Moving Back Home to Achieve Financial Goals: A Delicate Balance

Moving back home can be a strategic decision to help you reach your financial goals faster, such as paying off debt, increasing your emergency fund, or saving for a house. However, experts emphasize that this decision should be based on intention and a well-thought-out plan. It’s essential to consider the potential benefits and drawbacks of moving back home and to have open and honest conversations with your family about expectations and boundaries.

Planning and Setting Expectations

Jeri Bittorf, a financial wellness coordinator, stresses the importance of setting measurable goals and a timeline for your savings objective. This could be six or 18 months, depending on your goals. It’s crucial to discuss and agree upon expectations with your family, including whether you’ll be paying rent, contributing to utility and food costs, or covering other expenses. Hidden costs, such as increased gas costs, parking fees, or public transportation costs due to a longer commute, should also be considered.

Bittorf notes that moving back home doesn’t mean you won’t incur costs, and your parents may also be experiencing financial stress. It’s essential to determine how you’ll contribute to the household expenses and to establish clear boundaries. Additionally, the emotional and personal sacrifices of a longer commute, such as spending three hours a day on the road, should not be overlooked.

Reviewing and Adjusting the Agreement

Bruce Sellery, CEO of Credit Canada, recommends listing the pros and cons of moving back home to assess whether it’s the right decision for you. Some benefits may include increased savings, help with household chores, and logistical advantages like living in a nicer neighborhood. However, there are also potential drawbacks, such as relationship stress, interdependence, and limitations on your social life.

To mitigate these disadvantages, Sellery suggests having honest conversations with your family. If you’re moving back home in your 20s, it’s essential to frame the conversation as a request rather than an announcement. This can open up a broader discussion about financial goals and whether your parents are comfortable with the arrangement.

Regular Check-Ins and Open Communication

Bittorf emphasizes the importance of regular check-ins to discuss what’s working well and what’s not. This can help identify potential issues and find solutions to make the living arrangement work. It’s also crucial to establish clear boundaries around financial information and to decide what you’re comfortable sharing with your family.

Sellery notes that living with your parents as an adult can become more of a business relationship, where you’re not obligated to disclose every detail of your financial situation. However, regular communication and a willingness to adapt can help make the arrangement successful.

Conclusion

Moving back home can be a strategic decision to achieve your financial goals, but it’s essential to approach it with intention and a well-thought-out plan. By setting clear expectations, having open and honest conversations, and regularly reviewing the arrangement, you can make the most of this opportunity and maintain a healthy relationship with your family. Remember to consider the potential benefits and drawbacks, establish clear boundaries, and prioritize open communication to ensure a successful and stress-free living arrangement.