She Strengthens

Money Lessons Learned the Hard Way

As we navigate the journey to financial adulthood, we often find ourselves reflecting on the wisdom imparted by our parents and mentors. While their guidance can be invaluable, it’s not uncommon for us to ignore their advice, only to later regret our decisions.

The Value of Saving Early

I’ve had the benefit of learning from my parents’ financial choices, but when it came time to make my own decisions, I didn’t always stick to my plans. One crucial mistake was not saving enough, especially when I first started working full-time. If only I had heeded my parents’ advice to save 10% of my paycheck, I would have built up a sizable savings account by now.

Regrets from 20-Somethings

To avoid making similar mistakes, I asked 15 people in their 20s to share one piece of financial advice they wish they hadn’t ignored. Here’s what they had to say:

Start Saving for Retirement ASAP

Katherine, 25, regrets not enrolling in her 401(k) plan immediately. “I missed out on a year’s worth of savings and contributions from my employer,” she says. “It’s harder to take a hit in my paycheck now.”

Automate Your Savings

Lucy, 28, wishes she had started automating her savings earlier. “I barely notice the amount taken out of my paycheck, and my savings grows every month,” she says.

Emergency Funds Are Essential

Sam, 26, regrets not building an emergency fund. “I used to be a great saver, but then I started paying back college loans and cleaned out my emergency fund,” he says. “Now, I’m trying to rebuild it.”

More Lessons Learned

Other valuable insights from these 20-somethings include:

• Paying off student loans diligently to avoid extra interest (Mary, 24)
• Getting an airline credit card to rack up miles (Thomas, 28)
• Keeping a small cash stash for emergencies (Julie, 23)
• Contributing to retirement accounts, even if it’s uncomfortable (Kelsey, 24)
• Engaging with loan companies to understand your options (Megan, 25)
• Investing in low-risk mutual funds for long-term growth (Kayla, 27)
• Building credit with a credit card (Laura, 25)
• Saving for retirement, even if it seems daunting (Jeff, 24)
• Living below your means, especially in expensive cities (Sarah, 25)
• Paying your credit card in full every month (Nathan, 29)
• Considering the financial implications of studying abroad (Toby, 22)

These stories serve as a reminder that financial decisions can have lasting consequences. By learning from others’ mistakes, we can make more informed choices and set ourselves up for long-term financial success.