adulting; Uni, Money, Houses and Cars

Adulting is overwhelming, especially when you have no idea what to do.

A big thing this generation has is the mentality that you need to get things right first time. When we’re in school we are taught to learn and almost perfect something before we go ahead and do it for real- and if we fail there are massive consequences. We will do mock exams so many times before taking an exam and we have to get that exam right or you have FAILED.  We’re taught that we have to practice things so much before being thrown into life.

I think that massively contributes to why we are so anxious, because in striving for perfection, we are forgetting that life itself is made up of just doing things without putting so much pressure on yourself. For the most part it’s just about learning through experience.

Also, in the UK at least, the curriculums priorities are all kinds of messed up.

We aren’t told about how to buy a house or cope with chores, get our money in check, do the life admin side of adulthood. That’s the most overwhelming part, in my opinion. While it’s something that you can’t exactly ‘practice’ for, knowledge of how these things work is enough to settle our worries.

I’ll do more blogs like this answering questions I had/have about adulthood as time goes on and I figure it out.

I wish I had something to tell me what was what in black and white terms. At this point who hasn’t cried at their computer monitor trying to dissect 3 different articles about the same topic telling you different things. I’d have loved something where all my questions were answered in a straightforward way in one place. So I’ll do the best I can to try and do that as I answer my own questions.

This one (as you can probs tell) is about money, cars, and houses.

  • It doesn’t matter if you go to university or not, what matters is your work ethic, drive, and direction. If you don’t know what you really want to dedicate your time and debt to at university, don’t go until you have figured that side of it out. Take a gap year (or just go straight into work) trying everything out until you find something, you’re happy with.  You’ll find what you love in experimentation, and you can work your way up.

Here are your options if you choose to not go to university;

Internships

Work experience openings

Online courses

College courses

Apprenticeships

Getting a job where you can work your way up

Schemes where you become qualified on a job (e.g. TeachFirst)

  • When you move out, you can either rent or buy. Renting is cool and more practical if you don’t have the luxury of being able to live rent free while you save- but it it’s wise to look into buying property at some point down the line.

To buy a house, you get a mortgage. Once a mortgage is paid off, you basically have no bills to pay on the house aside from the obvious gas/water/living thing bills. Additionally, you have more financial freedom and ownership of a property to do whatever you want with.

The government is pretty crap at the moment because the Tories aren’t exactly doing bits for the average person’s financial status, but buying a house is possible.

To buy a house as a first-time buyer, you need to put down a deposit of about 20% of what the house costs. You can set up an ISA bank account which helps you save for a property, so it’s a good idea to look at opening one. The rest of the mortgage is paid off in monthly instalments. Think of it like rent with an end date. The payments and an estimate to how long it will take to pay off the mortgage is sorted out when you come to buy a house.

The link below is really useful for learning more about it.  

https://www.moneyadviceservice.org.uk/en/articles/mortgages-a-beginners-guide

To be able to get a mortgage, you need 3 months of a good enough paycheck, any other proof of income, and identification.

https://www.moneyadviceservice.org.uk/en/articles/how-to-apply-for-a-mortgage

  • When buying a car for the first time, these are the things to look for.

Mileage is less than 100,000.

Make sure that it is not grade C (If it is that means it’s been in an accident)

A tank of 1.2L or less is ideal as insurance will be lower

https://www.moneysavingexpert.com/car-finance/buying-used-car/

http://www.theaa.com/car-buying/used-car-inspection-checklist

https://www.rac.co.uk/drive/advice/buying-and-selling-guides/buying-a-used-car/

Average insurance for a 17 year old is about £1,300 for a year. Once you’ve been driving for a year, the insurance cost will decline. It will continue to decline as time goes on provided you’ve had no claims on your insurance.

(i.e. You’ve never had an accident or a reason to use your cover)

https://www.moneysavingexpert.com/insurance/young-drivers/

You can get a quote on a cars insurance online through websites like comparethemarket.com, gocompare, moneysupermarket.com, confused.com, etc. Whoever looks best to you.

  • You can put money in the bank by going to the post office.
  • Budgeting is literally so important, and this is so boring to say, but it’s actually quite satisfying.

Everyone budgets differently depending on what stage of life they’re in, what their priorities are, etc.

All I’ll say is put aside as much as you can. It’s not a bad thing to live off cheap food and pre-drink more so you don’t have to buy so many drinks in the club, because would you rather look the part or be able to buy a house?

I read this somewhere, but I can’t remember where.

This is how really successful people budget.

In your annual NET pay (what you get per year after tax)

  1. Spend no more than 25% on housing
  2. Spend no more than 15% on food
  3. Spend 15% or less on entertainment
  4. Spend less than 15% on holidays
  5. Less than 5% on auto loans. (Never lease, buy and take care of products until they’re too worn to work)
  6. Avoid credit card debt
  7. Keep up to 6 months worth of savings
  8. Allow for losing money in investments
  9. Contribute as much money as you can towards a retirement plan
  10. Always take free money where you can get it.

The way I see it, this isn’t how to live your life forever but this is a good financial plan for growing your money while you’re young.

That’s all the overwhelming areas of adulthood I can think of at the moment. I hope this helped someone.

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