Adrian VolenikTue, Jul 1, 2025, 6:01 PM 3 min readIf 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.”Don't Miss:Maximize saving for your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential.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.Trending: Tired of Grid Failures and Charging Deserts? This Startup Has a Solar Fix and $25M+ in Sales — Now Raising at $3/ShareIf 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.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,197.94 -7.01 (-0.11%)Dow 3044,534.94 +440.17 (+1.00%)Nasdaq20,216.94 -152.79 (-0.75%)Russell 20002,214.50 +39.46 (+1.81%)VIX16.89 +0.16 (+0.96%)Gold3,351.50 +43.80 (+1.32%)PortfolioSign in to access your portfolioSign inTop gainersBMNR Bitmine Immersion Technologies, Inc. 66.90 +33.00 (+97.35%)RUN Sunrun Inc. 9.20 +1.01 (+12.40%)MLCO Melco Resorts & Entertainment Limited 8.11 +0.88 (+12.17%)PII Polaris Inc. 45.36 +4.70 (+11.57%)DFH Dream Finders Homes, Inc. 27.86 +2.73 (+10.87%)Top losersPRGS Progress Software Corporation 57.43 -6.41 (-10.05%)AVAV AeroVironment, Inc. 262.00 -22.95 (-8.05%)CRK Comstock Resources, Inc. 25.22 -2.45 (-8.85%)LEU Centrus Energy Corp. 168.74 -14.44 (-7.88%)BUR Burford Capital Limited 13.09 -1.17 (-8.20%)Most activeLCID Lucid Group, Inc. 2.0650 -0.0450 (-2.13%)NVDA NVIDIA Corporation 153.39 -4.60 (-2.91%)TSLA Tesla, Inc. 303.68 -13.98 (-4.40%)F Ford Motor Company 11.38 +0.52 (+4.84%)HOOD Robinhood Markets, Inc. 90.74 -2.89 (-3.09%)Earnings eventsTrending tickersTSLA Tesla, Inc. 303.79 -13.87 (-4.37%)WOLF Wolfspeed, Inc. 0.8383 +0.4395 (+110.21%)UNH UnitedHealth Group Incorporated 324.27 +12.30 (+3.94%)BGLC BioNexus Gene Lab Corp. 10.44 +7.31 (+233.55%)TGT Target Corporation 105.11 +6.46 (+6.55%)Top economic eventsPowered by Money.com - Yahoo may earn commission from the links above.