I don't know exactly when the people of my generation decided to make "adult" a verb (and call it "adulting"), but the term is here and has been put into mainstream consciousness.
According to the Oxford Dictionary, adulting refers to the practice of "behaving in a way characteristic of a responsible adult, especially the accomplishment of mundane but necessary tasks."
Millennials, us damn complainers (complaints magnified moreso by social media), traipse around aimlessly like big babies because we're going through life stages that other generations have gone through much later in life. We look up to other [older] adults at awe and ask how they manage to get their shit together, and realize that now, we're adults ourselves! We struggle to reconcile that fact the same way we struggle with the management of our day-to-day mundanity.
Anyway, I've legally been an adult for almost a decade now, and while I'm also continually learning, I feel like I've been well-versed on dealing with a lot of adult stuff to be able to dish out some helpful advice on how to make adulting a little bit easier.
On Paying Bills
Automation is key. There is nothing worse than spending so much time waiting in the bank, payment centers, etc. `Sometimes, bills have different due dates and such that if you aren't organized, you may miss a payment!
Solution: What I did is I got a credit card to automate my payments so I only have one payment stop every month and one due date to remember. You can also automate your payments with online banking, but what's great about using a credit card is that you earn points for every transaction, which you can use to exchange for travel, shopping and dining perks, among other things.
If you're impulsive, you're better off starting with online banking. With that, you're safe because you're limited to the money available in your bank account. It's also a good alternative to using credit cards because you can access your account from an app on your phone and pay your bills while stuck in traffic, etc. You can also automate bills payment via online banking; just ensure that your bank account has money in it.
One of my bank accounts is from Unionbank, tied up with Cebu Pacific's Getgo debit card. For every transaction, I earn Getgo points which allow me to travel for free. Unionbank has undergone a major overhaul--their app is actually really easy to use, and allows you to pay various billers.
My credit card is from Security Bank. I applied for a secured card because I didn't have the required income documents when I was freelancing (I also didn't trust myself to be responsible enough to control my impulses!). With a secured card, you deposit a minimal amount and the bank holds part of that amount, which will be your credit limit. After a year of good standing, the bank can decide whether they will offer you a regular credit card.
I'm not sure whether all secured cards require full monthly payments, but this is what I practice so that I don't incur extra charges or fall into debt. Paying for credit card charges is a waste of money.
Finances
Pay yourself first. People often spend this way: INCOME - EXPENSES = SAVINGS, but it should be the other way around: INCOME - SAVINGS = EXPENSES. You work hard, so pay yourself first and then live off on whatever's left. As a general rule, 20% of your income is a good place to start for saving.
Like I said in the previous item, automation is key so have that amount transferred to a separate bank account so that you won't miss the amount and be tempted to spend it.
Now that you're an adult, the first thing to build is your emergency savings. This is anywhere between 3-6 months worth of your monthly expenses that you can use in the event that you suddenly lose your job, or something unexpected comes up (illness, renovations, etc).
No, the new iPhone is NOT an emergency. Nor is that concert, trip or that pair of new shoes you don't really need. Be honest with yourself.
Put it in an account that you cannot easily withdraw from, like a passbook account. And when you reach your targeted amount, you can transfer maybe half of it to a fund that is equally hard to withdraw from but offers better interest rates than a measly bank account (like a mutual fund, or a cooperative) so that while you aren't using the money, it still grows.
I started building my emergency savings late (about 2 years ago), and let me tell you, it gives you this peace of mind. It feels awesome knowing you have one less thing to worry about should something bad *knocks on wood* happen.
I want to expound on the other kinds of savings to have, but at the risk of making this blog post too long, I'll save it for another blog post.
Invest. According to a survey by Bankrate, only 23% of millennials prefer investing to cash. I mean, I get it. Our generation has been through a lot of financial crises--seeing the stock market plummet and thousands of people getting laid off can be traumatizing. Other than that, most millennials need cash for their more immediate needs and cannot imagine having funds that cannot be touched for decades.
However, millennials have the most advantage of saving because youth (and time) is on our side. With the magic of ~compound interest~, we can make our funds grow--and at interest rates higher than the bank's.
When someone says 'investment', people automatically think they need a lot of money, or they automatically associate it with the stock market. But, there are several investments you can start with as little as Php 5000.
You can do mutual funds, unit investment trust fund (UITF), or if you're a risk taker, get into stocks. Yes, you can get started on the stock market for as low as Php 5000 c/o COL Financial! All three have better returns than the bank. In a nutshell, all three pool together money from several investors to be invested in a business. The difference is that, mutual funds are managed by a private companies, UITFs are managed by banks and you have to act alone when you're dealing with the stock market.
If you're just starting, I recommend the first two. These are managed by professionals that decide where best to invest your money to grow them.
There are different kinds of funds that depend on your risk appetite. For example, if you're a conservative investor, you can choose funds that have smaller (but guaranteed) returns. However. if you want bigger returns, you can choose the riskier investment. Just know that because it's risky, there's a you may lose some money in the process.
To determine which the best kind of investment is for you, here are three things to consider:
1) Your risk appetite.
2) Your investment goal - Why are you investing? Is it for retirement? For further education abroad?
3) Your investment horizon -- When do you need the money? Do you need it immediately, or are you okay keeping it more than 5 years down the line.
If there's another kind of investment I can recommend, it's variable life insurance (VUL). It's life insurance that comes with an investment vehicle. You know how in Filipino soap operas, when someone dies, the family left behind goes, "Where do I get money to pay for the burial?" That's a reality for many Filipino families.
Call me privileged, but when I see those scenes, my millennial brain thinks, "Namatay nalang nga, nang-iwan pa ng problema (He died but still left them with problems)". I mean, I think the best last gift you can give someone is peace of mind and having one less thing to worry about.
With the VUL, you pay a minimal amount monthly over a specific time period (anywhere between 5-20 years) and you're not only insured, but you can also grow your fund. Again, what's great about this is the younger you are, the smaller premiums you have to pay, and the larger your fund gets by the time you retire.
On a last note, when it comes to investing, the amount doesn't matter, frequency does. It's more about creating a sustainable habit. Notice how I say habit? Because what good does it do saving up huge amounts, when you can only remember to put in money once a year?
Pay for purchases in cash. I can teach you how to budget, and tell you all the ways I've tried to manage my cash flow, but I guess right now, the simplest way to go about it is to just simply pay for everything in cash. That way, you can see where exactly your money goes, and how much you have left.
Chores and tasks
Part of being a young adult (that lives alone and can't afford househelp) is doing your own chores. Yep, mama ain't there to clean up after you no more! This can be a drag, since you're usually tired after getting home from work/gym/socializing. Well, here are two of my best tips to addressing these chores and tasks.
Batching is life. Instead of wasting a small amount of time a day doing errands like cooking or grocery shopping, I allot a whole time block to do everything. For example, cooking. I prepare a large batch of food once a week, freeze it, and bring it to work to reheat.
I usually cook right after grocery shopping, so that I don't have to waste time waiting for the meats I bought to thaw. And on the days I do grocery shop, I try to squeeze in all the other errands I need to do, just so I can go on one trip and not have to keep coming back to the mall.
What's great about cooking everything in one day is that during the week, I don't have to think of what to eat. I get a microwavable container from the ref and pop it in the office microwave. This (not having to decide on anything) really helps, especially if you're on a diet. It eliminates any room for making any (wrong) choice, and it helps you conserve brain power and willpower. (More on that later)
You can also apply this to work tasks. For example, set certain times where you can answer all your emails, instead of periodically checking every hour. Or if you want to focus on work but have these urges to search about random stuff--write all these random searches down and do them all in one batch when you have free time.
Outsource. Time, not money, is the most important resource of all. As millennial adults with full lives, it feels like there's never enough time in a day for everything. My solution: outsourcing.
I realize there are people that have businesses and whose jobs involve doing some of the things I don't like. Thus, outsourcing my low-value and repetitive tasks frees my time up for more high-value tasks.
For example, laundry. I absolutely hate doing the laundry. I usually spend 2 hours doing my laundry, but I realized I can do so much with those 2 hours like nap, read or work additional hours at my side hustly. I surmise, I can earn more those 2 hours spent saving some Php 150 per week having my clothes laundered.
I know it seems like our moms were able to do it all--juggle work with children and running a household--but that didn't all come without help. So we don't have to delude ourselves into thinking we can do it all. We can ask for help, and as an older adult--this is my way of helping you out! ;)
Clothing
In the previous section, I mentioned something about brain power and willpower. I've been reading self-help books, and they've been reinforcing the point that both brain and willpower is limited. It is why people advocate doing the hardest tasks early in the morning, when their brain is at its most functional. So what those books say is that little decisions like choosing what to wear and what to eat zap some of those reserves. This is why individuals that constantly have to be 'on' and make decisions, such as Steve Jobs and Mark Zuckerberg forego these little decisions and wear a 'uniform'.
I have a uniform at work, but my day clothes are mostly black. I choose plain black because unlike printed stuff, people won't recognize if I wear it over again. It makes everything so much easier, and I don't have to buy clothes as often.
Dressing for comfort has always been my thing, and I rarely buy items (just ask my best friend!), but when I do, I make sure it's something I really will wear. My clothes last me 2-5 years!
------------------
'Adulting' can be a pain, but you don't have to do it alone.
Anyway, I hope you found this blog post helpful. These are just a few things at the top of my head that I wanted to share. Let me know if you want any more tips! :)
Follow me on my social media sites?
twitter
pinterest
facebook
instagram
Post a Comment