Building wealth isn’t just about making good decisions — it’s about avoiding the wrong ones. And in your 20s and 30s, the habits you form can shape your financial trajectory for decades.
In one of our foundational episodes of CAPitalize Your Finances, we explored the eight biggest “wealth killers” that sabotage financial progress early in life. These pitfalls are common, sneaky, and often disguised as normal lifestyle choices — but once you recognize them, they’re much easier to avoid.
If you want to build a strong financial foundation, here are the traps to watch out for.
1. Lifestyle Creep
As income rises, spending often rises with it — and sometimes faster.
Lifestyle creep keeps people stuck, even if they earn more every year.
Instead of upgrading everything at once:
Keep housing reasonable
Delay big purchases
Increase your savings and investing rate first
Your future self will appreciate the discipline.
2. High-Interest Debt
Credit card balances and other high-interest loans are the ultimate wealth destroyers.
A few hundred dollars of impulse spending can turn into years of compounding interest — working against you instead of for you.
If you’re carrying high-interest debt, make paying it off a top priority.
3. Overspending on Cars or Housing
These two expenses are where most young people unknowingly overshoot their budget.
Cars: depreciation hits fast, and monthly payments add up
Housing: too much home can suffocate your budget and block future goals
Rule of thumb: spend thoughtfully, not emotionally.
4. Avoiding Investing or Starting Too Late
Time is your greatest wealth-building tool.
Every year you delay investing can cost you tens of thousands later.
Start small, start simple — but start.
5. Skipping Insurance
Insurance can feel unnecessary when you’re young and healthy, but not having protection in place when you need it can be financially devastating.
Health, disability, renters, auto — these aren’t luxuries; they’re safety nets.
6. Chasing Get-Rich-Quick Schemes
Crypto hype, “guaranteed” returns, questionable gurus, and trending investments often pull people off course.
Real wealth is built through:
Consistency
Patience
Simplicity
Discipline
Anything that promises fast riches usually leads to fast losses.
7. Ignoring Your Earning Power
A lot of people focus only on cutting expenses, but increasing your income can sometimes move the needle even faster.
Build skills. Pursue certifications. Ask for raises.
Your earning potential is an asset — treat it like one.
8. Not Having a Plan
Even the right actions fail without direction.
A clear plan helps you:
Choose goals
Avoid distractions
Stay consistent
Track progress
Wealth is intentional, not accidental.
Want the Full Breakdown? Revisit the Episode.
This topic was so important, I broke it down in detail on an earlier episode of CAPitalize Your Finances. If you missed it — or if you need a refresher — this is one worth going back to.
🎧 Listen now on Spotify, Apple Podcasts, or YouTube.