Starting your own life, beginning your career, moving out for the first time and managing your own finances is a major adjustment to make as you transition into adulthood.
Taking care of yourself financially is something that takes time and a lot of trial and error to achieve. When you’re living on your own for the first time and trying to budget for it, it can be tricky to keep track of everything you need to be paying for. Here are a few things you might be forgetting to include with your basics.
Insurance
You might think that you can get away with not paying insurance, but when there’s an emergency and you don’t have cover, the financial implications will be far worse than sucking it up and paying that monthly premium.
If your budget is tight, you can look for cheap car insurance, home insurance and health insurance, so long as you include them in your budget.
Medical Expenses
Even if you have health insurance, there are always going to be out of pocket payments over the year, and perhaps even monthly. Painkillers, anti-inflammatories, cough syrups, bandages, throat lozenges, medication for stomach cramps, and similar expenses will need to be accounted for.
Illnesses and injuries obviously can’t be planned for, but you’ll need to be financially prepared anyway because they can happen at any time. Portion out a bit of your income each month these expenses, and if you don’t end up using it, that money can go towards extra savings.
House and Yard Maintenance
Being an adult implies taking care of yourself – but you’ll also be responsible for taking care of your environment. Cleaning and maintaining home and your yard can take up a sizable portion of your income, and you’ll need to be prepared for it.
Cleaning equipment and supplies like dish soap, dishwasher pods, washing detergent, kitchen sprays and bathroom cleaners will all need to be purchased and repurchased regularly, and if you have a yard you’ll either need to buy tools to tend it yourself, or pay for professional services.
Personal Care Costs
You’ve probably accounted for regular purchases like facial cleansers, deodorant and toothpaste in your budget (we hope). But don’t forget about setting aside some money for less regular but equally important costs.
We all need a haircut from time to time, and you might book waxing appointments, manicures, or spray tans, or otherwise be purchasing the supplies to do these yourself at home. Either way, it’s going to cost money and should be accounted for when you’re planning your expenses.
Special Occasions
Birthdays, anniversaries, weddings and holidays over the festive season are all special occasions that we love to celebrate. One of the ways we celebrate is by purchasing gifts for those we love.
While there’s nothing wrong with these expenses, it’s still important to plan for them and not jeopardise your rent because you blew your income on Christmas gifts. Set aside a little money each month for gifts, or plan your year in advance so you know how much you’ll be spending on each upcoming occasion.
