5 Common Money Mistakes Indians Make in Their 20s (And How to Avoid Them)

 

                

                    Young person planning to avoid money mistakes in their 20s

Introduction

Your 20s are the best time to build wealth — but also the easiest time to mess it up. Most people don’t realize the cost of financial mistakes until they’re deep in debt or lost years of potential savings.

Let’s look at the 5 most common money mistakes Indians make in their 20s — and how you can avoid them.

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1. Not Starting to Save Early

The biggest mistake is thinking “I’ll start saving later.”
Even saving ₹500/month from age 22 vs age 30 makes a ₹10–15 lakh difference over 20 years due to compound interest.

Fix:
Start now. Even if it’s just ₹100/day.

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2. Living Entirely on EMIs

Buying phones, bikes, and gadgets on EMI gives short-term joy — but long-term stress.

Fix:
Use EMIs only for assets (e.g., education, gold, home) — not liabilities like electronics or vacations.

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3. Not Having an Emergency Fund

Most people in their 20s have ₹0 in savings. One hospital bill or job loss wipes out everything.

Fix:
Start building a ₹10,000–₹30,000 buffer as your emergency fund.

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4. Ignoring Financial Education

We’re never taught about SIPs, insurance, budgeting, or credit cards in school.

Fix:
Read 1 blog post or 1 video a day. Small learning = huge impact over time.

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5. Using Credit Cards Like Free Money

Swiping without tracking = debt trap. Minimum due = interest bomb.

Fix:
Pay your full bill, not just minimum due. Don’t spend more than you can repay in 1 month.

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Final Thoughts

You don’t have to be rich in your 20s — but you need to be smart.
Avoid these 5 money traps and your 30s will thank you.

“The earlier you fix your habits, the faster your money grows.”