An April 2025 Gallup Poll identified inflation, housing costs and insufficient wages as the three most common financial problems Americans reported. While these things make it harder to build wealth, many other factors are less obvious but can still put a big dent in your finances.
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In a recent video, money expert Jaspreet Singh discussed seven of the biggest things killing your wealth in 2025. See how you can start saving more money, investing in yourself and making better money decisions.
The May 2025 consumer price index data indicated a 7% year-over-year increase in car insurance costs, which was nearly three times the rate for all items.
The rising cost of this essential coverage shows how important it is to check rates for different car insurance companies since you’ll likely find a better deal. Singh said rate shopping could save you 15% per month on your premiums.
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The current national average rate for savings accounts is 0.42%, and many major banks offer a small fraction of that. That tiny return doesn’t come close to keeping up with inflation, which steals your money’s purchasing power.
Singh recommended instead going with an insured bank offering a high-yield savings account, which he said can yield a much better 4% to 4.5% interest rate. That way, you’ll start earning more than inflation and still keep your money in a safe place.
“2025 will go down in history as one of the most educational years in stock market history because you can see the importance of not being an emotional investor,” Singh said.
He discussed the tariff-related market turbulence over the last several months. If you sold your investments out of panic, you may have lost a lot of money compared with if you had stayed calm and waited for the markets to go up again. At the same time, you might have missed out on opportunities to make money if you didn’t buy during the down periods.
Rather than acting on emotions, remember that volatility is normal and think about the long term. That way, you can make better investing decisions that build your wealth.
Singh spoke about how the extra money that people received during the pandemic led to increases in luxury purchases. That was also a time when many people’s expenses dropped since they were often staying home.
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But now you’ll pay more for many purchases, and stimulus checks are far in the past. If you haven’t tightened your budget and reined in spending on luxuries, your pandemic-style buying habits may be destroying your wealth today and even putting you into debt.
The American Gaming Association reported that Americans spent around $72 billion on sports betting in 2024. Being able to place bets on mobile apps has made it easier to find yourself with this gambling habit and overstated hopes of winning big.
“Expect to not make any money and do it for the fun if you find it fun, but you’re not going to make any money,” Singh said.
You have a much better chance of building wealth if you control your expenses, maximize your income and smartly invest your extra money.
Being able to order most things on your phone and have them quickly arrive at your place is great for convenience. But the hidden costs associated with those orders can kill your wealth.
For example, you might have to pay service and delivery fees along with a tip. Plus, there’s the risk of you buying things unnecessarily just because you see them, want them and can get them fast.
Rethinking convenience purchases is also important to avoid additional debt.
“The best investment you can make is not the S&P 500, it’s not Nvidia, it’s not Tesla, it’s not real estate, it’s not gold, it’s not Bitcoin — it’s you,” Singh said.
He explained that many people feel comfortable spending on fancy experiences or items, yet they question paying a similar amount to educate themselves and grow their skills. This cheats them from building knowledge that helps them make decisions that build wealth.
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So consider spending money on courses, books, financial advisors and other things that improve your investment skill set.
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This article originally appeared on GOBankingRates.com: 7 Biggest Wealth Killers of 2025, According to Jaspreet Singh