"What does it cost you to be alive?" If you don't know the answer, you could be headed for a financial trainwreck. If not now, probably soon, Kevin O'Leary says.
When it comes to his own money, the shrewd, sharp-tongued "Shark Tank" star has long managed it meticulously, even when he was a shy kid growing up in Montreal. The young "Mr. Wonderful," now a silver-haired 61, carefully scrimped and saved a percentage of every dollar he accrued, whether earned or gifted. And the multimillionaire mutual funds magnate still does.
Recently, on the set of "Shark Tank," we asked the frugal finance whiz what he thought the worst money mistakes people make were and how to best avoid them. Here's what he said:
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The mistake: Spending on 'crap' clothing you won't wear
"Most people buy more crap than they use. This includes men and women alike, especially when it comes to clothes. They love the feeling of clothing shopping, but the truth is, if you actually look at your closet, you probably wear the same 20%, 80% of the time, and the rest of the stuff you bought is wasted."
The solution: Invest in high-quality clothes and wear them out
"If you're going to buy clothing or fashion accessories, make it something really good that's going to be timeless, that you're going to spend a lot of money on and spend a lot of time thinking about, and that you're actually going to use. Save your money and put it toward quality items and be very selective. It'll pay off in the long run. I wear the same suit every day. I have 20 of them, so I don't have to worry about my style anymore. I travel with four at a time and I burn them out then I throw them out or give them to charity."
The mistake: Not knowing your monthly nut
"What I find so remarkable, and this includes very wealthy people I know, is nobody knows what they're monthly nut is. Whether you're single, married, a single parent, or otherwise, most people don't know what it costs them to live every 30 days, and that's living on the edge."
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