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Kevin O’Leary has made numerous investment bets on Shark Tank, backing everything from kitchen gadgets to cat DNA testing.
But when it comes to teaching his own kids about money, his advice is surprisingly simple.
“What piece of advice do I give my kids over and over and over again about money? Don’t spend it, save it, invest it, let it compound — that’s the gift the market gives you,” O’Leary said in a recent Instagram video (1).
“Take 15% of all your paychecks, all your side hustle, any cash granny gives you, and put it in the market and just let it compound.”
Saving 15% might not sound like a fast track to riches, but O’Leary says the payoff can be enormous — even on a modest income.
“If you make $68,000 a year, the average salary, and you do this your entire life — just 15% of your paycheck — you’ll end up a millionaire at retirement at 65.”
O’Leary believes building wealth isn’t just about investing — it’s also about mindset and discipline. The same principles he talks about when it comes to money are the ones he’s tried to pass down to his own children.
Despite having an estimated net worth of $400 million, O’Leary doesn’t believe in offering handouts to his kids. Instead, he says he made sure they understood the value of hard work early on.
As he once put it, “The dead bird under the nest never learns to fly (2).”
This hardline approach appears to have paid off. His son, Trevor, went on to study engineering and was eventually recruited by Tesla.
Taking advantage of compounding requires discipline — consistently saving and investing even when markets feel volatile, or the financial news cycle is overwhelming.
But staying consistent is only part of the equation. Reaching the $1 million mark also depends on key factors, such as when you start investing and the returns your portfolio generates over time.
For example, CNBC estimates that if you begin saving 15% of your income at age 25 and earn a 4% annual return, you’d only need to make $67,459 a year to hit the $1 million mark by 65 (3).
Start at 40, however, and you’ll need to earn more than double — $155,086 per year — to reach the same goal with a 4% return. But if you manage to get an 8% return, the required income drops to $83,563.
Historically, the U.S. stock market has delivered strong long-term returns. The benchmark S&P 500 has delivered an average annual return of 10.56% since 1957, though, of course, past performance is no guarantee of future results (4).
Still, O’Leary’s core message is timeless: The earlier and more consistently you invest, the better your chances of growth.
“Best piece of advice I can give anybody,” he said. “Don’t buy stuff you don’t need — invest it instead.”
Here’s a look at a few simple ways to apply that advice in your own life.
Read More: I’m almost 50 years old and don’t have retirement savings. Is it too late?
O’Leary’s advice to “put it in the market and just let it compound” echoes the philosophy of investing legend Warren Buffett.
“In my view, for most people, the best thing to do is own the S&P 500 index fund,” Buffett famously stated during Berkshire Hathaway’s annual meeting in 2020 (5).
This approach gives investors exposure to 500 of America’s largest companies across a wide range of industries, providing instant diversification without the need for constant monitoring or active management.
Still, setting aside 15% of every paycheck may feel out of reach for many. According to the Federal Reserve Bank of St. Louis, the personal savings rate in the U.S. is just 4.5% as of Jan. 2026 (6).
The good news? You don’t have to start big.
The beauty of this strategy is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.
Signing up for Acorns takes just minutes: Link your cards, and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio.
With Acorns, you can invest in an S&P 500 ETF with as little as $5. Even better, you can get a $20 bonus when you set up a recurring investment to get you started.
Those who want to try self-directed investing, but don’t know where to start, could work with platforms like Moby.
Their team of former hedge fund analysts offers expert research and recommendations to help you identify strong, long-term investments backed by their expertise.
In four years, and across almost 400 stock picks, their recommendations have beaten the S&P 500 by almost 12% on average. They also offer a 30-day money-back guarantee.
Moby’s team spends hundreds of hours sifting through financial news and data to provide you with stock and crypto reports delivered straight to you. Their research keeps you up-to-the-minute on market shifts and can help you reduce the guesswork behind choosing stocks and ETFs.
What’s more, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes, and without any major financial jargon.
Beyond stocks, real estate has long been a favorite asset class for building wealth — especially among income-focused investors.
While stock markets can swing wildly on headlines, high-quality properties often continue to generate stable rental income.
In fact, Buffett often uses real estate to illustrate what a productive, income-generating asset looks like. In 2022, he stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check (7).”
Why? Because regardless of what’s happening in the broader economy, people still need a place to live and apartments can consistently produce rent money.
And you don’t need to be a billionaire investor to get in the game.
One way to invest in real estate is by purchasing rental properties and becoming a landlord.
But for the average American who wants to avoid the need for a hefty down payment or the burden of property management, crowdfunding platforms like Arrived make it easier to slice yourself up a piece of that pie.
Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.
Once you’re an investor with Arrived, you’ll gain access to their newly launched quarterly secondary market, where investors can buy and sell shares of individual rental and vacation rental properties directly on the platform.
This allows you to buy into properties you may have missed at the initial offering or sell shares before a property reaches the end of its hold period.
With access to more than 400 properties in 60 cities, this new way to trade real estate opens up flexibility and opportunities to gain access to more properties every quarter.
For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.
For those looking to invest beyond short-term vacation rentals, mogul might be worth a look.
Founded by former Goldman Sachs real estate investors, mogul hand-picks the top 1% of single-family rental homes nationwide for you.
Mogul’s team carefully vets each property, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
At the end of the day, everyone’s financial situation is different — from income levels and investment goals to debt obligations and risk tolerance. Some may be juggling student loans or credit card debt, which can make it difficult to jump straight into investing. Others might feel uneasy about market volatility.
That’s where professional guidance can make a difference. According to research from Envestnet, investors who consult financial advisors generate up to 3% higher returns than those who don’t (8).
If you’re unsure where to start, it might be the right time to get in touch with a financial advisor through Advisor.com.
Advisor.com is an online platform that matches you with vetted financial advisors suited to your unique needs. They can help tailor a strategy to your unique financial situation, whether you’re looking to grow wealth, diversify beyond stocks or plan for long-term financial security.
Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.
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@Kevin O’Leary (1); @Money Focus (2); CNBC (3), (7); Investopedia (4); @Investor Archive (5); Federal Reserve Bank of St. Louis (6); Envestnet (8)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
