Kevin O'Leary Says This $28 Purchase Is a Waste if You Make $70K—Here's What He Says to Buy Instead

If you're earning around $70,000 a year and buying takeaway coffee every day, Kevin O'Leary thinks it's time for a financial wake-up call.

In a recent interview with CNBC Make It, the outspoken Shark Tank investor broke down how spending just $28 a week on coffee adds up to nearly $1,456 a year.

He believes that money could be far better spent elsewhere. His comments, shared in July 2025, are part of his ongoing push to get people thinking more like investors and less like consumers.

'Is This Really the Best Use of My Money?'

'If you're making $70,000 and you're buying a $4.00 coffee which is really $5.00 with the tip every day, it's insane,' O'Leary said.

He clarified that he's not against enjoying coffee but urged people to rethink whether the habit is truly worth the long-term cost.

'That's a huge mistake,' he added. 'You need to ask yourself, is this really the best use of my money?'

A Small Habit With a Big Price Tag

The remarks were part of CNBC's personal finance series, where O'Leary frequently shares advice for everyday earners. This time, he focused on the little things like daily coffee that can quietly drain a budget.

His core message is simple: small, routine expenses can have a major impact over time, especially for middle-income earners who are saving but not necessarily investing with purpose.

Why His Advice Matters

Though he's known for blunt financial takes, O'Leary's point is rooted in long-term thinking. He isn't suggesting people never treat themselves, but rather that they consider the opportunity cost of those daily indulgences.

'That $1,456 you save each year can become a lot more in 20 years,' he said, explaining how even modest savings can grow significantly when invested wisely.

So, What Should You Do Instead?

O'Leary recommends directing those coffee dollars into a diversified exchange-traded fund (ETF). He's a big believer in automated investing, where small amounts are withdrawn from your account regularly and invested without needing constant attention.

'Don't think like a consumer. Think like an owner,' he advised.

A Shift in Mindset

For O'Leary, the takeaway coffee isn't the real issue. It's the mindset behind it. He wants people to become more aware of their financial behaviour and take control of their future by making conscious choices.

'Most people don't think about what they're giving up by making daily purchases,' he said. 'It's about building habits that align with your goals.'

How to Get Started

If you're looking to act on O'Leary's advice, start by tracking your spending. Identify small, regular expenses that could be reduced and redirect that money into an investment account. Low-cost ETFs can be a great starting point, and you don't need a large sum to begin.

O'Leary's message is clear: small changes, consistently made, can add up to big results.