Returning home as an adult
Are you thinking of returning
to your childhood home to live with your parents? Although heading home after
graduation or a divorce may feel like a setback, a temporary return to living
with your parents can present opportunities to improve your financial
situation.
For example, living with your
parents means you can share the cost of rent, utilities, and food, resulting in
reduced expenses. By establishing a realistic budget, you can make the most of
these lower costs, and repay student loans or other debt more quickly. You can
also build up savings for emergencies and long-term goals, such as buying a
home of your own. A sound plan is to avoid additional debt while you're working
toward your financial independence. You also might consider paying expenses in
cash to reduce your reliance on credit and help you stick to your budget.
For best results, establish
clear expectations for both you and your parents before you move in together.
Consider a written agreement that outlines the financial responsibilities of
everyone in the household, and what the consequences will be for not living up
to your promises. In addition, determine specific milestones you want to reach
before you move out, and communicate them clearly. Goals could include
accumulating $5,000 in savings, or reaching a six-month work anniversary at
your job.
Contact us for suggestions
about how to create an achievable financial plan.
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