13 Things We Wish We Could Tell Our 20-Year-Old Selves About Money

Key points:

• Start saving and investing early, even with small amounts, to take advantage of compound growth.
• Avoid financial traps like cashing out retirement funds, "buy now, pay later" offers, and overspending online.
• Build financial resilience through multiple income streams and self-investment.
• Start investing with tools and apps that make growing your money easy at any stage.

If I could send a message in a bottle to 20-year-old me, it wouldn't be about love, romance, or low-rise jeans. It would be about ways to get my wallet in order.

You're never too young or too broke to build wealth. If you can sidestep the following money mess-ups, you'll be miles ahead where most people land in their 30s and 40s — yours truly included.

Start saving early, even if it's small

You don't need to squirrel away thousands of dollars right away. Instead, just get in the habit of saving regularly.

For example, put $10 into a savings account each week. Over a year, you will have saved more than $500. If you can save more, great. The key is to build a stash of cash without even thinking about it.

Money doesn't equal happiness, but it does improve mental health

Money alone doesn't equal happiness, but it's a prime ingredient in the mix that creates joy. It can keep the lights on, the fridge stocked, and the overdraft charges away.

Having some cash set aside creates a sense of sustained mental peace that is impossible to achieve when your finances are in a constant cycle of boom and bust.

Avoid the 'buy now, pay later' trap

"Buy now, pay later" makes unaffordable things seem affordable. It stretches your budget in all the wrong directions, making it easy to lose track of mindless spending.

If you can't afford the full price today, ask yourself why you're buying it at all.

Don't cash out your 401(k) when you change jobs

It's tempting to crack into your 401(k) nest egg a little early when you change jobs. I did that twice in my 20s. With each cash-out, I was a few thousand dollars richer, and at the time it felt like a million bucks.

Where did those extra thousands go? I don't know, but their absence still makes me blue.

I promise, you will regret draining your retirement fund like it's a birthday check from Grandma. Remember, being broke at 75 is far worse than being patient at 25.

Stay the college-level course

If you have earned your university degree but can't find college-level work, be patient. Take a side job to pay the bills but stay laser-focused on breaking into a job appropriate to your level of skill and education.

The harder and longer you swerve from that target job track, the more challenging it is to recover.

As you search for the right job, make relationships. Volunteer. Intern. Build connections on LinkedIn.

Investing is for you — even if you're not rich or old

Investing is not just for seven-figure families. Invest a $2,000 tax refund and earn 7% over 15 years and it will grow to more than $5,500. Leave the money alone, and it should continue to compound for decades.

You don't need to be fancy. Just start. If you require help, turn to a financial advisor or virtual planner. They can help you make your money work harder, whether you have $5, $500, or $5,000.

You need multiple money streams

The "one job, one paycheck" dream is over for many of us. If you suddenly lose your job, you want to have a backup source of income.

Maybe you can earn extra income by bartending weekends or flipping stuff on Mercari. Having multiple income streams means fewer panic attacks when a tire blows.

Delete your credit card from online stores

Many of us keep our credit card information stored at the websites of our favorite retailers. But this can make overspending far too easy.

You are less likely to make an impulse buy when you have to rise from bed, put on pants, dig through your wallet, and manually type in 16 digits.

Those extra steps give you time to stop and ask yourself, "Do I really need this $37 haul of kombucha and cheesecake from DoorDash right now?"

Tell your friends 'I can't afford it'

Say it and mean it: "I'm not drinking tonight," or "That's not in my budget."

Your real friends won't judge you. They may admire you. I once had a friend say no to a $2.99 mushroom upcharge on a shared meal. She spoke up clearly, kindly, and unapologetically. I've never forgotten it.

Don't confuse price with value

That $19 unlined dress might look like a steal, but if it pills after one wash and fits weird, it's a waste.

On the flip side, something expensive isn't automatically "worth it" either. Value is about cost per use, quality, and whether it actually fits your lifestyle.

Choose security over stuff

A closet full of unworn shoes won't save you when your car breaks down. It also won't pay the bills when you get laid off.

A stash of money is the ultimate consolation. Build a rainy-day buffer that lets you breathe.

Here's a tip: If you want to feel good about your sad, played-out wardrobe, go volunteer at a food pantry for an afternoon. You'll cultivate a sense of contentment, appreciation, and compassion.

Buy everything you can used

"Used" doesn't necessarily mean "trashed." I have purchased some of my favorite clothing finds on ThredUp.

However, remember that it's easy to overspend when secondhand items are a bit cheaper. So, be just as picky as you would with new stuff, or you'll end up with clutter and regret.

Invest in yourself

Whatever the time investment, seek opportunities that improve your skills and ability to take care of yourself physically, emotionally and financially.

For example, paying $60 every two weeks to paint your nails adds up. Master the ability to perform a basic at-home manicure and you will save hundreds of dollars. As a bonus, you'll always have a backup plan when a chip shows.

A little self-sufficiency can really pay off.

Bottom line

Having money isn't about looking rich: It's about access to more options and freedoms, and experiencing fewer panic spirals when life throws you a bad hand.

If you're in your 20s, you have the powerful advantage of time on your side: time. Every small thing you do now will take root and grow for years.

So, start to move beyond living paycheck-to-paycheck. Don't aim for perfection. Instead, try to get a little bit better every day, and reap the rewards of compound improvement.

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