Your twenties are exciting — new jobs, new cities, new freedom. But they’re also prime time for financial mistakes that can haunt you for years. Here are seven pitfalls to watch out for:
- Ignoring Your Budget: If you don’t tell your money where to go, it will disappear without a trace.
- Living Above Your Means: Just because you can afford the payment doesn’t mean you can afford the item.
- Waiting to Start Investing: Time is your best friend in investing. Don’t waste it.
- Racking Up High-Interest Debt: Credit card balances snowball fast. Avoid them like the plague.
- Not Building an Emergency Fund: See the first article for why this is crucial.
- Spending Without Thinking About Future Goals: Every dollar spent today is a dollar you can’t invest for tomorrow.
- Thinking You Have “Plenty of Time”: The earlier you start good habits, the easier your life becomes later.
Fixing these mistakes early can save you thousands — and maybe even decades — of financial stress.