Living at home as an adult might have once carried a social stigma, but this has become less of the case over the years. Now, with the high cost of living throughout the U.S., moving back in with the parents — or staying home a few extra years — is actually a financially sound decision.
This is especially true when the parents don’t charge for rent. The average cost of rent for an 899 square foot apartment in the U.S. is $1,713, according to RentCafe . That’s over $20,000 a year — a hefty sum for those who are still in the early stages of their careers, paying down student loans or just generally set themselves up for financial stability.
When asked about his background and why he chooses to live at home, here’s what Max said:
“I’m in my early 30s and living at home with my family. The decision to live at home is multifaceted. On a personal level, I enjoy the sense of family and support, which has been particularly comforting during the uncertainty of the past few years.”
In terms of emotional support, that can very much go both ways. It’s not just the younger family members who can benefit from having a support system right there when they need it. The parents — and in some cases, grandparents — can also benefit from having someone who can help out with things like housework or yardwork. In the case of aging parents, they have someone who can provide necessary care as well.
Back on the financial side of things, there’s something very important about having that support and stability, too. This is especially true for entrepreneurs like Max who are still working on building their own successful business.
“Professionally, running herobot.app, a startup focused on AI-driven solutions, requires both flexibility and financial prudence,” he said. “Living at home allows me to channel more resources into growing the business.”
So, how much is Max earning each month and where’s that money going?
“As the CEO of a growing startup, my income can fluctuate,” he said. “On average, I earn around $100,000 per year. However, as with many entrepreneurs, my salary is often reinvested into the company to fuel its growth and innovation.”
Earning six figures is a dream come true for many Americans. It’s also become more of a necessity in recent years. According to the U.S. Bureau of Labor Statistics , the average household annual expenditure grew to $72,967 in 2022, a 9% increase from the year prior. While this includes everything for the entire household — including rent or mortgage — that’s still a hefty chunk out of anyone’s salary.
Given that, it’s no wonder that so many people strive to find ways to reduce their expenses. And when income fluctuates like Max’s does, it’s even more prudent to prioritize financial stability while earning.
A Budget Overview of an Adult Living at Home
It almost goes without saying that living at home can significantly reduce the overall cost of living — that’s a big reason why so many adults choose to do it, after all. But there are still some expenses to consider.
Here’s what Max said his monthly budget roughly looks like:
Rent and utilities: $0 (thanks to living with family)
A recent report by Harvard’s Joint Center for Housing Studies found that over half of all American renters spend 30% — or more — of their income on rent and utilities. For someone earning about $100,000 a year, that’s roughly $33,000 (or $2,750 a month).
“Living at home allows me to save a substantial amount,” Max said. “If I were renting an apartment, I’d likely be spending at least $2,000 per month on rent and utilities alone. By living at home, I save approximately $24,000 annually just on housing costs.”
Other Ways To Save Money Each Month
Besides housing costs, Max explained a few other ways in which he saves money by living at home. These are the big ones:
Meal planning: He plans meals and cooks at home to cut down on the cost of dining out.
Public transit and carpooling: “When possible, I use public transportation or carpool with friends and family to save on gas and reduce wear and tear on my car.”
Energy-saving measures: He said he primarily uses energy-efficient appliances and keeps the lights turned off when not in use.
Reviewing and managing subscriptions: “I regularly review and cancel subscriptions and memberships that I don’t use frequently,” he said. This includes streaming services, magazine subscriptions and a gym membership.
Making conscious spending decisions: “I take advantage of sales, discounts, and cash-back offers whenever possible,” he said. “I also compare prices online before making purchases to ensure I get the best deals.”
“Living at home as an adult has provided me with a unique opportunity to save money while investing more into my professional endeavors,” Max said. The lower costs alone have made it easier for him to run his startup without having to worry so much about his financial situation.
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