Have you made budgeting mistakes early in life?? Read on to find out the most common mistakes and how to avoid them. Budgeting in your 20s can feel impossible—especially when you’re balancing student loans, a low starting salary, and the pressure to enjoy your youth. I made a lot of money mistakes in my 20s, especially when it came to budgeting.
The good news? I learned from them—and now you can too.
Here are 5 budgeting mistakes I made in my 20s, and more importantly, how you can avoid them.
1. I Didn’t Track My Spending
Back then, I thought budgeting meant having a rough idea of how much I earned and just trying not to overspend. I never actually tracked where my money went.
The Problem:
You can’t manage what you don’t measure. Without tracking, I had no idea how much I was spending on takeout, subscriptions, or “small” purchases that added up fast.
The Fix:
Start tracking every rupee for 30 days. You can use:
- A simple Google Sheet
- Apps like Zerodha or Ind Money
- Your bank’s built-in tracking tools
Once you see where your money is going, you can start telling it where to go.
2. I Treated My Credit Card Like Free Money
I used to swipe without thinking—plane tickets, nights out, gadgets. As long as I could make the minimum payment, I thought I was fine.
The Problem:
Carrying a balance meant I was paying 15–25% interest on most purchases. Over time, that interest adds up fast—and it kills your credit score.
The Fix:
- Only use your credit card for purchases you already have the cash to cover.
- Pay it off in full every month.
- Set up auto-pay to never miss a due date.
Credit cards can be useful for points and perks—but only if you use them wisely.
3. I Had No Budgeting System
Some months I’d write things down. Other months I’d guess. Most months, I gave up halfway through.
The Problem:
Without a clear system, budgeting felt random and overwhelming. I didn’t have a framework to guide my spending.
The Fix:
Pick a system that fits your personality. Two beginner-friendly ones:
- The 50/30/20 Rule
50% Needs · 30% Wants · 20% Savings & Debt - Zero-Based Budgeting
Give every Rupee a job before the month starts.
Try one for at least 2–3 months and tweak as you go.
4. I Ignored Irregular Expenses
Every time a car repair, wedding gift, or annual subscription came up, it threw off my whole budget. I’d dip into savings or worse—credit cards.
The Problem:
These “unexpected” expenses were actually completely predictable. I just wasn’t planning for them.
The Fix:
Create sinking funds for non-monthly expenses. These are mini savings buckets you contribute to each month, like:
- Car maintenance
- Holiday gifts
- Travel
- Annual bills
Use separate accounts or labeled folders in your savings account. Future you will thank you.
5. I Only Saved What Was Left (Which Was Usually Nothing)
I treated savings like an afterthought. I’d spend first, then try to save what was left. Spoiler: there was rarely anything left.
The Problem:
When you don’t make saving a priority, it never happens.
The Fix:
Pay yourself first. Set up an automatic transfer to savings or investing the day your paycheck hits. Even Rs 1,000 – Rs 1,500 per month is a solid start. It’s the habit that counts.
Final Thoughts
Budgeting isn’t about restriction—it’s about freedom. Once I stopped winging it and started getting intentional with my money, everything changed.
Yes, I made mistakes in my 20s. But those mistakes taught me how to build better habits, take control of my finances, and work toward long-term freedom.
Now it’s your turn.
Avoid the pitfalls. Build your system. And take back control of your money—one rupee at a time.
I’d love to hear from you:
Have you made any of these budgeting mistakes? What helped you get on track?
