The Financial Mistakes I Made in My 20s That I’ll Never Repeat

The Financial Mistakes I Made in My 20s That I’ll Never Repeat

Hard Lessons, Honest Regrets, and the Path to Financial Wisdom in Adulthood

When I turned thirty, I didn’t throw a big party. I didn’t fly off to an exotic destination or splurge on something expensive to celebrate the milestone. Instead, I spent the day quietly reflecting on the choices that had shaped the last decade of my life, especially the ones that had cost me dearly, both emotionally and financially.

Your twenties are often portrayed as a golden era of exploration, freedom, and growth. And while that’s partly true, they also come with their fair share of missteps. For me, that decade was a crash course in financial illiteracy, one where I learned most lessons the hard way.

This isn’t a success story wrapped in motivational clichés. It’s a raw and honest account of the mistakes I made with money, the consequences I lived through, and the deep-rooted changes those experiences forced upon me. I’m sharing them not to preach, but in the hope that someone, somewhere, might avoid making the same choices.

1. I Lived Beyond My Means

The most dangerous habit I developed early on was mistaking income for wealth. When I landed my first full-time job, I felt rich; richer than I’d ever been. Suddenly, there was money in my account every month, and I treated it like a blank cheque.

I rented an apartment that was too expensive. I dined out often. I bought clothes on a whim. I said yes to every concert, trip, and weekend outing. And when my bank balance dipped lower than expected, I reached for my credit card like it was an extension of my salary.

The truth? I was financing a lifestyle I couldn’t actually afford. I was living in the moment without any thought for the future. And slowly, debt began to creep in like a silent predator.

2. I Treated Credit Like Free Money

When you’re young and inexperienced, credit cards can feel like magic, money you don’t yet have, available at the swipe of a card. I fell for that illusion quickly and deeply.

At first, it started small: petrol here, a dinner there, the occasional impulse buy. But soon, it spiralled into something more dangerous. I started carrying a balance month after month, only paying the minimum. The interest piled up quietly in the background, compounding steadily.

By the time I acknowledged the damage, I was thousands in debt. Not from large, life-altering purchases but from dozens of small, careless ones that had built up over time. It took years to pay off, and the emotional weight of it stayed with me far longer than the financial burden.

3. I Didn’t Build an Emergency Fund

I remember the day my car broke down on the way to work. The repair cost was $650 a fortune at the time. I had no savings to fall back on. I was already juggling credit card debt and an overdraft. That repair bill felt like a mountain, and I had no climbing gear.

In hindsight, this was one of my most serious mistakes. Not having an emergency fund left me vulnerable. It made every unexpected expense a crisis. I lived in fear of the next problem, because I knew I wasn’t financially equipped to handle it.

Had I put aside even a small portion of my income consistently, I would have had a safety net. Instead, I operated without one, and I paid the price; again and again.

4. I Confused “Busy” with “Productive”

In my mid-twenties, I juggled two jobs. I worked long hours and often came home exhausted. But despite my effort, my bank account rarely reflected the hours I put in.

Looking back, I see now that I confused busyness with productivity. I was working hard, but not smart. I didn’t negotiate my pay. I didn’t seek better opportunities. I was stuck in a cycle of survival instead of growth.

It wasn’t just about working more; it was about working better. Had I paused to assess the value of my time and skills, I might have redirected my energy towards upskilling, investing in myself, or changing paths altogether.

5. I Ignored the Power of Compound Interest

If there’s one piece of advice I wish someone had sat me down and drilled into my head at twenty-two, it’s this: start saving and investing early, even in small amounts.

The idea of retirement felt laughably distant back then. Why would I worry about something happening forty years from now, when I could barely manage my next month’s rent?

But that’s the trick of compound interest, it rewards time more than size. Even modest, consistent savings in your twenties can grow into something significant over decades. I didn’t start saving seriously until my late twenties, and even then, I was playing catch-up.

6. I Let Shame Dictate My Finances

For years, I was embarrassed by my financial situation. I didn’t talk about my debt. I didn’t ask for help. I ignored bills and avoided checking my account balance. I lived in denial because facing the reality felt too overwhelming.

That silence only made things worse. It isolated me. It allowed small problems to fester into big ones. The truth is, financial shame is common, but silence only deepens the struggle.

It wasn’t until I opened up to a close friend that I felt any relief. They didn’t judge me. They listened. They helped me make a budget. And for the first time, I realised that vulnerability around money isn’t weakness, it’s the beginning of change.

7. I Didn’t Educate Myself

I spent more time choosing which series to binge than I did learning how to manage my finances. I didn’t understand how interest rates worked. I didn’t know how to create a realistic budget. I didn’t even know the difference between saving and investing.

Financial literacy doesn’t come automatically. It requires curiosity, effort, and patience. Unfortunately, most of us aren’t taught this in school. We’re thrown into adulthood with paychecks, bills, and credit options, but without a map.

By the time I started learning about personal finance, I had already made many avoidable mistakes. Now, I read regularly, I ask questions, and I treat financial education as a lifelong pursuit.

8. I Measured Success by Appearances

I was guilty of chasing the illusion of success, having the right clothes, gadgets, furniture, and lifestyle to match the image I thought I needed to portray. I wanted to appear successful before I actually was successful.

But appearances are expensive. And they’re unsustainable. I learned that true success isn’t about what people see, it’s about what gives you peace when no one’s watching. Financial stability. Security. Options. Confidence.

Letting go of that image was hard. But once I did, I felt freer than I had in years.

9. I Didn’t Set Financial Goals

I lived reactively. I spent money as it came in. I didn’t set goals for saving, for debt reduction, or for long-term security. My financial life lacked direction, and as a result, I drifted, financially and emotionally.

Setting goals changed everything. They gave me clarity. Purpose. Focus. I started small, save $100, then $500, then a month’s expenses. Eventually, I created long-term goals: buying a home, building a pension, and becoming debt-free.

It didn’t happen overnight. But each milestone gave me momentum. And that momentum became transformation.

What I Do Differently Now

I’m not perfect with money now, but I’m intentional. I budget every month. I review my expenses weekly. I save consistently. I invest wisely. I track my goals. And most importantly, I forgive myself when I slip.

Because mistakes are part of the journey. What matters is what we learn from them and how we choose to grow.

I no longer see money as a source of anxiety. I see it as a tool. A resource. A reflection of my values, not my worth. And that shift in mindset has changed every area of my life.

Final Reflection

Your twenties are meant to be messy. They’re a time of trial, error, and discovery. I made financial mistakes that cost me thousands, delayed my goals, and challenged my sense of self-worth. But they also taught me resilience, discipline, and the power of starting again.

If you’re in your twenties now, know this: you don’t have to be perfect. But be mindful. Be curious. Ask questions. And above all, don’t be afraid to face your financial reality, because it’s never too late to change your path.

And if you’re already past that stage, reflect with kindness. You did the best you could with what you knew at the time.

Just promise yourself this: learn from your past, but build for your future.