Your 20s are such a fun time in your life, but it’s also extremely challenging as you enter the “real” world as an independent person. As you flee the nest egg, there are a lot of things that are brand new and unfamiliar. You’ll likely be getting your first ‘adult’ job with a steady income, potentially moving to a new city, and trying to figure out so many new things. Everyone goes through this challenging phase, and mistakes will be made (I sure made my fair bit of mistakes), but we’ve shared some helpful mistakes to avoid in your 20s so you can learn where we went wrong.
Before talking about the mistakes to avoid, first take a deep breath and know that every single person has to go through this transition period. Everyone feels the jitters during this formative time. You’re not alone.
Here is our list of mistakes to avoid in your 20s
- Not Prioritizing Saving
- Afraid to Explore Career Paths
- Early Pet Parenting
- Grad School for Grad School’s Sake
- Succumbing to Relationship Pressures
- Maintaining an Expensive Facade
- Delaying Healthy Habits
- Racking Up Credit Card Debt
- Thinking You Know Everything
- Taking Life Too Seriously
1- Not Saving a Single Dollar
In your 20s, you’re likely not making a killing in an entry-level job (if you are, great work). There’s also a TON of temptation to go out and party, meet new friends, have a magazine-worthy house, and live the Instagram life. Plus, don’t get me started on how expensive it is to start dating.
I wish someone sat me down and helped me set up my accounts to automatically tuck a teeny tiny bit of money away from every paycheck, because if you start at 22, you are WAY closer to your financial savings goals.
I owe a big shout out to my manager who sat me down at 22 and helped me set up my first 401K. I’m so grateful because 5 years later, I tucked away $10,000 into retirement with tiny monthly contributions.
In an attempt to channel my previous manager, I’ve outlined steps that will help you save money without you even realizing it:
- Log in to your online bank account, and turn Auto-Savings “ON”. Most banks allow you to automatically push money into a savings account if you have a deposit over X amount of money. I chose to put $10 into savings for every deposit over $500, and that started to add up.
- If you want to put that money into an investment vehicle, check out Acorns. It’s an app that will allow you to automatically invest a small amount of money every week or off of each purchase, and overtime, the small ‘acorns’ you invest will turn into a giant ‘oak tree’. Personally, I invest $5 a week, and have an aggressively invested portfolio, which projects me to have $100,000 by age 60! Anyone can put $5 away a week and won’t you be happy when you have $100,000 waiting for you in retirement! If you’re interested, you can sign up here.
2 – Not Exploring Different Career Paths
Your first job, and likely your second and third, will probably not be your forever career. And that’s totally normal! Your 20s are the best years to explore different jobs to discover what your true strengths and passions are before settling on a single career path.
Especially in today’s age, lots of people tend to switch jobs every 2-3 years in order to gain more skills, find new challenges, or switch into a new career path. I’m very grateful that I took an early detour into a biology lab studying turtles before I switched into the technology industry because it gave me a unique perspective in my current role.
As an added bonus, gaining additional skills from various roles gives you an edge over people who have been in the same role their whole career, which employers often see as more valuable (and will likely pay you more for those skills).
3 – Getting a Pet Before You’re Ready for the Responsibility
We all remember our pets from childhood fondly, but that does not mean you should get a pet as soon as you flee the nest. We’ve all seen people get a pet to fill the void of living by themselves after being in bustling college dorms, only to drop them off at their parents or back at the foster center.
If you’re considering a pet, be prepared to adjust your lifestyle because pets are a lot of work. In fairness, I say this as a proud dog mom of 2 wonderful pups who bring so much joy to my life. I did wait ~5 years before adopting because, even though I wanted a pet, I was constantly moving and traveling so my lifestyle would not have been fair to my (future) dog.
Be prepared to leave happy hours early because you need to let your dog out, know your pet will destroy furniture/shoes/walls/etc., vet visits add up quickly, and you are fully responsible for the well-being of your pet. If you want to live it up with late nights at the bar, party it up at concerts, and take long vacations that’s great! Just consider delaying taking on the responsibility of a pet until this is out of your system.
4 – Grad School for Grad School’s Sake
In the past, going to grad school was a guaranteed way to step into a high-paying corporate gig immediately after graduation. Many companies even covered the cost of going back to grad school (wouldn’t that be nice?)
Things have definitely changed since then, yet, our generation still faces the societal pressure of going to grad school because it’s the “right” decision. Sometimes it is, and sometimes it isn’t.
If you don’t know what you want to do for a living, welcome to the club! Not many people know exactly what they want to do in the long term at 22. With tuition prices increasing at 8 times the rate of inflation every year, it no longer makes sense to go to grad school with the expectation that it will pay off in a higher salary.
Going to grad school should be an intentional decision because you know it will help you reach the next rung of your career. At the end of the day, it’s an investment, not a “find yourself” opportunity. If you feel like you’re at a crossroad, and grad school is the “safe option” where you think you will figure yourself out, spare yourself the time and burden of massive debt.
Instead, look for an entry-level job to start exploring different industries that align with your personal interests. After a couple of working years under your belt, you can make a more informed decision if grad school is the right step for you.
5 – Succumbing to Relationship Pressures
It’s crazy how your Instagram/Facebook feed starts off with everyone at parties during college, and transitions to mushy relationship photos, to engagement/wedding photos, and then, the inevitable baby phase.
Yes, lots of people pair off in their 20s, but you also shouldn’t jump into a relationship just to be in a relationship. Instead, spend the time to explore your passions and figure out who you are as a person and see who bumps into your life.
Field hockey was always part of my life, and I love the sport. When I moved to San Francisco, I found an adult hockey league to continue playing my favorite sport. That’s where I ended up bumping into Matt, and the rest is history.
6 – Trying to Maintain a Superficial Image
No one cares about your expensive car, flashy clothes, or designer pieces. Social media bombards us every day with “influencers” who are showing off their Chanel purses and Gucci sunglasses. These expectations are completely unrealistic for how most people live their lives, and honestly, everyone has their own problems they are focused on.
It may be an adrenaline rush when you first make the purchase and show it off, but that feeling will inevitably wear off faster than you initially realize. Then you’ll be stuck paying it off.
Of all purchases, avoid getting an expensive car. Your car is a set of 4 wheels to get you to work and back home. That’s it – so don’t get a super expensive car that you’re paying hundreds of dollars for every month. You will be SO thankful to have that money put in your savings account.
7 – Not Starting Healthy Habits Now
Your body is a temple, and you get only one body throughout your lifetime on earth. Starting and maintaining a healthy, balanced lifestyle early on will dramatically improve the quality of your life as you age.
Find hobbies that keep you physically active and mentally sharp. Personally, I love cycling as an outlet, but for other people it could be going on a walk with your friend, dancing, playing soccer, tennis, hiking, etc.
Finding a balanced approach to food is also crucial to maintain a healthy lifestyle. I was diagnosed with celiac disease at a young age, which forced me to read every single nutrition label and ingredients list, and that helped me begin to figure out what type of diet works best for me. I like to take a balanced 80/20 approach, where during the weekday, I eat very clean and healthy, and on the weekends I allow myself that extra glass of wine or slice of cake. It’s been a very sustainable approach that I can maintain in the long term.
8 – Racking up Tons of Credit Card Debt
It CRUSHES me that schools don’t teach you about credit cards or your credit score. Credit cards come with the allure of rewards and exotic trips for free. But they are also the easiest way to put yourself in a hole that will take years to dig yourself out of.
Credit card companies offer amazing sounding rewards with the hope that it will incentivize you to spend more because these companies make tons of money off of the interest payments when you can’t pay your balance in full at the end of the month.
Personally, I chose not to open a credit card until I was 25 to avoid getting into massive credit card debt.
When you receive your first credit card, I’ve listed the rules you absolutely must live by:
- This is not free money.
- You absolutely must pay off the balance in full at the end of each statement period.
- The rewards are not worth spending more than what you can afford.
9 – Not Learning from Everyone Around You
We hear kids are amazing sponges that soak up information all around them, and your 20s should be the exact same thing! You’re starting a new phase of your life, and one of the most valuable things you can do for the future is to be a sponge and soak up as much information as possible. Everyone you interact with has something valuable to teach you, and take advantage of all this knowledge.
Put your learning hat on and look at every conversation and interaction as an opportunity to learn something new. If you focus on nothing else during your 20s other than learning as much as you can, you’re setting up your future to be extremely successful.
I initially went into sales with the pure intention of wanting to learn from as many conversations as possible, and sales were the only career path that I could find where my job is literally to learn about what people do for a living. I’ve found it so fascinating that it’s become my passion.
10 – Have FUN!
Yes, we went through a lot of serious learnings above, but your 20s are also such a fun decade and you should make sure to enjoy every bit of this special time. There’s likely a period in your 20s where you don’t have the responsibilities of owning a home or raising a family, so enjoy those weekends, hang out with friends, try new things, explore the wonders of the world and make those memories that will truly last a lifetime.
What does all this mean?
The above is just a sample of the many mistakes you will likely make in your 20s. While these are some pitfalls to be aware of, don’t be too hard on yourself when you make a mistake. Making mistakes is how we learn and part of growing up. By being aware of some of these mistakes, I hope that you can learn quickly from them.
If you take anything away from this lesson, remember this advice for navigating your 20s:
- Don’t be afraid to try new things and take calculated risks.
- Be intentional. Ensure your decisions have reasoning behind them.
- Start saving as early as possible.
- Avoid debt at all costs.
- Have fun!
Check out additional topics to make personal finance SLIGHTLY EDUCATIONAL on our Personal Finance page.
