10 Money Mistakes to Avoid in Your 20s

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Your 20s are exciting. 🌟 You’re stepping into adulthood, maybe earning your first paycheck, maybe still studying, or just starting a job. This is the stage where you’re figuring out how to manage money. And honestly, most people make mistakes here—mistakes that later become regrets.

The good news? If you can avoid these financial traps early, your 30s and 40s will feel much smoother. So let’s talk about the 10 biggest money mistakes to avoid in your 20s—and how you can do things differently.

Not tracking your expenses
One of the first mistakes is not keeping track of where your money is going. It’s easy to swipe your card, order food online, buy a new outfit, or grab coffee every morning. But at the end of the month, you’re shocked when your wallet is empty.

Tracking doesn’t mean writing down every single penny in a notebook (unless you enjoy that). You can simply use a budgeting app or even your phone notes. Once you see the actual numbers, it becomes easier to cut down on waste.

Living paycheck to paycheck
Many people in their 20s think, “I’ll start saving when I earn more.” But the truth is, if you can’t save on a small salary, you probably won’t save on a big one either. Living paycheck to paycheck makes you vulnerable to emergencies—like medical bills, job loss, or even just your phone breaking down.

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How much should I save in my 20s?
There’s no fixed number, but aim for at least 10–20% of your income. If that feels too much, start small. Even 5% is better than zero.
Should I focus on paying off debt or investing?
If your debt interest is higher than 7–8%, pay that off first. Otherwise, you can do both—make minimum debt payments while starting small investments.
Is it too late to start if I’m already 28 or 29?
Not at all. The best time to start was yesterday, the second-best time is today. Just begin with whatever amount you can.
Do I need multiple bank accounts?
Yes, it helps. Have one account for spending, one for savings, and maybe another for emergencies. This separation keeps you disciplined.
What’s the biggest money mistake people regret later?
Most people regret not investing early. The missed years of compounding can never be recovered.

Final Thoughts
Your 20s don’t have to be about money mistakes. Sure, it’s normal to stumble a little, but with awareness and a few smart choices, you can set yourself up for a much more secure future. Think of money like planting a tree—the earlier you start, the stronger the roots grow. 🌱

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