Whether you’re starting your career, mid-career, or nearing retirement, financial decisions play a big part in whether you are successful or not in this thing called life.

Financial problems create stress, cause relationships to tear apart, and bad choices can often have ramifications throughout your life.

So getting your financial house in order is critical.

So when I came across this post in Quora, I had to tackle it…

What are ten bad financial decisions to avoid in your 20s?

Here’s my answers…

#1 Staying at one company for more than 3–5 years. This is a time for learning and growing. You need different experiences (even if in the same industry) to provide perspective that will help you be successful as you enter your 30’s.

#2 Not starting a side hustle. We’re in an age where there are hundreds of ways to earn extra income and build skills that can be used in the future. All while pursuing a passion project or interest. You can even take a hobby and make it self-supporting.

#3 Spending what you earn (or more). Most people find they spend what they make. Then when life happens (car breaks down, medical bills, etc.) you go into debt on the credit card. Then you continue a downward spiral that is hard to extricate yourself from. Spend radically less than you earn…I’m thinking 25–50% saved from what you earn. This also allows you to be less dependent on a job or have seed money to start a business if you choose too or hit your retirement goals faster.

#4 Incurring student loans. Now I recognize that this often has to be addressed sooner than your 20’s. But going the trade school or community college route (at least for 2 years) and then working while in school, will both build good work/study habits as well as set you up for a debt-free future.

#5 Associating with the wrong people. They say you are who you associate with. Hang out with people who spend everything they earn and more. Or people who bring drama with them like a cloud. Or those who want to party all the time and not worry about work. You’ll find yourself doing the same.

#6 Worrying about what others think. Life’s too short to not live life on your own terms. Know that there is no “right” path. And those who think they do know the path often find themselves derailed and lost later in life with things don’t go according to their plans.

#7 Not getting married and having kids. Although getting married young does bring other challenges, many people think you have to get your career in order first. And although you can achieve much with the extra focus that not having romantic relationships distracts you from, you can’t go back in time. This is especially true of women who want careers. Many women who wanted to have it all found they couldn’t have children because they waited to long (even with in vitro). And although they can still have very fulfilling lives, there often is that sense of loss too.

#8 Thinking “I’m too young” to do that. There are some jobs where being older is a benefit. And there are others where youth wins out. Know that you always have options. Don’t sell yourself short.

#9 Not learning enough and focusing too much on the dollars. In your 20’s you’re building the platform for your future. Your career may vary but the skills and relationships you develop in your 20’s will often pay off down the road in ways you never imagined. If you aren’t learning, move on.

#10 Not having fun! Life is too short not to have fun. And you’ll find out soon enough that there were opportunities you passed on that you wished you didn’t. Go take life by the horns and make the most of it.

What are some “Bad Financial Decisions” you think 20-somethings should avoid?  Or ones you think we should all know about?

Leave your thoughts in the comments below.