The 5 Silent Wealth Killers Vincent Chan Warns You About—And How to Avoid Them

Financial educator Vincent Chan recently highlighted five critical mistakes people make that quietly erode their financial security. With millions following his financial guidance, these insights deserve attention. Here’s what you need to know to protect your wealth.

Why Your Car Payment Might Be Destroying Your Future

The average car payment has reached a staggering $745 monthly as of Q3 2024, according to Transunion data. That’s before insurance, maintenance, and fuel. The real killer? New vehicles lose 20% of their value in year one alone.

Vincent Chan advocates for the 20/4/10 rule: put down 20%, finance over four years maximum, and keep total vehicle expenses under 10% of gross monthly income. Consider buying used vehicles instead—you’ll bypass the steepest depreciation curve and avoid negative equity traps that follow you into the next loan.

The Partner You Choose Affects Your Net Worth

This might sound unromantic, but divorce carries an average cost of nearly $20,000 per couple, plus significant asset division. Beyond the immediate expense, the emotional toll and financial disruption derail wealth-building timelines.

Vincent Chan recommends discussing financial goals early and considering prenuptial agreements before marriage. Protecting assets isn’t pessimistic—it’s prudent financial planning.

Your Credit Card Interest Rate Is Your Enemy

At over 21.47% average interest (Q4 2024 Federal Reserve data), credit card debt becomes a compound problem working against you. High interest means most of your payment goes to fees, not principal reduction.

The solution? Apply for a balance transfer card with 0% introductory APR, or secure a personal loan at lower rates to consolidate debt. This accelerates payoff and frees cash flow for investing.

Housing Costs Creeping Beyond 30% of Income? That’s a Red Flag

According to Harvard University’s 2024 research, 19.7 million households face “cost-burdened” housing—meaning housing costs exceed 30% of income. Between 2019 and 2022 alone, this number grew by 3 million households.

Before buying, Vincent Chan suggests running numbers against the 28/36/20 rule: housing shouldn’t exceed 28% of monthly income, total debt payments shouldn’t surpass 36%, and you should save 20% for a down payment. If homeownership would strain your budget, it’s not the right move—regardless of cultural pressure.

The Compounding Cost of Waiting

Vincent Chan’s final warning: procrastination on investing is perhaps the most expensive wealth killer. Each year you delay, compound interest works against you instead of for you.

Start small if needed. Automate contributions. The key is starting now, not waiting for the “perfect” financial moment. Time in the market beats timing the market—every single time.

The path to lasting wealth isn’t complicated. It requires discipline on five fronts: smart car buying, sound relationships, debt elimination, realistic housing choices, and immediate action on investing.