Move forward by moving back home temporarily| North Loop Official Blog
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09 Dec 2020

Move forward by moving back home temporarily

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Moving back to your parents’ house can come with its set of advantages and disadvantages. Although it may be slightly embarrassing to move back, it can prove to be the best way to reorganize your finances. Increasing student loans bundled with the skyrocketing housing rates can often result in young adults moving back to their parents’ house as the last resort.

This also provides an opportunity for young adults to recoup some finances, clear all their debts, and kick things off on a fresh note. Although moving back can seem to take a major hit on your independence, here are some ways to be productive, plan your finances, and clear all your debts to get back on your feet fast.

Tips to be productive and get back on your feet faster-

1. Be aware of your goals and set a target to move out-

The first step would be to establish a clear set of goals, find a possible way to achieve them, and move out as soon as possible. The goals may differ from person to person, some would move back in to clear debts, some would move in to save money for rent and a security deposit whereas others would wait till they got a specific job or a promotion at their current jobs.
Runs these goals through your parents and provide them a realistic timeline too for the same as they may be able to help you achieve your goals.

2. Chip in for a couple of household expenses-

When you’re moving back to your parents’ house, be sure to chip in for a few household expenses like groceries or utilities or even pay your share of rent if your finances permit. The case would be the same while you would stay by yourself too, so make sure you cover the same while staying with your parents too. It also helps give you a reality check about living independently.

3. Get a fixed source of income-

In order to chip in for household expenses and to clear your debts, focus on getting a steady income, and if you already have one, focus on increasing your income. Work part-time or full-time depending on your situation but ensure that this income would help get you back on your feet.

4. Tackle your debts-

Once you start earning a steady income, focus on reducing your debts gradually. Pay off all your high-interest installments first, then move onto smaller debt repayments. If your primary source of income does not suffice, then look for opportunities to earn a second income to tackle your debts as soon as possible. A realistic financial plan would be necessary to get through with this phase.

5. Start saving money-

You would need to learn how to tackle all your debts while simultaneously setting aside some money as savings in order to achieve your financial goals. Try to save at least 3 to 6 months worth of living expenses to tread through any financial emergencies that may arise in the future.

6. Create and stick to a budget-

One of the most significant ways to achieve your financial goals is by setting up a proper budget and sticking to it. Ensure that your budget includes elements of debt repayment, savings, and provisions to chip in for household expenses and rent. You could alternatively reach out to your parents to help with the creation of a budget.

7. Live by some ground rules-

Ensure that you live by certain ground rules put in place by your parents. This helps get accustomed to living independently and also shows an amount of maturity. Also, ensure that you chip in for a couple of household chores like doing laundry, doing the dishes, or even cooking.

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