Things I Wish I Knew About Money in My Early 20s

My early 20s was full of firsts — first job outside of retail, first time moving out from home, first flat, first time having to pay my own household bills. And while I definitely learned a lot in that decade, I also made some money mistakes along the way. No shame — I was figuring things out like everyone else. But if I could sit down with my 21-year-old post university self and offer some advice, I’d have a few things to say.

Here’s what I wish I’d known about money in my early 20s — in the hope it helps someone else.

It’s okay to say no to things you can’t afford

Whether it was nights out, weekends away, festivals, gigs — I said yes a lot to things I couldn’t really afford. I didn’t want to feel left out, but I ended up spending more than I wanted to. I wish I’d saved a bit more during this period and given in to FOMO.

Saying no to protect your financial health isn’t selfish. True friends understand.

Don’t spend too much on your credit card

Overall I was pretty good with credit cards and didn’t wrack up huge bills, but I wasn’t thinking about interest, or how long it would take to pay off. If I could go back, I’d tell myself that credit cards are tools that need using wisely.

Start saving something — Even if it’s £10

I thought saving was something you did when you had a lot of money. But even a tiny amount is better than nothing. I wish I’d built the habit earlier — putting away £10 or £20 a month adds up over time and creates a cushion for those unexpected expenses that always pop up.

It would have been nice to have a little bit saved so I could have a few weeks off work between my retail job and my first proper job. But because I didn’t really have savings this wasn’t an option.

The sooner you learn to budget, the better

I avoided properly budgeting because I thought it would feel restrictive. But when I finally gave it a go, it actually made me feel freer. Knowing where my money was going meant fewer surprises, less guilt, and more intentional spending. I wish I’d started earlier — even with a really basic budget.

Comparison will steal your joy (and your paycheck)

It’s easy to look around and feel behind — especially in the age of social media. But what you see online doesn’t show the debt, financial support from family, or years of saving behind the scenes. Your journey is your own, and trying to keep up with others is a fast track to burnout and bank balance regret.

I would see others going on flashy holidays or to all the festivals and think I could do the same. When in reality it wasn’t always the wisest financial decision to make.

Things I wish I knew about money in my early 20s

If you’re in your early 20s now and feeling overwhelmed by money stuff, you’re not alone — and you’re not failing. The important thing is to start somewhere, even if that’s just tracking your spending or setting one small savings goal. Your future self will thank you.

And if you’re reading this in your 30s (or beyond) and nodding along — you’re not alone either. It’s never too late to learn, shift your habits, and build a healthier relationship with money.

What money advice would you give your younger self?