10 Money Mistakes People Make in Their 20s


Looking at the ten money mistakes you’re most likely to make in your twenties can help you pinpoint where you’re going wrong and what you can do about that. It will help you set up good habits that will give you a healthy relationship with money beyond your twenties! So, here are the ten way you could be going wrong money wise:

1. Not setting financial goals

Goal setting allows us to measure our progress and stay focused. Yet many people in their twenties don’t set financial goals. These goals can be anything from the big “I will save X to fund my traveling by next June” statements to “I will save X a week by skipping the take-out coffee”. Get focused and set a goal now!

2. Not preparing an emergency fund

Also known as an escape fund, an emergency fund is there for you when you need it most. Stash a consistent amount of your wages into an emergency fund for a rainy day and should everything take a turn for the worst, your finances will still be on your side. But don’t do what I do and dip it into it!

3. Forgetting to invest in themselves

With all the outgoings of adult life, it can be difficult for twenty-somethings to remember to invest in themselves. Could you benefit from investing in the courses and events that set you up for success later on? Don’t be afraid to spend money to make money.

4. Credit card crazy

Credit Cards are not a magical fund for frivolous things. Don’t become too reliant on them as they WILL come back to haunt you. If you haven’t got the money to buy that top now, then don’t buy it.

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5. Being a credit card conservative

That being said, if you can guarantee you will pay off your credit cards quickly and efficiently, using them can help you build financial credit you can levy later on. Don’t be afraid of credit if it helps you reach the next goal, just be absolutely positive you know how you’re going to pay it back.

6. Splashing out as a status symbol

Flashy things, expensive lunches and the latest model shouldn’t define your success. You are enough without them. Spend your money on your happiness, not on upholding an image to others.

7. Pension Planning too early

Are you freaking out that middle age is practically around the corner? Well, you shouldn’t! However, as you start to pull a decent wage and grow into a successful Career Girl it is time to think about a pension. You’ll be thankful when you retire!

8. Friends with finances

Think very carefully about borrowing large sums from friends or family, even if they offer or insist. Money can make relationships go toxic and many people enter their thirties without friends because of it.

9. Going without insurance

One of the scariest parts of being twenty-something is realizing you’re not invincible, even if you feel it! Whether it’s home insurance for your possessions or life insurance for peace of mind. Consider your options and make sure you’re covered for the worst-case scenario. Just think, what will you do if something were to happen to your laptop? Coffee disasters can cause more stress than deadlines.

10. Forgetting to have fun

It is easy to get caught up in future worries and plans – don’t forget you are allowed to enjoy your wealth today too! It’s not all about saving and crying! After all:

‘Real generosity towards the future lies in giving all to the present’
Albert Camus

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  • Thank you for this post! Being in my late 20’s I have started to realise that I need to start looking into my finances and start to plan for the future and not just now. This post is really giving me some great advise.


  • Building credit is so important, yet I feel like it’s the easiest thing that 20-somethings don’t do in fear of running up a super high credit card bill. I’m now realizing how I need to actually use my card if I want to buy a house or car anytime in the future! Great list!


  • Shevoneese Mcfarlane

    Thanks for this post! Lately I have been thinking I need to be wiser with my finances and your list really put things into perspective. 6/10 I’ve already done but there is a need for improvement. I’ll definitely will be using your post as a guide.


  • I agree with everything here! People are spending too much money on stuff that’s not needed (bags, shoes too many cappuccinos and such) and not where it matters (health insurance, more education)


  • I love reading CGD financial posts! My goal is to secure my savings account enough for 2 months of bills + an emergency 700 dollars for whatever may come my way! Thanks for the extra dose of motivation!
    XX -KK

  • Sea + Terra

    Yay i love financial posts! I’m really proud of myself because this is the year that i made solid goals and set away savings among other financial steps!