I Made Bad Financial Decisions in My 20s — Here’s How I’m Recovering
Written by
Heather Taylor
Edited by
Gary Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
What comes to mind when you think about bad financial decisions made in your twenties? You might envision someone getting into credit card debt over impulse purchases or postponing saving for retirement.
What about “good” financial decisions, like buying a home or making an investment? Without enough knowledge or understanding of what you’re doing, what sounds like a savvy decision can actually be financially detrimental.
GOBankingRates spoke with two professionals about the bad financial decisions they made in their twenties. Here’s where they went wrong and how they have since recovered their finances.
Investing in Promising Real Estate
Investing in real estate is often advised as a savvy financial move to make because it can help quickly build wealth — if you know what you’re doing, that is.
When he was in his twenties, Payam Mark Shayani made high-risk real estate investments without conducting the adequate amount of due diligence.
Shayani, now the head attorney at Pacific Attorney Group, said he poured money for two years into properties that seemed promising but were full of hidden issues. He experienced a breaking point when a major deal fell through due to unforeseen zoning restrictions and caused a major hit in Shayani’s finances.
Getting an education was the best way to course correct his mistakes. Shayani said he enrolled in real estate courses to better understand the market. He was able to partner with a trusted mentor who guided him through more innovative investment strategies: a working relationship he hadn’t been privy to before.
“This mentorship helped me recoup my losses and instilled a disciplined, informed approach to all my future investments,” said Shayani.
Buying a House
When R.J. Weiss got married in his mid-twenties, he bought a house afterward. This decision turned out to be a big mistake.
Weiss, who is now the CEO of a personal finance website called The Ways To Wealth, said at the time it felt like the responsible thing to do. It was the next step he was taking in life.
The timing also seemed perfect. Weiss said the purchase was made after the Great Recession in 2008 and he felt he was getting a good deal.
Despite getting a good price, the newlywed couple made the mistake of buying a home without knowing what they wanted in a house long-term.
“We didn’t love the area as there was nobody our age,” said Weiss. “We were still finding our footing in our careers. My wife changed jobs shortly after moving, which resulted in a longer commute.”
Less than three years later, they moved.
“We ended up taking a loss on the house and having to write a check at closing, even though we put a significant amount down,” said Weiss.
After moving, the couple did not rush into immediately buying another home. Instead, they rented for a few years which Weiss said gave them more time to learn about what they wanted in a place to live.
Once they figured out what they were looking for, they were able to find and purchase a home which fit their needs. Today, Weiss said they have been living in that home for over a decade.
More From GOBankingRates
