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Are you making $65,000 a year but still wondering if you’ll ever see seven figures in your bank account?
According to Shark Tank investor Kevin O’Leary, it is certainly possible — if you follow this simple advice for long enough.
“Save. Invest. Compound. It’s that simple,” said O’Leary in a video posted to X about his wealth-building philosophy (1).
He even has a magic number for how much you should set aside.
“Take 15% of every paycheck, I don’t care how big it is. Or any gift Granny gives you. Or anything you get in a side hustle, and invest it,” O’Leary advises.
In his view, if you just apply this consistent percentage to all income sources, your wealth-building efforts can accelerate as your earning power increases.
And that’s the simple beauty of his approach. It strips away the intimidating complexity of financial planning and focuses on core principles that anyone can follow, regardless of their income level.
But is it really that simple?
Let’s take a closer look.
“You have to spend money to make money,” the old saying goes.
However, O’Leary disagrees. In fact, the foundation of his strategy revolves around one non-negotiable rule: Save before you spend.
So, why does he prioritize saving over spending?
The answer lies at least partly in the power of market growth. He points to historical market returns of 8% to 10% annually, meaning that you can grow your money exponentially over time.
More importantly, you don’t have to be aggressive with your investing or have any insider information. A simple index fund can do wonders.
Former CEO of Berkshire Hathaway, Warren Buffett, agrees: “A very low-cost index fund is going to beat a majority of the amateur-managed money or professionally-managed money,” he once said at a press conference in 2007 (2).
Indeed, the S&P 500 has delivered annualized returns of 13.51% in the 10 years leading up to February 2026 (3).
With these kinds of returns, it should be clear that every dollar you save for investments today can become significantly more valuable years, or even decades, down the road.
And that’s his point: He wants you to take the long view.
But he’s not just talking about long-term saving, he’s also talking about your spending habits. He’s particularly vocal about small daily expenses that seem insignificant but add up to substantial amounts over time.
His advice is also simple.
“Just don’t buy crap you don’t need.”
While O’Leary is probably right that you’re best off not buying frivolous things, everyone still needs to buy essentials.
That’s why there are apps like Acorns, which can help to make sure you’re saving even when you’re spending on everyday items like groceries or gas.
With Acorns, investing in low-cost index funds can become a seamless part of your routine whenever you make a purchase on your debit or credit card.
It works like this: All you have to do is link your accounts, then Acorns automatically starts rounding up the total cost of your purchases to the nearest dollar and invests the remainder in a diversified portfolio of ETFs.
That morning coffee for $3.25? It’s now a 75-cent investment in your future.
Even better, if you sign up now with a recurring deposit, you can get a $20 bonus investment to start your savings with a bang.
Even if you’re making micro-investments with your everyday purchases, let’s be real here. Setting aside 15% of your income might seem daunting at first, especially when you’re juggling rent, groceries and other essential expenses.
That’s why you might want to reframe the way you think about your saving habits.
If saving 15% feels impossible initially, perhaps begin with whatever percentage you can manage consistently. Even 5% or 10% creates momentum and establishes the habit.
Here’s the crucial part: As you eliminate debt, receive raises or find ways to reduce other expenses, that’s when you can start increasing the percentage. Consider it your “wealth tax” — a mandatory payment that builds wealth rather than depletes it.
And if you don’t know how to calculate what that percentage is, a great first step is building a budget. That way, you can track your expenses and understand exactly where your money goes — and what you can do with it.
For instance, you could start by creating a budget that prioritizes your investment contribution right after essential expenses like housing, food, transportation and minimum debt payments.
From there, regularly tracking your spending can help you stay on target.
These days, tracking your budget is easier than you think: A quick daily check-in of your accounts can show you exactly where your money is going.
An app like Rocket Money can easily flag recurring subscriptions, upcoming bills and unusual charges by pulling in transactions from all your linked accounts.
This can help you cut unnecessary costs, and then you can manually redirect savings straight into your retirement fund. No spreadsheets, no guesswork, no stress. Small habits like this can make a big difference over time.
Rocket Money’s intuitive app offers a variety of free and premium tools. Free features include subscription tracking, bill reminders and budgeting basics, while premium features — like automated savings, net worth tracking, customizable dashboards and more — make it easier to stay on top of your retirement contributions and overall financial goals.
Now that you have built a budget and can see all your expenses, it might be time to start looking for ways to trim the fat, financially speaking.
That’s when you might have to dig out that magnifying glass and look hard for ways you can cut down your current expenses. At the same time, it’s also not a great idea to be too fixated on one or two types of expenses — try to take in the whole picture.
Most importantly, a lot of people get caught up trying to cut down on their grocery budget or discretionary spending — the usual suspects — but they don’t consider how they might find savings on essential bills, such as insurance.
Sometimes, you have to do a bit of shopping to get the best deals.
With OfficialCarInsurance, shopping around for a deal on your coverage could help you save hundreds each year.
As insurance prices rise, maximizing your savings on your insurance is key. OfficialCarInsurance.com helps you instantly sort through the best policies from car insurance providers in your area, with comprehensive coverage from trusted insurers like Progressive, GEICO and Allstate.
To get started, fill in your information and get a list of the top insurers in your area in minutes.
Keep in mind that you can typically change your insurance policy before it’s up for renewal, just look out for any early cancellation fees.
While trimming expenditures is an important way to save money, making that money grow is another story. The real magic comes from investing those savings and watching them mature.
And the special ingredient is time.
Simply put, the earlier you start investing, the more dramatic your results become — especially when you make use of compound interest, which can turn modest contributions into substantial wealth over decades, without any effort.
Consider Sarah, who starts investing 15% of her $65,000 salary at age 25. She contributes $9,750 annually ($812.50 monthly) to diversified index funds, earning an average 9% return. By age 65, her investments will have grown to approximately $3.3 million — despite contributing only $390,000 of her own money over 40 years.
Compare that to Michael, who waits until age 35 to start the same investment strategy. His final balance at 65 would be around $1.3 million, despite contributing $292,500. Sarah’s 10-year head start resulted in $2 million more, even though she only contributed $97,500 more of her own money.
This dramatic difference explains why O’Leary emphasizes starting immediately, regardless of age or income level.
Time multiplies money in ways that higher salaries alone can’t match.
While O’Leary is a big proponent of long-term investing — and letting compound interest do the rest — it’s also a good idea to make sure you’re setting aside some cash for an emergency fund.
In fact, the rule of thumb is that you have at least three to six months of money readily accessible — just in case. But don’t just put that money anywhere. Make sure it’s earning a solid return in the background.
With a SoFi checking and savings account, you can build your wealth through a combination of high-interest rates, zero fees and ease of access.
A SoFi account can provide a base 3.30% APY, but new clients can get a 0.70% boost for up to 6 months for a total APY of 4%. That’s over 10 times the national deposit savings rate, according to the FDIC’s January report (4).
With no account fees and no-fee overdraft coverage, you keep more of your money in your pocket. Plus, SoFi account balances of up to $3 million are insured by the FDIC through program banks.
To help jumpstart your savings, you can get up to $300 when you sign up with SoFi and set up a direct deposit.
Finally, it’s worth noting that saving and investing are always just one part of the bigger equation. There are other variables that can turn the numbers against you.
Of all these possible variables, high-interest debt is one that can undo all of your hard work — fast.
And O’Leary knows it. In a 2021 interview with YouTuber Graham Stephan, he shared his distaste for racking up needless debts.
“I buy things in cash,” he told his interviewer (5). “I don’t want an obligation to anybody.”
However, as simple as it is, the message is not being heard by everybody. In fact, according to Experian, total consumer debt in the United States is at a record $18.3 trillion for 2025 — 3.2% higher than in 2024 (6).
Like water, debt is everywhere — and a lot of Americans seem to be drowning in it.
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