What Are Some Lesser Known Money Mistakes to Avoid in Your 20s and 30s?

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I don’t claim to be an expert on money. In fact, until recently, I’ve had an odd relationship with money. As someone of the INFJ personality type (if you’re into personality typing), money just wasn’t something that mattered much to me, so I never really took the time to learn about it. I also had a lot of negative associations with money, which made it hard for me to view it objectively and use it wisely.

As part of my process of building a new relationship with money, I’m working on developing a new money mindset—one that associates money with positive things. Part of this process is forgiving past financial mistakes. But I can still hold onto the lessons I learned from making those mistakes.

Some of the more common money mistakes I’ve read that people in their 20s and 30s should avoid have to do with things like misusing credit cards, living above your means, and not budgeting. These are all great things to keep in mind. But I would like to talk about some lesser known money mistakes based on my own experiences with money.

So, here are five money mistakes that people in their 20s and 30s—and everyone, really—should avoid, but that may not be talked about as much.

5 Lesser Known Money Mistakes to Avoid in Your 20s and 30s

1. Not traveling.

   Everyone should travel. Period. It’s a great way to see how other people live, get exposed to new ideas and cultures, and expand your mind and horizons. You don’t have to visit every country in the world. You don’t even have to leave your own country if you don’t want to. But you should try to see more than just the places that surround you on a daily basis.
   
   I traveled abroad in college, and I feel that experience enriched my life in many ways. But I haven’t traveled much since then. And now that traveling has become more complicated, I wish I had traveled more before because now I feel much less willing to travel.
   
   But I would consider traveling even just visiting a different part of your city, state, or country. You would be surprised at all you haven’t seen when you journey beyond the familiar.
   
   Whatever you do, don’t think of the money you spend traveling as an unnecessary expense or luxury. Consider it an investment in you—in your growth and development. That’s never a wasted expense, although you should definitely research best practices for how to spend and save money while traveling.
   
   You should also do some research on the area you’re going to before you go, especially if it’s a different country. You don’t want to risk looking like a tourist or making easily avoidable mistakes.
   
   Additionally, traveling is a great way to use your money to help others. When you travel and get to know other people and cultures, you help decrease the ignorance in the world. And less ignorance means more acceptance and more love.
   
   Speaking of investing in you, the next mistake I would suggest avoiding is…

2. Not investing in you.

   If you want to do something that requires you to learn a new skill, take the time to learn that skill. And learn it as quickly as you can. Don’t spend hours reading every article you can about it. Take a course. Read a book. Or find someone who can teach you.
   
   If it’s something you’re doing just as a hobby or for fun, watching YouTube videos and reading articles may be enough. That may even be enough for some people to do things professionally. But there are certain skills I find are best taught by an expert. This is especially true if it’s a skill that’s not intuitive to you or that you find yourself struggling to learn.
   
   It’s important to remember that, what we save in money, we may lose in time. If you find yourself struggling to learn something on your own, it might be time to consider spending money to end that struggle.

3. Spending money on a paid service when a free or lower-priced service will do.

   I once bought a pricy software that I didn’t really need. I think I was trying to convince myself that I was a professional at what I was doing and that I was taking my work seriously. And so, I wanted to buy serious, professional software.
   
   Instead, I looked like someone who had just wasted $100. My computer already came with software that would have served my purposes just fine and I didn’t even end up using most of the pricy software’s advanced features. And sadly, unless you’re using software that works on a subscription model, that’s one of those items you can’t return.
   
   I do think it’s true that, once you’ve set yourself on a certain course, you should take it seriously. If it’s a work-related course, you should treat it like a professional. But when you have any uncertainty about the course you’re taking, you might want to consider not investing too much into anything you’re not even sure you’ll need.
   
   For example, if you want to start making YouTube videos, you might not want to invest in fancy equipment just yet. If you have a phone or camera that captures decent video and audio and you have access to natural light, that’s usually all you need to get started.
   
   In terms of editing software, if your computer already comes with a program that works fine while you get the hang of things, use it. Don’t invest in anything more expensive.
   
   Once you get used to making videos and see that this is something you’re passionate about and plan to continue long-term, then you can consider investing in pricier equipment. But wait until then to do it.

4. Feeling compelled to buy things you don’t want or need.

   On two occasions, I bought expensive music equipment I didn’t end up needing or using much. The reason? I had already removed the items from the shelf and I didn’t have the courage to tell the salesperson I didn’t want them.
   
   I wouldn’t consider myself a shy person in general, but I can be shy in certain circumstances. And that shyness can make it hard for me to speak up for myself when I need to.
   
   One tactic my mom taught me when it comes to spending money—especially on expensive items—is not to buy them right away. If you go to the store or see something online that you like, leave the store or the site and sleep on it. See how you feel about the item the next day. And also consider whether you have money in your budget to pay for it.
   
   I know leaving the store is easier when you’re not dealing with a charismatic or aggressive salesperson, but remember that your money is valuable. You don’t want to waste it or spend it on a whim. So, practice the art of saying “No” or “I’ll think about it.”
   
   After you’ve distanced yourself from the item, if you don’t feel as excited about it the next day or you realize you don’t have the funds for it, you might want to reconsider buying it. But if you’re still excited and it fits your budget or you feel you really need it, by all means, go ahead.
   
   And if all else fails and you do end up buying something expensive that you don’t need, just return it later if you can. And if you can’t, remember this lesson for the next time you’re considering an expensive purchase.

5. Not developing a positive money mindset.

   One of the reasons that people in their 20s and 30s may struggle to use money properly is because they never learned how to use it properly. They’re most likely using money knowledge that they picked up from their family and friends.
   
   But when they rely on that kind of information, they’re relying on people who already have their own views of money, and those views may or may not be conducive to things like financial freedom and building wealth.
   
   The way you view money is your money mindset. As I mentioned at the start of this post, I’m currently working on improving my money mindset because I realize that my old way of viewing money wasn’t serving me and wasn’t helping me reach my new financial goals.
   
   When you have a positive money mindset, you’re more likely to want to learn more about how money works and you’re more likely to want to have more of it in your life. Negative money mindsets are more focused on things like necessity and security. They come with a lot of limiting beliefs about money and about your ability to make or receive more of it.
   
   But a positive money mindset will encourage you to take the fear out of your relationship with money so that you’re more comfortable taking the kinds of risks that will allow you to become financially free.
   
   Before you can change your money mindset, though, it can be helpful to know what your current one is. If you would like to have an idea, you can check out this post.

Final Thoughts

I hope you can learn something from the mistakes I’ve made with money. The big takeaway for me is, try not to waste money, but don’t be afraid to spend money when you feel something is worth the cost. Also, be mindful of the times it might be wiser to spend money and save time or gain some other intangible benefit. And if you would like to have a healthy relationship with money, work on improving your money mindset.

Now I turn it to you. Are there are any lessons you’ve learned about money over the years? Go ahead and share them in the comments. This way, we can learn from each other and help all of us make the best use of our money.

~ Ashley C.

Note: The advice presented here is for informational purposes only. If you’re in need of professional financial advice, please see a qualified professional.

Last updated: June 21, 2024