How to Survive Adulthood: Finances

How to Survive Adulthood

Responsibility : Finances

Being an adult does not have to be an agonizing journey, it can be an adventure once you have your lifestyle under control.

During the time that you've been living with your parent(s) you may or may not have picked up a few lessons or have or may not have been taught the basics of the responsibilities you will have in your adult life.

Once you've gained independence you will begin to notice there are bills that need to be paid such as: 

• shelter

• electricity

• transportation

• food

Cover All Expenses

If you can't cover these basic expenses it may be reasonable to get a roommate or a second job if you can fit a second job into your schedule without it interfering with your first job. You can also try side-gigs. Always organize your bills in the order of what you will need to pay first. 

Secondly, buy a simple calendar 12 month calendar with an outline of the entire month.

Once you get this calendar write down when each bill payment is due.

Highlight how much you can afford to pay if you can pay it each week before the due date, this is often referred to as installments or pay week by week until the full expense is covered.

If you have two separate accounts, a checking and a credit card use your credit card to pay the bills during a scheduled time--some companies offer the online scheduling payment option.

Use your checking account to save money in case your credit card gets maxed out.

If you max out your credit card for rent and all other bills but now need to pay your electric bill, try to get some money from your checking account. Then cancel all of your plans for that weekend as a form of saving money.

Stay in or use your emergency piggy bank for going out.

Of course there are many apps that you can get on your phone or laptop or mini tablet but if you really want to make sure that you're informed, keep a calendar in front of you. So that way in the morning when you're staring at your stove contemplating whether or not you should give into the peer pressure of drinking coffee even though you've an iced tea person, you can also stare at the wall... a wall that has a calendar on it with the dates highlighted of the bills that are about to be due this Thursday or it might result into a side-note: 5% late payment fee & then an over the phone last minute payment would be a 20% fee.

Ask Yourself: Necessity or Necessary?

These are optional but if you depend on these then you need it, just remind yourself that these would be additional expenses, except for WiFi. However, WiFi can be a tricky expense:

• Television

  if you watch television often for the news or shows or to keep current, this an additional bill

• WiFi

oftentimes many plans require a telephone service or a television package in order for you to get WiFi, try to settle for a great deal and don't sign a contract unless you are sure that the deal expires or ends at a reasonable & fairly priced time period

• HotSpot

the hotspot isn't necessary unless you're always on-the-go and go to places that don't have WiFi or have poor WiFi service

Care About Your Health

There are many programs and services that you may qualify for, and those programs are:

• Healthcare

find a healthcare plan that will cover all or at least cover a portion of your medical expenses. If you suffer with a disability which makes it difficult for you to get a job or if you're employed & still need disability insurance -- see what else you may qualify for

• Social Security Disability 

you may qualify for Social Security Benefits which may help cover your living expenses or provide you with a steady income if you can not obtain a weekly income from employment, if you are employed you might have to consult with someone about what options may or may not be available to you

During the Presidency of Barack Obama, the implementation of a new legislation was introduced to those transitioning from teen-hood into adulthood. The Affordable Care Act also known as, ACA, can help you cover the medical costs of an emergency room visit which is a crippling expense between $5,000-$30,000 depending on the services and procedures provided. 

Some states have websites where you can buy your insurance called the Health Exchange, other states may have a Center or District building. If you prefer to apply in person at a Health Center or a District Health Center which may be state run or a local government agency, you may inquire about the enrollment process and what documents are necessary for you to take with you so that you may apply for health insurance plan.

What the hell is an IRA?

If the company or organization that you work for doesn't have a retirement fund, oftentimes even this option is over-looked or frowned upon by 'non-believers' such as the 401K is. Just be curious enough to ask your employer's HR team or whoever is responsible within whatever department for handing you your weekly or bi-weekly pay-check. Ask the supervisor or manager or HR about the IRA option, you can also figure it out online, even if you're self-employed you can begin the Individual Retirement Account. Who knows, maybe one day when you retire you might end up having saved enough money to retire on a yacht in Aruba where your daily activities are scuba diving before your physical therapy appointment.

Pay Your Student Loan

If you get a student loan begin paying for it the moment you get a new job, wait about three to four months of employment or a second job. It's always better to begin the process of paying off any loan immediately rather than wait for it. The longer you wait, the more interest and fees will occur, meaning if you only owe $3,000--but then wait to pay ten months later... those fees that you forgot about or didn't even bother reading about in the contract will send you into a pit of $9,000 debt.

How to Save Yourself for the Loan-Trap

• Change of payment plan, "Do I have the option to change the way I pay for this loan?

• Deferment, "I've just lost my job. Could you please place my account on hold until I am back on my feet?"

• Forbearance, "Is it possible to postpone these payments until six months from this day?"

• Consolidation, "Could we settle the price on....until the.....?"

Know Your Taxes, Do Your Taxes

Adjusted Gross Income: what counts toward your expenses which can later be deducted into your return

Deduction: An item that can be used to subtract your adjusted gross income as a means to reduce the amount of income subject to tax

Itemization: which items (expenses) will be deducted for your income tax return

Standard Deduction: the minimum deduction per filer 

A Personal Note, it's better to use public transportation or buy yourself a bicycle than to buy a car.

If you can rent out a car or do a car-sharing thing then those are much better alternatives to an actual car.

However, if your job and lifestyle require you to commute too often for you, making it impossible to ride your bike from point A to point B or from getting to point A to point B on time because after that you have a pit-stop followed by a quick, pick-up groceries for grandma and could your cousin Tom please have you do him a favor of bringing him the surf board picked up from the store because the guy from the app is the reason it needed a repair, then get a car.

Otherwise, at your own expense, it's always best to go green and save green by bike or train or bus.

Make being responsible with your finances fun, follow some inspirational finance savvy chicas on social media, hire someone to coach you into good finances if you can afford it. If you must, ask your parents to advise you or ask your college if they have financial advisors. If you have a legit group of gal-pals & one of them happens to be the savviest money wizard, then ask her to be your friend-viser.



Best of luck on your new adventure,
xxo 
Amela Sandra