Most Common Money Mistakes To Avoid In Your 20s & 30s 

Your 20s and 30s is the era where you finally escape the “broke student” label to being a “broke adult”, because what is adulthood if not paying bills on repeat and there is never enough money.

You get your first real paycheck and believe you can now buy whatever you want, after all another one will come in by the end of the next month. Nobody warned you that the only thing you will get to buy for yourself is a box of pizza, and maybe one drink.

The truth is, while you’re out here chasing “soft life” and trying to figure things out, there are tiny little habits that seem harmless now but can wreck your future.

So, before you spend your salary on another gadget you don’t need or start thinking YOLO is a financial plan, let’s talk about the most common money mistakes to avoid in your 20s and 30s and how not to let them ruin your future.

1. Spending Money Like You’re Beyonce (On a Fresh Graduate Salary!)

Congrats! You survived the job applications, the awkward interviews, and the “we’ll get back to you” emails that never came. Now, the paycheck has finally landed, it’s time to reward yourself, you deserve a staycation and brunch at a fine dining restaurant.

Just remember your bank account still thinks you’re on student allowance. That salary that feels like a fortune on payday can vanish very quickly if you are not careful.

Yes, budgeting is boring. But so is being “broke” two weeks into the month and surviving on garri and biscuits until the next payday. Budgeting doesn’t mean you can’t enjoy life, it just means future you won’t be mad at you for financial recklessness.

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2. Ignoring An Emergency Fund

There’s really no need for an emergency fund, you can always call your aunt that lives in the UK anytime you need money urgently. Big Flex!

Except that your aunt will eventually get tired of attending to your every need, since you’re now an adult. Life has a way of throwing unexpected bills at you and there’s your boss telling you “we’re like family” and forgetting to pay salaries that month.

The unexpected bills don’t care if payday is two weeks away or if you just blew your last cash on a “treat yourself” weekend. Without an emergency fund, you’ll end up borrowing from friends or running to loan apps, and trust me, nothing humbles you faster than owing money for a problem you didn’t even see coming.

It’s advisable to build an emergency fund, even if it’s just enough to cover transport, and Indomie for three months, it’s better than nothing. So the next time life throws shade, you can throw money back at it.

3. Delaying Investing (Because You Think You’re Too Young And Don’t Have The Money)

You keep telling yourself you’ll start investing “when you earn more”, but every time you earn more, somehow your expenses magically level up too. You go from shawarma on Fridays to Chinese rice every other night, and suddenly “you’re too rich” for public transport. Next thing, the “extra” money is nowhere to be found.

Truth is, if you don’t build the habit of investing when you have little, you probably won’t do it when you have plenty. Many young adults think investing is only for the wealthy and older people, or something to “figure out later.” But the earlier you start, the more compound interest works in your favor.

Start small. Even if it’s the cost of one shawarma a week, toss it into an investment account, preferably Bamboo on Fusion and earn in dollars. Don’t wait until you’re “a millionaire” to start, because by then, your taste for luxury will be wealthy too. Start now and in the future you will “thank you” for not procrastinating.

4. Overspending On Lifestyle Upgrades

Don’t you think you deserve a bigger space? It’s time to change your iPhone to the latest one. You just got a raise, so live like the “Odogwu and Odogwuress” that you are.

As your income grows, it’s tempting to upgrade your lifestyle. One small raise and suddenly your “manageable” one-room apartment feels like a shoebox, your perfectly fine car suddenly feels like a “keke.” Before you know it, every salary increase disappears into new bills, new habits, and new “standards” you suddenly can’t live without.

Lifestyle upgrade is the silent thief of wealth. On paper, you’re earning more. But in reality, you’re still living paycheck to paycheck, just with fancier clothes and maybe a nicer apartment.

When your income goes up, let your savings and investments go up too, not just your rent and shopping list. Fight the urge to spend every extra money. Grow your wealth now so you can actually enjoy real freedom later, not just the illusion of it. Because trust me, “rich broke” (earning plenty but still struggling) is a scam lifestyle you don’t want.

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Your 20s and 30s are for building, not just careers and relationships, but also a solid financial foundation. Avoiding these money mistakes won’t make you rich overnight, but it will protect your future self from unnecessary struggles.

The choices you make with money today will tell a lot of difference in years to come. So, choose wisely, start early, and remember: every naira, dollar, or pound saved and invested today is buying you freedom tomorrow.

To learn more about how to manage and spend your money wisely, join the Finance 101 Community on Fusion.