Moving in with Parents, Oh NO!, Oh YES!
I recently read about Matt Slauson, an NFL player, who has been pretty successful over the last few years but is now worried about his financial future. He's concerned about the NFL lock-out and what it might do to his income. Even though a player can have a decent contract, some of the money is usually an up-front bonus and the rest is performance-based.
Matt Slauson isn’t destitute by any means, but he decided to move his wife and baby into his parents’ house to lower expenses and boost savings. This seems like a drastic act in light of the fact that he was making hundreds of thousands of dollars per year, but money can get used up quickly if you expect it will never end or if you’re not paying attention. Matt is going with a prudent solution to a situation that hopefully will only be temporary.
When you live at home with your parents what are the real savings? Normally your housing costs take up approximately one third of your monthly basic budget. If you move in with your parents, they should be willing to continue to pay for those costs that aren’t affected by you being there, like the mortgage, home insurance, and taxes, or if they’re renting, then the monthly rent.
Checking the website Rentals.com I looked at the average prices for a two bedroom rental in Syracuse, NY, Long Branch, NJ and Orlando, FL and they all were about the same: $1000 per month. So right off the bat you can save a nice chunk of change by moving in with your parents, ($12,000 per year). This assumes that you aren’t sharing the apartment with someone else who is splitting the rent but even in that case you would be saving $500 per month or $6,000 per year.
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