As a young adult, you’re possibly making a lower income, still attending college or trying to understand the basics of using money responsibly. While you might not yet have a ton of cash to invest, avoiding common poor money decisions will help you build wealth earlier in life.

Discover More: 6 Wealth-Destroying Mistakes People Make Every Day Without Knowing It

Find Out: 5 Cities You Need To Consider If You're Retiring in 2025

According to Empower Personal Dashboard data, the median net worth for those in their 20s was just $7,638 in November 2024, compared to $35,649 for those in their 30s.

In a recent video, finance YouTuber Jaspreet Singh discussed these seven wealth killers that harm people in their 20s.

A new car payment averaged $753 in April 2025, according to Cox Automotive. That doesn’t include other expensive ongoing costs that Singh discussed, like premium gas, insurance and maintenance.

He also said that many people get into a cycle of taking out more expensive auto loans since they get a fancier vehicle once they’ve paid the last one off. That will keep taking up your budget and making investing and building wealth difficult.

Singh recommended getting a cheap, modest car in your 20s, putting your extra cash toward investments and getting a better vehicle when you’re in better financial shape in your 30s. While you’re at it, consider buying your cars with cash to avoid loans and interest.

Explore Next: Suze Orman’s Top Tip for Building Wealth Is a ‘Very Easy One’

Singh said, “The reason why the watch industry has been so profitable is because after the jeweler sells you the watch, they’re now also selling the financing for you to pay for that watch.”

Getting a luxury watch in your 20s might seem like a good way to look fancy, but the total financing cost with interest may not be worth it. Holding off until you’re older and have enough wealth to buy one debt-free is wiser.

Singh also mentioned there’s no guarantee your fancy Rolex will gain value, especially as more people hold off on nonessential purchases. That’s bad news if you’re considering the watch an investment.

Seeing other young adults posting pictures of their dream vacations online can tempt you to book a trip to enjoy yourself, but the cost can quickly damage your finances. The travel insurer SquareMouth found that one trip abroad averaged over $10,000 alone.

Singh said that these vacations aren’t helping you make money; instead, they can leave you stuck with a credit card bill you can’t pay. Plus, you might continue the pattern of booking more fancy trips due to stress. That’s why Singh advised not taking a trip unless you have the cash.