Wealth Killers: 8 Financial Habits That Could Be Holding You Back
If you want financial freedom, you’ve got to understand what’s stealing it from you. Too many people are stuck in a cycle of working hard and barely getting ahead—not because they aren’t earning enough, but because they’re unknowingly killing their wealth with poor financial habits.
In this breakdown, we’ll look at eight common “wealth killers” that derail financial progress and what you can do instead to start building serious long-term wealth.
1. The Wealth Equation: Work → Assets → Freedom
Let’s start with the big picture.
The path to wealth is simple in theory:
Earn money → Buy income-producing or appreciating assets → Let those assets grow → Achieve financial freedom
But instead of buying assets, most people buy “dumb stuff”—and that’s where the trouble begins.
Your 20s and 30s are the best time to build wealth. Every dollar you invest early can grow exponentially. But if you’re spending instead of investing, you’re setting yourself up for future struggle.
2. Cars: The Ultimate Wealth Killer
The average new car payment in America is $735/month. Used cars? $523/month. And that doesn’t even include gas, insurance, and repairs.
Here’s the problem: cars depreciate—they lose value the minute you drive them off the lot. Yet most people buy more car than they can afford and stay stuck in a cycle of endless car payments.
Let’s do the math. Take $8,000—the cost of a modest used car down payment—and invest it instead at 10% annual growth starting at age 25. By retirement at 67, that $8,000 could be worth over $430,000.
Driving a reliable, used car in your 20s isn’t glamorous—but it might help you retire rich.
3. Watches: Status Over Stability
Luxury watches like Rolexes are marketed as status symbols, but the truth is, most people who buy them are financing them. That means interest payments and debt, all for an accessory that doesn’t build wealth.
Watch companies—and jewelers—profit off this image. Financing luxury goods makes them rich, not you.
And lately? Rolex resale values are dropping. The hype fades. The debt doesn’t.
4. Vacations: Relax Now, Stress Later
According to Business Insider, nearly half of millennials and Gen Z say they’re willing to go into debt to fund summer travel.
Let’s be clear: vacations are good for your mental health—but not if they’re funded by credit cards. The high-interest debt you bring home can create financial stress that lasts far longer than your trip.
Pro tip: If you can’t pay for the trip in cash, don’t take it. And if you feel pressure to travel because of what others are posting online? That’s not travel—it’s a trap.
5. Designer Clothes: Wealth for the Few, Debt for the Many
Luxury brands like Louis Vuitton and Dior aren’t just selling fashion—they’re selling identity. And it’s working. During the 2020–2021 recession, luxury sales hit record highs, fueled in part by stimulus checks and unemployment bonuses.
The result? Bernard Arnault, CEO of LVMH, became one of the richest people on the planet.
When you buy designer clothes, you’re not investing in yourself—you’re investing in someone else’s empire. If you want to build wealth, start dressing for your future, not just your followers.
6. Family Planning Without Financial Planning
Raising a child costs an average of $15,000–$17,000 per year, and that’s not including college savings, medical emergencies, or daycare.
Having children is a beautiful decision—but also a financial one. Poor planning can lead to credit card debt, missed retirement savings, and long-term stress.
And it’s not just kids—your partner matters too. Divorce can be one of the most financially devastating events in a person’s life. Choose wisely. Love is important. So is shared financial responsibility.
7. Homes: Buying Too Big, Too Soon
A house can be a great investment—but only if you can actually afford it.
Over half of homebuyers in the U.S. report buyer’s remorse, and the top reason is stretching beyond their financial comfort zone. Bigger homes come with bigger bills:
- Higher property taxes
- Higher insurance premiums
- Higher utility costs
- More maintenance expenses
You don’t have to buy your “forever home” at 30. Buy what you need, not what impresses your friends.
8. Debt: The Silent Killer of Opportunity
The average person in their 20s is carrying student loans, credit card balances, or both. That debt comes with monthly payments and high interest—money that could be building wealth instead.
Use your 20s to sacrifice:
- Spend less
- Earn more
- Pay off debt
- Invest early and often
This is the decade that defines your financial future. Get out of debt now so your 30s and 40s are about growth, not survival.
Final Thoughts: Build, Don’t Bleed
Wealth is built through discipline, long-term thinking, and strategic spending. It’s not about deprivation—it’s about knowing what adds value to your future and what drains it.
Avoid the wealth killers. Drive used cars, skip the designer brands, take the trip only when you can afford it, and invest like your future depends on it—because it does.
Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence
