Money Lessons I Wish I Learned in My 20s
5 easy-to-do practical tips that helped me have more control of my money and get me out of debt
My 20s were a whirlwind of self-discovery, filled with countless jobs and the challenges of newfound independence. However, I found myself living in my overdraft and accumulating endless credit card debt. I struggled to pay rent and bills, often living from paycheck to paycheck. I frequently wondered how I would make it to the end of the month and how I had allowed myself to get into such a financial mess.
If there’s one thing I wish I had prioritized more during this decade, it is mastering the art of managing money.
I had never been taught how to be smart with my money. Talking about money was taboo in my household. My parents were immigrants. They had very little money of their own and we grew up very poor.
The sad truth is I was awful with spending money and was in denial. I was reckless and went above my means to impress people who were never impressed.
I had to make big changes and learn some difficult lessons in handling money.
Now in my 30s, I am debt-free, with savings. I have paid off all my credit card bills and I am looking forward to the next chapter of my life.
Here are some money lessons I wish I had known in my 20s
1. Budgeting Is Not A Restriction. It is Freedom
Having a mindset that budgeting is a restriction can be detrimental. Once I started viewing budgeting as a means of freedom, spending less seemed more practical and less restrictive.
In my 20s, budgeting felt unnecessary. With a regular income for the first time in my life and countless temptations, it was easy to justify spending everything I earned. What I didn’t realize was that budgeting taught me how to be more intentional with my money.
Budgeting allowed me to reflect on my values and priorities, which then gave me more freedom to choose how I wanted to spend and when.
2. Start saving early — even if it’s small
I have often regretted spending, but I have NEVER regretted saving.
Saving might seem difficult whilst living in a cost-of-living crisis, but making small changes in your daily spending habits will make a big difference in the long run.
Here are some examples of the small changes I made that helped me save and pay off my debts
- I stopped buying coffee from coffee shops and now only make coffee at home. A cup of latte costs £3.95. I used to buy two or three a week, which would add up to approximately £47.40 a month or £568 a year. However, one pot of instant coffee costs about £5.95 and lasts me about a month.
- I also stopped purchasing branded items and switched to cheaper alternatives. I began shopping at discount stores like Aldi, and even though it was further away, I still managed to save hundreds of pounds.
- Additionally, I cancelled my insurance for household items, which includes my mobile phone. I realized I was paying an extra £50 to £70 a month on these insurance policies, which amounted to hundreds of pounds a year. I also cancelled my gym membership since I never attended; instead, I now go for walks outside or do cardio outdoors.
- Lastly, I stopped online shopping and began visiting stores, supermarkets, and malls to buy what I needed. Online shopping has become so convenient nowadays that it’s easy to spend more without even realizing it.
3. Avoid credit cards and repayment with interest
I believe that interest makes the rich richer and the poor poorer. Interest creates a system where the powerful (lenders) can exploit the vulnerable (borrowers) by making them pay far more than they borrowed.
In my 20s, credit cards felt like an unlimited bank account. I racked up unnecessary debt, not realizing how high interest rates could trap me in a cycle of payments that lasted years. I paid back hundreds more than I actually borrowed and somehow was always struggling to pay it all off.
I no longer own credit cards and I now only opt for interest-free finance or repayment methods.
4. Start investing today! Investing isn’t just for the wealthy
Investing seemed intimidating and unnecessary when I was in my 20s. I brushed it off and thought it was something to worry about “later in life.” What I didn’t realize was that starting to invest small amounts early on — even just £1 — could have significantly impacted my financial growth.
Now, I actively invest and buy stocks, some of which are as affordable as £5 or £10. You don’t need to be wealthy to start investing your money. The earlier you invest, the more your money can grow.
Start small. Start today.
5. Ask for help!
The most important tip is to seek financial advice. Don’t let embarrassment about your financial situation stop you from asking for help. Pride prevented me from seeking guidance in my 20s, and as a result, I struggled in silence, which led to even more debt. I wish I had asked for help sooner.
Thank you for taking the time to read this article.
What money lessons have you learned? Share your thoughts in the comments — I’d love to hear your experiences!
Layla Kareem
