The mistakes and the fixes
- --1. No emergency fund. Fix: build one month of expenses first, then three (emergency fund guide).
- --2. Saving what’s left. Fix: save first, automatically, on payday (pay yourself first).
- --3. Spending every raise. Fix: save half of each raise (lifestyle creep).
- --4. Paying only the credit card minimum. Fix: pay in full; if you can’t, stop using the card until you can.
- --5. Stacking EMIs and BNPL. Fix: list every instalment in one place before adding another (BNPL risks).
- --6. Ignoring your credit score. Fix: pay on time and check your free report yearly (CIBIL score habits).
- --7. No health insurance of your own. Fix: don’t rely only on employer cover, which ends when you switch jobs (job switch checklist).
- --8. Not tracking spending. Fix: track one month honestly — most people find money they didn’t know they had (tracking daily expenses).
- --9. Lending without records. Fix: log who owes what, and ask kindly (asking a friend to pay you back).
- --10. Waiting to start investing. Fix: once the emergency fund is in place, start with small, regular amounts — time matters more than size.
You don’t have to fix all ten at once
Pick the one that worries you most and fix it this month. Next month, the next one. A year from now you’ll have a set of habits most people take a decade to build. If you’ve just started working, the first salary guide is a good companion.
Frequently asked questions
What are the biggest money mistakes in your 20s?
Common ones include having no emergency fund, saving only what’s left, spending every raise, paying only credit card minimums, stacking EMIs, ignoring your credit score, relying only on employer health insurance, not tracking spending, lending without records and delaying investing.
What should I do with money in my 20s?
Build an emergency fund, save automatically on payday, avoid expensive debt, track your spending, get your own health insurance and start investing small amounts regularly once the emergency fund is in place.
How much should I save in my 20s?
Start with an amount you can sustain and raise it with every pay rise. Consistency matters more than the starting percentage.
Is it too late to fix money habits at 30?
No. Any habit you start now still compounds for decades. Pick one area and improve it this month.
How Snugtab helps
Start with mistake #8
Related: first salary money guide · saving on a low salary.