Financial decisions made in your 20s can shape the rest of your life. This is a time for growth, self-discovery, and laying the foundation for your future. It's crucial to be consistent and mindful, especially when it comes to using credit cards, planning your budget, managing debt, and saving money.
These years are perfect for developing healthy financial habits that will benefit both the short and long term. By making the right decisions now, you can avoid financial mistakes and build a solid foundation for your future.
What are the most common financial mistakes and how can you avoid them? This blog post is all about that.
1. SPENDING MORE THAN YOU MAKE
If you spend all your salary as soon as you get it, now is the time to check your spending habits. Poor financial management can leave you in debt and struggling to keep up.
Try to find ways to cut costs and use your money on the things that matter most. Also, remember to put some money aside for the future (20% of your income).

2. NOT TRACKING YOUR MONEY
One of the most common mistakes young people make is losing their money by not keeping track of their balances. How often do you check your bank account? How much money do you spend each week on groceries, bills and entertainment? It's important to answer questions like these if you want to manage your money effectively.
Creating and following a budget can help you keep track of your finances each month. You can make this process easier by using free apps to manage your income and expenses.
3. NOT SETTING FINANCIAL GOALS
If you don't set specific goals for the future, it will be harder to budget, save and manage your money in the present. This mistake could cost you more in the long run. For example, you might ignore your long-term savings, spend too much on things that give you instant satisfaction, or not pay off any debt you have, which can build up interest over time.
Everyone's financial goals are different, depending on what they need and want to achieve. It's important to take the time to write down your goals and make a plan to achieve them in a realistic time period.
4․ NOT TAKING ADVANTAGE OF FREE TIME TO EARN EXTRA MONEY
You can earn extra money by doing hobbies or favourite activities. If you are good at something, you can turn it into a second job and earn money. Nowadays, there are lots of online resources that are easy to use. You can turn any idea into a business. You can save any extra income.
You can also get a second job in your free time and get more jobs in the future.
5. NOT HAVING HEALTH INSURANCE
You might think that health insurance is a luxury for a 20-year-old. We agree that not everyone at that age earns enough money to buy insurance. But when choosing a job, you can look for employers who give their employees free health insurance.
Remember that buying health insurance with your own money is an investment in the long run, not a waste of money.

6. MAKING IMPULSE PURCHASES
Impulse buying can drain your savings account faster than you realize. Whether it's that cute pair of shoes, a trendy gadget, or a spontaneous weekend getaway, making decisions based on immediate gratification rather than thoughtful planning can result in buyer’s remorse.
7. UNDERESTIMATING THE IMPORTANCE OF NETWORKING
In your 20s, career opportunities are often about who you know as much as what you know. Focusing solely on your job and neglecting to network can limit your access to new opportunities and connections.
8. HAVING SMALL LOANS, BUT A LARGE AMOUNT
The "Buy now, pay later" service of banks and financial institutions is quite popular, but it should be remembered that loans can quickly lead to financial difficulties. Having a large number of loans in your 20s and 30s can make it hard to save and manage your finances wisely.
9. SPEND ALL SALARY ON BRANDED ITEMS
If you're on a salary, it's not a good idea to spend all your money on branded clothes, watches and bags. This is the time to focus on getting the best education and professional training you can, so that by the time you're 30+, you'll be in a position to buy your dream car without having to take out a loan or struggle.

10․ STARTING A FAMILY WITHOUT A FINANCIAL PLAN
Starting a family is one of the most exciting milestones in life, but it also comes with significant financial responsibilities. While the joy of welcoming a child or expanding your family is undeniable, jumping into this life change without a solid financial plan can lead to stress, debt, and missed opportunities.
But it's important to have a financial plan and adjust your budget to cover new expenses. These could be things like buying more stuff, renting a flat, paying a mortgage every month, taking care of kids, and other expenses that come up when you start a family.
CONCLUSION
Your 20s are the perfect time to establish a strong financial foundation for the future. By avoiding these common financial mistakes and taking proactive steps toward managing your money wisely, you’ll set yourself up for long-term success. Remember, it’s all about developing healthy financial habits, staying disciplined, and making informed decisions.
HOW TO INVEST?
Open a free brokerage account with Unibank Invest and start investing. The Unibank Invest app provides access to the world’s largest stock exchanges, enabling you to purchase international investment instruments, such as stocks, bonds, and ETFs.
To open a brokerage account, fill out the online application or call +374 43 004 382.