Msc Finance + CFA chartholder here. The advice in this post is not that bad. However over years of speaking to friends and sometime strangers about their money

Msc Finance + CFA chartholder here. The advice in this post is not that bad. However over years of speaking to friends and sometime strangers about their money problems, I would like to share a few things. In order of magnitude, here is a list of factors which can have an bad impact on your personal finances 1) Mental Health. Any addiction or any other mental health problem with a low impact on your budget will, at some point, explose and affect your life negatively. Ex: you have a burnout and don't manage it well, you become irritable with all your colleagues and make your professional network smaller. If that 4$ coffee makes you happy and gives you the opportunity to chitchat with the CEO every morning, it is a good investment. 2) Toxic relationship. A female friend of mine wasted 4 years of her romantic life with an alcoholic based on the belief that "she must take care of him in order to be a good person". When she finally left, she went on party mode order to be busy and not go back with him. Five month later, she could not understand where this 10k on her credit was coming from. 3) Understanding the hidden expenses related to your work. Do you want to become Mr. Big Short on wall street? I mean if it's really what you want, go for it. But the money you will make can become a prison. In order to climb up the rank of your firm, you will have to network with specific people, go to the same expensive gym, purchase luxury items and lifestyle to impress them, get a trophee girlfriend to increase your status, etc. You have to spend a lot to make a lot. I view it as a hidden tax. 4) Stupid debt. Debt in itself is a way to raise capital for an investment. A rule of thumb is that the duration of your debt should match the duration of your asset. Ex: you take a 25y mortgage to be in a house where you plan to raise your family for 25y. Ideally, your asset gives you an economic benefit and helps you pay the debt. If you are in your twenties, I recommend you to learn... a) ... to take care of your mental health. Manage anxiety, meet a psychologist, start to meditate, choose your friends carefully. Down the road, it will compound much more than a lucky jackass who made a few $$$ gambling with Gamestop or bitcoins. b) ... the fiscal rules of your country. Compound investment is nice, *if it isn't taxed*. In the US these are 401k, in Canada RRSP and TFSA. Also, different contry treats the interest payment on some assets differently. Ex: in the US interest payments on mortgage are tax deductible, in Canada they are not. c) ... the impact of employment benefits. Some employers will give you a defined benefit plan, while others will not. It completely change your investments and saving needs.