Back to the Nest? It's Not So Bad!
For many young people, college graduation is a rite of passage into the adult world, a milestone showing that you are ready to take the training wheels off life. However, many graduates find themselves back home living with their parents – especially if they are from a large metropolitan area with plentiful job opportunities.
That was my situation until a few months ago, and it was a stark contrast to my college lifestyle. My social life was turned down a notch as other young people were no longer right down the hall. I did lose some of my cherished independence. During that first year after graduation, even for a homebody like me, there were times when I felt bored and stuck in the mud.
The flipside, however, was that I was able to spend significantly more time with my family, reconnect with old friends I hadn’t seen as much during college, and find new hobbies and communities to get involved in.
And then there is the money thing!
Putting tuition aside, college comes with added expenses such as meal plans, textbooks, class materials, and extracurricular activities and events. Don’t forget travelling a bit during fall break, spring break, or in my case, the occasional away football game at a rival school. Roll Tide!
So, living at home for a period as you begin a career can be a smart financial decision. It allowed me to create a savings cushion of 3-6 months’ worth of living expenses, and put some money to work in the stock market. I was able to do so with some additional day-to-day support from my parents, especially since my mom’s incredible cooking meant I did not need to go out to eat as much. Please connect with me if you’d like her recipe for bang bang shrimp tacos in a lettuce wrap!
Coupling lower expenses with a full-time job, I was able to build the savings that I never could in college. When I moved into my first apartment, I did so with total confidence in my financial situation.
Everyone’s circumstances are different, but saving money on rent, utilities, and groceries can give you a great head start on adult life. Living at home for a few months or years can give you the opportunity to build your cash cushion, take a big chunk out of any debt obligations, and start to build an investment portfolio for the long-term.
Bradley is a Client Service Associate at Rappaport Reiches Capital Management and has a Series 65 license. He helps support your financial goals by working closely with you and with our dedicated team of Financial Advisors. Please connect with Bradley below. He loves to talk about investing, financial planning and sports.