When I started 1PracticalGal.com, I wanted to create a space where financial wisdom meets real-life experience. Sometimes, the best lessons come from hindsight, and today, I’m sharing mine—the 7 costly money mistakes I made at 22- avoiding them could have saved me time, money, and stress.
1. The Magic (and Missed Opportunity) of Compound Interest
I thought paying off my student loans with laser focus was the best move. While being debt-free is great, I completely ignored investing during those early years. Even just $100 a month invested instead of thrown at extra loan payments could have grown to over $100,000 by retirement, thanks to compound interest. And that’s not even counting potential employer matches. Yikes.
Practical Tip: Start investing early, even if it’s a small amount. Time in the market beats timing the market every time.
2. I Didn’t Know What I Didn’t Know
Despite a degree in accounting and finance, personal finance felt like a foreign language. Business finance? Sure, ask me anything. But my own money? That was a self-taught, trial-and-error journey. The cost? Missed opportunities that could have shaved years off my path to financial freedom.
Practical Tip: Personal finance isn’t just for finance majors. Read, ask questions, and learn continuously. It’s okay not to know—but it’s not okay to stay that way.
3. No Clear Financial Goals
I got my first paycheck and… just lived. Bills got paid, student loans chipped away, and I thought I was doing fine. But without clear goals, my money didn’t have a purpose. If I’d set up an emergency fund or prioritized retirement savings, I’d have reached financial security much sooner.
Practical Tip: Give your money a job. Whether it’s saving for emergencies, retirement, or travel, clear goals create financial discipline.
4. Overlooking Employee Benefits
I left money on the table by not understanding my employee benefits. Discounts on gym memberships, legal services, childcare resources—even a car discount I later used. These perks are like hidden treasure chests, just waiting to be opened.
Practical Tip: Review your benefits package annually. You might find perks that save you hundreds (or thousands) without any extra effort.
5. Disorganized Finances
As long as I had enough for bills and the occasional splurge, I didn’t worry. But not tracking subscriptions, recurring charges, or spending habits cost me more than I realized. A little financial housekeeping could have accelerated my journey to financial freedom.
Practical Tip: Do a monthly money check-up. Review your expenses, cancel unused subscriptions, and make sure your spending aligns with your goals.
6. Ignoring the Psychology of Money
I didn’t understand the power of habits or how emotions influence spending. I wasn’t reckless, but I wasn’t intentional either. I drifted financially without a clear “why.” Now, my “why” is crystal clear: I want working to be a choice, not a necessity. That requires capital—built through earning, saving, and investing wisely.
Practical Tip: Identify your financial “why.” It’ll keep you motivated when budgeting feels boring and investing feels intimidating.
7. The FOMO Trap
Seeing friends with designer bags, new cars, and exciting nights out triggered my fear of missing out. I was able to pay my bills, but I chased lifestyle trends without asking what I truly wanted. One night stands out: after a work event at a local pub, the official tab closed, but my friends weren’t ready to call it a night. Even though I was ready to head home, I stayed and bought a round—over $150 on my credit card. I forgot about it until the bill arrived. I paid it, but that splurge cost me the bag I’d been saving for. If I’d channeled that FOMO into clear financial goals, understood what genuinely mattered to me, and had some positive coaching along the way, I probably could have shaved 5 to 10 years off the time I needed to work for a paycheck.
Practical Tip: When FOMO strikes, ask yourself: “Is this what I really want, or am I just caught up in the moment?” Reframe it as inspiration to fund your future, not just your next purchase.
In Hindsight…
Most of my financial regrets boil down to three things: lack of knowledge, unclear intentions, and disorganization. That’s why I created 1PracticalGal.com—to share lessons, inspire better money habits, and help you make intentional financial decisions without the trial-and-error I went through.
Money is a tool. Learn to use it well, and it can build the life you want.
What’s your biggest “FOMO moment” that cost you more than you realized? Share it in the comments—I’d love to hear your story and how you’ve grown from it.
Want more practical tips, real-life lessons? Visit 1PracticalGal.com and start your journey to financial confidence today. Stay tuned for my next post, where I’ll share how one small shift in my financial mindset changed everything—and how you can apply it today!