As children, we often believe that adulthood is this wonderful stage of life that’s exciting and fun. As a result, we wish away our childhood in the hope that adulthood provides something even greater.
However, the reality is that we’re often wishing we were children once again, free of life’s worries. One of which is finances, something we all have to deal with on a daily basis.
There are several expenditures you’ll need to make as an adult and it’s something that is important to recognize, especially when it comes to facing adulthood for the first time. Whether you’re stepping out of your parent’s house for the first time or you’re graduating from college, here are several expenditures you’ll need to be making as an adult.
1. House repayments or rent
If you’re in the luxury position of being able to buy a property, chances are you won’t have bought it outright. With that being said, you’ll be in a somewhat better position in comparison to someone who is renting and effectively paying someone else’s mortgage for them.
House repayments and rent are something you won’t be able to avoid, especially if you’re no longer living with family. You might be in the privileged position of someone else paying your rent or house repayments for you but for the most part, being an adult will mean paying out monthly on rent and house repayments.
This payment on a monthly basis, should make up for no more than 30% of your pay packet each month.
When it comes to making expenditures, one of the additional payments that you will often pay out is insurance that helps protect your assets. For example, you might own a car as do many to help them get to and from work or for leisurely purposes.
If that’s the case, then you’ll most likely want to seek the help of a car insurance company to help provide you with the ample coverage needed. The same goes for home contents insurance if you’ve bought anything for your home of high value. That includes whether you’re renting or buying a property.
While insurance might sometimes feel like throwing money down the well, it can come in really handy when you need to make a claim. In fact, it could send you hundreds and thousands of dollars if you need to make said claim in comparison to having no coverage at all.
3. Utility bills
Utility bills are something that can be a pain to spend your money on every month. But, just like taxes and your house payments, they can’t be avoided.
From your water bills to your gas and electric, it’s important that you’ve got a direct payment plan set up with your utility providers. The last thing you want to be doing is making late payments, building up additional fees, and spending even more than you need to.
A good way to manage all of your household expenditures and expenditures, in general, is to have a budget sheet. That way, you can keep an eye on everything going in and coming out.
It may also be worthwhile to make comparisons to the utility providers available and who you are currently with. It’s worthwhile to do this because when it comes to utility bills, there may always be a better option out there in order to save money. It does mean you need to make more effort on your part. But, it’s also a necessity you’ll want to sometimes make use of.
4. Travel expenses
Travel expenses are something to be aware of, especially when it comes to your commute to work or the money you’re spending on your car for leisurely purposes.
They can often creep up on your bank balance and end up costing a fortune. This is especially true when it comes to fuel.
It might be worth capping how much you can spend on fuel per month and if that means taking fewer trips that month, then so be it. However, sometimes, you have to spend that money in exchange for the memories you make with your loved ones.
Travel expenses, whether you own a car or not, are a costly expense that most adults groan about. Welcome to adulthood!
5. Mobile and internet
On the long list of expenditures you’ll need to fork out as an adult, your mobile and internet are an added bonus.
While older generations didn’t have this expenditure, many of the younger generations who’ve grown up with both, have the pleasure of paying for it.
Of course, a mobile phone and the internet are deemed a luxury when it comes to comparisons of other bills. However, they have in some respect, become more of a need for many. The internet especially has become more significant than ever before. Why? Well, more people are now working from home which means they need internet access.
Groceries are a necessity. The food you buy each week is fueling your body, keeping you alive and energized for adulthood. Throw in a partner in the household and that price goes up. When you start having children and growing a family, the amount you’re spending every week also goes up.
Before long, you’re spending hundreds on groceries, and that in itself can take out a big chunk of your pay packet. There are, of course, ways to help reduce these costs but that involves being a more budget-conscious individual. Not everyone has the time or motivation to scan the aisles for hours, looking for bargains.
7. Debt payments
And finally, who can forget the most painful expenditure of all? Debt payments are often accrued during financial hardships and investments into things that you couldn’t afford fully at the time. From buying a property, leasing a car, or spending too much on a credit card, debt payment is also a part and parcel of life.
While the reality of being an adult is a hard wake-up call when you grow up, hopefully, you can manage your money well and have the funds you need to enjoy life to the fullest!