O’Leary’s Golden Rule: A Mirage for Most Americans

Kevin O’Leary’s investing mantra, “don’t spend it, save it, invest it,” has become a rallying cry for those seeking financial security. The Shark Tank star claims that saving 15% of every dollar earned will guarantee millionaire status by age 65 for the average American worker making $68,000 per year.

The numbers are seductive: take 15% of a $68,000 income and invest it consistently over 40 years, and you’ll end up with approximately $5.3 million by retirement, even using a conservative average return of 7%, which would yield around $2.2 million. However, this calculation assumes a level of disposable income that’s increasingly out of reach for many Americans.

The Bureau of Labor Statistics reports an overall personal saving rate of just 4.4% as of mid-2025, with workers in the $50,000–$79,999 income bracket being among the most likely to lack adequate retirement preparation. A household earning $68,000 before taxes would have take-home pay ranging from $52,000 to $54,000 after federal and state taxes – leaving barely enough for necessities.

O’Leary’s advice is similar to that of Warren Buffett, who advocates putting money in low-cost S&P 500 index funds and leaving it alone. Suze Orman also emphasizes the importance of saving or investing at least 10% of one’s earnings each year, particularly given longer life expectancies and rising healthcare costs in retirement.

However, O’Leary’s golden rule relies on an idealized scenario where every dollar earned is channeled into investments without any distractions. In reality, Americans face a multitude of expenses – from rent to groceries to student loan payments – leaving little room for discretionary spending or savings. Even if one were able to invest 15% of their take-home pay – approximately $650 per month in this scenario – that would still leave only $150 for discretionary use.

The assumption behind O’Leary’s advice is that younger generations simply need to stop buying unnecessary items and redirect their spending towards investments. While frugality is indeed a virtue, this approach glosses over the systemic issues contributing to financial insecurity among many Americans.

The math behind O’Leary’s golden rule works on paper, but it fails to account for the complexities of real-life finances. The average American worker making $68,000 per year faces significant barriers to saving 15% of their earnings, let alone investing it wisely. As such, his advice, while well-intentioned, rings hollow for many who are struggling to make ends meet.

The lesson here is not that O’Leary’s math doesn’t hold up in theory – but rather that it remains an unattainable ideal for most Americans. The financial struggles of the average worker cannot be reduced to simple arithmetic; they demand a more nuanced understanding of the challenges facing those seeking financial security.