
If I Could Rewind Life to My 20s
It is easy to make mistakes in the excitement of financial independence as young adults. It pays to be careful in your 20s to avoid these common money mistakes. Later on, these decisions will ensure that you don’t get into a big mess.
In This Article
- Not Setting Aside an Emergency Fund
- Incurring Debts on Your Credit Card
- Letting someone else manage your funds on your behalf
- Living a Lifestyle that You Cannot Sustain
- Blurring the lines between the necessary and the unnecessary
- Final Words
If only there were no ‘if only’ moments in your life! They say wisdom comes with age, and so does regret. Trust us, if only you were not overspending in your 20s, you would have a much more secure life to hold in the future. Everyone has their ‘if only’ moments, but the one place it hurts the most is to deal with financial regret.
Although it is never too late to make amends, the 20s are the best times to be responsible in money matters. You are only starting your life, and with the right kind of planning, you will be well on your way to a rewarding future.
Life in your 20s can be exhilarating with a whole new set of responsibilities knocking at your doors. You would be finishing your studies, starting a new job, getting your own house, paying your bills, or buying your first car. All in all, the vista of new experiences can be nerve-wracking, and in the course of it, you are bound to make mistakes (avoidable in hindsight).
For many youngsters, handling finances is not exactly on top of the priority lists in their 20s. However, once you reach your 30s and 40s, you will invariably look back and say to yourself “If only I didn’t do this.” We cannot get back on a time machine and start anew, but you can. Avoiding the following mistakes will save you many sleepless nights of regrets afterward.

Not Setting Aside an Emergency Fund
An emergency won’t knock at your door and say, “I’m coming.” It strikes all of a sudden, leaving you in the lurch, grappling for extra funds. Situations like losing your job or even an unexpected illness are better taken care of when you would focus on savings from early on. It would protect you from crippling debt and give you a restful night even in stressful situations. Make sure that you are setting aside a small portion every month and create a fund worth at least three times your salary.
Incurring Debts on Your Credit Card
This should be an absolute concern by all means. Don’t use your credit card to create a debt trap. While credit cards have many advantages, they won’t bankroll you out of trouble if you are a frivolous spender. Use credit cards responsibly.
Among the many benefits of credit cards, you can get travel benefits such as air miles, airport pick up, and free lounge access. You can also use them to earn cash-back rewards on everyday purchases such as fuel and groceries. Focus on building your credit score, with responsible spending, and you can have a rewarding life later on.
The moment you start using credit cards to fund a lifestyle beyond your means, debts start to pile up. Compounded by interests, late penalties, and other costs, the debt will have a snowball effect, burying you deep into financial trouble. So, always make sure that you are paying your credit card bills on time.
Letting someone else manage your funds on your behalf
As the adage goes, it’s easy if you try. Everything seems daunting and intimidating at first. If you are new to swimming, it would feel like a tough task. If you are new to video editing, it can seem very complex. However, once you get a hand at the basics, you will see that it’s not that complex.
Unfortunately, for most people, when they are in their 20s, money management seems like an uphill task on a personal level. So, they leave it to their parents, an uncle, or a friend working in the finance sector, or worse still, they don’t invest at all. That’s easily the biggest mistake to make in your 20s.
You should invest, and invest well. If you are leaving your financial decisions to others, you will be responsible for the same mistakes they made! Besides, at a point in life, you are bound to handle your own finances on a personal basis. So, why not start early? You should set your financial goals and move forward. Take help from others, but at the end of the day, be responsible for your decisions.
Living a Lifestyle that You Cannot Sustain
At that time, it may not seem like a huge deal when you are buying the latest iPhone, trying out new restaurants, opting for order-ins instead of cooking, or buying a new dress for every occasion. Scrolling through Instagram to compare your shopping haul with that of your friends, or planning a tropical vacation every often is a common habit for most in the 20s well-to-do crowd.
Figuratively, it’s easy to binge on impulse purchases, but at the end of the day, every little bit adds up. It may seem cliché to receive advice on savings in your 20s, but it is important. Thank us later; for now, set a budget and stay within your means. A blown-up balloon of life’s dreams would eventually burst when you build it on debts. Do remember to set away a monthly amount for your impulse buys, and save the rest. Isn’t everything in life about finding the perfect balance?
Blurring the lines between the necessary and the unnecessary
The 20s is when you land your first job. With a job, comes responsibility. If you are eyeing a fancy car, remember, it can wait. If you are thinking of that fancy phone on EMI, remind yourself that it can wait too. Don’t blur the lines between the necessary and the unnecessary. In other words, you will have to learn to distinguish between need and want, prioritizing the former. Otherwise, you may soon find yourself engulfed in an endless debt trap.
Final Words
We understand. Life in your 20s is meant to be enjoyed instead of worrying about the future, or at least, that is the philosophy you believe. However, even if you don’t worry about the future, after a point of time your age will still beckon you with life’s lessons. It’s much better, and a good investment, if you would plan a portfolio, and set aside your savings. Plan your life with a practical mindset.
Mistakes are part of life and that’s how you learn. However, if you keep on accumulating mistakes upon mistakes in the 20s, life becomes stressful later on. Don’t let your mind sway in the impressions of happiness on social media and run after it on a balloon fuelled by debt.
That said, don’t forget to enjoy and live life to the fullest.
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