Your 20s are tough enough without having money woes. Financial issues in your 20s tend to follow you into your 30s making for a very miserable experience. If you’re still in your 20s, here are 6 mistakes to avoid:

1. Living Beyond Your Means

Listen. I get it. YOLO or whatever the kids are saying now. Why shouldn’t you enjoy your life? (Answer: You absolutely SHOULD! Within reason). Create a budget and stick to it. And I know that budgeting doesn’t sound very appealing but when done properly a budget should include fun stuff like nights out or saving for that new handbag. The key is to ensure that you’re able to enjoy yourself without overspending.

2. Not Having an Emergency Fund

You might not think much of not having an emergency fund but this is one of those things where you only know you need it when you don’t have it. I wish I had put more of an effort into building an emergency fund in my early 20s because there were several instances where I had to dip into my retirement savings for unexpected expenses. Also part of me wonders if maybe I would have had enough to retire if I hadn’t dipped into my retirement fund so often (illogical? Maybe, but let me dream). A decent emergency fund should be enough for 3 to 6 months of expenses (Also, a bonus is that when you have this money you don’t need to stress as much in a toxic job. If you want to leave, you know you DO have a back-up plan).

3. Not Saving for Retirement

Yes when you’re 21 retirement seems like ages away but you have the advantage of time. By saving a small amount now, you get into the habit of saving AND you get the added advantage of compound interest. It may not be as exciting as that concert ticket you’re eyeing, but future you will appreciate the financial peace of mind it brings.

4. Buying a Car You Can’t Afford

Ah, that new car. It’s shiny, it’s sleek, and it’s… way out of your financial league. Having reliable transportation is important, but buying a car beyond your means can put a serious strain on your budget. Do your research beforehand, set a budget, and consider buying a used car instead. Remember a car loses it’s value over time so it’s less of a loss to you if you skip buying brand-new.

5. Ignoring/Not Building Your Credit Score

It’s easy to ignore your credit score but here’s the thing- having a good credit score can open doors for future loans, cellphone contracts and so much more. So, get familiar with your credit score and take steps to build it up. Credit cards can be your BFF here, just use them responsibly! Start with a low limit, make small purchases, and make sure to pay off your balance in full each month. (That last bit is VERY important).

6. Going Into Debt for Items You Don’t Need

Debt is an unavoidable part of life. But when it comes to things that are not a necessity, think twice. Yes you NEED new shoes but can an existing pair not do the job until you have the cash? If you swipe your credit card now, will you be able to pay off the balance by the end of the month? Another thing that might be worth the debt is a course that could lead to a better paying job. But imagine having to go into debt for shoes AND a course? These things add up quickly.

By building good habits now you’re going to have an easier time when your 30s hit and you’ll be surprised at how much easier it will be to manage your increased income.

I did a post a while back talking about how I did a No-Buy year and it changed my life. Every so often I revisit the challenge when I feel like my spending is getting out of control. And with Janu-worry on the way, there’s no better time to do a No-Buy challenge. Interested in trying your own challenge? Here’s a few tips to help you get started:

1. Think about what you hope to accomplish from this challenge:

Do you want to change your spending or are you saving for a specific goal? A No-Buy challenge is a great way to kickstart your savings or start saving for a big purchase.

2. What are your problem areas?

Are you an impulse spender? Do you buy expensive gifts? Do you shop as a way to deal with your emotions? Identify what your triggers are. This can be done by tracking your spending for a few days or weeks before you start your challenge officially.

3. Define rules for your challenge

Based on your triggers, decide on what you can and cannot buy, Maybe you want to spend less on gifts or maybe you want to stop splurging on Dischem every month (because, same). Will you be limiting unecessary purchases or will you have to stay within a strict budget? How long will this challenge last? (I usually do this for 6 months but you can try anywhere from 1 to 3 months just to see how it goes). Remember this isn’t to drastically change your finances- we’re trying to make better money habits.

4. Reward yourself for hitting smaller goals.

Instead of going completely cold turkey, make small changes and reward yourself for hitting these smaller milestones. Went a week under budget? Celebrate it! You can do this by buying yourself a SMALL treat or even better, find a no-buy way to treat yourself. Some of my favourite no-buy activities are walks, at home spa days and binging a new book or TV series.

A No-Buy challenge is pretty difficult to get through at first but once you get used to it, it’s a fun way to get extra money and get creative with your spending.

I woke up this morning and saw a Facebook post from someone who had shopped the Edgars Red Hanger sale and got a pair of sneakers with 2 different sizes. I was horrified. Especially since I had shopped the sale and bought the same shoe. Fun fact- I had checked ALL my purchases except for that sneaker because I trusted the brand. Rookie mistake. Instantly I dove out of bed and started looking for my sneakers. Thankfully they matched. But this got me thinking about the sale itself. The environment was equal parts exciting and chaotic. There were people everywhere, the lines were long and I had an incident where I came home with jeans in the wrong size due to a mix-up on the cashier’s part.

The key to shopping sales is to put aside your emotions and think logically. Do NOT let anything or anyone sway you from a position of peace.

Here are a few tips for shopping a sale:

1. Ensure You’re Comfortable

This means your bladder is empty, you’re well-rested and you have already had a meal. I spent so long at the Red Hanger sale that I started to feel dizzy (and honestly I feel like that is why I never picked up on the jeans issue). Carry a snack if you need to but remember you want to ensure you are in optimal shape.

2. Do NOT Let Anyone Rush You

Whether it is a salesperson or a cranky child, do not let anyone rush you through this process. At the end of the day even if it is a sale, you’re still going to be paying money and you want to ensure that you’re getting the most value for your cash. If you have time to go through the store or the rack for a second time, do it. Few things upset me more than going home after a shopping trip bummed about missing something.

3. Make a List Beforehand

I keep a list on my phone of all items I intend to buy. That way when I go in-store and there’s a sale, I already have an idea of what I really want. This is a great way to prioritise your spending to ensure you don’t buy something that you don’t really need or may not actually want. Another great tip is to make a list of upcoming birthdays or Christmas presents that you need. That way you can get your gifts at a lower price.

4. Question Your Purchase

Will you use this? Where? How often? Asking these questions for each purchase helps to ensure that you’re actually buying things that you will use and preferably often. Sometimes we see the word “SALE” and get carried away. We buy things we wouldn’t usually. No judgement here. I am very guilty of this.

5. Come Up with a Strategy

Go really early or really late to avoid crowds. This means less people in the store and less of a hassle for parking. I say go really early or really late but honestly the best bet is that you get in early. The shelves would be neater, the shops will be emptier and you will be able to shop in a calmer manner. As an added bonus, if you take a friend with you, both of you can keep an eye out for good deals.

6. Set a Budget

I didn’t do this. God, I wish I had done this. Sales are great but credit card debt? Not so much. Set a budget beforehand so that you don’t run up a bill you can’t pay. Or a bill that you will be paying for months to come.

7. Check All Your Items

To avoid mix-ups like me and my jeans, check all of your items before you pay (and make sure you love all of them). Also check your items immediately after paying. If you can do this while still at the store or the mall, it’s better for you. It sucks to come home with all your great purchases only to find a flaw and than you need to trek back to the store. Worse if you shopped somewhere where sales items could not be returned.

Sales are exciting. By keeping a level head and following these tips, you can ensure that you get the best bargains without any stress. Do you have any secrets to shopping sales? Let me know below

Back in 2022, my manager suggested that the team try out a “No-Buy Year”.

Instantly we were all horrified and refused.

But she raised a few really good points. We all had items that we would buy in excess even though we didn’t actually need it. Books, sneakers, clothing, skincare items- everyone had a guilty pleasure. Eventually we all picked out own version of the No-Buy.

My version was for 6 months- no books, no accessories and no toiletries unless I had completely run out.

The first weekend was the most difficult. Every few minutes I would think “I should buy X” and then remember that I couldn’t. By the end of the first two months, I had gotten used to my No-Buy.

I cut down to weekly coffee as opposed to treating myself every time I felt sad. I learnt to deal with my emotions with exercise or journaling instead of shopping.

My hack was that everytime I thought I needed something, I would check my room for it first. I found unused earrings, belts, skincare items that were never touched, brand new nail polish. This made it easier for me to not buy things since it seemed like I had an entire mall in my bedroom.

By the time my 6 months ended, I had adjusted.

I hadn’t realised how bad my shopping habit was. It has been 16 months since I started my No-Buy. I still haven’t needed to replace my skincare items or toiletries.

Since I work from home, I don’t buy coffee as often anymore but I do treat myself to ONE new (sale) book a month.

The No-Buy was a huge help for me. I definitely think it is something that everyone should try.