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Returning Home as an Adult

Are you thinking of returning to your childhood home to live with your parents? Although heading home after graduation or a divorce may feel like a setback, a temporary return to living with your parents can present opportunities to improve your financial situation.

For example, living with your parents means you can share the cost of rent, utilities, and food, resulting in reduced expenses. By establishing a realistic budget, you can make the most of these lower costs, and repay student loans or other debt more quickly. You can also build up savings for emergencies and long-term goals, such as buying a home of your own. A sound plan is to avoid additional debt while you’re working toward your financial independence. You also might consider paying expenses in cash to reduce your reliance on credit and help you stick to your budget.

For best results, establish clear expectations for both you and your parents before you move in together. Consider a written agreement that outlines the financial responsibilities of everyone in the household, and what the consequences will be for not living up to your promises. In addition, determine specific milestones you want to reach before you move out, and communicate them clearly. Goals could include accumulating $5,000 in savings, or reaching a six-month work anniversary at your job.

Contact us for suggestions about how to create an achievable financial plan.

Money

A Cash Reserve Adds to Your Financial Security

Many of us are living close to our financial limit these days. We pay our bills on time, but there’s not a lot left over. But that’s a dangerous situation. If things go wrong, your financial situation can change very quickly from adequate to critical. Without a cash reserve, you could find yourself in serious trouble. Read more

Investment Calculator

Eggs, Baskets, and Investments

A well-diversified portfolio spreads out your investment risk. However, you can easily end up with more eggs in one basket than you intended. Here are some investment tips. Read more

Good Debt or Bad Debt: What Do You Have?

You’ve got debt! The question is, do you have good debt or bad debt? Even more important, how do you tell the difference before you take on any more? Here are two questions to ask before incurring any debt. Read more

Follow the Tax Rules When You Borrow From Your Corporation

If you’re a business owner and your company lends you money, you’ll enter it in the books as a shareholder loan. However, if your return is audited, the IRS will scrutinize the loan to see whether it is really disguised wages or a dividend, taxable to you as income. Read more

Six Rules For Avoiding Credit Card Disaster

Here are the rules to help keep you from becoming a credit card victim. Credit cards should be a convenience for payment, not a source of credit. Read more

Happy Children

Try a Different Gift Idea This Year

When planning gifts for children on your holiday list, you might want to think beyond the traditional retail offerings. Consider financial gifts that can bestow benefits for many years to come. Read more

coins

Give Your Children Some Lessons About Money

There’s one important subject that your children may not learn in school: personal finance. If you want your kids to pick up good money skills and become financially responsible adults, you should give them some training yourself.  Read more

Credit Card Calculator

Should a Freshman in College Have a Credit Card?

Should you send your child off to college with a credit card? Opinions are divided, both among parents and financial advisors. It’s a situation that can work out really well or really badly, depending on the student and the parents. Read more

Taxes File Folder

Taxes are Due on Self-Employment Income

There is no income tax withholding on self-employment income, but that doesn’t mean you’re not required to pay taxes during the year. Read more