work emails is your version of a morning ritual that keeps you sane, go for it. Instead, you should focus on cutting back on real budget busters, like streaming services you don't use or that gym membership you swore you'd use but haven't since last January.

2024 update: The real financial win here is not skipping the latte but budgeting for what brings you joy. That morning coffee? It's more about fueling your productivity and happiness. And that's priceless.

2. You should save 10% of your income

This is one of those tips that sounds great, and O'Leary has advocated for it forever. Saving 10% of your income seems like a solid plan -- until you realize the cost of living has exploded, and 10% might not even cover your Uber Eats bill. Inflation is real, and it's rude.

If you're saving only 10%, you may not be putting enough aside for emergencies, retirement, or that inevitable rainy day when your water heater decides it's had enough. With everything costing more (thanks, inflation!), it might be time to bump that savings rate up to 15% or 20%, depending on your income and lifestyle.

Now, I know what you're thinking -- where am I supposed to find this extra cash? A key step is to automate your savings. Take a chunk out of your paycheck before you even see it and pretend it was never there. Out of sight, out of mind.

2024 update: The 10% rule? Toss it. If you want to really set yourself up for future success, aim to save closer to 15% or even 20%. Your future self will thank you -- possibly from a beachfront villa during your early retirement.

3. Always pay off your credit card balance in full every month

Kevin O'Leary is a firm believer in paying off your credit card balance every month; honestly, that's great advice most of the time. Carrying a balance and racking up interest charges is a sure way to make your finances feel like quicksand.

According to O'Leary, letting interest accumulate is just throwing money away. But in 2024, this advice needs a slight update -- because sometimes, not paying off your balance can actually be a strategic move.

Enter the world of 0% interest credit cards. These cards offer a promotional period -- sometimes up to 18 months -- where you won't be charged a single penny in interest.

If you have a big purchase, emergency expense, or need to do a balance transfer, using a 0% APR card and spreading out your payments over time without accruing interest can help you keep more cash in your pocket for other bills, like high-interest debt. It's all about knowing when to break the "rules" and using credit as a tool, not a trap.

2024 update: While paying off your credit card balance every month is generally sound advice, it's okay to carry a balance if you're using a 0% APR card and you've got a plan to pay it off before the promotional period ends. Think of it as a free loan -- just make sure you read the fine print and set yourself a payoff deadline.

While Kevin O'Leary's financial wisdom holds up in many areas, 2024 calls for a bit more flexibility. Sometimes, it's okay to grab that coffee, save more than 10%, or strategically carry a balance on a 0% interest card.

Personal finance isn't one-size-fits-all -- it's about making the rules work for you. So, go ahead, make your money moves, and remember: Smart tweaks to old advice can still lead to financial success.

Alert: highest cash back card we've seen now has 0% intro APR until nearly 2026

This credit card is not just good – it's so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy.