Throughout my college years, while many of my friends were
moving into dorms or finding apartments near campus, I made the decision to
live at home. I understand that for some, the appeal of college is partly about
escaping parental oversight, meeting new roommates, and having those
late-night, impromptu dorm room discussions. But for me, the financial benefits
of staying at home far outweighed the allure of on-campus living.
If you, too, have decided to live at home during your
college years, you’re likely aware of the significant amount of money you’re
saving on housing. The question then becomes: What should you do with this
windfall? Here are four smart things I've learned to do with the money saved
from living at home:
- Invest
in Your Education: While this may seem like an obvious point, I don't
just mean covering your tuition or buying textbooks. There's so much more
to the college experience than what's in the syllabus. Consider using the
money you save on:
- Professional
Development: Attend workshops, seminars, or conferences related to
your field of study. These experiences can provide valuable insights and
networking opportunities.
- Study
Abroad Programs: While living at home is cost-effective, it doesn't
mean you shouldn't explore the world. Some of my most enriching college
experiences came from short-term study abroad programs. It’s a chance to
immerse yourself in another culture while also earning credit towards
your degree.
- Start
Building an Emergency Fund: If there’s one lesson that life loves to
teach, it's that unexpected things happen. Having an emergency fund can
give you peace of mind and financial stability. Start by saving three to
six months’ worth of expenses. While living at home, your expenses might
be lower, but think long term. What would you need if you had to move out
suddenly or faced unexpected educational costs?
- Contribute
to a Retirement Account: It might seem too early to think about
retirement, but the power of compound interest is on your side the earlier
you start. Even if you can only spare a small amount, opening a Roth IRA
or another retirement savings account can set you on a path to a
comfortable future. I began with just $50 a month, and over time, with the
magic of compound interest and regular contributions, this amount can grow
significantly.
- Invest
in Personal Growth and Well-being: College is not just about academic
and professional growth; it's also a crucial time for personal
development. With the extra funds:
- Pick
Up a New Hobby: Always wanted to learn the guitar or take up
painting? Now might be a good time.
- Take
Care of Your Mental Health: College can be stressful. Consider using
some of the money to attend wellness retreats, practice yoga, or even see
a therapist if needed. Mental well-being is essential for overall
success.
In conclusion, living at home during college isn’t just a
financial decision; it's a strategic one. The money you save can be a stepping
stone to many opportunities – both immediate and in the future. Instead of
thinking about what you might be missing out on by not living on campus,
consider all the doors that are opening for you by making a financially savvy
choice. With a little planning, you can leverage the savings from living at
home into lifelong benefits.
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