30 Years Old and Living with My Parents
AS FEATURED ON: Optimal Finance Daily
Yes, I lived with my parents when I was 30 years old (less than a year ago).
Why would I ever do that, right?
Well, let me tell you…
I’m Canadian, but lived in Panama for a little less than 5 years. During that time I was able to see my parents a little bit but not near as much as I wanted to. When Covid hit, I decided moving back to Canada was the best option. I was SOOOO excited to get back and spend time with family. Over the last couple of months of living in Panama I was trying to decide where I wanted to live when I moved back. Because I work online, I had the option of moving anywhere. But, more than anything I wanted to see my family. So, I decided to move back to Canada and bunk in with my parents for 6 months. What an amazing 6 months we had. It was so nice to spend so much quality time with them.
Anyways, the real reason for this post is about saving money where you can.
I’ve always been fairly good with my money but much more so over the past few years. While I was with my parents for 6 months, I was able to save up $15,000 and pay off my student line of credit, which was about $10,000 left at that point.
Now, if I succumbed to the pressures of society where you “need to have your shit together” by a certain age, then I would have bought my own place immediately, leased a brand new car, and paid my minimum payments on my Student Line Of Credit for the next 10 years.
I make enough money that I would have been able to do those things, but I wouldn’t have been able to save much money, if any at all.
My point is, no matter what situation you’re in, don’t struggle financially to uphold an image. Stop comparing yourself to others. Everyone needs to take their own path. Save money where you can, and maybe splurge a little more on things you really love.
Let’s go back to the “living with your parents” thing. If you look at any country south of the United States and many countries overseas, it’s very common to live with your parents/family until you’re married. All of my friends in Panama, with the exception of 2 who were married, all live with their parents. They all have good jobs, they all work hard, and they all have SAVINGS. None of them were sitting at home in their parents basement playing Nintendo, like we all think.
The cost of living has never been higher, in HISTORY! And our average salaries have barely bumped up over the past few decades. How are we all supposed to thrive and save money? It’s becoming impossible.
Now, I’m not saying you have to go live with your parents. Everyone has a different path. Maybe you have a family or maybe you’re single or you’re just getting out of school. But, I am saying to think before you spend money or buy something. Do you really need it? Do you really need the top of the line product? Can I save a little money if I do “this”?
Here’s a few ways you can challenge yourself and start saving money:
1. Live on 50% of your total earnings
If you make $60,000/ year, then live like you make $30,000/year. Take the rest of your money and put it into your savings, investments, and paying off your debts. This is the easiest way to get ahead and reach your retirement at an earlier age.
2. Get a roommate if you have the extra space
There’s TONS of people looking for a place to live or even to just rent a room in someone’s house. Interview your candidates beforehand to find out if they’re a good fit for you (and/or your family). You can save about 50% more each month if you do this. Even if it’s just for a year, give it a shot! If you pay $1,500/month on your mortgage and you charge a roommate $750/month for rent, that’s $9,000 extra a year that you can put towards your savings/investments. Or, continue paying your $1,500/month and put the other $750/month towards your mortgage to have it paid off much earlier.
3. Cancel some of your subscriptions
If you have Netflix, Amazon Prime, Crave, Spotify, Apple Music, or any of the other million subscriptions out there, challenge yourself to delete some. It may not seem like much if you’re paying $10/month, but it adds up over time, especially when you have several of them. Take that extra money and put it into your investments or pay something off.
4. Adjust your phone bill
There’s so many different phone plans out there, so you should be comparing them. Shop around for the best deals. And, take a look at your data. Are you actually using all the data you pay for each month? Maybe you’re able to adjust it to 5 gigs rather than 10. It will likely save you an extra $10-$15 a month.
5. Stop eating out, or at least cut back
I get it! We all love going to a restaurant or getting takeout. But, it really gets expensive when you tally it up over a month. Try to cut back on this a bit. Instead of eating out 5 times a month, drop it back to 3 times a month, or 2. This will likely save you $100-$200 each month.
These are only 5 ways to save some extra money. There’s so many other options. Just start thinking about it. Start challenging yourself. You’ll be amazed at the ideas you can come up with. And not to mention, you feel great when you’re able to save. Any little step is progress. Make a bunch of little steps and it really starts to add up over time.
Do you have any other ways of saving money? I'd love to hear from you.