Why Living With Your Parents is a Smart Money Strategy
After graduating from college, you may be itching very hard to start your life as an independent adult. It can be fun, but have you ever thought about how expensive it is? Even if you get a job, your entry-level salary will hardly cut it.
If you want to save your money, the smartest thing you can do is to move back in with your parents. It may not look like the coolest thing in the world, but from a finance perspective, it will help you get ahead in life in a way that will be difficult if you are living on your own and paying all your bills. Check out the reasons below and see all the benefits of living with your parents temporarily.
1. You can save more money.
Living at home means skipping bills on rent or mortgage, utilities, and renters or mortgage insurance. More important, you can build your emergency fund and create a strong foundation with which to sustainably support yourself in the future.
2. You can pay your debts.
Student loan is a big burden that will eat most of your budget. Living with your parents will help you save on expenses and put more money into your debt, cut down your interest, and add more toward the principal balance.
3. You can invest early.
With fewer expenses, you can afford to invest early. Use this time to start investing in an IRA or 401(k), as well as the stock market. Investing early means having the ability to retire early, too!
4. You spend less on food.
The positives on this category are endless: you do not need to buy your own groceries, you are not limited to the takeout menu, and your mother will serve you delicious home-cooked meals every time!
5. You can afford to take risks.
This time of living with your parents is like a safety net that will allow you to do things that you will not otherwise be capable of. You can be picky with jobs because your costs are under control. You can be more aggressive with investing or even start your own business. You can afford to take chances. Remember that you can always move out anytime. In the meantime, take advantage of the benefits and do not rush.