You Should Live at Home To Save Money Only If You Have This One Thing, According to Jade Warshaw
Written by
Brooke Barley
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Amen Oyiboke
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When some people lose a job or have another change to their economic circumstances, they might consider moving back in with their parents to save money for a bit. Financial coach and co-host of “The Ramsey Show,” Jade Warshaw, said this is a bad idea-unless you have one thing. She recently posted on her TikTok explaining that you shouldn’t move home unless you have an exit strategy.
Building an exit strategy can seem daunting at first, but it might be the only way to make sure you don’t end up living at home longer than you intended.
To supplement Warshaw’s point, Oliver Morrisey, an estate lawyer with Empower Wills & Estate Lawyers, offered a game plan for those thinking of moving back in with their parents. Here’s how to move back with your parents in the most effective way possible.
Set a Move Out Date
Moving back home without a plan can mean overstaying your welcome or living with your parents for much longer than you wanted. One way to avoid this is by setting a date to move out before you even move in. To go one step further, Morrisey suggested drafting an informal contract.
“A simple one-page agreement is enough as long as it includes your full name, your parents’ names, the move-in date, the agreed move-out or review date, and a brief statement confirming that everyone understands and accepts the terms,” said Warshaw. “It should be signed and dated by all parties so there is no ambiguity later. A move-out date that’s documented and acknowledged gives the arrangement structure and lets you treat this living situation as a transition, not an open-ended stay.”
Make a Financial Contribution
Even if your parents don’t ask for rent money, Morrisey said it’s a good idea to give something. He said this could be as low as $200 to $300. “This shows you’re treating the arrangement seriously, and it reinforces that you’re there with a plan to leave, not stay indefinitely.”
Establish a Savings Goal
Once you have a date to move out in place, know how much money would be enough for you to go back out on your own. If possible, this should include extra money for emergencies. Morrisey then said you can break that savings goal down into months to make it more feasible.
“Let’s say the total comes to $9,000. Break that down into monthly savings goals based on how long you plan to stay. If you’re aiming to move out in six months, that would mean setting aside $1,500 each month. Mapping this out clearly gives you structure and makes it easier to track your progress,” said Morrisey.
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