Moving into adulthood seems to be an arduous task for anybody. One of the reasons why adulthood seems such a huge transition in life is the fact that adults face more accountability with regards to a variety of things, such as paying rent, bills and other dues. This is on top of taking care of personal matters independently. It is obvious that people moving up to this stage is faced with more financial responsibilities. Some of these people succumb to the pressures that come with this life that they tend to take harsh turns monetarily.
Young adulthood is a time when the desire for independence combined with optimism about the future and a sense of invincibility drives everything. Unfortunately, this unguided belief can lead to a ‘spend today, worry about it tomorrow’ attitude. Many don’t think the repercussions apply to them since money problems are for the middle aged; now is the time for fun. However, most still think so. What’s worse is that those who keep holding onto this belief for months, or even years, soon experience the consequences of this attitude.
This is definitely an alarming problem that needs immediate solutions. This is why people who are “leveling up” to adulthood should be more informed, especially with the financial considerations – a significant aspect of life that, when taken seriously, can make them more capable of dealing with the pressures of adult life.
Stable Home, Stable Life
While adulthood prompts independence and positivity about oneself, a person’s drive to find his or her own personal dwelling in the city begins to go off the charts. The usual starting option is to stay in apartment units, which tend to bring their finance to the wall. Then again, what most people should understand is that getting a home isn’t only for independence, but also for stability. In this regard, choosing a good home is a key component to start adulthood smoothly.
One has to take into account the money he or she has right now when scouting for a house or apartment. This is because of the simple fact that one can’t be in a place that forces himself or herself to surrender all assets. A proper budgeting and estimation of the monetary factors may just save a person from the hassle it brings both in the short and the long term.
Similarly, money plays a huge factor on how you enjoy or thrive in the new surroundings. Since at the start of your move, there would be other expenditures such as purchasing of furniture, house equipment and other basic necessities to satiate your lifestyle.
Affordability is a major factor when it comes to practically anything relate to one’s finances. It is especially important in the field of real estate. In the eventuality when an up and coming adult has already come to a point to buying a new home, managing mortgages and keeping trust deed as safety net is integral in order to maintain proper financial status. A mortgage calculator can help to run down on things so a person can check whether the finances are still good or some aid may be necessary.
Jumpstart with Savings
The most common way to go about being financially learned is by saving. As a child, it is rewarding when one has actually filled his or her piggy bank, and opens it for Christmas to buy his or her much desired toy. Come to think of it, this is the same rewarding feeling a person can have if they decide to save.
Saving is an important facet in everyone’s financial life. This is because there comes a time when money problems arise when the job won’t pay the bills or when the business is not doing well. There comes a time when one becomes ill and simply can’t be productive. These unfortunate circumstances are exactly where saved money can greatly help. Nothing beats having an emergency fund or rainy day stash to expend during these harsh times.
The process of saving is reiterated even before adulthood. Assuming that a person already has a good concept of saving and has already established himself with enough money, he can surely have a head start as an adult. Adult life can be excruciating without any form of financial backup. This is where saved money comes into play. Although saving may have already been instilled in a person’s mind, it is similarly important that this habit never stops.
How one goes about it as he or she gets in the level of adulthood is the key to success. Any good saver first establishes where to put his or her money. This can be manifested in opening bank accounts, preferably savings accounts, where the person can put his or her money for safekeeping. A traditional coin bank is not a bad idea too, considering it can be significant money when the time comes. Each penny counts when a person is aware of the inevitable financial stress that may come his or her way. If a family already includes children, then it is best to teach them the value of saving early. This is to inculcate to them the significance of good financial management.
Insurances are Smart
As this generation gains more and more access to a widespread knowledge about the inevitabilities of life, many are leaning towards getting themselves on track for a healthy way of living. This is the main reason why many people are more eager to take part in hearty dietary plans and regular exercise, as well as professional guidance regarding their health.
People are now more aware that when unfortunate events happen in their lives, it is not only their health that can be greatly impacted. Many have already foreseen great financial stresses that may come to their businesses to their families once these things happen. For this reason, life insurances are gaining more popularity nowadays.
True enough, life can be so unpredictable that preparing for the inevitability of any unfortunate circumstance is crucial. This is why life insurance plans have become a safe haven for many in the United States alone. In the U.S, 2/3 of the population have already availed life plans because of the emphasis of the government for its significance. These plans have proven to be a useful tool to help a person and his family to minimize future financial problems, as well as to continue financially stable lives even after the policyholder has passed.
For young adults who are just starting with their career, life insurance makes a whole lot of difference in their professional lives. However, with little resources to spare, these young adults tend to be limited in purchasing a life insurance policy. As such, it is integral to know how life insurance policies work and are priced.
According to the Department of Financial Services (http://www.dfs.ny.gov/consumer/cli_h_cost.htm), the premium rate for a life insurance policy is grounded on two fundamental concepts which are mortality and interest. Often, a third variable is the expense factor which is the defined as the sum the company adds to the cost of the policy to cover operating costs such as selling insurance, investing the premiums, and paying claims.
By understanding the concept behind life insurance pricing, a young adult would now be able to pinpoint what factors affect the prices. With the large number of companies offering plans, it is paramount that one compares these prices to another. One simple thing to do is to get several quotes from these companies. Avoiding policy riders and additional insurances such as option to purchase child policies or more insurance is important to cut prices as well.