149/5000 American millionaire shows how to get $ 1.2 million when he gets old: Stop doing the three 'stupid' things is to drink coffee to be luxurious, buy more than 4 pairs of shoes and 3 jeans

American millionaire shows how to get $ 1.2 million when he gets old: Stop doing the three 'stupid' things is to drink coffee to be luxurious, buy more than 4 pairs of shoes and 3 jeans

According to millionaire Kevin O'Leary, young people often burn out not because of the big things, but because the three things seem to have little impact on their finances.

According to statistics, many young people now have big debts. On average, an American between the ages of 25 and 36 owes about $ 42,000 and most of it is not from student loans but from credit card spending.

The Federal Reserve said that credit card debt in the US has exceeded 1,000 billion dollars in 2017 and with costly living expenses, this figure is expected to continue to increase in the coming years.

How many times have you complained to your friends - even telling jokes - that you're burning bags?

In fact, research data has shown that young people are spending money on things that experts say can make significant savings. Even millionaire millionaire Kevin O'Leary said that these are "completely stupid" things.

1. "Luxury" coffee

In an interview with CNBC recently, Kevin O'Leary shared: "4 USD for a cup of coffee? It's stupid. Coffee shops may hate me when saying this but the fact is you will only It costs 18 cents when brewing coffee at home. Don't drink "coffee" until you pay off your debt and have a decent savings. "

The Acorns application for personal financial management says an average American spends about 1,100 dollars a year on coffee or 92 dollars a month.

The price of a cup of Starbucks coffee varies widely from country to country.

The price of this drink is also very different in the US and countries around the world. A cup of Starbucks coffee in the US costs an average of $ 2.75, but in New York City, the most expensive place in the chain, its price is $ 3.25.

And if using more expensive milk or flavoring, the price will increase to 5 USD. Starbucks drinks in Europe, the Middle East and South Asia cost much higher, averaging between $ 6 and $ 8 or more.

2. Shoes

According to O'Leary, you don't need more than four pairs of shoes. A pair of flip-flops, a pair of sports shoes and two office shoes, if you buy more, you will become a fool. When there are too many shoes, you will not touch all of them and this will be an unnecessary waste.

In this area, women are said to be the worst "offenders". Last year, shoe retailer DSW revealed that 75% of women in the US own more than 20 different shoes while men own an average of 12 pairs. The Psychology Today report said most people use only three to four pairs of shoes they own.

3. Jeans

O'Leary thinks people should not have more than three jeans: "If you have more than one black pants, a white one and a basic color, you're a fool. When there's too much, you will not use them ".

A pair of pants costs an average of about 60 USD, meaning that Americans spend about 38.5 million USD for these pants every day, equivalent to 14 billion USD / year.

Women's jeans have an average price of 10% higher than men's pants. Regarding clothing in general, women aged 16 and over spend 76% more than men of the same age. Adults aged 25 to 34 spend an average of $ 161 per month to buy new clothes.

According to "sharks", we should only have three jeans.

O'Leary concluded: "Most people are burning money into things that don't seem to affect their finances. Listen to me, don't buy more than four pairs of shoes and three jeans. Just follow the principle. You will save 10% of your income.

After that, invest wisely to make a profit. The average salary in the US is 58,000 USD and if you save 10% / year, you will have 1.25 million USD in the bank when you are 65 years old. Next time, if I want to buy something, think of my advice and consider carefully before withdrawing my wallet. "

Gia Vu

CNBC