If I could go back and have a little chat with my 20-something self, I’d have a lot to say. Some of it would be life advice (“You don’t need to cut your own bangs”), but mostly, I’d grab past-me by the shoulders and say: “Please, for the love of all things good, get your financial life together.”
Because here’s the thing—I wasn’t bad with money in my 20s. I paid my bills, I had a savings account (with, like, $300 in it), and I wasn’t drowning in debt. But I also wasn’t making smart, long-term moves. I was in full “I’ll deal with it later” mode, which, shocker, is not a wealth-building strategy.
Now that I’m in my 30s, I actually enjoy managing my money (yes, I’ve become that person), and I see so many things I wish I had done differently. So if you’re in your 20s — or just need a financial reset — here are the rules I swear by now that I really wish I had known back then.
Read More: 10 Financial ‘Rules’ That Are Outdated in Today’s Economy
1. If You Can’t Buy It Twice, You Can’t Afford It
Ah, the false confidence of a freshly deposited paycheck. I used to see my bank balance and think, Look at all this money! Time to treat myself! But here’s the harsh truth: just because you can buy something doesn’t mean you should.
Now, my rule is simple: if I can’t buy something twice and still be financially comfortable, I don’t buy it at all. This keeps me from making dumb impulse purchases (cough overpriced skincare products cough) and helps me prioritize what actually matters.
2. Credit Cards Are Not Free Money
I treated my first credit card like a magical, bottomless pit of possibility. My 20s brain saw credit as extra money, not borrowed money. And that, my friends, is how you end up paying interest on a $14 smoothie you bought six months ago.
Now, my approach is different: I use credit cards strategically, meaning I only charge what I can pay off in full every month. I make sure my credit utilization stays below 30% to keep my score happy. I take advantage of points and rewards—but never at the cost of carrying a balance. Past-me would be shocked to hear that I now have a credit score I’m proud of. Growth!
Read More: I Tracked Every Penny I Spent for 3 Months—Here’s What Shocked Me
3. Start Investing ASAP (Even If You Don’t Have Much Money)
In my 20s, investing seemed… complicated. It felt like something only finance bros in Patagonia vests did while sipping expensive espresso. I figured I’d start when I had “real money.” Spoiler: waiting is the worst thing you can do.
Now, I know that even investing a little early is better than waiting to invest a lot later. The magic of compounding means that time matters more than the amount. So whether it’s index funds, ETFs, or a simple retirement account, I always prioritize investing—because my future self is counting on me.
4. The Emergency Fund Is Non-Negotiable
Nothing humbles you faster than an unexpected bill. Car repairs, medical expenses, surprise wedding invites that somehow cost you $500 just to attend—life has a way of being expensive when you least expect it.
My 20s self had a “meh, I’ll figure it out” approach. My 30s self? Non-negotiable emergency fund. The goal? Three to six months of expenses. If that sounds impossible, start small. Even $500 can make a huge difference. But trust me—future-you will sleep way better knowing you have a financial safety net.
5. Track Where Your Money Actually Goes
For most of my 20s, my “budget” was just me guessing that I was spending responsibly. I’d glance at my bank account every so often, shrug, and assume everything was fine. But here’s the thing: your actual spending habits are usually very different from what you think they are.
Now, I track everything. Whether it’s an app, a spreadsheet, or the good ol’ notebook method, knowing where your money goes is the key to financial control. And yes, the first time I did this, I was horrified by how much I spent on takeout. But once you see the numbers, you can actually fix them.
6. Automate Everything You Can
One thing about me? If a bill isn’t on autopay, there’s a solid 60% chance I’ll forget it exists. Late fees? Couldn’t be me.
I automate: Credit card payments (in full), savings deposits, investments, and bills. This way, even if life gets busy (or I get distracted by a new TV show), my financial responsibilities still get handled. Future-me appreciates it.
7. Lifestyle Creep Is Real—And Dangerous
When I started making more money, I thought, Finally! I can spend more freely! And I did. My lifestyle expanded as my income did, which meant I wasn’t actually saving more—I was just spending more.
This is called lifestyle creep, and it’s sneaky. The best way to avoid it? Keep living below your means, even when your income goes up. Just because you can afford something doesn’t mean you should. Instead of upgrading everything in sight, focus on building wealth.
Read More: I Took a Pay Cut for Work-Life Balance — Was It Worth It?
8. You Don’t Need to Keep Up With Anyone
In my 20s, I felt the pressure. Friends getting luxury apartments? People posting designer bags? Fancy vacations that seemed so effortless? I assumed everyone had it figured out except me. Now I know: half of them were probably drowning in debt. No one talks about the credit card bills behind the Instagram posts. No one brags about their emergency fund. The best financial flex? Stability, not stuff.
9. Negotiate Everything (Yes, Even Your Salary)
One of the best lessons I learned? Almost everything in life is negotiable.
In my 20s, I accepted every salary offer as-is. Now? I negotiate everything. Salary, rent, phone bills, even subscription prices. You’d be amazed at what companies will offer if you just ask. And when it comes to salary? Never accept the first offer. Period.
10. Financial Peace > Financial Flexing
The biggest thing I’ve learned? Security feels better than splurging. Yes, the occasional splurge is fine (I’m not a monster), but nothing compares to the peace of mind that comes with financial stability. Having savings, no debt stress, and a solid plan for the future? That’s the real flex.
Final Piece of Advice
If I could go back, I wouldn’t tell 20s-me to stop having fun. I wouldn’t say to never spend on silly things. But I would tell myself to be smarter. To set myself up for success earlier. To make money work for me, instead of scrambling to make it last.
So if you’re reading this and you’re in your 20s, take this as your sign. Start now. Even small changes add up. And trust me—your 30s self will thank you.
(And also, please, don’t cut your own bangs. Seriously.)
