The 6 Worst Money Mistakes People Make in Their 20s

Your 20s are the best time to lay a strong financial foundation—but too many people fall into costly traps. Avoid these 6 common money mistakes and you’ll be way ahead of the game by 30.

1. Living Paycheck to Paycheck

Without a budget or savings plan, one emergency can wipe you out. Start with a simple budget and put 10% of every paycheck aside.

2. Racking Up Credit Card Debt

It’s easy to swipe now and suffer later. But interest rates can trap you in a cycle of debt. Use credit only if you can pay the full balance each month.

3. Not Starting to Invest Early

Time is your biggest advantage. Even investing $50/month in your 20s can grow into six figures over time. Start with index funds or robo-advisors.

4. Ignoring Student Loan Repayments

Don’t let debt pile up. Make a repayment plan, avoid deferrals, and explore loan forgiveness or refinancing options if available.

5. Spending to Impress

New car, designer clothes, flashy tech—none of it builds real wealth. Focus on assets, not image.

6. Not Learning About Money

Your school didn’t teach it—so teach yourself. Read blogs, watch videos, and follow financial educators. Your knowledge is your biggest weapon.

Bottom Line: Small mistakes in your 20s can cost you big in your 30s. Avoid these traps, and your future self will thank you with peace, freedom, and a fat bank account.