Shark Tank ‘s Kevin O’Leary has something to tell all of you.
You’re not gonna like it.
According to him, you should have $100,000 saved by the time you are 33-years-old.
You may recognize Kevin O’Leary as that ruthless rich guy from “Shark Tank”.
He just became 10x more savage, because now he has let everyone know in a brief video that by 33 years old, you should have $100,000 saved somewhere.
Kevin released a series of short videos recently giving out various financial advice.
When someone with a net worth of $400 million talks money, we should probably listen. The videos touched on all kinds of financial topics, including when you should talk money in a relationship.
“First date is a little early. Second date? Mm, maybe.”
“You finally get around to the third date, you think it could get serious, why not ask them what their credit score is?” Kevin advised.
I don’t know about you, but credit scores haven’t come up on any of my second or third dates.
He makes a pretty valid point though.
“You don’t want to marry somebody that’s a chronic spender that you can’t get in sync with about building your own nest egg,” he said. It might be an awkward conversation, but it’s one you should have!
Kevin suggested some casual ways to bring the topic up.
It doesn’t have to be so formal as asking them to do a credit check. “Just ask what people’s aspirations are in terms of where they see themselves in five years,” he said.
Kevin also made a video passing on some advice he’d received from his mother.
Saying that she took care of him from the day he was born to his last day of college, Kevin noted that his mother told him when he graduated, “The dead bird under the nest never learned how to fly.”
This was her way of telling him he wasn’t getting any more money from her.
Kevin had to fend for himself upon graduating college, but he says it taught him how to make money without having a safety net. Kevin gave the same advice to his kids, and their reaction was really relatable.
“They said, ‘This sucks.'”
With that mentality in mind, Kevin’s advice for how much money you should have saved by the age of 33 seems a lot less harsh.
If you’re anything like me, you’re panicking at the thought of needing to have $100,000 saved so soon.
It’s a lot easier said than done.
But let’s hear him out:
“You know, it’s really tough to peg numbers and nail them to the cent,” he began.
“But here’s one for you to think about,” he continued. “By the time you hit 33 years old, you should have $100,000 saved somewhere.”
“Make that your goal.”
“33. $100,000. You can do it. I’ll tell you how: You save 20% of your paycheck, and you let the market grow it five to seven percent a year.”
“You can get to $100,000.”
“Everyone says ‘oh, that’s impossible, I can’t do that,'” he went on . “Yes, you can. If you don’t have it by 33, I’ll give you ’till 35.”
“I’ll give you 24 extra months. That’s why they call me Mr. Wonderful.”
“Why 33?,” he asked .
“33 is the tipping point. It’s the point in your life when you really have to focus on saving money.”
“If you haven’t saved anything by the time you’re 33, you’re way behind the eight-ball.”
“Your goal should be to try and amass at least $500,000. So, you start to chop up the decades you’re gonna work”.
“By 33 you better have the 100k if you’re gonna get the other 400 by the time you’re 60.”
“Think about that,” he concluded.
Last year, Kevin talked about this with told CNBC as well.
“You have to start in your ’20s. You just have to,” he said.
“Because you want to end up in your ’60s with a boatload of cash sitting in investments, so you can kick back and relax a little bit.”
“The reason I say 45 is the turning point, or in your ’40s, is because, think about a career,” he went on.
“Most careers start in early 20s and end in the mid-60s.”
“So, when you’re 45 years old, the game is more than half over, and you better be out of debt”.
“Because you’re going to use the rest of the innings in that game to accrue capital l.”
Okay, so it’s not impossible, but it’s definitely not easy.
Let us know what you think!
Is it reasonable to say that everyone should have $100,000 saved up by the time they’re 33 years old?
