The Rachel Cruze Show - When to Move Out of Your Parents’ House

Starting point is 00:00:05 Well, hey, you guys. So according to a 2023 Harris poll for Bloomberg, around 45% of Americans ages 18 to 29 live with their parents. And here's a little fun fact. This percentage was actually about the same as it was in the 1940s. But the reason behind this decision obviously has changed. But today I want to share my thoughts on all sides of this conversation and kind of give you some signs that it might be time to take the next step if you are someone living at home with your parents. Now, before we dive in, make sure to hit that subscribe button so you don't miss an episode. So first, here are a few reasons why people are making the decision to keep living with their parents. Some of it is really good motivation.

Starting point is 00:00:47 You know, people are like, well, I want to save money. I want to pay off debt. You know, things are just so expensive that I can, again, lower my cost of living by living with my parents and I can save and pay off debt, right? So, like, there is a lot of good motivation to this. And I'm all for, to a degree, that idea of saying, hey, how can I cut my expenses? What can I do? But also, we want to make sure that you as a whole person are thriving in life.

Starting point is 00:01:13 So while some of that motivation is good, it can have its downside. But people, again, have so many heated opinions on this. But this also can be very nuanced because there are times that it isn't really, you're in a dire situation. and your family is a gift in that that are able to help you out. You know, I've talked to people, and, you know, they've lost a spouse, and they move back in with their parents for a season. I was talking to a guy, and he was a truck driver, and he literally was home two weekends a month, and that was it.

Starting point is 00:01:46 And he was like, I just spend the night with my parents on those two nights, and I'm like, yeah, that totally makes sense. I have another friend and her husband's in the military, and he's going to be deployed for nine months, and so she's going to go and live with her parents during that time. for her mom to help with the kids and all of it. Right? So, like, there are nuanced situations that it does really make sense. And again, for a season, I think that this can be an okay decision for you to make.

Starting point is 00:02:10 But for the long term in most situations, it ends up not being great. I always think about that rom-com failure to launch with Sarah Jessica Parker and Matthew McConaughey. And it's like, oh, yeah, you can really see it can, it can definitely slow down your personal growth and development in so many ways. And like, you know, there's something to be said about when you get home and you're like, oh, yeah, do I have milk and bread? And, like, the basics of life is, are the lights being paid, the bill? Like, there's just things as an adult you have to think through.

Starting point is 00:02:41 And when your parents are kind of that safety net to a degree for a long period of time, it's naturally going to stunt a level of your growth. Because I think when you have to go out and do new things, and it is a little scary, maybe you can already take it a risk. There's something in that that builds character. it builds confidence. And so much of that confidence and taking care of yourself really is one of these keys of success in life and to your money. So here are five steps to take to get you ready to move out on your own. Number one, set a move out date. So if your living situation just stays stagnant,

Starting point is 00:03:17 you'll probably never see the end of it. Because yeah, having mom and dad take care of you and you may not have to really pay rent or anything. It does sound good, right? But again, it is good for you to be out on your own. So that deadline really keeps you accountable and it's good communication for you and your parents as well. So have that date out there. And again, this could be 60 days. This could be six months, but have a date. Number two, make sure you can budget for your four walls. So you may have to compromise in your life because your starter situation when you move out on your own, probably is it going to be perfect. It may not be ideal. But again, it's your first one and that's okay. And so what you want to look at are those four walls again, food, shelter, utilities,

Starting point is 00:03:59 and transportation, making sure that you can cover those four walls. Again, it may not be in an area that your parents live in. It may be in an area that you're like, golly, I got to drive an extra, you know, 30 minutes. But this is what I can afford, but making sure those are covered. Now, if you've not checked out our every dollar app, this is a free budgeting app. And so open that up, get an account, start that, because this is going to help you take your income and really put it to its best use. Which brings me to number three is to have a consistent income. Yeah, you need a job to live out on your own. And so this may be you've put together a couple of side hustles and that works for you. Maybe you're freelancing. Maybe you've got a 40 hour a week job. Like,

Starting point is 00:04:40 whatever it is, having that consistent income is really, really key. Number four is to reevaluate. Again, if you're living at home to hit a certain financial goal, ask yourself if you're actually making progress because if you've kind of hit this plateau and maybe you've picked up some extra work but you're using that extra money to go on vacation or hang out with friends or whatever it is, you're not really putting as much towards these goals than you think you would. Maybe reevaluate. And maybe you say, hey, I wanted to be here to all this debt-free, but maybe I move out sooner and I push that debt-free date out a couple of months. But it's worth it because I'm an adult and I'm 26 years old and I'm going to be out on my own.

Starting point is 00:05:21 And number five is to think big picture. Again, like I said, failure to launch is very real. And you don't know what you don't know until you try. And moving out, you may face, you know, some difficulties at times, but this builds such confidence because you have to problem solve on your own and long term. This is so good for you. Now, again, I know this topic is very nuanced because neither opinion of like you should never move back home or always move back home, you know, neither is inherently wrong.

Starting point is 00:05:51 but again, over time, who is it turning you into? And I think that's what's really key because you have to know that the decisions you're making in your life and your lifestyle are determining who you are as a person. And I just have this belief that when you're out on your own, eventually it just builds something in you that is so, so good. And again, like I said earlier,

Starting point is 00:06:13 if you need help when it comes to budgeting, make sure to check out every dollar. And for a step-by-step rundown on how to use it, make sure to check out my episode on the right way to do a monthly budget. So make sure to share this episode with a friend who might be in the situation, might need a little, you know, pushing out of the nest. Some good motivation. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - When to Move Out of Your Parents’ House

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