Former financial advisor says 5 money habits he thought were ‘safe’ will end up costing him over C$1 million — are you making the same mistakes?

“For 10 years I thought I was being smart… when in fact there were five things I was doing subconsciously that ended up costing me a lot of money,” he said. “Some of these mistakes will eventually cost me $750,000 or more over the course of my career (1).”

For context, US$750,000 is the equivalent of over C$1 million at current exchange rates — a number that illustrates how seemingly harmless financial habits can cost you more than you anticipate over time.

Here are the five common bad habits that derailed Yang’s finances — and what Canadians can learn from them.

“If I can’t get rich fast, why even bother”

In his early 20s, Yang thought the only way to truly build wealth was to join a hot company before it went public, or launch his own business. Steady, boring investing felt pointless.

It wasn’t until later that he recognized his mindset was a costly mistake.

“What I completely neglected from the ages of 21 to 26 was investing in index funds,” he said. “I didn’t really understand that 8% was quite a lot and I thought it was a little bit boring (1).”

However, that “boring” approach has a strong track record. Canada’s main stock market benchmark, the S&P/TSX Composite Index, represents about 70% of the Toronto Stock Exchange (TSX) by market value. Since 1998, it has returned more than 8% a year on average since 1998 (2). Additionally, from 1971 to 2021, the average annualized return was approximately 7.94% (3).

Canadian investors also have access to S&P 500 index funds and exchange-traded funds (ETFs) through registered accounts such as a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP), which can provide exposure to both Canadian and U.S. equity markets within a single portfolio.

Inheriting a scarcity mindset

Yang’s upbringing also played a role in keeping him out of the market. He credits a deeply ingrained fear of losing money — shaped by his father’s experience growing up poor in war-torn China — as a key driver of what he calls a “scarcity mindset around money.”

“What people don’t tell you online is that a lot of your beliefs and behaviours around money are inherited from your parents,” he said.

For Yang, that caution carried a real price tag. “Even if I had just invested $500 a month… that would have been around $31,000 in total for those five years that I wasn’t investing,” he said. “If I just left it alone in a basic S&P 500 index fund, by the time I’m 65, it would be worth anywhere from $750,000 to over a million (1).”

The math holds up for Canadian investors, too. Five years of C$500 monthly contributions into a TSX index ETF — left to compound at an 8% average annual return — would grow substantially over a multi-decade timeline. Inside a TFSA, that growth would be entirely tax-free.

Not giving your money a job

When Yang finally started investing, he still kept the majority of his savings in cash. The problem wasn’t only fear — it was the absence of a plan.

“Ask yourself, what is every dollar for. ‘Just in case’ should not be an acceptable answer,” he said. “But let’s say you want to save for a down payment on a house in two or three years. That would be acceptable. Anything that doesn’t have a purpose should be invested or at least sitting in a high-yield savings account.”

In Canada, that means a high-interest savings account (HISA) — which earns more than a standard savings account while keeping your money fully accessible. As of late March 2026, some of the most competitive non-promotional HISA rates in Canada ranged from 2.25% to 2.80% annually (4).

The concept behind these accounts align with Yang’s advice: Every dollar should have a purpose. For example, emergency fund dollars belong in a HISA. Short-term goal dollars belong in a HISA or a guaranteed investment certificate (GIC). Long-term wealth-building dollars belong in the market — ideally inside a TFSA or RRSP to maximize tax efficiency.

Misunderstanding risk

Yang spent years thinking that staying out of the market was the safe choice. He later came to see it differently: The real “wealth killer” isn't volatility — it’s inflation chipping away at the purchasing power of idle cash.

“Inflation erodes your purchasing power by about 2.5 to 3% every year. So, in about 24 years that means you will lose about half the value of your purchasing power in dollars,” he said. “And… if your money isn’t invested in anything, well, that money could be working for you elsewhere, earning you actual money.”

Statistics Canada reports that the annual average Consumer Price Index (CPI) change in 2025 was 2.1%, with the 12-month rate falling to 1.8% as of February 2026 (5). While that’s currently below Yang’s 2.5% to 3% figure, the principle stands: Cash that’s sitting in a low-interest account loses real purchasing power for every year inflation runs above the account’s interest rate. The Bank of Canada, a Crown corporation responsible for monetary policy, targets 2% inflation over the medium term — meaning even in a stable environment, uninvested cash slowly devalues over time (6).

Not mingling with like-minded investors

Yang also links his late start in investing to who he spent time with. In his early 20s, his social circle simply didn’t talk about money or wealth building.

“Try taking a look at the people that you surround yourself with. If none of them are talking about wealth building or investing, you might want to look at different online communities or in-person where people are having these conversations that you really want to be a part of,” he said.

That doesn't mean cutting off old friends, Yang adds — it means expanding your circle to include people and communities where financial literacy is part of the conversation.

What Canadians can do next

Whether you recognize one or all five of Yang's money habits in yourself, here are concrete steps to course-correct:

1. Open a TFSA if you haven’t already. The TFSA allows Canadians 18 and older to contribute up to $7,000 a year (2025 and 2026 limit), with all investment growth and withdrawals completely tax-free. Unused contribution room carries forward indefinitely. For many Canadians, the TFSA is the best first place to start investing for any goal — retirement, a down payment or general wealth building.