Are you considering moving back home to save money? Here are some positive reasons to help you decide why moving back home can be a good thing.
There are not many people who want to move back home with their parents. However, many adults find themselves wondering if moving back home with their parents is a smart decision or not. While being back with your parents can be challenging both socially and mentally, it can be an excellent decision for you financially. The coronavirus pandemic has caused many people to move back home to save money while working remotely or looking for a job.
The coronavirus outbreak has created a record high amount of young adults moving back in with their family. In July 2020, 52% of young adults moved home to live with their parents. Since February 2020, the number of adults living with parents increased to 26.6 million, with young adults (ages 18 to 24) being the sharpest increase, according to the Pew Research Center.
I am also a part of this number.
I decided to move back home to save money during the coronavirus after living in San Francisco, one of the most expensive cities in the United States. When my job went fully remote, I instantly knew that moving back home to save money would be the smartest thing I could do.
Whatever your reason to move home is, here are a few reasons from personal experience why the decision isn’t all that bad.
Moving back home to save money
Although it is hard to predict a dollar amount for how much you will save by living at home, moving back home to save money is noticeable when you don’t have to pay rent.
California’s average rent for an average apartment size of 1,389 sqft is $2,800, assuming you reside in California. Although California rent costs are higher than the national average, this is an excellent place to start estimating how much one would pocket just in rent by moving back home.
After living in San Francisco, I experienced the pain of paying high California rent prices every single month. The cost to have my own room, live with two other girls, and share a single bathroom cost me $1,300 per month. And our apartment was way less than the average 1,389 square feet. One month’s rent for me was pretty much my whole paycheck!
Exercise: take a minute to calculate the amount of money you pay in rent or estimate what you would pay every month for your place according to state. Just that money for rent could go to other things like paying off your debt, investing, or savings for a future expense.
Moving back home to figure out what you want to do next
Moving back home can also be a great time to figure out what you want to do next in your life.
If you are a recent graduate or recently got laid off from your job, moving back home can be one of the best decisions for you to take the time to focus on your next move without pressure. Although your family may be stressful to be around, they probably only want the best for you and your future.
Taking the time to apply for jobs, find yourself better, or reconnect with your goals can benefit your future self significantly.
Moving back home to save money on food
Anyone that has lived on their own knows how expensive food can be. According to the Department of Agriculture, the average cost of groceries for one person ranges between $165 and $345. By cutting grocery costs, you would either invest or save at least $100 just by not paying for groceries. If you are in a position where you still have to grocery shop while at home, there are many ways to save money at the grocery store. Check out my article on how simple tips for a healthy and cheap grocery list here.
Moving back home to save money on food also includes going out with friends to restaurants and bars. Although social events are lots of fun, they can add up quickly. I spent at least $50 every time I saw a friend or went out for the night in San Francisco.
Summary
Moving back home with your parents isn’t always the first choice for many adults. However, moving back home to save money or to figure out your next life move can be a smart decision.
Remember, you are not alone and that there are many people on the same boat all over the world.
Don’t be too hard on yourself – things will get better. If you are interested in learning more about my experience, don’t hesitate to reach out.
Ashley is a finance graduate from the University of San Francisco and currently works at a financial technology startup in San Francisco that is focused on providing affordable and accessible 401(k) retirement plans to other startups and small businesses. Prior to working at a startup, she was an associate at a large private wealth management firm working with high-net-worth clients. She is born and raised in Orange County, CA, and loves spending time at the beach, in a pool, reading, and with her friends.
