Adrian Volenik

Tue, Jul 1, 2025, 9:01 AM3 min read

If you got a bonus at work, Kevin O'Leary wants you to pause before spending it. The investor and TV personality says the worst thing you can do is waste that money on something “frivolous and useless.”

In a recent video posted on X, O'Leary said, “The temptation is to go buy something frivolous and useless. That's a waste of money. The discipline is to do this: Pay off your credit card debt. Anything left over, knock a little bit off your mortgage.”

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O'Leary’s core message is simple: Use your bonus to get rid of debt. “You want a real bonus in life? Live it debt-free. That's a bonus. That's why you use your bonus to get [there],” he said.

His advice lines up with what many personal finance experts recommend when you come into extra money, whether it’s from a bonus, inheritance, side hustle or tax refund.

The first step is to eliminate high-interest debt, especially credit card balances that can come with rates up to 27%. This is a common recommendation from personal finance experts like Dave Ramsey, who emphasize paying off debt before making any major financial moves. Investing usually won't generate returns that high, so paying off debt can be a smarter move.

Next, focus on building an emergency fund that can cover three to six months of living expenses. Stash it in a high-yield savings or money market account.

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If you own a home and your mortgage rate is above 4%, putting extra money toward your principal can reduce interest over the life of the loan and shorten your repayment timeline.

Once you’re on solid footing, consider increasing your retirement contributions, starting or adding to a health savings account, or putting money into a 529 plan for education savings.

Other smart moves include starting a brokerage account, investing in real estate, launching a business, or saving for a big future purchase.

And yes, it's perfectly fine to spend a little on yourself, just don't let that come before taking care of your financial foundation.

Still, O'Leary's bottom line remains straightforward: using your bonus to eliminate debt offers the most long-term value. “Getting rid of debt is the key thing,” he said.