Everyone reaches maturity at a different time (and some never do) but the best way to tell is to look at how you’re handling your finances.  Are you spending what you don’t have and living pay cheque to pay cheque?  Then maybe it’s a good time to ask yourself these 4 questions and start moving in the right direction.

What’s your number?

You know how much money appears in your bank account each pay day, but do you know how much is actually yours? Your discretionary income is the amount you have left to save, invest or spend after paying for essentials, and every adult should know this figure. 

If you already know how much is left after paying your utilities, rent, insurance, groceries and the like, great! If you don’t, there’s never been a better time to find out. To get your number simply add up your fixed expenses for the year (it’s a good idea to go through your bank statements so you don’t miss anything) and subtract this amount from your net yearly salary.

Now you have your number, how are you using it? Are you letting it slip through your fingers, spending impulsively with no plan for the future? You only live once right?  Adults are spending a little of their discretionary income to have fun, but they’re also living within their means and investing in their future.

What happens when the s#*t hits the fan?

Unless you have a crystal ball you’ll need an emergency fund. Life could be hunky dory one day, and then you’re hit with a traffic fine, the washing machine breaks down and you need to visit the emergency dentist. 

Adults have funds set aside for the unexpected expenses that life throws at them. An emergency fund also provides an enormous amount of peace of mind and it means you don’t rely on the bank of mum and dad. 

The best way to create an emergency fund is to have a look at your discretionary income and decide what you can save for a rainy day. It doesn’t matter how much it is, what’s more important is that you prioritise this amount in your budget and you keep it up. Before you know it you’ll have accumulated a financial cushion that you know is there for when the s#*t really hits the fan.

How do you picture your future self?

Picture this, you’re at the end of your career and you’re looking forward to retirement. Is your future self going to live a small life, watching every penny— or are you travelling overseas, taking up new hobbies and enjoying a rich, full life?

Adults keep a long-term view in mind; they know the best time to invest in their future is right now. One of the best ways to do this is to start taking an interest in your super. 9.5% of your salary is already being tucked away, but contributing a little bit extra now will make a big difference to your future balance. Did you know that by giving up a few of your morning coffees and salary sacrificing $20 a week you could have an extra $432,000 in retirement? See for yourself.

Not sure if your future self will be able to laze on the beach in Zanzibar? Take a look at how much super you should have today, and start planning for the long-term.

What’s your trigger?

Handling your money like an adult means understanding what triggers you to make bad financial decisions. Do you reward yourself after a stressful day? Do you spend more when you’re with a particular friend? 

Whatever your trigger is, it’s important to figure it out and start making informed spending decisions. Begin with easy things like sticking to a list when shopping, or hiding your credit cards. Then challenge yourself to buy just the necessities for a month. 

You may be surprised at how much money you actually need, and how much you are spending on life’s nice to haves. Remember that just because you can buy something doesn’t mean you should. Children are guided by their emotions and think short-term; adults devise a plan and follow it.

Want to adult your super? Let us help 

We know super isn’t the most exciting thing but it’s an exciting time - you have the chance to boost your super early which can have a significant impact on your future life.

Why not let us help you with your super. We can help show you the way. You can speak with a TelstraSuper Financial Planning Adviser for no additional cost – it’s part of your membership. Call 1300 033 166 or request a call back online.