Recent graduates and young adults know what’s up.
- Living with family for a year saves the average American over $20,000 in rent.
- You can also save on big expenses like groceries and travel.
- When living with family, communicate about finances and maintain a private life.
Rent is expensive. There’s evidence that inflation has hit renters the hardest — renters like me. I lived with my family for a year after graduating college. Doing so has taught me that living with family can save renters more than picking up a part-time job.
Don’t believe me? In January, the average cost of rent was about $1,747 and has risen since. Good news: There are signs that rent prices are starting to fall, according to data from Zillow. Until then, many recent college graduates are moving in with their families to save money.
Rent and utility fees. Grocery and transportation. Let’s break down how much you could save on expenses by living with your family for one year.
Rent and utilities
Living with family for one year can save you thousands of dollars in rent. In the United States, the average asking rent is $1,900 per month. Living with family instead of moving into a new apartment can save around $22,800 per year on rent alone.
Let’s not forget about utilities. The website ApartmentGuide.com estimates that utility fees for a one-bedroom apartment run about $175 per month.
Let’s assume the following is true:
- You live with family for one year.
- Your family pays for housing.
- Your family pays for half of the utility fees. You pay the rest.
In that case, you’d save $23,850 per year in rent and utilities. Folks like me, who live in urban metro areas like Los Angeles, can expect to save thousands more. Folks who live in cities with the lowest cost of living, like Mercedes, Texas, will save less.
Grocery and transportation
Per research from The Ascent, the average American spends over 10% of their income on food, including $438 per month on groceries. Living with family means you can save by buying bulk items at wholesale stores like Costco.
Carpooling also saves money. Whether picking up groceries at Trader Joe’s or traveling to a baseball game at Dodger Stadium, you can save by sharing ride costs. Here are some expenses you might consider splitting:
- Cost of gas
- Cost of car washes
- Cost of car insurance (the best car insurance gives drivers the most bang for their buck)
Transportation costs more than you’d think. The average American spends $913 per month on it. By living with family, it’s possible to reduce costs.
A quick calculation: Lowering the cost of groceries and transport by 10% saves the average American about $1,600 per year, enough to pay for an excellent desktop computer.
Should I live with my family?
Living with family and sharing expenses saves a lot of money. However, living with family as an adult can be stressful. Establishing boundaries with housemates is important; everyone deserves to feel like they’re in control of their lives.
Here are a few tips:
- Maintain a private life.
- Decide on how to split household chores.
- Decide on how to split finances before you move in. The best budgeting apps track how much you spend.
With parents especially, it’s easy to fall back into old habits. Don’t. In fact, create new ones! (When I lived with my parents, I started a blog.) Keeping up with your adult hobbies (even silly adult hobbies) and setting firm boundaries will keep your stress low and savings high.
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#Heres #Money #Save #Living #Family