Moving back home- Is it really that bad?

Alright, I’ll admit it. I moved back in with my parents after graduating from USC in the late 90’s. There, I said it. I know what many of you are probably thinking. But back when I was moving into the dorms for the first time, I remember thinking, “Wow, I’m never going to live at home with my parents again!” Come graduation, however, my tune had drastically changed.

I understand how moving back in with your parents can have the stigma of failing to be independent. But I’ve learned that just about 65% of all college graduates will move back home during some point in their lives. I fell into that statistic and moved back home, but it’s not as bad as it sounds.

Thinking back, moving back home was one of the best decisions I made for myself. My greatest financial achievement, which I'll get to later, could not have been obtained if I hadn’t moved back home immediately after graduation. Don’t get me wrong, it definitely wasn't one of my prouder moments as many of my friends lived in awesome apartment locations throughout the city. Oh, and moving back home didn't exactly enhance my dating life either.

That being said, no one can deny that moving back home has its perks- free food, furniture, few bills to pay, cable TV, a washer and dryer inside of where you live. Moving back gives you time to save your money and be more patient when selecting career options. You won’t feel as much pressure to get any dead-end job “just to pay the bills,” but rather choose a job you want that will lead to bigger and better things for your ultimate career aspirations.

Let’s say you put your new salary to work for you. If you put 50% of what you earn into a high yield savings account or Money Market at USC Credit Union (it sounds high, but come on, what are you paying for at home?), by the end of the first year you could have a hefty return on your investment. In one year alone, you’re that much closer to having enough money for a down payment on a vehicle, home, or grad school.

However, some recent grads fall into the trap of losing all financial sense once back at home. With few bills to pay, people can blow all of their money and come to depend too much on their parents for support. Many of these students fail to think in longer terms and neglect saving for their future. If you choose to move back, you have to remember that you are doing it to save money.. not to spend it all.

So this comes to my "greatest financial achievement," purchasing my own home. I was fortunate that I purchased it a few years back and that I was ready to pounce on the moment when it became available and within my budget. Had I not lived at home for a while, surely the opportunity would have passed me by. I would've never been able to afford it had I started renting right away after college.

As you weigh your living arrangement options after graduation, just know that you have choices. Setting a goal for yourself and making decisions that are consistent with the goal will help you achieve them. Because I was able to follow-up with my goal and plan that I set up for myself, I was able to achieve the American Dream of owning my own home.