Beginners Guide to Adult Life Finances

4. Should I have household bills transferred under my name?

Regardless of whether your family is asking you to start paying bills at home, it would be smart to have the phone or cable bills transferred under your name. This will make you look like a (more) responsible human being on paper, with the added bonus of giving you a better credit score when the time comes to apply for your own credit card/apply for a visa to travel to countries that require them.

3. Should I invest in stocks?

Investments are tricky things in a volatile market—but you’ll only question your decisions more the older you get. The safest answer to this question is you should—but only if you’re aware of and prepared for the risks involved. If you’re going to invest in the stock market, make sure you don’t have any other debts and have savings put aside for a rainy day. Whatever money you invest should be money that you’re willing to lose. If you have a friend who’s a financial advisor, well and good, but do exhaustive research before you jump in. You can find other investment tips here.

2. How much should I expect to pay for taxes? Where does it all go?

As the saying goes, “In this world nothing can be said to be certain, except death and taxes.” While you can make any number of snide comments about where our taxes actually go, here’s a convenient breakdown.

Before you go in to your job interviews and fill in the line where they ask you how much you expect to earn, remember that said amount will go through PhilHealth, SSS and Pag-Ibig deductions, along with withholding tax. You can find a tax calculator here and here.

1. How much should I save every month?

A bulk of your financial future will depend on how much you save, and while there’s no one rule that suits every individual, the 50-20-30 budget is as good a place as any to start. According to this rule, you can spend 50% of your income on necessities like bills, food and transportation, set aside 20% for long-term savings, and then spend the remaining 30% on maintaining your lifestyle.

Do you have any advice for managing adult life finances? Share away in the Comments Section!