It can be tough to be an adult. It’s got its own hashtag: #adulting. You’re not alone in this world you’ve been born into. We’re all a little dazed and confused about how the system works. Whether it be finding online insurance quotes to establishing a financial budget—what’s that? At BriteBee, we’re doing more than connecting insurance professionals and people. We’re sharing people’s stories, engaging humanity, and promoting empathy. But before we get too deep, let’s talk about how you can get off your parents insurance plan and then establish your own financial independence.
How to get your own insurance
It’s relatively simple to go online, find an insurance quote tool, enter your information, and get a handful of online insurance quotes. Most of the time these quotes are inexpensive blanket policies that will “cover” just about anyone who applies. Although this is a quick way to satisfy your parents’ advice to get your own insurance, it’s not the most effective. Here are five quick tips to find your own insurance for the first time:
Tip #1 – Shop smart
Yes, you want to get the best deal, but you also want the best insurance coverage. When looking for online insurance quotes, you want to make sure the policy you’re going to purchase fits your lifestyle. If you can’t determine this from the online quote tools you’re using, it may be time to talk to an insurance agent in your area.
Tip #2 – Search for discounts
See if you can find discounts on insurance policies. If you can find a policy that fits your lifestyle, ask for a discount. Search other insurance companies for a discount on the same or similar policy that covers you.
Tip #3 – Cover the gaps
A blanket policy will cover your general insurance needs. You will need to “fill the gaps” in your insurance coverage to make sure you’re 100 percent covered. Let your lifestyle show you how you need to be covered, and then go get the proper insurance.
Tip #4 – You’re not too young to purchase life insurance
Consider term life insurance and find coverage that fits your needs. It’s also, in most cases, less expensive to get a policy now than in ten or twenty years when most say you need it. Why? You’re less likely to need the policy at a younger age, but the rate is locked in until the policy is set to expire. Take advantage of this!
Tip #5 – Call an insurance agent
Whether you talk to an agency or an independent agent, they can help you find the best online insurance policies to fit your lifestyle and needs. Yes, it may cost a little bit extra, but you won’t have to spend the time reading through policies, comparing coverage, or wondering if you chose the proper insurance. Instead, you can work with an agent, let them help you, and get back to your life.
How to become financially independent
Now that you’ve gotten yourself off your parents’ insurance, it’s time to consider how you will become financially independent from your parents, too. It can be daunting to think that you need to manage your own money. Getting off your parents’ insurance and becoming financially independent are woven together, in that, you will be responsible for the monthly payments while also bringing in an income to do so. So, how do you manage your financials effectively?
Step #1 – Create a budget
It’s not enough to simply look at your bank statement and see that there is more incoming than there is outgoing and call it good. You want to know where every single dollar is being spent, how often, and if you can reduce costs at all. The best way to do this is to create a budget spreadsheet, find an app to help you out, or visit a professional financial advisor.
First, write down all your current expenses: rent, utilities, payments, school loans, entertainment, food, and more. Use the last three months of bank statements to get a handle on how you’re spending your money. Then, make a plan.
Step #2 – Make a financial plan
Just like anything else in life, you need to plan. What do you intend on achieving with your money? You’re making an income. What are you doing with it? You want this plan to be achievable, measurable, and meaningful. This financial goal won’t happen overnight, and it may take years to achieve, but it’s worth the time investment. Take the list of expenses your parents cover, and list them highest to lowest. As you begin to make a higher income, take responsibility for those costs. Eventually, you will have an entire list of expenses you’re covering. Congratulations, you’re #adulting!
Step #3 – Reduce living costs
Consider reducing the cost of our lifestyle. We’re not talking going full blown minimalist here, but we are suggesting you reconsider how often you eat out, the cost of clothing you’re purchasing, and the frequency of high-expense entertainment. Reduce these three areas alone, and you will find hundreds available to adult better.
Step #4 – Increase your income
Yes, that’s right. Get a second job. Take training, classes, or courses to get paid more at your first job. Increase your income so you can spend more on what you want. First, take care of your responsibilities, but once those are paid, enjoy yourself.
Step #5 – Discuss financials with your parents
Just as financial goals don’t’ happen overnight, you should discuss expectations with your parents on how soon you will be taking over all of your #adulting responsibilities. It’s better to communicate up front with them, so you’re not swamped with a long list of expenses you didn’t plan for yet. Take financial independence in stages.
Insurance and Financial Independence is #Adulting
Remember, getting off your parents’ insurance plan and becoming financial independence takes time. It doesn’t happen overnight—even though instagram accounts show otherwise. Plan to put in some work. You will fail along the way, but that means you’re making the attempt, which is more than most are doing right now.
You will find your way into #adulting just like everyone else, and you will find your own unique path on how to accomplish it.
Want to make finding insurance easier? BriteBee offers a trusted platform where you can get online insurance quotes without the hassle of pushy phone calls or annoying emails. All you have to do is share, compare, and communicate. We connect you with insurance agents so you don’t have to filter through them yourself. Ready to give it a try? Sign up with BriteBee today for FREE!