Currently 37 years old and single with no dependents.
Net Income: 4400
Total Expenses: 2209
Monthly Buffer:200
Now, I am in a fortunate position where I have no credit card debt, car loans, etc. I live in a walkable city where I don't need a car.
I have $5,000 in my checking account at all times
$50,000 in a HYSA (@3.1 APR) .. Yes, I know it is low, but I like Ally
10,000 in my retirement account.
Now here is the thing. I haven't been contributing to a Roth IRA. I focus soley on putting money in a HYSA because I am scared. I want liquidity.
My rent is $1500 and Utilities hover around $100-120.
If I go back to living with my parents, I would be able to max out my retirement contributions and Roth IRA AND have a surplus since I don't have to pay rent.
I feel like I am behind since I haven't really been investing into my retirement. In this economy, I am scared.
Should I go back to live with my parents?
byu/Altruistic-Pace-2240 inpersonalfinance
Posted by Altruistic-Pace-2240
11 Comments
If you can get along with them, then yes
How is your relationship? It’d be an instant no for me but if it’s beneficial for everyone and you all get along, it’s a great way to save
Best thing I did. But I also have a great relationship with my parents. So we give each other space. Share the expenses. And it’s been a blessing for my retirement savings.
Make sure you have a good relationship and will be able to give each other the needed space.
Just get unscared and start investing. Looks like getting to a point where you’re putting 15 or 20% of your income into retirement is absolutely doable for you. Over time, increase your rate as you increase your income.
Fin.
Move in with your parents if you want, but moving in with your parents isn’t going to magically make you feel unscared about investing. And you can get unscared without moving in with them. Don’t forget to read the wiki so that you feel more confident.
Okay then do that. Not sure what the finance question is
I mean.. why? Just to save money, yet sacrifice your autonomy? I would see that as a last case resort personally.
Try it for a while. Parents have lax lease terms…
Also… it’s up to you. Depends on your goals and relationship with your parents. (Ex: If you are a male trying to bring women over, don’t recommend).
But if you choose to live with your parents, you should be paying rent or at least contributing to household expenses. Adding you to the household cost something (ex: increased utility bill). You’re clearly have the means to pay. So do so.
Living with anyone helps reduce the cost of housing.
Living with parents is fine if you get along. I had coworkers at my last job who were right out of school and saving a ton because they lived with their families. Its different if you want or need to live separately.
Personal finance is personal. Prioritize.
Do it! Enjoy your parents and make more memories. I’m sure they will appreciate you being there to help with household chores too.
there is no reason to do that. just invest in the roth instead of saving in the hysa. $50k has to be enough EF.