Don't Fall For These Money Traps! (In Your 30's and 40's)
5/19/202629 min
Find out why a high income doesn't always build wealth and which traps tend to catch high earners. Host Andrew Giancola breaks down ten money traps that can quietly drain high earners in their 30s and 40s, from lifestyle inflation and the luxury car trap to delegating finances entirely to a partner. Then, Andrew reacts to two trending social videos debating whether 401(k)s are really worth it and where to consider putting every dollar after a paycheck hits. Interested in working with a financial advisor? Visit nerdwalletwealthpartners.com Reaction video one: @grantcardone https://www.tiktok.com/t/ZP8gA9d1f/ Reaction video two: @bentheplanner https://www.tiktok.com/t/ZP8gAVDft/ NerdWallet Wealth Partners LLC (NWWP) is a SEC registered investment adviser. Registration does not imply a certain level of skill or training, nor does it constitute an endorsement by any securities regulator. The content presented by NWWP on its Your Next Dollar podcast is for informational and educational purposes only and is not intended as personalized investment, tax, or legal advice to any person. The views, strategies, examples, and figures discussed are intended to be general in nature, subject to change at any time based upon market or other conditions and may not be suitable for every individual. Any hypothetical illustrations used are for educational purposes only and do not represent a guarantee or prediction of future results. All investments carry risk, including the potential loss of principal, and past performance is not a guarantee of future results. NWWP's investment advisory services are only offered where NWWP and its representatives are registered. Before making any financial decision, seek advice from a qualified investment, tax, or legal professional.
Transcript preview
First 90 secondsAndrew Giancola· Host0:00
Today on Your Next Dollar, we're diving into money traps to avoid in your 30s and 40s. And for a lot of high earners out there, it may feel like, "Hey, the bills are paid, I'm enjoying my life, and everything is covered, so I am doing A-okay." But here's the problem: A high income does not always automatically build wealth. In fact, it's much more about how much you keep and not how much you make. So today, we're gonna be breaking down the 10 money traps that high earners should avoid. This isn't the basic personal finance stuff. This is the stuff that high earners really need to focus in on. Welcome to Your Next Dollar by NerdWallet Wealth Partners, the show where we talk about how to enjoy life today, but also build wealth for your financial future. I'm Andrew Gincola. Let's dive in. So money trap number one is that lifestyle inflation eats into your raise. So every single raise that you get feels like a permission to upgrade your lifestyle. A lot of you out there, when you get a raise, you wanna enjoy some of that, and that is absolutely fantastic. But we also wanna consider saving a portion of that for our financial future, and creating a balance that can happen here. And so for a lot of high earners, peer pressure can intensify at higher income levels. This can be something where your social circle starts to upgrade different things within their lifestyle. Maybe they're upgrading their car, maybe they're getting a new watch, and you feel as though you need to do that as well. And spending can creep up gradually over time. Maybe you're getting the brand-new gym membership, and it costs an