“5% of your income” – Shark Tank star Kevin O’Leary reveals his money tip for vacations and luxury

On June 3, 2025, Shark Tank investor Kevin O’Leary took to Instagram to share a firm financial stance in response to a woman’s anonymous voice message. The speaker described how her strict saving habits from her student years continued into her high-earning adult life, causing tension with her girlfriend over social spending. O’Leary’s reply was concise:

“You should bank five percent of your income a year towards having fun and taking vacations. That’s the number.”

He added a personal relationship tip tied to financial compatibility, saying:

“You should find someone who understands your philosophy and finances… it sounds like this woman doesn’t, and so I would dump her and get somebody new.”

This Instagram clip is the latest example of how O’Leary, best known for his role on Shark Tank, integrates personal finance principles with lifestyle decisions.

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Shark Tank star Kevin O’Leary’s 5% rule: Budgeting for vacations and lifestyle spending

In the June 3 Instagram post, O’Leary, also known as 'Mr. Wonderful' on Shark Tank, directly answered a query on balancing financial discipline with social life. The unknown female speaker explained that although she now holds a high-paying job and has built a substantial emergency fund and investment portfolio, her frugal habits persist.

This makes it difficult for her to justify luxury spending, especially in her relationship. O’Leary offered a clear-cut solution: allocate five percent of annual income exclusively for fun and vacations. He made it evident that this figure wasn’t arbitrary but a principle to live by for responsible financial freedom. “That’s the number,” he reiterated, referring to the 5% rule.

According to O’Leary, setting this boundary gives room for discretionary spending without threatening larger financial goals like homeownership or long-term savings. He went a step further in the same Instagram post by stating that financial values are critical in romantic relationships.

“You should find someone who understands your philosophy and finances if you’re going to live with them or get married to them,”

O’Leary said, underlining the importance of financial compatibility in maintaining healthy long-term partnerships.

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Additional financial principles shared by Kevin O’Leary

O’Leary, a central figure on Shark Tank since the show’s inception, often extends his financial views beyond the show to social media and interviews. In September 2024, in another Instagram video, he directly criticized young workers who habitually spend on takeout and coffee.

“Stop buying coffee for $5.50. You got to work and spend $15 on a sandwich – what are you, an idiot?” he asked rhetorically. He followed this up by saying, “It costs 99 cents to make a sandwich at home and bring it with you.”

He emphasized that workers earning an average of $60,000 annually could be wasting up to $15,000 yearly on non-essential daily expenses like coffee and lunch. These habits, he warned, significantly delay wealth accumulation.

In December 2024, O’Leary spoke to the Financial Post about long-term financial goals and achieving personal freedom.

“If you want freedom, you need $5 million in the bank,” he said, describing that figure as a realistic minimum for true financial independence.

He admitted it’s “very, very, very hard to get,” but maintained that disciplined saving, investment, and risk-taking are necessary. Throughout his career, both on Shark Tank and off-screen, O’Leary has consistently advised against consumerist behavior.

“Don’t buy sh** you don’t need,” he told Financial Post,reiterating the message to young investors.

He further criticized credit card culture and daily lifestyle inflation, distracting young earners from long-term growth.

“Stop paying $5 for a coffee when you can make it for 15 cents every day,” he repeated.

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Shark Tank airs every Friday at 8 pm EST on ABC.