Your 20s are an incredible time. You have energy, ambition, and years ahead to build the kind of life you want. But they can also be a dangerous decade for your finances. Many people waste valuable years making money mistakes that cost them opportunities to grow wealth early.
Looking back, here are some of the biggest mistakes I wish I had avoided, and the lessons you can take away to build wealth faster.
1. Waiting Too Long to Start Investing
I thought investing was something you did when you were “older” and earning more. The truth? Time is your biggest wealth-building tool. Even a small amount invested in your 20s can grow into something huge by the time you’re 50 or 60. Waiting just five years can mean losing hundreds of thousands in potential gains.
Lesson: Start now, even if it’s only $50 a month. Use low-cost index funds or ETFs to get into the market. Your future self will thank you.
2. Thinking Income Equals Wealth
When I got my first real job, I equated a good paycheck with being financially secure. I started spending more, upgrading my lifestyle, and ignoring the bigger picture. I learned the hard way that earning more is meaningless if you don’t save and invest a good portion of it.
Lesson: Focus on growing your net worth, not just your income. Live below your means and direct the extra toward assets that grow in value.
3. Carrying High-Interest Debt
I once had a credit card balance that felt “manageable” because I could make the minimum payments. What I didn’t realize was that the interest was silently draining my future wealth. Paying 20% interest while my savings account earned 1% was a losing game.
Lesson: High-interest debt is the enemy of wealth. Pay it off as fast as possible, and avoid racking it up again.
4. Not Learning About Money Early
I relied on trial and error with my finances. While I learned some lessons, it cost me time and money. If I had taken even a few months in my 20s to study personal finance, I would have avoided costly mistakes.
Lesson: Read books, follow reputable financial experts, or take a course. Knowledge is one of the highest-return investments you can make.
5. Ignoring Multiple Streams of Income
I depended entirely on my job for money. When I lost it, I had nothing coming in. I realized too late that having more than one income source isn’t just a good idea, it’s a necessity.
Lesson: Use your 20s to start a side business, learn a skill you can monetize, or invest in income-generating assets. It builds resilience and speeds up your wealth-building journey.
The Bottom Line
Your 20s are the foundation for your financial future. Avoiding these mistakes can save you years of frustration and put you ahead of most people your age. Start small, stay consistent, and keep learning.
If you want to take control of your money and start building wealth no matter where you’re starting from, download our Free Guide to Financial Independence. It’s packed with practical steps you can apply immediately to secure your future.