Most people follow a similar path in life. You graduate from university/college, then go back to living with your parents for some time. Of course, there are some of you that aren’t lucky enough to be awarded this privileged. Some parents want you to leave as soon as possible, in which case this guide isn’t directed at you.
Effectively, this post is geared towards adults that are still living at home. Your parents are happy to have you stay with them, but when does it make sense to finally leave? Or, more accurately, when is it financially beneficial for you to pack your bags and fly the nest? Below, you’ll see an overview of the financial benefits of living with your parents, followed by a couple of instances where it makes sense to leave.
The financial benefits of living with parents
The first one is an obvious one: you save a lot of money. If your parents are letting you live with them, you probably won’t have to pay any rent. In which case, you can save so much cash every single month, which could go towards a deposit on your own house!
Consequently, this offers a degree of financial stability and safety. You don’t have to worry about paying the bills each month or earning enough money to cover your rent. It lets you relax more and focus on your career/life. Some people are too eager to leave home and gain some independence – which is totally fine. Unfortunately, it leads to stressful months of scraping money together to afford all the ongoing payments. In the end, most people fall back on their parents for financial support – which can be much harder to ask for than simply staying with them.
When does it make sense to leave home?
You’re reading the previous points and wondering when it would ever make financial sense to leave home. Shouldn’t you stay there for as long as possible if you save money?! Well, there are two main instances where your finances will be better served if you move out:
Your parents make you pay rent
If your parents start making you pay rent, it could be better if you moved out. Realistically, parents have no need to charge rent. They already own the house, so it’s not like they’re also paying rent. Sure, you have energy bills to think about, but will one person make much of a difference? Particularly if you’re out of the house working throughout the week! Fair enough if they make you buy your own food, that makes a lot of sense. But, if they start charging rent, you’d be better off spending money on rental properties instead. This way, you still pay rent, but it feels better as you’re paying for your independence. Plus, if you find someone else to live with, the cost of splitting the rent/bills might be less than what your parents charge.
All in all, it makes more financial sense to leave home if your parents start charging a lot of rent every month. You’re not saving any money by living there, so you could move elsewhere and enjoy independence. Plus, you might move somewhere closer to your work, saving money on fuel/transport.
You can afford to buy a house
Have you saved enough money to afford a deposit on a house? If so, it makes far more sense to move out of your parent’s home. Owning a house is a brilliant decision as it secures your finances as a valuable asset. Yes, you’ll pay off your mortgage, but it’s better than paying rent to someone else!
Furthermore, with a house under your arms, you have something that can be sold for more money. Or, you could rent out parts of your house for other people. Who knows, perhaps you want to rent out a room for someone else to live there with you? It’s a smart idea to recover some extra cash, which could basically pay your monthly mortgage fees! Owning a house can be the start of your property investment empire – why end with just one? Save enough money to buy another, then rent out your old one. You’ve got income coming in every month, alongside two valuable investments. So, yes, it definitely makes sense to leave your parent’s home when you can afford a house of your own.
In summary, living with your parents will save lots of money when you need it the most. It only makes sense to leave when the cost of living at home exceeds the cost of renting your own place. Or, ideally, you have enough money to buy your own home. Keep this in mind if you’re staying with your parents and getting anxious about leaving.
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