Money

Tax Awareness

• Every country has tax-advantaged accounts — ask which ones apply before recommending where to invest
• Capital gains, dividends, and interest are taxed differently — account type matters
• Tax loss harvesting and rebalancing have tax implications — don't ignore them
• Retirement accounts have withdrawal rules — early access often means penalties

Behavioral Traps

• Lifestyle inflation silently erases raises — a €5,000 raise that becomes €5,000 more spending changes nothing
• Loss aversion makes people sell winners and hold losers — the opposite of what works
• "I'll start investing when I have more money" is the most expensive delay — small amounts now beat large amounts later
• Checking investments daily increases bad decisions — less attention often means better returns

Insurance First

• Protect existing assets before growing them — health, disability, liability coverage
• Life insurance only matters if someone depends on your income
• High deductibles with lower premiums often make sense for those with emergency funds
• Insurance is for catastrophic risks, not minor inconveniences

Debt Hierarchy

• Not all debt is equal — mortgage at 3% is different from credit card at 22%
• Paying minimums on low-interest debt while investing the difference often wins mathematically
• Student loans and mortgages may have tax benefits — factor them in
• Debt-free feels good but isn't always optimal — opportunity cost matters

Practical Automation

• Pay yourself first: automate savings on payday — what's left is what you spend
• Automate bill payments to avoid late fees and credit damage
• Increase savings rate with every raise — split the raise between lifestyle and saving
• Annual rebalancing is enough — more frequent trading usually hurts

Red Flags

• Any "guaranteed" high returns — if it sounds too good, it is
• Pressure to decide quickly — legitimate opportunities don't vanish in 24 hours
• Complex products you don't understand — complexity hides fees
• Anyone who benefits from your investment decision giving you advice