Money Mistakes to Avoid in Your 20s (and What to Do Instead)
If you’re in your 20s right now, I’m here to lovingly shake your shoulders and say: Please stop keeping all your money in a regular bank account!
I recently looked at my Bank of America savings account and realized they were giving me 0.01% interest. That means for every $100 I saved, they were paying me a whole... one cent. ONE. CENT.
Meanwhile, the bank is using my money to make profits by giving out loans. No ma’am, we’re not doing that anymore. Let’s talk about smarter ways to handle money in your 20s because this decade is one of the most important foundations for your 30s, 40s, 50s, and beyond.
There are two MAJOR ways to invest in your 20s
Time investments and money investments.
1. Time Investments
For every major decision ask yourself: How is what I’m doing today going to impact my future?
For example, when I first started on social media, I tried to grow on four platforms at once: YouTube, Facebook, Instagram, and Twitter. My goal was to use each of them to build on top of each other and produce a money-making business. Guess what actually happened? I ended up burning out. You need to focus on one business or opportunity at a time.
It wasn’t until I focused solely on YouTube that things started to grow. I invested my time wisely, and the return came.
The same goes for your job. At one point, I was juggling so many jobs just to make ends meet. But not all of them were actually building anything for my future. Your 20s are a great time to ask: Is this job helping me grow long-term? Is it moving me toward my business, ministry, or calling?
2. Money Investments
Here’s a tip you might not like: Don’t quit your 9-5 to go all in on your business... yet.
All of the Youtubers and people trying to sell you courses will tell you to quit your job so you can go all in on your dreams. And while it seems like a good idea it is missing one crucial element
Starting up a business takes capital, and earning capital takes time.
I know, I know. Someone literally asked me the other day why I still have a day job when I’m building a business. But here’s the truth: in the first 3–5 years of business, you might not make a dime. The pressure of having to survive a brand-new business can actually stunt your creativity and peace.
So instead, use your job as leverage. Save and invest while you grow your side hustle smartly. That paycheck that you can count on will help you to grow the business of your dreams.
Upgrade Your Savings Game
Okay, here’s my confession: I still have my Bank of America account for most of my regular purchases. However, for my savings, I opened a high-yield savings account (HYSA) through Bread Savings, and it has changed my life.
These accounts work by compounding. So your money grows on a dedicated timeline. It is common for me to log in and see $1–4 in interest some months just sitting there growing. It’s not millions, but it’s movement and movement matters.
Invest in Things That Pay Back
So where should your money actually go? Let me give you my top 3:
1. Invest in Things That Make You Feel Powerful
Whether it’s getting your nails done, your brows shaped, or buying that blazer that makes you feel unstoppable if it boosts your confidence and presence, that’s an investment.
2. Invest in Education
Not just degrees! I recently paid $1,000 for a course and it has already paid off in incredible ways. Think certifications, workshops, courses or anything that helps you grow. I now have multiple certifications that give me flexibility if I ever want to switch paths.
3. Invest in Relationships
This one’s slept on. The job I currently have? I got it through someone I met at a Bible study. I can’t tell you how many times a simple conversation has turned into an opportunity, a resource, or even a divine connection. Be open. Be available. Don’t rush past people—some of them are part of your assignment.
Bonus: Build an Emergency Fund
For a long time, I didn’t understand the value of an emergency fund. But life will life—unexpected car repairs, surprise bills, or medical stuff can drain you quickly. Now I put a little money into my HYSA every month and it has saved me more times than I can count.
Even if you start with just $100 or $150—do it. That cushion gives peace.
A Quick Prayer for You
Dear Lord,
Thank you for today and for the one reading this blog. I pray for clarity in their mind, wisdom with their money, and courage in their calling. Help them to steward their gifts, talents, time, and finances in a way that glorifies You. Breathe fresh purpose into their hearts. In Jesus’ name, amen.
If you made it all the way here, you’re part of the fam 💛
Make sure to subscribe to The In My 20s Diaries on YouTube and grab a copy of my book Since When Did Single Mean Sad?
Love you to the moon and back. See you next week!
Gabrielle Carter
money mistakes, money mistakes to avoid, money mistakes to avoid in your 20s, money advice for young people, money tips 20s, money advice for 20 year olds, Since when did Single Mean Sad, christian podcast.