It can have the power to support a lasting family legacy, but “money destroys families, sometimes, when there’s too much of it,” according to Kevin O’Leary.
The “Shark Tank” investor shared his tactic for dealing with family members who want to borrow money from him during an interview on his YouTube channel with fellow entrepreneur Evan Carmichael.
“I say to them: ‘I don’t want to lend you any money. I’m going to give you money, and I never want it returned. But our contract between each other now is: you’re never going to ask again,’” O’Leary explained during the exchange, posted October 2020.
He doubled down on this statement in a Tiktok posted in 2023, saying “I don’t want to go into partnership with somebody in my extended family. That really ruins Thanksgiving dinner.”
O’Leary is confident you can avoid straining relationships with friends and family by if you follow a few personal rules.
Save and invest early
It is important to start saving and investing your money as early as possible if you wish to find financial freedom, according to O’Leary.
During an appearance on Lewis Howes’s “The School of Greatness” podcast in 2021, O’Leary said he believes both high schools and parents should teach children about personal finance.
He encourages kids to set aside a fraction of any monetary gifts they receive and learn to invest it. The earlier you save and invest, the more money you will have for your future.
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Find the best rate for youInvest in your family’s future
While going into business with family may not be the path worth taking when it comes to investing in your family’s future, there are other ways you can financially support your loved ones down the line.
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Ditch the emotions
Try to keep money and emotions separate, O’Leary says.
In another Instagram post in April, he wrote: “If emotions are involved in a money decision, be very, very careful. No decision fueled by emotion ever led to long-term value.”
According to O’Leary, even rational people can make “horrible financial decisions when emotions are involved,” with long-lasting consequences. This is true in a business setting but also when making financial decisions with your family.
If you can keep your emotions out of your financial decision-making, O’Leary says that “could make a huge difference with money management.”
To take emotion out of the equation when it comes to your money, consider speaking to an experienced financial advisor.
Advisor.com is an online platform that connects you with vetted, qualified financial advisors. After sharing some information about yourself and your finances, the platform matches you with two to three registered financial advisors best suited to help you reach your financial goals.
You can view the advisors’ profiles, read past client reviews, and book an initial consultation for free with no obligation to hire.
Kiss your credit card debt goodbye
Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.
Explore better ratesInvest in yourself
O’Leary, 70, is a staunch proponent of investing in oneself.
In an Instagram post back last May, he wrote: “Never feel selfish for investing in yourself. Never apologize to anyone for trying to create a better life for yourself.
“The biggest reason I say to invest in your own future: no one else is going to do it for you. No one is coming to just hand you millions of dollars.”
That could mean getting a college degree, completing training courses or working with a mentor to improve your skills and advance in your career.
If you need capital to invest in yourself, you could consider a personal loan with Credible to help take you to that next step.
Credible’s online marketplace lets you comparison-shop for the lowest interest rates with just a few clicks. In just two minutes, you’ll see all the lenders that could help you fund your dreams with a single personal loan.
With no origination fees, service fees or prepayment penalties, you can be confident in the loan you choose and feel secure in your financial future, knowing that you won’t have to rely on family for funding.
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