Your 20s can feel like a wild mix of excitement, pressure, and trying to sort life out on the run. Confidence is often sky high, even when experience is barely off the starting line. Many people look back and realise those early decisions set the tone for their financial future. A few different choices could have saved them years of stress, wasted cash, and missed openings.
This piece runs through some of the most common slip-ups across property, shares, risk, confidence, cash flow, and personal decisions. By spotting these patterns early, you give yourself a better chance of avoiding the classic Investing mistakes that catch people out.
Delaying Your First Major Investment
Putting off your first property purchase is far more common than it should be. Most people don’t wait because it is impossible. They wait because they doubt themselves. They second guess. They compare their progress with their mates. Before they know it, years have passed.
Starting earlier matters because time is the real multiplier. A delay of even two years in your 20s can widen into a serious gap later on. If you keep hesitating, ask yourself if the issue is financial or emotional. More often than not, it is the emotional side that holds people back.
Rushing Into Shares With No Strategy: The Investing Mistakes That Really Sting
Many young investors pile into the market with cash they saved over months, only to throw it into trades with no plan. They treat confidence as a strategy and go all in without risk rules. These Investing mistakes often wipe out their cash within weeks.
The good news is that early losses can build stronger discipline later. Starting young gives you one major advantage. Time. You can bounce back, rebuild, and learn proper risk control long before the stakes get higher.
Underestimating the Value of Risk Management
A bit of early luck can make you feel like a genius. That is where trouble usually starts. Wins are meaningless if they are not backed by skill. People get overconfident, size up too quickly, and take hits that hurt far more than expected.
Managing risk is not about being cautious. It is about playing the long game. A level approach helps steady the highs and lows that come from emotional trading. Nothing teaches this faster than a painful loss that knocks the wind out of you.
Letting Age Stop You From Having Another Go
When you are younger, you say things like, “I’ll make it back.” Once you get older, the mindset shifts to, “I can’t afford another slip.” That change is natural, but it can freeze your progress if you are not careful.
Many older beginners enter the market with larger savings and higher stakes. One bad experience can scare them off entirely, even when the problem was the approach, not the investment itself.
The key lesson is simple. A setback should not stop your momentum.
Spending Too Much on Cars and Other Pricey Toys
One of the most common Investing mistakes is splashing out on a car that costs too much too early. It is easy to focus on the purchase price and forget the real strain. Fuel, servicing, tyres, repairs, insurance, rego, and the odd nasty surprise. When your income is still growing, these costs hit hard.
The issue is rarely the car itself. It is the misunderstanding of the full cost of ownership. Most people only learn this after months of feeling the pinch.
Skipping Basic Financial Checks
A lot of financial headaches come from ignoring simple checks. Not reviewing a car’s history, skipping due diligence, or rushing into a deal because it looks cheap. Saving a small amount upfront can lead to expensive problems down the track.
A low price does not always mean good value.
Mismanaging Cash Flow and Touching Money Set Aside for Tax
Some people dip into cash allocated for tax or business expenses to fund investments. It works out sometimes, but when the tax bill lands, the stress is next level. Payment plans, interest, and the ripple effect on future planning can take months to sort out.
Cash flow structure matters. Funds set aside for obligations need to stay untouched.
Underestimating the Real Costs of Owning a Property
Buying a property is only the start. Repairs, rates, insurance, maintenance, and the random issues that pop up can surprise new buyers. Without planning, these costs can turn a good asset into a heavy load.
Ignoring the Market Reality and Giving Up Too Early
Some people see rising prices and shrug their shoulders, thinking they are too far behind. They convince themselves entering the market is impossible. That mindset locks them out before they even start.
Even a small property can give you a foothold. Once you own something, options start to open up.
Investing in Assets You Don’t Understand
From random cryptocurrencies to high-risk products, plenty of young investors jump into assets they barely understand. FOMO, mates’ advice, and quick wins can push people into decisions that fall apart fast.
Research should always come first. Ask questions. Read. Understand how the asset works before you throw money at it, especially with leveraged products.
Momentum Loss: The Quiet Threat in Your 20s
Momentum is one of the most underrated tools you have. When you stay consistent, progress gets smoother. When you stop, even for a short break, getting back into the groove feels tough.
People lose momentum when they:
- chase fast wins
- wait for the perfect moment
- overthink every detail
- fear making errors
Momentum relies on action, not perfection.
Being Too Scared of Mistakes
Mistakes are part of the deal. The real danger is letting the fear of mistakes stop you from taking action. Waiting for the perfect time to invest, buy property, or take a career step usually means nothing happens at all.
Every professional has a long list of errors behind their wins. The difference is that they learn, adjust, and keep going. Life rewards people who take action. If you act, you will slip up sometimes. If you never act, progress is impossible.
Final Thoughts
Your 20s do not need to be perfect. They just need to be active. Take steps. Learn fast. Build respect for risk. The Investing mistakes you make now are usually temporary.
Back yourself, stay curious, and keep moving forward. Your future self will thank you for the decisions you make today.
