If You Haven’t Already, it’s Time to Embrace the Idea of Multi-Generational Living
Economists say that we have years of recovery ahead.
That means that interest rates and cost of living will remain high for some time. I spoke to a real estate professional who works with titles, and he stated that it could be up to 8 years before interest rates go down again.
In addition, we are likely in or headed toward a recession, which will have a long-term impact on our finances. Even though recessions have proven to be short (about 6 months), they can put a big dent in one’s finances, which will take time to recover from.
What does that mean for your lifestyle?
You will either have to focus on increasing your income or reducing your expenses.
For our children, it may mean having to stay living at home for a longer period of time. That could help with the financial burden that inflation and the recession are putting on many households. For one, if our children decide to stay home longer, they can contribute to household expenses.
A few decades ago, one could save for a home in a matter of a few months or years. Now it will take up to a decade to save up for a home purchase.
In the past, children would return to live with their parents to save up for a few months or up to a year before being ready to put a down payment on a home. Now they would have to live with their parents for a few years.
There are shortcuts to owning a home sooner and that includes borrowing your down payment or house hacking, which involves some sort of home sharing.
Although these ideas may seem uncomfortable, they may be worth the sacrifice.
You can have a support system in-house.
Increased financial well-being.
You can afford to pursue certifications that will increase your income so that you can eventually live alone if that is your end goal.
Are parents willing to have their kids stay at home longer? I hope so.
There are more benefits than negatives to having kids stay at home longer.