Would you be willing to sacrifice your freedom for your finances? It might not be the most pleasant thing to do, but it could boost your savings by thousands.
Moving back in with your parents could save you an extra $24,927 per year, according to new analysis from Finder.
That’s based on the average Aussie spending $480 a week to live out of home in a sharehouse, including $289 on rent, $44 on household bills, $144 on groceries and $3 on household maintenance.
Also read: 4 easy ways Aussie renters can save money
If you're willing to live at home for five years, Finder found you could save a whopping $137,802 by putting that money into a savings account.
Finder money expert Sarah Megginson said moving back home could fast-track your savings, but she acknowledged it wasn't a viable option for everyone.
“Staying at home for a few extra years rent-free and taking advantage of compound interest can add tens of thousands of dollars to a person’s savings,” Megginson said.
“Often, people move home to save but they keep up poor spending habits, so they don’t end up ahead financially. Having a budget in place and minimising spending is the key to maximising your savings.”
Rents have been skyrocketing across Australia, with the latest SQM Research finding capital city rents increased 24.7 per cent over the past year, to $633 on average.
At the same time, the number of available properties has dropped, with only about 1 per cent of rental properties available for rent - down 1.6 per cent from this time last year.
How to save for a deposit while renting
Of course, moving back home won’t be for everyone and there are other ways renters can boost their savings.
“Set yourself a timeframe for buying a home, then work out how much you need to save each month to meet your target,” Megginson said.
“Consider moving to a cheaper suburb or downsizing to a smaller place. Even a small difference in your weekly rent could save you thousands of dollars a year,” she said.
Take a look at your budget and see where you could cut down. Unnecessary expenses like gym memberships and eating out could make a big difference in the long run, Megginson said.
High interest rates also mean there is good value to be had in savings accounts, so it’s also worth seeing if you can find a higher interest rate.