She Strengthens

Financial Regrets: What I Wish I Knew in My Early 20s

As I reflect on my financial journey, I realize that there are several crucial lessons I wish I had learned earlier. Now, at 26, I’m facing the consequences of ignoring these essential pieces of advice. Here’s what I wish I had done differently:

The Importance of Budgeting

Creating a budget may seem like a no-brainer, but it’s a habit that’s easy to neglect, especially when you’re not used to tracking your expenses. In my first job out of college, I earned a decent salary of $43,000, but I struggled to make ends meet. I had to sacrifice luxuries like Wi-Fi at home and social outings with friends. If only I had created a budget, I could have avoided financial stress, started saving, and tackled my student loans earlier.

Money Talks: Why You Should Discuss Finances with Your Partner

In my early 20s, I was in a long-distance relationship, and we rarely discussed our financial situations. We assumed we were both doing okay, but in reality, we were both struggling. When we eventually moved in together, I discovered that my partner was allocating most of his income to debt repayment, leaving me to shoulder our shared expenses alone. This oversight had a significant negative impact on my finances and could have been avoided if we had communicated openly about our financial goals and struggles.

Building Credit Responsibly

I made the mistake of avoiding credit cards after a bad experience with a store credit card in my teens. However, this decision limited my credit history and made it difficult for me to secure apartments and loans. Eventually, I obtained a credit card and used it responsibly, which helped me build a strong credit score over time. The key takeaway is to use credit cards wisely and only for purchases you can afford.

The Power of Side Hustles

In my early 20s, I was content with my full-time job and didn’t see the need for a side hustle. However, having an additional source of income could have made a significant difference in my financial situation. I could have used the extra money to pay off student loans, credit cards, and indulge in guilt-free spending. Now, I realize the importance of diversifying my income streams and making the most of my free time.

Learning from Mistakes

While I’ve made my share of financial mistakes, I’ve come to realize that it’s never too late to learn and improve. By acknowledging these errors and taking corrective action, I can still achieve my financial goals and thrive. The same financial advice may be repeated often, but it’s essential to understand its significance and apply it to our lives.