Adulting is tough. Here are a few ways to make it easier
But as Freddie Mercury sang "We are the champions my friend!", we end up being champions at adulting too.
Our salaries may be not be enough, but we manage to pay our rents, utility bills, grocery bills and even save up some money to buy gifts for our dear ones. We also figure out various hacks to make full use of the breathing space offered to us by optimally using credit cards. And who can forget about EMIs?
Most of us would agree that if we could assign a synonym to adulting, it would be EMIs!
EMIs make it possible to buy gadgets, appliances or even our first vehicle without compromising. And the rush of accomplishment that accompanies when all the EMIs are paid off makes it worthwhile to bear the drudgery of the boring job or bad boss or both!
The ones who are older seem to have it all. Great jobs, higher salaries and they seem to have found their calling. Yet, there is something that we seem to possess which they don't. More time! And we can use this to make adulting easier! Financial experts all over the world agree that the earlier we begin to manage our finances, the smoother adulting gets.
Managing our own finances should be the number one skill in the book of Adulting.
Financial independence is one of our top priorities as an adult. Of course, it is not something that will happen overnight since it calls for planning and building our financial worth through investments. Unlike predictive text on our phones, we cannot predict unforeseen circumstances and so the only way out remains being prepared.
Here are first three steps to take as an adult to build the required safety net, and take care of our basic financial responsibilities.
Get medical insurance: As an adult, you are responsible not just for your own well-being but also for the well-being of your family. You may be in perfect health today, but that does not mean no health emergencies will strike you. Equally important is to think of your parents, who may require ongoing medical care. One of the fist investments that you make has to be a health insurance.
Pro tip: Invest in your health is when you are in great shape since this way your insurance premiums will be low.
Get a term insurance: Once you start earning a salary, not only you but your entire family depends on the regular income that's flowing in. So you have to take the responsibility to ensure their future in face of life's uncertainties. The best way to go about this is a term insurance. A pure term insurance maybe a good place to start and you can upgrade to a whole life cover once you have secured enough finances.
Pro tip: Buy a term insurance at a younger age to avoid shelling out higher premiums.
Invest in ULIPs: ULIPs make for great investment options for young adults since they are a perfect blend of an insurance and investment. It strikes the right balance of the two by utilizing one part of the premium for a life insurance cover and the other for investing in equity and debt instruments.
Pro tip: Look for the best funding options available in the market, opt for one that best suits your needs.
The skies are the limit and this specifically holds true when we are younger and hold the benefit of age with us. Taking these wise financial decisions at a younger age will put you ahead of most people your age in terms of financial planning and responsibility.
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"The thumb rule for retirement planning is - the earlier you start, the more you save. However, with age, your priorities change too. So, you need to factor in the cost of living in the present vis- a -vis future."
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