7 Costly Money Mistakes Even High Earners Make (and How to Fix Them)
If you’re a high earner, odds are you’re making at least one of these seven money mistakes. Which ones are you guilty of?
High income doesn’t guarantee lasting wealth. Many top performers quietly sabotage their future with money moves that drain opportunity.
Let’s break down the seven most common—and how to fix them before they cost you your legacy.
1. The Dream Home That’s Quietly Draining Your Wealth
Let’s be real—you wanted that dream home. And why not? You earned it. But there’s a difference between owning a great home and letting it own you.
A big house feels like success, but it can quietly trap a massive chunk of your wealth. Homes historically grow about 4.35% a year (Source: S&P CoreLogic Case–Shiller U.S. National Home Price Index, Jan 1987–May 2025), but subtract 1–2% for taxes, maintenance, and insurance, and you’re barely beating inflation. That’s not a growth engine…it’s a beautiful liability factory.
The fix? Right-size your real estate so you can keep capital flowing into true growth assets. Ones that actually compound over time.
2. Treating Your 401(k) Like It’s the Only Play
Yes, maxing out your 401(k) is often smart. But relying on it exclusively? That’s like only running one play in your entire playbook.
Your 401(k) is locked until you’re 59½ without taking on hurtful penalties. That means if the great business opportunity, real estate deal, or life pivot comes along… you’re stuck watching from the sidelines.
The fix? Diversify where you save. Savings accounts, money market accounts, taxable brokerage accounts, are all examples, so you’ve got financial agility, not just a solid retirement account.
3. How Being Asset-Rich Can Still Leave You Cash-Poor
I’ve met people worth $2.5M… with less than $50k they can actually touch. That’s like showing up to the championship game with no subs. You’re one injury away from losing it all.
Liquidity is your financial oxygen. Without it, stress skyrockets, opportunities pass you by, and small setbacks can feel like knockouts.
The fix? Keep enough in accessible accounts to cover emergencies and strike when opportunities appear.
4. Flying Blind on Your Spending
Being “rich” is about income. Being “wealthy” is about freedom. Simply, how much you can spend without working for your money.
But if you can’t answer, “How much do I spend in a month?” without guessing, you’re flying blind. And blind pilots rarely land smoothly.
The fix? Know your numbers. In the short term, it’s about controlling cash flow. In the long term, it’s about knowing exactly how much you’ll need to sustain your lifestyle, without fear of running out.
5. The Biggest Expense You’re Probably Not Actively Managing
For high earners, taxes are most likely your single biggest expense. Yet too many treat tax season like a reactive scorecard instead of a year-round strategy session.
The fix? Think proactively—tax-efficient investments, charitable strategies, income timing. Small adjustments may have a significant long-term impact.
And while you’re at it, stop putting off estate planning. If you have kids, a solid estate plan is about control, protection, and making sure the right plays are called even when you’re not there to call them.
6. Why Even a Great Portfolio Isn’t a Complete Wealth Strategy
A great portfolio is like having a high-performance engine. But without the rest of the car, the chassis, the driver, the game plan, you’re not going anywhere.
True wealth often comes from integrating investments with tax strategy, estate planning, risk management, and (most overlooked) your mindset.
The fix? Build the complete vehicle. Your portfolio should be one part of a bigger, coordinated system designed to help you pursue your goals.
7. The Boring Move That Can Save Your Financial Season
Insurance isn’t exciting… until you need it. Then it’s the only thing that matters. Too many high earners are either over-insured, under-insured, or paying more than they should for the wrong coverage.
The fix? Treat insurance like your defensive line. Boring until game day, but critical for protecting the lead. Review it regularly so you’re better prepared for the unexpected without bleeding cash unnecessarily.
Your Next Move
If you saw yourself in even two of these mistakes, you’re not alone. The difference between staying “just” a high earner and becoming truly wealthy is strategy.
At Julius Wealth Advisors, we help you stop drifting and start building, with a personalized, 360° Wealth Advisory approach designed for high performers who want clarity, control, and confidence in their financial future.
Don’t let hidden mistakes cost you the game. The earlier you start, the easier it is to avoid these traps.
Let’s build your winning wealth plan By Choice, Not Chance.
Disclosures:
This piece contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. Past performance does not guarantee any future results. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. For additional information about Julius Wealth Advisors, including its services and fees, contact us or visit adviserinfo.sec.gov.