Should you live at home? – Angelo Mouthful Marketing – Medium
Have you ever asked yourself whether you should live at home or move out? Well, let me tell you my thoughts on the matter: Live at home! Not forever, if possible, but at least until you have fully obtained the benefits of not paying full rent for 10-15 years of your life. This advice does however, come with some caveats such as:
- Don’t live with your parents if you have a bad relationship and you don’t like them.
- If they are negative people, who sometimes might bring you down rather than encourage you to succeed.
Let me just give you an example so you can visualise the benefits of living with your folks. Where I live, rent is $3000 a month. Since I live with my parents I pay them $1000 therefore saving $2000 each and every month I live with them. This totals to $24000 a year, which then racks to $120 000 in just 5 years. If you invest and start compounding your money ten fold, then in 15 years after living with your parents and investing what you saved over the first five, you will have a nice $1.2 million sitting in your account. Not bad for free money! Yes, it may not come immediately, but best things really do come to the ones who wait. A recent published study demonstrated an interesting finding after the experimenter had a group of children, who had the choice of eating a cookie now or waiting 20 minutes and having an extra one as a reward for waiting. The kids were then followed upon years later and it appeared that the children who waited for their 2nd cookie seemed to be more successful in life. It was suggested that the reason for the results was that the children with more discipline and patience seemed to do better in life.
You could apply the same logic to people choosing to live with their parents to save money long term. Yes, they don’t have the same freedom right now, even though they can probably afford to have all the fun they want. However, in the long run it is these guys, who will have the means allowing them to have all the fun they want and still have disposable income to be more selfless with their money. This does seem to be the opposite of the popular You Only Live Once (YOLO) notion that is very common within the Millennial, however I think there is a good reason for that. You see, I try to plan my life in the most probabilistic way, assuming I will not die young. What if you live the YOLO attitude and you don’t die young? The next 50 years of your life will be spent with no money and working extra hard to have enough disposable income to buy a house or start having a family. To me, this attitude only leads to more stress in later life. Yes you had fun when you were young, but now you are left having to ‘make up’ for it. My attitude is that once I accumulated enough wealth then I can party and enjoy myself AND not have to worry about the money and even be generous with it. I will be able to sustain that kind of lifestyle, because I’ve accumulated all this wealth whilst others have been blowing it away. In my mind, just because I can do something now, doesn’t mean I should because delayed gratitude is the greatest reward.
For me, it’s important to have a lot of wealth to enjoy and sustain the life you want and living with your parents will help you to save and compound your money. Play it smart and be patient and the end results will be even more rewarding.