Live with your parents. Seriously.
An internet-friend (I can call you a friend, right Jessica?) is turning 22 years old in a month, and she’s asking for some advice.
What advice would you give your 22-year-old self?
I’m going to take this opportunity to share some advice I’ve been giving all my friends for years: live with your parents and pay off your debt.
It doesn’t sound all too glamorous (after all, only losers live with their parents at the age of 22, right?) but it’s one of the smartest things you can do. Allow me to share with you a quick story.
A friend of mine graduated with his accounting degree and got a job at one of the Big Four straight out of school. Needless to say, an accountant at a Big Four makes some good money. Instead of moving downtown and living the good life, he instead stayed with his parents in the suburbs until the age of 26 and commuted to work. In his four years living with his parents and not paying rent, he managed to not only pay off his student debt, but also to save enough money to buy a luxury condo by the lake — and pay off over 50% of the purchase price.
He’s now 26 years old and owns a lakefront condo with a mortgage that will be paid off in five years. In his early thirties, he’ll be mortgage-free with a six-figure disposable income and really living the life.
Now tell me, does that sound like a loser to you? Not quite.
Save your money. Pay off your debt. Living with your parents in your early 20s isn’t bad for your image: it’s a smart move.
That’s my advice Jessica. I know there may be other factors that will influence your residence options, but that’s just my two cents.
Do you have any advice to give your 22-year-old self?
"Jacob"
Would you give the same advice to a 31-year old? :P
Monday
July 21, 2008
Sameer Vasta
Funny enough, I probably would. I think it’s important to be in the place where you can pursue your dreams most effectively — and if that means having the support of a family around you, then so be it.
Monday
July 21, 2008
karim kanji
Hey, why keep up with the Jones’s when the Jones’s are mortgaged up to their head and now worrying about increasing interest rates and job losses.
Not all stories will be like the one above but Vasta’s advice is sound.
Get out of debt, have your needs met, have plenty more to keep in store and even more to give to the poor.
kk
Tuesday
July 22, 2008
Sameer Vasta
Karim, you’re absolutely right on giving to the poor. Always important to remember other people when planning ahead.
Tuesday
July 22, 2008
Danielle
How I wish that was ever an option for myself.
Another tip - don’t hold balances on your credit card while you’re paying off a stupid loan or something equivalent, those extra dollars could GO into the loan instead of the credit card companies wallets— bastards.
Wednesday
July 23, 2008
Sameer Vasta
I’ve spoken to a few people recently who have told me that living with their parents wasn’t an option for various reasons. Eye-opening, to be sure.
Love your credit card tip Danielle. Though I’d extend it to say, “Don’t hold balances on your credit card. Ever.”
Wednesday
July 23, 2008
Mark
My advice to my 22yo self: either 1) get off my butt and actually research some scholarships I probably could have earned if I had only applied, or 2) don’t go to the expensive private university. Avoid student loans like the plague, old self.
Thursday
July 24, 2008
Sameer Vasta
Mark, I was lucky enough to graduate with very little student debt. Thank god. I think that was done because I was not only diligent in finding funding opportunities that were available to me, but because I also went to the school where I felt I could learn the most, and not necessarily the one which had the biggest name.
Saturday
July 26, 2008
patricia
Yeah, I was going to add that that answer only applies to a certain percentage of the youth population. I for one did not really have that option. In fact, the best decision I could have made was to move out and make it on my own at the age of 21. My husband’s background was even more challenging than mine – he was on his own at the age of 16. As nice as it would be to live without debt, I must confess that I notice a big difference in the maturity levels of people who live at home with their parents past the age of say, 24, than with those who have supported themselves from a young age. There are certain life lessons one acquires being independent from an early age, that are worth the price of some debt, in my opinion.
So what advice would I have given my younger self? Nothing, actually. I treasure all the things I’ve learned along the way, no matter how hard the experiences were at the time.
Monday
July 28, 2008
Sameer Vasta
Fair enough Patricia. That being said, I’m not sure the maturity card plays all the time either. I know many people that went away for university and that came back to live with their folks for a few years to pay off their debt that are doing quite well on the maturity scale — it really depends on the home situation, I guess.
Tuesday
July 29, 2008