Kevin O'Leary Says This $28 Expense Could Be Costing You Nearly $800,000

A $28 lunch probably doesn't feel like a major financial decision. But Kevin O'Leary argues that small expenses become much more expensive when you consider what the money could have earned over decades. If you're trying to avoid wasting money, his example offers a useful way to rethink recurring purchases without assuming every small indulgence needs to disappear. The eye-catching dollar figure is only part of the story.

During a 2025 appearance on The Diary of a CEO, O'Leary criticized young workers earning around $70,000 who regularly spend $28 on lunch, suggesting they consider what that money could become in an index fund over 50 years. The important catch is that the example isn't about skipping one lunch once. It assumes repeatedly investing that amount for decades.

Here's what you need to know.

The $28 lunch math can get very big

Investing $28 every week works out to roughly $1,456 per year. Using an 8% annual return over 50 years, that recurring investment can grow to roughly $800,000, depending on exactly when contributions are made and how returns compound.

That's the opportunity cost O'Leary wants people to notice: Money spent today loses the chance to earn returns, and then returns on those returns, for decades. Still, 8% is an assumption of average returns, not a promise, and actual investment returns will vary.

Consistency matters more than finding the perfect stock

O'Leary's broader point isn't that investors need to uncover the next blockbuster company. He also advocated putting money into diversified exchange-traded funds that track broad indexes rather than relying on individual stock picking.

Index funds generally use passive strategies and may carry lower costs than actively managed funds, although fees vary from fund to fund. Repeatedly investing a manageable amount can give compounding time to do more of the work.

Look for spending you won't seriously miss

You don't have to give up lunch with friends for the next 50 years to apply the idea. Instead, look through your spending for a recurring $10, $20, or $30 expense you wouldn't mind reducing, then consider automatically investing the difference each week or month.

Maybe it's one delivery order, an unused subscription, or a convenience purchase that no longer feels worth the price. The amount matters, but building the habit matters more because occasional savings won't produce the same compounding effect as consistent contributions.

The example doesn't capture everyone's financial reality

There's also a fair criticism of O'Leary's argument: For many younger adults, discretionary spending isn't the biggest obstacle to investing. For example, the Federal Reserve's latest household survey found that 47% of adults ages 18 to 29 received outside help paying at least one expense in 2025, including housing, transportation, medical bills, and general expenses.

The Fed also found that 23% of adults with student loans had recently struggled with payments, while housing remains the largest expense for most households. Cutting one pricey lunch can help, but it won't solve high rent, debt, or an income that barely covers necessities.

Bottom line

What small expense could you redirect without making your life noticeably less enjoyable? That's a more useful question than whether buying a $28 lunch is inherently irresponsible. O'Leary's nearly $800,000 example depends on a long 50-year timeline and an assumed return, but it illustrates something real: Small amounts have much more potential when you start investing them early and consistently.

And, if your employer offers a retirement-plan match, redirected spending could potentially work even harder. Finding a sustainable balance between enjoying your money today and regularly investing some of it can help you grow your wealth without treating every small pleasure like a financial mistake.

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