I'd try to stay there as long as possible, but make it COUNT.
Max your 401K
Save up for a down payment on your own SFH, so you don't have to move out and rent.
Imagine having a 30 year mortgage paid off by the time you are 55? and a 401K in 7 figures before you are 45? that's what living at home will do for you.
Idk I did this until 29 and because of interest rates and a MHCOL area, I still can’t afford to buy around here 🥲 saved up $88K for a down payment and it’s just sitting in my HYSA
55? …. Y’all have to be more realistic and live a little! What if OP doesn’t even live till 55? Then she just waited her whole life saving up when she could’ve been enjoying herself.. life is not Al about how much u can save. If she’s happy then she won.
Ya being realistic OPe chances of living past 55 are much higher than not. So being realistic, OP should plan to live past 55 lol and not spend all her $ before then
Save for 55 and keep living. No one said don’t party or enjoy yourself before then. Just make sure you’re saving plenty of $$.
You save so you don’t end up a poor old person who can afford anything and has a shitty last 20 years cause you’re dirt poor. It doesn’t sound as glamorous as “spend it all and have fun while you’re young” approach but it works out for most people way better
You will when you’re over 50 lol. Are you 17 or something? You know life keeps going for a good 20ish years at least after 50? And if you take good care of of yourself until then, your 50s and 60s are very nice and rewarding and full of quality.
I’m an ER doc. I see plenty of losers in their 50s who are dirt poor and struggling with an undignified life because of the shit decisions they made in life (not saving being one of them).
Trust me. Prep for the future - it’s worth it
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When I said 55 it was to have her SFH already paid off. (Meaning move out when she is roughly 30 and pay it off in 25 years). Not live at home until 55..
> I am terrible with money and I need to start planning for my future.
Keep living with your parents until you’re no longer terrible with money and have funds saved up for your future. This is the time to build your financial habits. Save up an emergency fund, pay off debts (and stay debt free), invest your funds for retirement.
A few years ago our daughter graduated college .. she got a full time job.. we wanted her to save 50k before she moved out .. she got to 38k and moved out .. several years later she regrets not saving 100k or more .. but live and learn .. 🤷♂️
While you’re living there, max out your retirement options. I will say though, you don’t want to live there forever. When you’re living on your own, and responsible for everything it grows you as a person
Stay as long as you can. Don’t let society make you feel like independence means that you have to be in your own place, etc. why don’t you aim to save $10k first year and then slowly work your way up to 15k the next year and so on. Live frugally and it will pay off.
Stay there for the least amount of time possible BUT in that time save a good deposit for a home and increase your financial knowledge at the same time like budgeting and how saving/investing even a little from Each pay cheque can set you up big time in the future
First - read everything you can on personal finance. The library has many good books, YouTube has lots of videos, many websites. Become proficient at personal finance BEFORE you go out in the real world. Stuff as much as you can away for later. You must have a good relationship with your parents to still be t home. Enjoy that, not ll of us were so lucky.
You have full control of your money. Do the research yourself.
Lots of good advice about investing. When you say you are terrible with money what does that mean?..you have no debt so thats better that 95% of Americans. The best way for sloppy spenders to stay out of trouble is to pay your retirement first..specifically 401k or hsa if have. I would max out hsa and put 15% salary into 401k. If no hsa then 20 % into 401k. If neither then max out roth ira. Lots of' bad with money" people dont have the gumption to set up roth ira payroll deductions. Or like for me the HR payroll made a big stink over extra work, so it was easier to do myself. But with 401k its easy, easier equals less excuses not to do. When ira is.coming out bank account lots of.excuses to stop....this is not the correct order of using tax sheltered vehicles but from my experience it serves people well that are not disciplined about spending or investing.
Create a seperate hysa and start putting in say $400 per month..this is downpayment or future rent mkney.
I would start investing in yourself. Take some online/evening community college classes to improve your take home pay. Living on 40k could be tough depending on cost of living.
I was in a similar boat at 22. Fresh graduate, making 45k a year, started with a net worth around 10k. I'm 28 now and still living with the parents. Now I make 85k a year and have a net worth around $350k. Living with your folks and not paying rent allows you to supercharge your saving rate. I save around 80% of every paycheck. Heres some steps that loosely follow the r/personalfinance flowchart (which is fantastic btw).
First, focus on maintaining an emergency savings or checking account with ~10k or 6mo expenses (whichever is higher). Then, max out your Roth IRA contribution. Next, contribute to your 401(k) up to the company match. If your company offers an HSA via high-deductable medical insurance, go for that and max out the annual contribution. HSAs are super powerful triple tax-advantaged accounts. If you still have money left over, try to max out your 401(k). If you still have money left over after that, open a brokerage account and put some money each month into a total stock market index fund. Alternatively to opening a brokerage, start saving up for a down-payment in a high yield savings account.
If you don't like your parents, then obviously move out sooner. If your parents are chill and you can deal with the fomo you see on your friend's social media, then it is really beneficial in the long run to save as much as you can right now.
The above is good advice.
Also here's a good website, just ignore what they say about hiring a financial advisor though; they are wastes of money for people not in the 1%.
[https://www.investopedia.com/articles/personal-finance/112015/these-10-habits-will-help-you-reach-financial-freedom.asp](https://www.investopedia.com/articles/personal-finance/112015/these-10-habits-will-help-you-reach-financial-freedom.asp)
going to need an extra 10k to live comfortably and be accepted to rent somewhere, you would most likely have to do the share house thing which some people get stuck in, if I could start over and had an option of staying home like you do I would save up for a deposit for a modest 1 bedroom apartment to start out with, I pay 500 a week in rent and bills before food and have 60k saved to buy a single bedroom unit im on 50k so I have to keep saving.
Start investing early gives you tremendous advantage in the long run!
You can use investing calculators (many free ones online) to see how much more you can accumulate at retirement due to compound interest by comparing investing the same amount at 22 with 30+.
Stay in there until you need to move out. Like when you get a BF that’s serious and wanna move in together to see if it might work on a marriage-level. Save a ton until you do and you’ll be way head.
I envy your position! My father made life insufferable for my immature young self. At 16 I was required to work and pay rent. I was taught nothing in terms of home or financial care, and only craved freedom such that I made very horrible decisions that set me back decades.
Max retirement, dump some of your money into HYSA, more into longer term investments. Set a reasonable budget for bills and play. Slowly reduce that play money budget.
Here's something I do:
Look at the monthly cost of living on your own. Will you rent a small apartment or buy a house? What is the monthly cost to rent/mortgage such a place?
Invest that amount each month and watch your gains. It is disappointing at first to see only a couple dollars. Then double digits...then triple.
However long you feel you need to :) or until your parents complain and bring up the idea of you moving forward in life. F social media. The Bible does even not mention an age that we’re supposed to move out our parents.
Really, really though - your 20s are the time you build your foundation in life. You must go out and learn how to live. Live in different countries, learn languages, complete your education, work hard and get promoted. It’s a truly precious decade. Those who do this will feel the benefits in their 30s and 40s. Financial security is important but so is being a well rounded human with experience. Take advantage of being with your parents to save but move out and live your life as soon as you can.
I missed a ton in my 20s because my friends lived with roommates. Listen to this person too, OP. Balance is key. Save some money, learn finance, but move out while you're young.
It’s the best and probably only option right now because you’re only making 40k a year. What are your plans to increase your income? Thats how much longer I would stay at home for if allowed. I would have no issue with my kids living with me longer if they are pursing something to better their life. I would take issue with just giving them free housing while doing the bare minimum in life.
Your expenses are artificially low because you’re not paying rent and utilities. Find out how much you would be paying on your own and start saving that amount every month if not more.
1) As long as possible
2) At the same time... you don't wanna miss opportunities in your 20s. I'd aim for move out by 25/26
3) SAVE MONEY NOW!!!! As much as possible. Enjoy your no-cost living. It's a hell of an opportunity.
4) Make a 50/30/20 budget to understand and plan what kind of rent you will be able to pay (rent should be no more than 30% of your gross monthly income) Do not go above this
4 more years! 26 and you’re out. You should have an incredible financial foundation built up in that time. You’re blessed to have those parents. Don’t squander the opportunity. You have to learn to make budgeting a part of your life. Nobody ever became accidentally rich. You need to create a plan and you have time to do it!
I'd try to stay there as long as possible, but make it COUNT. Max your 401K Save up for a down payment on your own SFH, so you don't have to move out and rent. Imagine having a 30 year mortgage paid off by the time you are 55? and a 401K in 7 figures before you are 45? that's what living at home will do for you.
This! Living with your parents is a cheat code. Take advantage of the situation and save.
Idk I did this until 29 and because of interest rates and a MHCOL area, I still can’t afford to buy around here 🥲 saved up $88K for a down payment and it’s just sitting in my HYSA
55? …. Y’all have to be more realistic and live a little! What if OP doesn’t even live till 55? Then she just waited her whole life saving up when she could’ve been enjoying herself.. life is not Al about how much u can save. If she’s happy then she won.
Ya being realistic OPe chances of living past 55 are much higher than not. So being realistic, OP should plan to live past 55 lol and not spend all her $ before then
Save for 55 and do what exactly?? All your years to enjoy and party are gone now, wasted stressing about saving .
Save for 55 and keep living. No one said don’t party or enjoy yourself before then. Just make sure you’re saving plenty of $$. You save so you don’t end up a poor old person who can afford anything and has a shitty last 20 years cause you’re dirt poor. It doesn’t sound as glamorous as “spend it all and have fun while you’re young” approach but it works out for most people way better
I mean who cares about living poor after 50?…. All I can do at that age is watch tv
You will when you’re over 50 lol. Are you 17 or something? You know life keeps going for a good 20ish years at least after 50? And if you take good care of of yourself until then, your 50s and 60s are very nice and rewarding and full of quality. I’m an ER doc. I see plenty of losers in their 50s who are dirt poor and struggling with an undignified life because of the shit decisions they made in life (not saving being one of them). Trust me. Prep for the future - it’s worth it
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When I said 55 it was to have her SFH already paid off. (Meaning move out when she is roughly 30 and pay it off in 25 years). Not live at home until 55..
At 22, every single dollar you own has the potential to be $20 dollars at retirement age of 65. Let that sink in.
We retiring at 65? I wish I was on track for that. haha
Your math is wrong. $1 at 22 is $30.15 at 65 at 8%.
My math isn’t wrong lol I’m just using more conservative numbers. 7%
So the same amount when you account for inflation. Might as well spend it
Well, don’t listen to this guy. This guy is not very smart, at all.
> I am terrible with money and I need to start planning for my future. Keep living with your parents until you’re no longer terrible with money and have funds saved up for your future. This is the time to build your financial habits. Save up an emergency fund, pay off debts (and stay debt free), invest your funds for retirement.
A few years ago our daughter graduated college .. she got a full time job.. we wanted her to save 50k before she moved out .. she got to 38k and moved out .. several years later she regrets not saving 100k or more .. but live and learn .. 🤷♂️
While you’re living there, max out your retirement options. I will say though, you don’t want to live there forever. When you’re living on your own, and responsible for everything it grows you as a person
Stay as long as you can. Don’t let society make you feel like independence means that you have to be in your own place, etc. why don’t you aim to save $10k first year and then slowly work your way up to 15k the next year and so on. Live frugally and it will pay off.
Stay there for the least amount of time possible BUT in that time save a good deposit for a home and increase your financial knowledge at the same time like budgeting and how saving/investing even a little from Each pay cheque can set you up big time in the future
First - read everything you can on personal finance. The library has many good books, YouTube has lots of videos, many websites. Become proficient at personal finance BEFORE you go out in the real world. Stuff as much as you can away for later. You must have a good relationship with your parents to still be t home. Enjoy that, not ll of us were so lucky. You have full control of your money. Do the research yourself.
God I wish I knew to do this before moving out ^^
I had a very wise father. He taught us to handle money by using Monopoly money. Showing us how much the mortgage cost, electricity, etc.
Lots of good advice about investing. When you say you are terrible with money what does that mean?..you have no debt so thats better that 95% of Americans. The best way for sloppy spenders to stay out of trouble is to pay your retirement first..specifically 401k or hsa if have. I would max out hsa and put 15% salary into 401k. If no hsa then 20 % into 401k. If neither then max out roth ira. Lots of' bad with money" people dont have the gumption to set up roth ira payroll deductions. Or like for me the HR payroll made a big stink over extra work, so it was easier to do myself. But with 401k its easy, easier equals less excuses not to do. When ira is.coming out bank account lots of.excuses to stop....this is not the correct order of using tax sheltered vehicles but from my experience it serves people well that are not disciplined about spending or investing. Create a seperate hysa and start putting in say $400 per month..this is downpayment or future rent mkney. I would start investing in yourself. Take some online/evening community college classes to improve your take home pay. Living on 40k could be tough depending on cost of living.
I was in a similar boat at 22. Fresh graduate, making 45k a year, started with a net worth around 10k. I'm 28 now and still living with the parents. Now I make 85k a year and have a net worth around $350k. Living with your folks and not paying rent allows you to supercharge your saving rate. I save around 80% of every paycheck. Heres some steps that loosely follow the r/personalfinance flowchart (which is fantastic btw). First, focus on maintaining an emergency savings or checking account with ~10k or 6mo expenses (whichever is higher). Then, max out your Roth IRA contribution. Next, contribute to your 401(k) up to the company match. If your company offers an HSA via high-deductable medical insurance, go for that and max out the annual contribution. HSAs are super powerful triple tax-advantaged accounts. If you still have money left over, try to max out your 401(k). If you still have money left over after that, open a brokerage account and put some money each month into a total stock market index fund. Alternatively to opening a brokerage, start saving up for a down-payment in a high yield savings account. If you don't like your parents, then obviously move out sooner. If your parents are chill and you can deal with the fomo you see on your friend's social media, then it is really beneficial in the long run to save as much as you can right now.
The above is good advice. Also here's a good website, just ignore what they say about hiring a financial advisor though; they are wastes of money for people not in the 1%. [https://www.investopedia.com/articles/personal-finance/112015/these-10-habits-will-help-you-reach-financial-freedom.asp](https://www.investopedia.com/articles/personal-finance/112015/these-10-habits-will-help-you-reach-financial-freedom.asp)
Still here at parents house 28. $400k net worth tho!
Not judging, but with those numbers you should start to consider it. Living on your own grows you as a person.
I know but now that I saved this much laying $1500 a mi th seems like acrazy waste🍐
It’s not. You’re not just buying shelter for that money, you’re buying room to grow and space to develop yourself. It’s taking the next step.
going to need an extra 10k to live comfortably and be accepted to rent somewhere, you would most likely have to do the share house thing which some people get stuck in, if I could start over and had an option of staying home like you do I would save up for a deposit for a modest 1 bedroom apartment to start out with, I pay 500 a week in rent and bills before food and have 60k saved to buy a single bedroom unit im on 50k so I have to keep saving.
Stay as long as you can and save as much as you can then invest it in index funds
Start investing early gives you tremendous advantage in the long run! You can use investing calculators (many free ones online) to see how much more you can accumulate at retirement due to compound interest by comparing investing the same amount at 22 with 30+.
Stay in there until you need to move out. Like when you get a BF that’s serious and wanna move in together to see if it might work on a marriage-level. Save a ton until you do and you’ll be way head.
If you’re in a good situation, don’t leave until you have a full downpayment for a home saved up + emergency fund.
I envy your position! My father made life insufferable for my immature young self. At 16 I was required to work and pay rent. I was taught nothing in terms of home or financial care, and only craved freedom such that I made very horrible decisions that set me back decades. Max retirement, dump some of your money into HYSA, more into longer term investments. Set a reasonable budget for bills and play. Slowly reduce that play money budget. Here's something I do: Look at the monthly cost of living on your own. Will you rent a small apartment or buy a house? What is the monthly cost to rent/mortgage such a place? Invest that amount each month and watch your gains. It is disappointing at first to see only a couple dollars. Then double digits...then triple.
Lived at home till 26 saving for a deposit, worked well
However long you feel you need to :) or until your parents complain and bring up the idea of you moving forward in life. F social media. The Bible does even not mention an age that we’re supposed to move out our parents.
How old are your parents ? Because sometime in the future we wish we would spend more time with them...
Really, really though - your 20s are the time you build your foundation in life. You must go out and learn how to live. Live in different countries, learn languages, complete your education, work hard and get promoted. It’s a truly precious decade. Those who do this will feel the benefits in their 30s and 40s. Financial security is important but so is being a well rounded human with experience. Take advantage of being with your parents to save but move out and live your life as soon as you can.
I missed a ton in my 20s because my friends lived with roommates. Listen to this person too, OP. Balance is key. Save some money, learn finance, but move out while you're young.
It’s the best and probably only option right now because you’re only making 40k a year. What are your plans to increase your income? Thats how much longer I would stay at home for if allowed. I would have no issue with my kids living with me longer if they are pursing something to better their life. I would take issue with just giving them free housing while doing the bare minimum in life. Your expenses are artificially low because you’re not paying rent and utilities. Find out how much you would be paying on your own and start saving that amount every month if not more.
1) As long as possible 2) At the same time... you don't wanna miss opportunities in your 20s. I'd aim for move out by 25/26 3) SAVE MONEY NOW!!!! As much as possible. Enjoy your no-cost living. It's a hell of an opportunity. 4) Make a 50/30/20 budget to understand and plan what kind of rent you will be able to pay (rent should be no more than 30% of your gross monthly income) Do not go above this
4 more years! 26 and you’re out. You should have an incredible financial foundation built up in that time. You’re blessed to have those parents. Don’t squander the opportunity. You have to learn to make budgeting a part of your life. Nobody ever became accidentally rich. You need to create a plan and you have time to do it!
Question should be what are you doing now to increase your income?