In your 20s and 30s, you’re still relatively new to managing your own money. You’re gaining financial independence, paying off student loans, starting a career, and maybe starting a family. It’s an exciting but challenging life stage, and the financial decisions you make now can have a big impact on your financial future. Here are five common money mistakes to avoid in your 20s and 30s.

Spending beyond your means is tempting when you get your first well-paying job, but it sets a bad precedent. Make a budget, track your spending, and look for expenses you can reduce or eliminate. Aim to save at least 10 to 15 percent of your income. If your expenses exceed your income, cut costs instead of accumulating debt. Paying interest on debt reduces your ability to save and invest for important life goals.

Not saving enough for retirement is a huge mistake that can be difficult to recover from. Start contributing enough to get any employer match offered in your company’s retirement plan. Then aim to increase your contributions by at least 1 percent each year as your salary increases. Compounding returns means the sooner you start saving, the less you need to put away each month.

Not having the proper insurance is risky, especially if you have dependents. Make sure you have health insurance, life insurance, and disability insurance. You should also consider insurance for big assets like your home or vehicle. Medical bills and unexpected disasters can bankrupt you if you’re not properly insured.

Not paying off high-interest debt like credit cards in full each month results in excessive fees and interest charges. Only spend what you can afford to pay off each billing cycle. If you can’t pay the full balance, pay as much as possible and avoid incurring new charges on the card until the balance is repaid.

Not saving for other important life goals will mean delaying or financing major milestones. Save for a down payment on a home, vacations, starting a family, or other big expenses. Establish separate savings accounts or sub-accounts for short-term and long-term goals and automate contributions from each paycheck. Make saving for the future a financial priority.

Living a debt-free life may seem challenging, but it is possible with some discipline and smart money habits. First, make a budget and track your spending. Know exactly how much you’re earning and spending each month. Look for expenses you can reduce or eliminate. Even small changes can make a big difference over time.

Pay with cash instead of credit cards whenever possible. Cash spending helps you stay within budget and avoid debt. Leave your credit cards at home if needed. Pay off high-interest debts first. Make extra payments each month on expensive debts like credit cards to eliminate them faster. Then tackle other loans and payments.

Spend less than you earn. The only way to avoid debt is to not spend more money than you make. Look for ways to increase your income or decrease your expenses. Make more money with a side gig or freelancing work. Spend money only on the things that really matter to you.

Create an emergency fund. Having cash in the bank means you don’t have to borrow money in an emergency. Aim to save $1,000 to start, then build up to 3-6 months of expenses. Make automatic contributions from each paycheck to your emergency fund.

Review your bills and look for ways to cut costs. You may be able to reduce insurance premiums by increasing deductibles, cut the cord on cable TV, or negotiate lower interest rates with creditors. Any money you save each month can go toward paying off debt or into your emergency fund.

Develop better money habits for life. Buy only what you need and avoid impulse purchases. Cook more meals at home instead of eating out. Find free or low-cost hobbies and entertainment. Build wealth through investing. Make saving money a habit and you’ll achieve financial freedom.

Celebrate milestones to stay motivated. Once you pay off a credit card or other debt, celebrate the accomplishment. Reward yourself in a way that doesn’t involve going into more debt. Staying motivated and committed will help you achieve and maintain a debt-free lifestyle.

Being debt-free is a realistic goal if you make a plan and change your habits. Take it one day and one step at a time. Maintaining discipline and diligence will pay off as you eliminate debt and gain financial freedom. With determination, you can live a debt-free life.

Teaching kids about money management is one of the most important life skills you can give them. Start early by giving them an allowance and letting them make decisions on how to spend it. Help them open their first bank account and teach them how to budget their money.

Once your kids are ready for an allowance, sit down together and come up with a reasonable amount based on their age and responsibilities. Let them decide how they want to allocate the money between spending, saving and donating. Help them open three jars to physically separate the money. This makes the concepts of budgeting and saving more concrete.

Take your kids to open their first bank savings account. Have them put in money from their allowance and show them how interest helps their money grow over time. Explain how banks work and how the money is used. This helps demystify the concept of banking and investing for them.

Set a good example by talking about your own budget, saving and investing goals. Explain how you allocate your income and why you make the financial choices you do. Kids often mimic parents’ behavior, so model the financial habits you want them to learn.

Once they get the hang of budgeting their allowance, start giving them opportunities to earn and manage more money. Give them jobs to do around the neighborhood for extra cash. Help them set financial goals to save for bigger purchases. Provide guidance but let them make the decisions.

Teach your kids about the difference between wants and needs. Help them understand that they can’t buy everything they want and have to prioritize how they spend money. Discuss the difference between instant gratification and delayed gratification. Help them become savvy consumers.

Discuss how interest works and the power of compounding returns. Show them the difference between saving money in a regular savings account versus investing it for potentially higher returns. Explain the risks and rewards of the stock market in an age-appropriate way.

Make money management part of your daily conversations and activities. Discuss prices when shopping, how much things cost and how to save money. Play money-centered board games together. Continuously reinforce the lessons you want them to learn. Developing good money habits early will benefit them for life.

Using cash or credit cards is a debate many people have when making purchases. Both options have advantages and disadvantages to consider based on your needs and spending habits.

Cash is simple and straightforward. It allows you to spend only what you have on hand, preventing you from racking up debt. Cash is also anonymous since there is no digital record of your transactions. However, cash can be risky if stolen and is inconvenient for large purchases. It also loses value over time due to inflation.

In contrast, credit cards offer additional protections and benefits. Your money is not at risk if the card is stolen because you can dispute unauthorized charges. Credit cards also provide rewards like cash back, travel points, and purchase protections. They allow you to make purchases now and pay the balance off over time with interest charges. However, credit cards make it easy to spend more than you can afford to pay back if you’re not careful. Interest charges also accumulate if you don’t pay the balance in full each month.

For budget-conscious consumers, using a combination of cash and credit cards may be a good option. Pay for small, everyday expenses with cash to avoid overspending on your credit cards. Use credit cards only for larger purchases that you can pay off quickly. This approach allows you to benefit from the rewards and protections of credit cards without going into debt.

It’s a good idea to evaluate how you currently use cash and credit cards to determine the right approach for your situation. Track your spending to see if you’re overspending with credit cards, then make a budget to gain control of your finances. Once you have a budget, you can decide how much to allocate for cash and credit card spending based on your needs and goals. The most important thing is using whatever payment method allows you to spend responsibly within your budget.

In summary, both cash and credit cards have pros and cons to weigh when making a purchase. The option you choose depends on your financial situation and spending habits. With budgeting and responsible use, you can benefit from the conveniences of both cash and credit cards. The key is using the payment method that allows you to stay within budget and avoid debt.

There are several easy ways to cut down on utility bills without having to sacrifice comfort. One of the best ways is to ensure your home is well-insulated. Adding insulation to your attic, walls, basement, and crawl spaces can significantly improve the energy efficiency of your home. Well-insulated homes require less energy to heat and cool. You can also install weatherstripping around doors and windows to prevent air leaks.

Turning your thermostat up a few degrees in summer or down a few degrees in winter can result in big savings on your energy bill. The less extreme the temperature difference between indoors and outdoors, the less your HVAC system has to work. Adjust your thermostat by just two degrees to start and you can save up to 10% on energy costs over the course of a year.

Using fans and opening windows instead of turning on the AC is another easy way to cut costs in the warmer months. Run ceiling fans and portable fans to keep air circulating, which will make the room feel several degrees cooler. Only turn on the AC when the fans are no longer enough. Keep curtains and blinds closed during the day to prevent heat from entering through windows.

Turn off lights, electronics, and appliances when not in use. Things like TVs, gaming consoles, and computers draw power even when idle or on standby. Make it a habit to turn them off completely when you go to bed or leave the house. Use LED light bulbs which are up to 80% more efficient than incandescent bulbs.

Run the dishwasher and washing machine only when full to maximize efficiency. This saves energy and money. Avoid the permanent press cycle on the dryer which uses more energy. Hang clothes to air dry when possible.

Unplug phone chargers, laptops, and other devices when not in use. They draw power even when not charging, which is known as “vampire energy loss.” This can cost the average household hundreds per year in wasted electricity.

Take shorter showers to reduce hot water usage. Limit your showers to 5 minutes or less. You’ll save up to 10 gallons of water per minute. Turn off the faucet while brushing your teeth and washing dishes. Fix any leaky faucets which can waste gallons of water per day.

Re-evaluate your utility plans and see if there are more affordable options available. Many companies offer budget-friendly plans for low-income customers and those looking to save money. See if you qualify for any utility assistance programs in your area. Making some simple changes to your daily habits and being more mindful of energy usage can add up to big savings on your utility bills over time without sacrificing comfort.

Online tutoring is a great side hustle for those looking to earn extra money on their own schedule. All you need is a computer, reliable internet connection, and expertise in a subject area. You can tutor students via services like Chegg, TakeLessons, and Wyzant, setting your own hours and rates. Tutoring is an easy way to leverage your skills and make a meaningful impact on students’ lives while earning a good side income.

Driving for a ridesharing service like Uber or Lyft in your spare time can be an easy way to generate extra money, especially if you live in an area with high demand. You get to set your own schedule, the hours are flexible, and you can make decent money, especially at peak times like weekends and evenings. All you need is a reliable car, a clean driving record, and a smartphone to get started.

If you have a knack for photography, consider offering your services for events like weddings, parties, or product photography for local businesses. You can market your services on websites like Craigslist, Facebook Marketplace, and local Facebook groups. Build your portfolio, set your rates, and you can make a nice side income with a flexible schedule. The key is delivering high-quality work and building a base of happy clients through word-of-mouth referrals.

Freelancing is a great way to leverage your skills and expertise to earn extra money on the side. Websites like Upwork, Fiverr, and Freelancer offer opportunities for everything from writing and editing to programming and graphic design. Build your profile, set your rates, complete jobs to build your reviews, and soon you can have a steady stream of work from repeat clients. Freelancing allows you to work from home on your own schedule.

If you have unused space in your home, consider renting it out for extra money. You can rent out an empty room, basement or attic on Airbnb to travelers looking for budget-friendly accommodations. Or you can rent out parking spaces, storage space or your entire home. Set competitive rates, take appealing photos, and build positive reviews to keep guests coming back. Home-sharing and renting out space in your home or on your property can generate a good side income without a major time commitment.

Thrift shopping has become quite popular in recent years, especially among younger generations concerned about sustainability and reducing waste. However, thrifting does require time and patience to find those hidden gems. The key is going in with an open mind and really taking the time to dig through the racks. You never know what kinds of treasures you might uncover.

One of the best parts about thrifting is that you can find unique pieces that nobody else will have. Vintage tees, retro jackets, statement jewelry—the options are endless. Do some research on the latest trends to get inspiration, but don’t be afraid to choose items just because you love them. Your unique style will shine through. And remember, you can always get creative and repurpose or rework pieces to make them feel fresh and modern.

Be on the lookout for high-quality, well-made pieces that will last. Look at details like stitching, fabric thickness, and embellishments. Check that buttons, zippers and pockets are securely attached and functioning properly. With some TLC, a well-made item from decades past can become your new favorite wardrobe staple.

Make a habit of checking the thrift store regularly, especially in affluent neighborhoods. Inventory is always changing, and you never know when a new shipment of fabulous finds will arrive. Try going on weekdays or Sunday evenings when the stores are less busy. Take your time and really comb through the racks. Some of the best pieces are tucked away or misplaced. Move slowly through each aisle and section, paying close attention so you don’t miss a hidden gem.

Once you start thrifting regularly, you’ll get better at spotting diamonds in the rough. But there is always an element of surprise—you just never know what you might find. That’s part of the thrill of the hunt. With an open and patient mindset, you’ll be uncovering stylish and unique pieces in no time and developing your own treasure hunting skills. Thrift shopping is a sustainable way to keep your wardrobe fresh and stocked with pieces that nobody else will have. So get out there and start hunting for your new favorite vintage finds.

Negotiating is an art form that can save you a lot of money if done right. Here are some tips to help you get better deals on everything you buy:

Do your research ahead of time. Know the typical price range for the item you want so you can determine a fair offer. Check sites like PriceGrabber, Nextag, or CamelCamelCamel to see the item’s price history and how much others are currently paying. Know how much you’re willing to spend, and the highest price you can accept.

Look for coupons and promo codes. Search online for coupon codes and see if any are valid for the store or website you’re buying from. Some stores like JCPenney, Kohls and Target frequently run sales and accept coupons for most items. Stack coupons with a sale price for the biggest savings.

Ask if there are any current sales or discounts. Politely ask the salesperson if there are any sales, coupons, or other ways to save on your purchase. Often stores have weekly sales or loyalty programs that can take an additional percentage or dollar amount off your order. It doesn’t hurt to ask!

Pay in cash. Paying in cash is a psychological tactic that can make you seem like a more serious buyer. It also ensures the seller gets the full amount without paying any credit card processing fees. They may be willing to offer a small discount for cash payment.

Bundle items together. If you’re buying multiple items from the same store, bundle them together to ask for a bigger bulk discount. Stores are often willing to negotiate when you spend more. You can say something like ” If I buy both of these, would you consider giving me 25% off the total price?”

Be willing to walk away. If you’ve reached your limit but the seller isn’t budging, be willing to walk away. Often they’ll come back with another offer or call you within a few days to keep your business. Your willingness to walk shows you’re serious and not desperate to make a deal.

Consider haggling in person. For big-ticket items, haggling in person can be much more effective than over the phone or via email. You can make a personal connection with the salesperson and explain why their best offer isn’t good enough. They’ll see you’re serious and may drop the price to close an in-person sale.

Time your purchase right. Look for off-season or end-of-season sales when demand is lower and stores are looking to clear out inventory. You’ll have much more negotiating power during non-peak times.

Stay polite and friendly. No matter the situation, remain polite, courteous and friendly. Don’t get angry or argumentative. Stay calm and composed to keep the lines of communication open. The nicer you are, the more the seller will want to work with you.

Look for ways to cut your housing costs. Consider downsizing to a smaller home or apartment, refinancing your mortgage, or renegotiating your rent. You may be able to save hundreds each month. Shop around at different grocery stores to find the best deals. Stock up on sales and use coupons for the biggest savings. Buy generic or store brand items instead of name brands. They often cost 30-50% less and are virtually the same quality.

Eliminate unused subscriptions and memberships. Look for any subscriptions or memberships you’re paying for but not using like streaming services, cable, gym memberships, credit cards with annual fees, etc. Cancel them to avoid paying for something you don’t need. Turn off the lights and unplug electronics when not in use. This simple step can save you up to 10% on your electric bill each year. Only run full loads in the dishwasher and washing machine. This cuts down on the number of cycles needed and saves energy and money.

Consider refinancing high-interest debt like credit cards. Look for lower interest options like a personal loan to pay off the balances faster and save on interest charges. Buy used or refurbished items instead of new. Cars, electronics, clothing, furniture, and more can be purchased used or refurbished for a fraction of the retail price. Shop sales and use coupons when dining out. Look for discounts and deals to save 30% or more on your bill. Split entrees or get a takeout box to enjoy leftovers the next day.

Learn basic skills to do repairs and maintenance yourself. Things like cleaning air filters, unclogging drains, painting, gardening, and more. You can save hundreds by avoiding service calls for minor issues. Buy generic over-the-counter medications. They have the same active ingredients as name brands but at a lower cost. Ask about senior discounts for those over 55 or student discounts with a valid ID. Many retailers, restaurants, and entertainment venues offer special rates for seniors, students, teachers, and military.

Investing your savings is one of the smartest things you can do to secure your financial future. However, for beginners, the world of investing can seem complicated and confusing. Here are some basics to get you started.

The first step is to determine your financial goals and risk tolerance. Do you want to save for retirement, pay for your children’s college education or save for a down payment on a house? Your timeline and risk tolerance will help determine the right investments for you. If you have a long time horizon and can handle risk, stocks are a good option. For shorter-term or lower-risk goals, consider bonds or certificates of deposit.

Next, choose an investment account. The most common options are brokerage accounts, retirement accounts like an IRA or 401(k), and college savings plans. Brokerage accounts provide the most flexibility but don’t offer tax benefits. Retirement accounts like an IRA allow your money to grow tax-deferred until withdrawal. College savings plans also provide tax benefits.

Decide if you want to invest in individual stocks, bonds, mutual funds, or ETFs. For beginners, mutual funds and ETFs are good options. They provide instant diversification, so your money isn’t riding on just one or a few stocks. Look for low-cost, broad market funds that match your financial goals.

Do some research to choose your investments. Look at the fund’s historical performance, fees, and holdings to make sure it aligns with your needs. For stocks, analyze the company’s financials and growth potential. Consider consulting a financial advisor, who can help build a customized portfolio based on your needs.

Start investing as soon as possible. Even putting aside a small amount each month can go a long way thanks to the power of compounding returns. Increase your contributions over time as you’re able. Review and rebalance your portfolio at least once a year to make sure your money is allocated properly based on your goals.

With some planning and patience, you can become a successful investor. The keys are determining your needs, doing your research, starting early, and sticking to a long-term plan. While there will be ups and downs in the market, stay invested for the best chance of achieving your financial goals. With time and experience, investing will become second nature.