Lifestyle Upgrade 101
Clarissa Seri帽a鈥慸e la Paz
& Sharon W. Que
Welcome to the adult world. As you enter this new chapter, you have long鈥憈erm goals to figure out: personal goals, career goals, and even financial goals, and we cannot stress enough how important it is to start planning for your financial goals most especially. After all, nobody really gets very far in life if one鈥檚 finances are not properly managed.
We鈥檝e listed the common mistakes of millennials in managing their finances and we hope that you won鈥檛 ever find yourself saying:
础谤迟听
Most millennials think that budgeting your money is only a strong suggestion. Wrong! Budgeting is a must if you want to manage your finances properly. And we鈥檙e not just talking about saving enough money for the next travel or weekend sale. We鈥檙e talking about thinking way beyond your next paycheck.
Budget your money and allot certain amounts or percentages that you are willing to spend for each need and want. By assigning these caps or limitations, you鈥檒l be able to say which expenses really are your non鈥憂egotiables and which aren鈥檛. But more importantly, make sure you stick to your budget!
础谤迟听
Credit cards are your best friend and worst enemy. Never put yourself in a situation that you鈥檒l get wild swiping that plastic left and right. With the emergence of tons of online stores that pop on your screen every few minutes, self鈥憁astery and self鈥慶ontrol will definitely be a challenge, but one that can be done with the correct mindset. Remember, the key here is moderation. It鈥檚 okay to use your credit card once in a while, but just make sure you don鈥檛 overdo it or else you鈥檒l be feeling much regret once that bill arrives.
础谤迟听
Most of us prefer to not think about these things or at least postpone thinking about them for a few years. While medical and life insurance may not always be a priority, it鈥檚 wiser if you start them early. After all, nobody really gets faulted for being prepared way too early, right? Check out our previous column on life insurance聽.
础谤迟听
Sure, you won鈥檛 be retiring in the next five to 10 years, but it鈥檚 never really too soon to prepare for it, isn鈥檛 it? Imagine, if you live until 80 and will be retiring by age 60, that鈥檚 20 years of your life without a job! And 20 years鈥攖hat鈥檚 roughly your age now. Most young adults postpone planning for their retirement plan because they think that it鈥檚 decades away anyway, but what they鈥檙e not taking into consideration is the power of compounding interest. Compounding interest could be your ally especially if you鈥檙e about to start planning for your retirement. The earlier you think about your retirement, the better.
These are just the common traps that we hope you never find yourself saying. After all, if you really want to do a good job at this #adulting thing, you really have to start acting like a responsible one.
