5 Money Mistakes I Wish I Didn’t Make In My 20’s

I don't want you to make the same money mistakes that I made. 

Most people have made at least one poor financial decision at some point in their lives.

There are 5 things that I wish I had done differently in my 20s in terms of how I spent my money. 

While you can't dwell on the past, you can always learn from it and make better financial decisions from this day forward. 

Keep reading to discover the 5 money mistakes that you should avoid at all costs! 

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I have learned A LOT from my money mistakes.

I've had a lot of successes and failures along my entrepreneurial journey. Not surprisingly, I've learned a lot more from my failures than I have from my successes. Failure is a powerful teacher. It forces you to look back and ask, “Why didn't that work, and what can I do differently to prevent the same mistake from happening?”

I hope that my mistakes will serve as a warning to you of what NOT to do so that you are better positioned for success and financial freedom. On that note, let's dive into 5 mistakes that I wish I didn't make in my 20s.

1. Getting In Credit Card Debt

This is a common mistake that a lot of people make. Credit card debt is the worst. The interest rates that credit card companies charge are criminal. It can be so hard to get yourself out of debt once you've dug yourself into a financial hole.

In my early 20s, I wasn't responsible with my money. I had money coming in, but I didn't track it. Let's just say that I was spending more money than I was making. When you know you're getting into debt, you are more likely to avoid facing your financial woes.

It wasn't until I confronted my debt that I realized how bad it was. I decided to take ownership of my money issues and created a plan on how to get out of debt. I found a credit card company that accepted a balance transfer.

They gave me an incentive that was too good not to pass up. If I transferred my balance from one credit card to another, they would give me one year of zero percent interest. That saved me the 19% that I would have otherwise had to pay.

I gave myself 12 months to be as resourceful as I possibly could. This meant making a lot of sacrifices. I got rid of my car and my apartment and slept on my friend's couch.

Keep in mind that there is good debt and bad debt. An example of good debt is using other people's money and investing it into an asset, like real estate. Recently, I invested in a property. I got a mortgage for it. Interest rates are so low right now (1.14%, with a 5-year variable).

I'm borrowing a large sum of money at a low rate.

This property will appreciate more than my 1% interest rate. By not having all of my money tied up in a real estate property, I can borrow money at a low rate.

In turn, I can invest in stocks that give me a 10% return. Knowing how to use leverage intelligently can help you accelerate your wealth.

When I look back on this time of my life, I'm grateful that I got into debt early on and not into my 30s, 40s, and 50s. I learned valuable financial lessons. Since then, I vowed to NEVER find myself in a similar dire financial situation. 

2. Spending Money On Things That Don't Add Value Long-Term

If I hadn't spent so much money on materialistic possessions in my 20s, I would be much farther ahead financially. Back in the day, I was living paycheck to paycheck. A lot of the things that I was indulging in were similar to empty calories.

I look back upon the money that I wasted and I can't even remember those experiences. Sure, those experiences gave me pleasure, but they didn't add value to my life, long-term. I believe that delayed gratification — putting off what we want now to get something bigger and better later on — is the key to financial success.

Instead of spending the money that you have, I encourage you to save or invest it into a stock or ETF. Moreover, invest in yourself! Travel, attend seminars, read books, take courses, or hire coaches/mentors. These types of things will set you up to win in the future.

I'm not saying that you can't have any fun in your life. It's all about creating balance. 

3. Not Educating Myself About Money & Investing 

Money is an important part of life. If you neglect to learn about money or create a disempowering belief about it, you'll pay a price. In my early 20's, I didn't care about money. I made money and spent it.

My parents weren't good with money. They went through bankruptcy when I was younger. We had to sell the house that my dad built. I associated a lot of pain with money. In turn, I had a lot of “poor” beliefs. This experience forced me to start educating myself about how money works. 

I started learning how to generate money and how to add value to others. Money is just the by-product of the value that you add, whether that's to your employer or your customers. By improving my money skills, I was able to generate massive amounts of wealth. 

4. Not Investing Enough Into Myself & Future 

When I was 18 years old, I read a book called The Wealthy Barber. It taught me about mutual funds and how compounding works. At the time, I invested $500 into a Bank of Montreal mutual fund. That investment paid off.

However, I didn't invest enough. When I look at my investment portfolio, I know that I would be in a much greater position today had I saved and invested more in my 20s.

Also, I didn't invest enough in my personal growth. I'm grateful for the inner work that I did. However, if I had said “yes” more and not allowed fear to dictate my decisions, I would have achieved more. I have many examples, but one missed opportunity comes to my mind.

In my 20s I attended a business seminar in Las Vegas. I met a guy at the event who was one of the top players in my industry. He invited me to attend a business mastermind that he was hosting in L.A., but I decided to say no.

To this day, I regret my decision. My scarcity mentality prevented me from taking advantage of an opportunity that would have accelerated my business growth. 

5. Making Risky Investments & Trying To “Get Rich Quick”

In my 20s I was focused on chasing money. When I first got into Internet marketing, I pursued a lot of “get rich quick” opportunities. Unfortunately, these “grey hat” opportunities cost me, long-term. They were borderline unethical.

From these experiences, I learned that the better approach is to get rich slower by making smart decisions over a long period. This is how you create lasting wealth and financial freedom. You cannot shortcut the hard work and patience that is required to achieve success. 

These are 5 money mistakes I wish I didn't make in my 20's.

Money is an important part of life. It can buy your time and freedom, which is why it's important to avoid these 5 money mistakes. If you apply the lessons that I learned your future self will thank you for it.

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