10 Money Mistakes To Avoid In Your 20s

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When you are fresh out of college, it is natural to want to live like a free bird. After all, your 20s are said to be the best years of your life for a reason. But when it comes to money matters, it's not all fun and games. Student loans, housing/renting costs, and daily expenses are a few examples of expenses that could spring up at this age. Your 20s, however, are the best window of opportunity for building a strong financial foundation.

‘An investment in knowledge pays the best interest’- Benjamin Franklin

This is also the best age to begin exploring concepts of financial literacy. The key is to start making smart money choices as early on as possible in order to form winning habits in the long run. The idea is to manage wealth better by resorting to financial solutions for which your future self will thank you.

The best way to do so is by taking control of your personal finance from the beginning. This is not to say that you must not spend at all, but making smart choices like creating a budget, having a savings fund, paying off debts on time, etc will help you get there.


Here are 10 money mistakes to steer clear of in your 20s for a smooth transition into your 30s:


Absence of Financial Goals

The lack of a clear objective will make it more challenging to manage your money. Do you want to buy a house or a car by the age of 30? Whatever your target is, having a definite goal will help you utilize your money wisely.

Lack of Financial Literacy

It is hard to be good at something when you don’t understand it. A lack of knowledge of financial concepts leads most people in their 20s into making poor decisions. Learning about investment planning, mutual funds, etc can do wonders in making accurate financial choices.

Indulging in Impulse Buying

Enjoying a shopping spree every now & then is a normal part of your 20s. When this turns into frequent frenzies of impulse buying is when it becomes a problem. Trying to differentiate between what you need & what you want is the best way to work around this.

Lack of A Budget

Ever checked your account balance & wondered where you spent all your money? It is easy to get swayed when you are younger but not having a monthly budget will lead to indefinite expenditure that will only contribute to deferring from your future financial goals.

Credit Card Debt

Racking up funds on your credit card can be quite tempting as it brings a sense of financial freedom. However, this leads to built up interest amounts where you end up paying more than you actually spent, which is never good.

No Savings Fund

As a novice in the corporate world, it is quite tempting to spend all your money on big dinners & outings. But a savings fund can help you pay miscellaneous expenses in the future. If you are living paycheck to paycheck & not saving much, you should think again.

Overcompensating at work

Do you feel like you are working overtime and being underpaid? It is important to not settle for the bare minimum and explore opportunities that are best for you, both professionally and financially. Making the right choice now can result in a debt-free financial future.

Not Tracking Expenses

You may think that you are really good at handling finances. But it is only when you scout through your monthly expenses in detail that you find all the extra figures that can be saved instead. Keeping a track of your daily expenses will help you manage your overall finances better.

Pursuing Higher Education Without Financial Backup

Enrolling for an advanced degree is a huge investment that does not necessarily guarantee a higher income. Before taking up an education loan or using your savings, check if this investment aligns with your financial goals for the future.

Refraining from Investments

Kicking off an investment journey in your 20s may seem intimidating. Whether you are looking at a long term investment or not, the earlier you start the better. What you see as a good investment option is totally subjective but not tapping into the investment market will keep you from reaping its endless benefits.


Avoiding these common money mistakes will surely help you enhance your financial game. However, taking complete control of your finances can be challenging, especially in your 20s. We understand that it is essentially an individual journey towards financial freedom although, a little help along the way can transform your journey for the best.

With dezerv, you can have finance experts help you in making the best investments & create customized solutions to maximize your wealth. Moreover, a personalized portfolio is designed to generate long-term gains while the control remains entirely in your hands. So leave your stress behind & let us help you create the financial portfolio of your dreams.

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