If you fail to set yourself up for success in your twenties, that doesn't necessarily mean you can’t thrive in your thirties, forties, or fifties. There are plenty of adults who make poor financial decisions in their youth and still manage to turn things around, thanks to debt relief strategies like bankruptcy. Imagine just how much more successful they’d be, though, if they made sound decisions from the start? Regardless of whether you want to open a small business, buy a lavish vacation home, or retire early, avoiding the following mistakes will help you reach such goals sooner.

3 Money Mistakes to Avoid in Your Twenties

1. Falling Victim to Lifestyle Inflation

If you move to a bigger apartment or buy a nicer car every time you get a raise, you’ll never save money. It’s incredibly easy to fall victim to lifestyle inflation in your twenties because you may not have a mortgage or family to worry about yet. Additionally, you’re probably pouring everything you’ve got into your career, so you feel entitled to enjoy each bonus. If you were to put aside those small windfalls, though, you could save quite a bit of money.

2. Racking Up Debt

Certain kinds of debt may be unavoidable in your twenties. If your career trajectory demands a higher education, for example, you may have no choice but to take out student loans. It’s credit cards that should be avoided at all costs, though. Whereas student loan interest rates hover between 3% and 9%, credit cards charge consumers nearly 20% interest on their purchases. And, once you get into a hole that's charging you that much in interest, it’s very hard to get out.

3. Not Saving Anything

Saving even a small percentage of each paycheck will add up over time. Even if you can only afford to put aside 5% of everything you earn, do so diligently. These savings, which will add up over time, can serve as your “rainy day” fund. When an unanticipated expense arises, you won’t have to go into debt to cover it if you’ve got enough in savings.

If you can’t seem to catch a break despite making sound financial decisions, bankruptcy could be the answer. By eliminating old debts, you can start over with a clean slate. To see if you qualify for Chapter 7 or Chapter 13 bankruptcy, turn to Bueker Law Firm in Stuttgart, AR. Since 2001, this practice has been helping clients get out from under overwhelming debt. To schedule a consultation with a compassionate bankruptcy attorney, call (870) 673-1313 or visit the practice online.