Hour 20s can be a very challenging time for a number of reasons.

You’re finally out of school and into the real world, which means your first real job.

It may also mean living on your own for the first time ever.

Without a doubt, you’ll make some mistakes during this time. It happens to everyone.

However, you cannot afford – literally – to make certain investment mistakes during your 20s.

3 Investment Mistakes Most People Make in Their 20s

The good news is that these common investment mistakes are easy to avoid. Better still, by avoiding them, you’ll make it easier and easier on yourself to save for retirement over time.

1. Not Investing at All

This is, by far, the biggest of the investment mistakes people make, especially in their 20s.

What makes matters worse is that social security will probably cover a lot less by the time you retire, too, which means investing is more important for your generation than any that came before it.

Despite that, 69% of Millennials haven’t set aside anything for retirement.

You may tell yourself that you’ll wait until your 30s to begin doing this, but by then, the amount you’ll need to set aside from your paycheck to enjoy a comfortable retirement can go up by 50 to 100%!

You want to begin leveraging the power of compounding interest as soon as possible. This will make it much easier to continue saving as time goes on.

2. Not Taking Full Advantage of an Employer Match Policy

Does your employer offer a match program for your 401(k)?

If you don’t know, find out immediately.

If they do offer one, you need to take full advantage of it by investing up to the total they’ll match.

In short, your employer is offering to invest in your retirement up to the amount you’ll put in from each paycheck.

This is free money.

Literally, the only thing you have to do to get it is set aside money for your retirement, something you should already be doing anyway.

3. Immediately Upgrading Their Lifestyle After a Raise

While this isn’t technically one of the most common investment mistakes, it’s making our list because it deprives your retirement account of needed funds.

Whether it’s a raise, your tax return, or some random financial windfall, the temptation will always be to upgrade your lifestyle with that money.

This is particularly true in your 20s when you may be living pretty lean.

Nonetheless, avoid this temptation.

By all means, use that money to pay down your student debt or handle other obligations. After that, though, use it to save for retirement. A nicer place, a better car, and all those other luxury items can wait. Stay lean a bit longer so you’ll be able to retire in comfort.

We’re Here to Help You Plan for the Next 40+ Years

You have a long way to go before retirement, but that doesn’t mean you should put off planning for it because there will always be more time.

It’s vital that you make the most out of each of the next 40 years to come.

At Mooney Lyons, we can help. Contact us today and we’ll show you just how easy it can be to enjoy peace of mind knowing your future is in good hands.