Managing money isn’t always glamorous, but small missteps can quietly chip away at your nest egg. Avoid these nine wealth-killers, ranked from “minor leak” to “financial sinkhole.”
9. Chasing Loyalty Points
We all love a deal, but loading up on loyalty points by spending more than you planned is a losing game. If you spend $5,000 just to earn “free” rewards, you’ve negated any benefit—and if you carry a balance, interest charges wipe out any perceived gain.
8. Impulse Buying
That “add to cart” click can really add up. Nearly half of Canadians1 admit they spend more than they know they should, and 15% say impulse purchases have blocked their progress toward financial goals. Before buying on a whim, pause and ask: Do I really need this?
7. Skipping a Budget
Flying blind without a budget2 makes overspending almost inevitable. Even as 77% of us report tweaking our spending to beat rising costs, a whopping 74% say saving feels tougher than ever—often because there’s no formal plan to guide us. A simple spreadsheet or app can transform anxiety into action.
6. Home-Bias Investing
Betting your future on a single asset class—say, real estate or one hot stock—can backfire if markets turn. Canada’s TSX is heavily weighted toward financials and energy, reflecting “home bias” that leaves many portfolios vulnerable. Diversify across sectors and geographies to smooth out the bumps.3
5. Counting on an Inheritance
Nearly half of investors under 35 expect to inherit4, yet 31% don’t expect—or aren’t sure they’ll receive—any payout. Inheritances should be bonuses, not budgets. Plan your finances independently, and treat any windfall as a welcome surprise.
4. Undervaluing Your Worth
Education pays off. A recent Statistics Canada study found that bachelor’s-degree holders earn a median $60,100 five years after graduation, compared to $43,700 for diploma grads—a 37% premium. Whether it’s a degree, certification, or negotiating a raise, maximizing your earning potential compounds over a lifetime.
3. No Retirement Roadmap
Saving is great, but a plan is better. While 72% of Canadians 35+ have started putting money aside, 42% do so without any retirement strategy. Even modest monthly contributions to RRSPs or TFSAs can snowball—if you know exactly where you’re headed.
2. Living on Plastic
Credit cards should be tools, not traps. Today, 55% of Canadian adults5 carry card debt—up from 43% last year—and average balances now exceed $4,600. At ~20% interest, one missed payment can balloon rapidly. Aim to pay in full each month, and rethink using credit for routine expenses.
1. Divorce
It’s uncomfortable to admit, but divorce is the biggest wealth-destroyer for many families. Over one-third of Canadian marriages end in divorce6—around a 38% rate—and the legal, housing, and support costs can devastate personal finances. While not all splits are avoidable, shared financial planning and open dialogue can lessen the blow.
Bottom line: Wealth grows through consistent, intentional choices—and shrinks through small, avoidable leaks. Plug these nine money-wasters, and you’ll be surprised how much you can save (and sleep easier at night).
- Bank of Canada survey – 2023
- Ipsos Reid Study 2024
- RBC Global Asset Management – 2023
- TMX Money – 2024
- Statistics Canada – 2024
- Statistics Canada – 2022
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