Financial Adulting

Establishing yourself as an adult and dealing with the responsibilities that comes with that can be quite an emotional ride. As you gain more freedom around your financial choices, the question of how to adult pops up consequently. It is certainly an added pressure.

Taking care of yourself isn’t just about finding your perfect flat to call home. You probably want to excel in your career without having to lose friends in the process. The long list of financial things can also add to the list of worries. Who has time to have fun, maintain a budget and nail down the best insurance policies?

It seems like you have an endless list of things to do. But luckily, things don’t have to feel that way. You can take control of your finances and reclaim at least one area of your life.

So if you’re ready to learn the basics of financial management and adulting, keep reading!

Start learning how to be an adult

If you have been avoiding working on your finances, the you need to stop and start right now. Money can drastically influence our lives, whether we want to admit it or not. Putting together a proper balance sheet can eventually lower long term stress related to financials. And long term stress is linked to serious medical issues such as heart disease or high blood pressure; it makes it even more necessary to take it seriously.

It is important to set aside some time to go through your finances. Taking that first jump may scare you, but if you can make a change now, things will be very different down the road.

It’s easy to just say you want to manage your finances better, but it takes action to follow through with that.

Yes, it may be time consuming, but the changes can improve where you stand financially. So what are your life goals?

Maybe you want to take a beautiful trip with your family, or you just got married and you want to start a family, either way, de-cluttering our finances is the first step to getting there. 

Track your spending and income to get an idea of where you stand financially. You can also calculate your net worth by subtracting liabilities from assets. If you got a positive number it’s a great sign. If you got a negative number, you’ll need to put in a little more work. But do not ignore this part.  

Now let’s have some fun; what are your goals financially? When do you want to retire? What about short term goals? Do you want to buy your own home?

Investing pays off better if you start when you are young.

Once you know where you stand, you can move to the next step which understands what your goals are and a timeline to reach them. Don’t rush this step. Follow a plan.

Steps:

  • Follow your budget: Track how much you spend first, to get an idea of your habits. How much do you spend for meals, transportation, rent, socializing? You might be quite surprised, and the numbers certainly do add up quickly. Living on a budget is one of the first steps, and it can even be fun.
  • Start investing:    You’ve probably heard this before, but it is good to repeat it, it is important to start investing your money when you’re young. The earlier you invest, the more time your money has to grow. You investment portfolio can become quite remarkable over time.
  • Consider insurance: You probably have some sort of healthcare or car insurance but if you have any dependents, you should think about life insurance, otherwise if something bad happens to you, your dependents could be left in a tough position. If you’re renting a place, then renters insurance is also important in case anything gets stolen. Renters insurance will protect you from any liabilities such as damage to the property, which a landlord would expect you to pay. Disability insurance is another that is often ignored, but in the event of disability and inability to go to work, your income would be replaced by the insurance.
  • Focus on your career: Another great way to improve your finances is excelling at your career. Invest in some courses to improve your knowledge, maybe even think about getting another degree.

Financial adulting does not have to be complicated. You will need to make an endeavor and follow the steps. The attempt is going to convert into long term financial well being. The important thing is to start today!

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