"The key to life" – Shark Tank investor Kevin O'Leary warns against credit card debt

Shark Tank star Kevin O'Leary issued a stern warning to Americans burdened by debt, emphasizing that credit card balances and unnecessary spending are among the fastest ways to fall behind financially. In a video posted to his Instagram account on May 27, 2025, O'Leary shed light on the signs that someone in their 30s or 40s is too far behind in life.

“The key to life is stay out of debt,” O’Leary said. “Debt is what really takes you down. It comes out of nowhere and bites you in the a** and you're not ready for when it happens.” He added, “You gotta be out of your reason."

He described how he invests in credit card companies and earns a 23% return from people who carry balances, calling it “crazy.”

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Shark Tank star Kevin O'Leary reflects on credit card debt

In his May 27 Instagram post, Shark Tank’s Kevin O’Leary emphasized how damaging debt can be. He advised that people should first focus on paying off their balances and eliminating all debt before turning their attention to saving.

“Even if you're 30 or 40, you'd be amazed the power of compounding interest over even a decade,” he said.

O'Leary criticized the decision many Americans make to carry balances on their credit cards while paying exorbitant interest.

“It's crazy that you would pay interest of 23% on what you owe the credit card company. That's crazy. And so you shouldn't,” he said.

O’Leary encouraged viewers to prioritize paying off all types of debt, emphasizing credit cards and mortgages. He explained that the main goal should be eliminating debt, with special attention to high-interest credit card balances and, if applicable, mortgage obligations.

For O'Leary, financial success begins with discipline in spending.

“Don't buy stuff you can't afford,” he added.

Using his lifestyle as an example, O’Leary showed off two wristwatches—a luxury Rolex and a budget-friendly Timex.

He showcased a rare Rolex on one wrist, estimating its value at around $150,000 and noting it was crafted from meteorite. On his other wrist, he wore a $300 Timex, highlighting the contrast between the two watches.

“Why do I wear them both? Two different time zones, but also this is a beautiful dial for 300 bucks. It's a quartz watch. Beautiful. People stop me on the street, say, 'What is that?' It's a Timex. They all know what a Rolex is, but look at that vintage look. It's beautiful. So it's not about the money. It's what you can afford.”

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Kevin O’Leary outlines investment strategy and retirement planning tips

In a February 25, 2025, article published by Daily Mail, Shark Tank investor Kevin O’Leary shared money tips and long-term investment strategies. He began by addressing market volatility and ongoing global economic changes.

He acknowledged the current market turbulence but urged optimism, writing that while “world markets are in a period of volatility,” people shouldn’t listen to pessimists predicting a downturn or recession. Discussing his own investment decisions, O’Leary revealed that he recently allocated 10 percent of his holdings into low-risk investments such as 90-day Treasury bills.

He shared that he had invested in 90-day Treasury bills, noting they currently yield better returns than traditional money markets. While he acknowledged having riskier investments elsewhere, he emphasized the importance of having a financial cushion to guard against unexpected events. On the topic of retirement, O'Leary gave a straightforward formula.

“If the average 20-something American, making $64,000 annually, invested 15 percent of their salary every month in a retirement account... then by the time they were 65 years old, they'd have a $1.5 million nest egg,”

the Shark Tank entrepreneur advised. He added that stock market investments historically return between 8 to 10 percent annually.

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