Six tips can help millennials with leaving parents’ house

Nearly a quarter of millennials, 22 percent, are living with their parents, and more than half of those living with them, 55 percent, made the move in 2022, according to a December survey from Propertymanagement.com.

Many said they’re back home because of high rent, money concerns or job losses — and 9 in 10 say they would move out if they made more money.

Here are some steps to help you find your feet again.

1. Be clear on what you want

“I ask every client I work with, ‘What are your goals, what are you trying to accomplish?’” says Angela Moore, a financial literacy educator and coach with Modern Money Education. “And most people do not know. They’re trying to wing it.”

Write down your intentions. Do you want to get an apartment? Buy a house? Do you want to stay in the same city? Do you want a better-paying job?

“When you write your goals down, it forces you to really think through them and be intentional about what you want to do,” Moore says.

2. Make a spending plan

Use whatever tool you like — an app, spreadsheet, etc. — to design a budget. How much do you have in savings versus debt? What are your monthly expenses? What needs to change to help you achieve your goals?

“Find out what you need to do and how much you’re going to need in savings or money or income to make the changes needed,” Moore says.

Use your circumstances to your advantage — but that doesn’t mean endless shopping sprees.

“I have a client who is in this situation, and the allure to still live ‘the successful’ lifestyle is strong,” says Kyle Newell, a financial adviser in Winter Garden, Florida. “Saying no to going out or finding alternatives to still have fun is key.”

Saving is key: Automate the process by having money transferred into savings on paydays. Be aggressive, as you’re going to need a security deposit or down payment — at the very least — to take the next step.

3. Build an emergency fund

Before you fly the coop, save up a cushion of three to 12 months of living expenses. If the numbers feel overwhelming, start with one month and aim to build up to three months. This might feel like overkill, but it’s a crucial safety net.

“For most people, the reason why they’re in this situation in the first place is because they didn’t have that emergency fund,” Moore says.

4. Brainstorm ways to boost income

If money is an issue, you will have to take steps to bump up your numbers, whether that’s asking for a raise, looking for a new position or taking on a side hustle.

Not sure where to start? A financial coach might be a good investment; many specialize in job-related advice, with creating financial strategies. If you’re not in a position to hire someone, check your local nonprofits. The Financial Empowerment Center offers free financial counseling and has more than two dozen partner locations across the country.

5. Consider housing alternatives

In some cities, soaring rent paired with a competitive market have made it hard to find an affordable place to live. You may need to think outside the luxury condo or consider a roommate to make it easier for you to pay the rent.

With the pandemic boost to remote work, you may also be able to move somewhere cheaper to set up shop.

6. Communicate

Even if you have the world’s best parents, moving back in with them might not have been the ideal living situation you envisioned for yourself. The arrangement can be stressful, so it’s key to keep them updated on your goals and your progress.