We couldn’t agree more with Belle Daza’s recent Instagram story.
It's true, bills are non stop over here (adulthood).
If you identify yourself in any or all of these, then this article is for you:
You’re still in school and living with your parents, and you plan to move out soon
You are still living with your parents who lovingly pays for everything, and you plan to move out soon
You have moved out from your parents' house but they still pay for all of your bills including your travels, phone plan and gas money
You’re still using your parent’s car
You live in a dorm away from home but comes home to your parents’ house regularly to replenish your pantry supplies, do laundry, etc.
Being an adult, with all the fun in it, revolves around due dates. Or it's the other way around. No one really knows. It's basically on repeat.
Due date These two words suck but knowing your way around it will happen in no time once you move out of your comfort zone, that is your parents’ house and old money.
To help you financially prepare for adulthood, here are some things that you should anticipate to be included in your monthly #nonstop bill:
Health Insurance Policy
What is a Health Insurance Policy?
According to Metrobank, a Health Insurance Policy is a form of insurance that aims to provide you with the financial capacity to spend for any unfortunate incident that requires medical care and hospitalization.
Health insurance is better if it comes with a savings component in which cash value can be invested.
What does it mean for your monthly budget?
Maintaining an insurance policy means you will have to pay an upfront payment called ‘premium’ in order to keep the policy active (investopedia, 2024). When you stop paying for your insurance policy, you risk losing all the benefits that come with it.
You will have to pay for your insurance policy regularly which will in turn cover for your future expenses in case you meet unfortunate incidents in your life like getting sick with a critical illness, accident or death. It’s basically like having an emergency fund.
Insurance companies have varying schedules and modes for payment but the most common is monthly or quarterly terms. For example, your insurance premium is P 10,000 per quarter of the year then you will have to pay the company P3,333.33 per month. This may be arranged as a direct charge to your credit card, direct deposit, etc.
As young as you may be, it is highly suggested that you look into this. It wouldn’t hurt to be a responsible adult who tries his or her best to be prepared for the unexpected. In this era where everyone’s woke about independence, be an adult with a health insurance policy.
Note that the older you are, the more expensive your insurance premium may be, but fret not because it’s never too late to begin. We are more at risk as we age. Older people are more prone to having health problems and chances of hospitalization increases too. The same assumption goes for those who smoke and those with underlying health conditions.
There are numerous health insurance companies that you may consider. Find one that suits your needs best. And to get things started faster, reach out to Coach Jessy through this link
It’s best to inquire and find things out rather than not having any idea at all. It’s totally ok to inquire and not push through with the first Financial Advisor that you will meet. Don’t get intimidated or feel pressured to sign with someone that you are not comfortable with. Getting a health insurance policy will pay-off in the end, 100%.
Rent
Moving out of your parents house means you will need to find a place of your own. And if you are still in the process of saving up money for your own home then renting will be your next best option.
You will often see advertisements of apartments, bed spaces and condominiums for rent with rates ranging from being very affordable to soaring high. Sometimes, these ads do not include the information on the amount of deposit or advance payment that the landlord will require before you will be allowed to move in.
Be prepared
The most common requirement is to pay for 3 month’s worth of rent upfront. The breakdown is 1 month of advance rent and 2 months worth of rent as your deposit. The advance payment will apply for your first month while the deposit is the landlord’s way of protecting his or her business from possible payment delay from your end in the future or sudden forfeiture of your rental contract. The landlord may also use your deposit to cover for future repairs or cleaning service needed in the property once you move out. Should there be nothing to deduct from your deposit, then the landlord should return your money in full within your agreed period.
For example you see a listing that states “Monthly rent: PhP 20,000”
1 month advance: P 20,000
2 months deposit: P 40,000
The total money you need upfront is P 60,000 to secure your new place.
Some apartments or condominiums impose an added bill called association dues that is charged on top of your monthly rent. This fee usually covers the expenses to maintain the shared spaces and services in the condo or apartment building like garbage collection, 24/7 security and maintenance staff, swimming pool, gym, common residential lounges, etc.
When looking for a place to rent, you must also know the kind of home that you need whether it is furnished, semi-furnished or unfurnished.
Furnished means the place is ready to be lived in with complete basic appliances and furniture.
Semi-furnished may mean that the property comes with some furnitures but you’ll still need to buy other stuff to make the place liveable like bed frame and mattress, stove, etc.
Unfurnished means that you’re basically just renting an empty property with the basic areas like toilet and bath, kitchen, bedroom. This often offers the cheapest rent. When considering unfurnished units, your budget must also include all the furnitures and appliances that you'll need to purchase to make the place habitable.
To ensure that you are dealing with a legitimate landlord, make sure that a notarized rental agreement or contract is in place before you pay anything. It is usually the landlord who prepares and processes the notarization of the agreement. Make sure to review every part of it. If you find anything that doesn't follow your agreed terms with the landlord, make sure you raise that concern so they can revise the agreement accordingly. Do not sign anything that is unclear to you.
Avoid getting scammed by practicing extra caution and due diligence especially when dealing with realtors online. Do not trust easily.
Utilities
Utility bills include the basics like electricity and water bill. You may also need to pay for internet, gas, association dues, home cleaning service, car wash and other essential services that you avail to maintain your lifestyle.
Others
Monthly food (grocery)
Subscriptions (Netflix, Apple TV, Amazon Prime, HBO, etc.)
Self care (this could be skin care, gym membership, travel, dining out, shopping, etc.)
Home appliances and furniture that you will pay on an installment basis (if needed)
Big purchases or investments that will require you to pay on an installment basis
In summary, your monthly bill will look like this:
Health Insurance Policy
Rent
Utilities
Others
Find out if you’re ready to move out. Use this as your guide and list down your anticipated spending for each item. Remember, that monthly bills may incur interest or penalties once due dates are missed. So keep your due dates and your life organized by setting an alarm on your phone calendar.
And since we’re talking about bills, know your way around it by taking advantage of online deals. Online shopping platforms and telecom networks offer bills payment and vouchers for things that you'll need in your new home. Take note as this will may save you both time and money.
One money saving hack you can do is to use a home water purifier system instead of buying gallons of drinking water regularly. Xiaomi Mijia MUL11 Tap Water Purifier Faucet Filter is one of the best reviewed products online.
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