Kevin O'Leary Says Retirees Should Avoid Spending Money on These 6 Habits

Kevin O'Leary has long warned about money habits that quietly erode wealth. While much of his advice is aimed at younger workers, the spending patterns he criticizes can be even more damaging in retirement, when income is fixed and savings need to stretch further. For anyone nearing retirement or already living on a pension or nest egg, his most pointed warnings are worth noting.

Below are the spending categories he has singled out as wasteful, along with why they matter even more once regular paychecks stop.

Buying coffee every day

This is the habit O'Leary has called out more often and more forcefully than almost any other.

“Do I pay $2.50 for a coffee? Never, never, never do I do that,” he told CNBC. “That is such a waste of money for something that costs 20 cents.”

He has made the same point in other interviews, saying, “Stop buying coffee for $5.50,” in a widely shared financial advice video.

His reasoning is straightforward: the difference between making coffee at home and buying it from a café is money that could be invested instead. For a retiree spending $5 to $6 per cup five days a week, that habit can cost about $1,300 to $1,500 a year, money taken from savings that is not being replaced.

Eating lunch out instead of packing it

O'Leary is just as critical of buying lunch every day.

“I can't stand it when I see kids that are making 70 grand a year spending $28 for lunch,” he said on The Diary of a CEO podcast. He has repeated that idea many times, with different price points, but the message stays the same.

“Stop buying lunch at $18 when you know you can make a sandwich for $2,” he said in a Fox News clip uploaded to his official YouTube channel.

In retirement, the impact is even sharper. During working years, a lunch habit might be balanced by raises or overtime. On a fixed income, each restaurant meal comes directly out of money that has to last for the rest of your life. O'Leary's math is simple: spending $15 on lunch five days a week adds up to about $3,900 a year, far more than a homemade meal would cost.

Keeping a credit card balance

O'Leary has been especially blunt about credit card debt, including from a perspective that underscores his point.

“The reason I own all the credit card companies is I'm getting paid 23% by people that have credit balances on their cards,” he posted on X. “It's crazy that you would pay interest of 23% on what you owe the credit card company.”

He has also said the fastest way to waste money without noticing it is to fail to pay off your card each month, warning that credit card debt “comes out of nowhere and bites you” when you're not prepared.

For retirees, carrying a balance is one of the most damaging financial habits. A retiree paying 23% interest on a $5,000 balance would lose more than $1,100 a year just to interest, on top of the original purchases. That is money leaving a fixed-income household without producing any return.

Owning a closet full of clothes you rarely wear

This warning surprises some people who only know O'Leary from his investment commentary, but he has been specific about it.

He has said most people wear only about 20% of their wardrobe regularly, while the other 80% sits unused, making it a hidden form of waste. In his view, buying clothes that seem necessary in the moment but are rarely worn is one of the ways credit card debt builds up quietly.

He has also shown his own frugal approach publicly, posting a video from a Walmart aisle comparing paper towel prices and showing the $29 black jeans he wears often. “Inflation affects all of us,” he said. “Saving dough is the name of the game.”

For retirees, the point is less about buying inexpensive clothing and more about avoiding purchases for occasions that never happen. Anything that stays unworn is money spent without benefit.

Confusing lifestyle upgrades with real progress

O'Leary has cautioned against a trap he says can affect even high earners: mistaking bigger spending for financial success.

In his view, larger homes, nicer cars, and more expensive clothes may feel like signs of prosperity, but they often drain wealth instead. He has pointed to boats, cars, and watches as examples of purchases that helped wealthy people end up broke. “They loved their lifestyle, they went to zero,” he told a YouTube interviewer.

For retirees, the warning applies to status purchases that carry ongoing costs. A larger home can mean higher property taxes, upkeep, and utility bills. A newer luxury car can bring higher insurance and faster depreciation. When income is no longer increasing, spending meant to project success can create long-term financial strain.

Throwing away groceries and overlooking free options

There is also a less obvious category in O'Leary's spending criticism that does not always attract attention.

Wasted groceries, especially produce that spoils before it is used, are expenses people often fail to notice even though they can add up over a year. He has also pointed out that people sometimes pay for things they could get at little or no cost.

For retirees, this is one of the easiest habits to fix. Smaller shopping trips, better meal planning, and choosing frozen or canned alternatives when fresh items may go unused can all help. The average American household wastes an estimated $1,500 in food each year, and in retirement that money comes directly from savings.

The takeaway

O'Leary's message is that small habits can quietly drain savings over time. Coffee runs, restaurant meals, unnecessary purchases, and interest payments may not seem huge on their own, but together they can add up to thousands of dollars.

For anyone trying to prepare for retirement or make a fixed income last longer, the goal is not to eliminate every expense. It is to cut unnecessary waste and redirect that money toward savings or investments. As O'Leary often emphasizes, small decisions can have a major effect over time.

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