7 Money Mistakes to Avoid in Your 20's

Moni - Spend, Save & Borrow
More Moni
Published in
4 min readSep 11, 2023


In your 20s the world feels like your Oyster — a time for gaining independence/freedom and making money. If you ask some young adults about their money decisions, you’ll hear something about how they are still learning the ropes and how that’s part of growing up. While it’s true that mistakes are part of growing up, your 20s offer a unique opportunity to establish a decent financial foundation for your future.

Avoiding common money mistakes in your 20s and early 30s can set you on the path to financial freedom. Let’s walk you through some common mistakes to avoid during this pivotal period.

Living Above Your Means

It’s tempting to keep up with peers but accumulating debt will certainly do more harm than good. I cannot stress how important it is to create a budget, stick to it, and track your expenses diligently to avoid stories that touch. At the end of the day, nobody will help clear your debt simply because you went on a spending spree with them. Don’t say we at Moni, did not tell you.

Not having an Emergency fund

Life’s unpredictability is universal but in Nigeria, you just never know what could happen within a jiffy. Without an emergency fund, unexpected expenses can push you into debt. As the popular saying goes “The middle class is one hospital bill away from poverty.” Aim to save and select the best investment platforms in Nigeria to ensure you have a minimum of 6 months' worth of living expenses. Having an emergency fund is like having “vex money” in case things don’t go as planned.

Start your savings journey with Moni!

Investing Without Research

Blindly investing without understanding your options and the company you’re investing your money in can result in losses. In the span of five years, I’ve heard stories of multiple fake investment companies that have eloped with people’s money. Concentrating your investments in one area can also expose you to higher risks. Educate yourself about investment options before diving in and always look to invest with the best investment platform in Nigeria. A Moni savings account can help grow your wealth. Create an account, invest, and earn daily in Nigeria using the Moni app, and get up to 21% interest rate.

Failing to Budget & Setting Financial Goals

One of the biggest financial missteps in your 20s is not creating a budget. Without a budget, it’s easy to overspend and lose track of your financial goals. Start tracking your income and expenses to gain control over your finances. Setting clear financial goals can help you stay focused on your priorities.

Impulsive Spending

This is not the time to spend your money impulsively and tell yourself “if I perish, I perish” because, with this country’s economic situation, you’d actually perish. Make thoughtful financial decisions rather than giving in to impulse purchases. Avoid impulse purchases at all means and take time to evaluate whether a purchase aligns with your financial goals. This is part of the reason why it’s important to create a budget at the beginning of every month and save any extra funds you’re tempted to spend in your Moni naira reserve plan.

Not diversifying your income

Diversifying your income is important because it helps you reduce risk and increase financial stability. Explore side hustles and additional sources of income to increase your wealth. A major advantage of having multiple sources of income is that it helps protect against economic downturns.

Ignoring Long-Term Planning

Ignoring long-term planning can be detrimental because it prevents you from setting goals and preparing for the future. Your 20s are a crucial time to plan for your future, including homeownership, business expansion, family, and retirement. This is the ideal time to set long-term financial goals. Don’t delay planning for these goals and making consistent progress towards them.

Avoiding these common money mistakes can pave the way to financial stability and success in your 20s and beyond. This phase could be financially challenging but it is important to take small, consistent steps in the right direction. Start building the bridge towards a brighter financial future today by creating a Moni account and visit www.moni.africa for more information.



Moni - Spend, Save & Borrow
More Moni

Get the Moni App on the Play Store and App Store to earn up to 21% on your savings.