If you’re in your 20s, avoid these financial mistakes


Admin  |  June 29, 2024

3 minutes read

One minute you’re a child who can’t tell that ₦1000 is more than ₦50, so you choose the latter because it’s the only number you recognize. The next minute, you’re in your 20s, realizing how much you need money, a lot of it. 

Our childhood is full of moments that teach us the importance of having money. Very early on, we realize that it means security, freedom, power, and the ability to fulfill our desires. 

As we journey through our 20s, we begin to crave money to afford the lifestyle we truly desire. So, we start figuring out how to earn more money, sometimes through high-income skills, but we often lack a good understanding of how to handle money. Usually, this leads to mistakes that could have been avoided if we knew better. 

So, in this article, we'll be gleaning from the wisdom of some of the millennial managerial staff at Bankly and learning about the financial mistakes to avoid in our 20s. 

In my 20s, I didn’t save as much as I could have because I didn’t embrace the law of compounding interest early enough in my career. There’s an assumption that in your 20s, since you’re just starting out and probably earn very little income then it’s okay to spend all of it. 

While the state of the economy can be very discouraging, the bitter truth is we might never have a better yesterday. So, no matter how small, save. Learn to invest too. The principles of savings and investments have been there since time immemorial. As the famous saying goes, the best time to start was probably 10 years ago, the second best time is now. It’s never too late, just start.  

Learn to give in your 20s. It’s very tempting to choose to hoard the money you have and spend it only on yourself. But, you need to realize that this is a time to sow seeds into your future; contribute to good causes, invest in people’s lives, pay somebody’s transport fare, etc. Get rid of the “everything I own is mine” mindset. 

As you grow older, you’ll have more bills to pay, maybe even children to cater to. Cultivating the habit of giving now makes it easier to take on these additional responsibilities. Giving here could also mean investing in yourself; take that small course to improve yourself and make sacrifices for the bigger picture. 

There’s a tweet that talks about how we should have been saving since we were born. I agree because it’s never too early to save money, start a profitable side hustle, or learn a skill. When you learn a skill, you can leverage it to make money for yourself.

I spent money investing in myself in my 20s which is not a bad thing because I’ve started reaping it now that I’m in my 30s. 

Most people are still trying to figure out their career path in their 20s and that’s okay. Don’t put too much pressure on yourself to have it all figured out, just focus on self-development, build an emergency fund, and live. It’s very important to have a balance of living, investing in yourself, and saving. Be adventurous but save and invest in your brand and career development now so you can be a baby girl/boy in your 30s. 

I wish I did something to bring in additional income in my 20s, not necessarily to cater to my needs but to have an entrepreneurial mindset. It wouldn’t matter if I was earning as little as ₦5,000 in six months from the side hustle. 

Starting a side hustle in your 20s helps you learn about business and entrepreneurship. By the time you’re in your 30s, you will have gathered a wealth of entrepreneurial experience that you can share. You never know, you might end up building a sustainable business that saves you from answering to capitalism by starting that side hustle now. 

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