7 Money Mistakes I Made in My Twenties (So You Don't Have To)

If I could go back and talk to my 22-year-old self, I'd have a lot to say. Mostly along the lines of "What are you thinking?!" when it comes to money decisions.

I made some truly baffling choices with my money in my twenties. Not catastrophic, but definitely cringe-worthy. The good news? I learned from every single one. The better news? You can learn from them without making them yourself.

Here are the biggest money mistakes I made — and what I should have done instead.

1. I Didn't Track Where My Money Went

For years, I had this magical thinking that if I didn't look at my spending, it somehow didn't count. I'd check my bank balance, see a decent number, and assume everything was fine.

Then I'd be shocked — SHOCKED — when I was broke two weeks before payday.

The wake-up call: I finally forced myself to look at three months of bank statements. I was spending $380 per month on food delivery. Nearly $200 on subscription services I barely used. Another $150 on impulse purchases from Instagram ads.

That's $730 per month — almost $9,000 per year — on stuff that added zero value to my life.

What I should have done: Track my spending for even just one month. Not to judge myself, but to understand reality. You can't fix what you can't see.

2. I Kept Up With Friends I Couldn't Afford

My friend group in my early twenties was... financially diverse. Some had well-paying jobs, family money, or just different priorities. I, on the other hand, was barely making rent.

But when everyone suggested expensive restaurants, weekend trips, or concerts, I said yes. Because I didn't want to be "that person" who always said no. I didn't want to feel left out or broke.

So I'd go, swipe my credit card, and deal with the anxiety later.

The wake-up call: I realized I was going into debt to maintain friendships. That's not friendship — that's performance. Real friends don't care if you suggest cheaper alternatives or sit one out.

What I should have done: Been honest. "That sounds fun, but it's not in my budget right now. Want to do [cheaper alternative] instead?" The friends worth keeping would understand. The ones who didn't? Not really friends.

3. I Treated "On Sale" Like "Free Money"

Oh, this one hurts to admit. I was the queen of "good deals." If something was 60% off, I HAD to buy it. I was "saving money," right?

Wrong. I was spending money on things I didn't need just because they were cheap.

My closet was full of clothes I never wore, all purchased because they were "such a steal." My apartment had gadgets I used once. My bathroom had products I "couldn't pass up."

The wake-up call: I moved apartments and had to pack all this stuff. I literally donated bags full of items still with tags on. I'd spent hundreds of dollars on "deals" that became donations.

What I should have done: Asked myself one simple question before every purchase: "Would I buy this at full price?" If no, then I didn't actually want it — I wanted the dopamine hit of getting a deal.

4. I Ignored Small Expenses (They Add Up Fast)

"It's only $5." "It's just $12." "It's barely $8."

These tiny justifications were costing me a fortune. A coffee here, lunch out there, a random Amazon purchase — each one felt insignificant. Together, they were hundreds per month.

The wake-up call: I added up one month of "small" purchases under $20. It came to $640. That's real money!

What I should have done: Realized that small expenses DO matter. I'm not saying never buy coffee — I'm saying be intentional. Choose the expenses that truly bring you joy, and cut the mindless ones.

5. I Didn't Have an Emergency Fund (Until I Really Needed One)

I thought emergency funds were for "other people" — people who were more responsible, more settled, more adult than me. I was young and invincible. What emergency could I possibly have?

Then my car broke down. $1,200 repair. No savings. Hello, credit card debt.

The wake-up call: That emergency — and the months of paying off the credit card with interest — taught me that emergencies aren't "if," they're "when."

What I should have done: Started small. Even $20 per paycheck adds up. I didn't need $10,000 saved — even $500 would have saved me from credit card debt.

6. I Didn't Negotiate My Salary (Twice)

I accepted my first two job offers without negotiating. I was just so grateful to be hired that I said yes immediately.

Looking back, I probably left $5,000-10,000 per year on the table. Over the years I stayed in those roles, that's a lot of money.

The wake-up call: A friend casually mentioned she'd negotiated her starting salary and got $8K more. I was shocked. "You can do that?!" Yes. Yes, you can.

What I should have done: Always ask. The worst they say is no. But often, they say yes — or meet you somewhere in the middle. That conversation is worth thousands of dollars.

7. I Didn't Talk About Money With Anyone

I thought talking about money was rude, awkward, or taboo. So I suffered in silence with my money stress, made mistakes alone, and never learned from other people's experiences.

This kept me in the dark about so much: what my peers were earning, what was normal for my field, what strategies actually worked.

The wake-up call: When I finally started having honest money conversations with friends, I realized everyone was struggling with something. And we could help each other.

What I should have done: Talked openly about money — not in a braggy way, but in an honest, "we're all figuring this out" way. The money silence helps no one.

The Silver Lining

The only good thing about making these mistakes? I learned. And I changed.

If you're making some of these mistakes right now, that's okay. You're not alone, you're not dumb, and it's not too late to change course.

The best time to fix your money habits was five years ago. The second best time is today.

What money mistake are you learning from right now? You're not alone in it.