5 Ways To Prepare To Move Out of Your Parents’ House, According to Rachel Cruze

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According to a recent Harris Poll for Bloomberg, approximately 45% of 18- to 29-year-olds are still living with family. It’s likely that economic challenges are driving at least part of this trend, with more than 60% of Gen Z and millennials saying they moved back home in the past two years, often for financial reasons, according to the poll.

And it’s not surprising considering that the median home price hit more than $420,000 in the third quarter of 2024. Rents have also risen in recent years, with the average monthly rent at nearly $1,500, per iPropertyManagement. Plus, inflation has driven up the price of everything from eggs to laundry detergent. So yes, mom and dad’s rent-free place, complete with a washer, dryer and cable, can look pretty good.

According to money expert Rachel Cruze, there are some very good reasons to live with your parents. For instance, done strategically, it can be a great way to pay off debt, save money and create financial stability for when you do move out. “But for the long term, in most situations, it ends up not being great,” Cruze said in a recent video. “It can definitely slow down your personal growth and development in so many ways.”

So if you’re stuck at home, here are five things Cruze said you can do to ensure a successful launch.  

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Also see how Gen Zers and millennials moving back home is reshaping household finances.

Give Yourself a Deadline

There’s nothing like a deadline to provide motivation, and Cruze is a big advocate of this. Whether it’s 60 days or six months makes little difference, as long as you take it seriously.

“Set a move out date … That deadline really keeps you accountable, and it’s good communication for you and your parents as well,” she said. 

Make Sure Your ‘Four Walls’ Are Covered

The four walls are food, shelter, utilities and transportation. And while you might be paying for a few of these already, when you live at home, it can be easy to forget how expensive life “on the outside” is.

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Make a realistic budget of what you will need to move out, researching local rents and utility prices, as well as food and transportation costs, and ensure you have those covered before hitting the launch button. Realistically, Cruze said, that reality might not be ideal, so be ready to compromise.

Have a Steady Income

This might seem like obvious advice. And it is. But the real key here is to make sure you have some semblance of job security. If you freelance, have you been getting consistent work for many months or over a year? If you’re employed, is your company solid and in a safe industry?

The last thing you want to do is throw a move-out party and assume more financial responsibility, only to be forced back home again. 

Objectively Reevaluate Your Progress

Setting big goals like living at home until you’re debt-free or you can buy a home is admirable. But sometimes, those lofty goals can hold you back from the goal of getting your own place.

“If you’re living at home … ask yourself if you’re actually making progress,” Cruze said. Perhaps instead of waiting until you’re completely debt-free, you decide that moving out with a little debt is best for you in the long run. That’s fine, as long as you make a well-reasoned decision.

See the Big Picture

The pressures and costs of daily life can blind you to the larger goals you set for yourself. As Cruze said, failure to launch is real, but getting past it, in her opinion, is more than just dollars and cents.

“Moving out, you may face some difficulties at times, but this builds such confidence because you have to problem solve on your own, and long term this is so good for you,” she said.