You’ve entered the exciting phase of your 20s, where life choices can shape your future, and financial decisions are no exception. Navigating the financial world can be daunting, but avoiding these seven common money mistakes will set you on the path to success.

First, falling into the trap of instant gratification can be easy, especially with temptations like the latest tech gadgets or trendy fashion. While treating yourself occasionally is fine, frequent splurging can derail your financial goals. Instead, practice delayed gratification. Save for significant purchases and invest in your future self by prioritizing needs over impulsive wants. This simple shift in mindset will strengthen your financial discipline.

Another pitfall is neglecting to plan for emergencies. Unexpected expenses will arise, whether a car repair or a medical bill. Without savings, you might resort to high-interest credit card debt. Aim to build an emergency fund covering at least three months of living expenses, offering a safety net for unforeseen circumstances. Start small, even if it’s $50 from each paycheck, and watch your financial cushion grow over time.

Ignoring the power of compound interest is a missed opportunity. Start investing and watch your money grow exponentially. Time is on your side in your 20s, so take advantage of it! Open a retirement account and contribute regularly. Even small amounts can accumulate significantly by the time you’re ready to retire. Many employers offer matching contributions, essentially giving you free money, so take full advantage of this benefit.

Lastly, student loan debt can be overwhelming, but ignoring it isn’t the solution. Understand your repayment options, and consider income-driven plans. These plans adjust your payments based on your earnings, making them more manageable. Staying informed about your loan terms and exploring repayment strategies can significantly ease the burden.

Your 20s are a financial learning curve, and avoiding these mistakes will empower you to take control of your financial future. By making informed choices, you’ll build a solid foundation for the life you envision.