The 31-year-old Texas man makes $220,000 a year and owns four investment properties, but still lives at home with his parents. Is he smart or childish?

Sal Khan makes $220,000 a year working in technical sales for a software company in the San Francisco Bay Area.

Although the 31-year-old doesn’t have to live at home, he decided to move back in with his parents in Houston, Texas in August 2020. He is now working remotely.

“There’s a lot of stigma attached to it,” Khan told CNBC’s “Make It” in a recent video.

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But Khan quickly overcame his fears about returning home once he started reaping the benefits of savings. Since then, he has saved more than $200,000, owns four properties, and is considering purchasing a fifth.

Amid inflation and wage stagnation, can people only build financial security for themselves by living with their parents?

Know how lucky you are and take advantage of it

Mr Khan may appear to be taking advantage of the freedom that comes with living with his parents. First, he admitted that he doesn’t pay his rent or food, so he can save his large salary and invest it in his stock market or real estate.

But Khan also has a timeline for his current situation. He plans to move out once his assets reach his $2 million, which he thinks will be within 2-5 years. He uses the time living with his parents to build a future for himself and his mother and father.

Khan said she knows that wherever she goes, her parents will go with her. He eventually wants to live with his girlfriend, who also lives in the house. The two are considering living in the same house with both parents.

“For me, it’s the greatest honor,” he said. “I can be with them.”

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So Khan is not only thinking about himself, but also about his parents and future in-laws. I would say his mom and dad are getting a pretty good return on their investment by housing him.

children must contribute

Khan currently doesn’t pay rent or food, but she does pay for her parents’ medical bills, Costco memberships and other miscellaneous items.

But the problem arises when parents leave their children alone at home and do not contribute at all. In a recent Pew Research Center survey, nearly 20% of parents said having their children living at home was having a negative impact on their future finances.

But the good news is that Pew also found that, overall, 72% of children live with their parents. do They contribute financially to the household budget in some way, such as utilities and groceries (65%), rent and mortgage (46%).

If you think it’s weird to ask your kids for money, personal finance celebrity Suze Orman has some advice.

“I hope you don’t leave your adult children freeloaders,” she wrote in a May 2023 blog post. “That’s not generous to you or to them.”

read more: Here’s how much the average 60-year-old American has saved for retirement. How is your stay at home?

Reasons why adult children want to live at home

In the aforementioned study, Pew found that about one-third of young people currently live with their parents. For most families, that’s a good arrangement. Parents like the family to be home together, and adult children can save money.

A 22-year-old Californian went viral on TikTok after mocking people who say he should leave his house because he knows he’s living a great life, eating free food and paying no rent.

You can understand why he said that when you know that the average median rent in the United States is $1,964, according to Rent.com’s February 2024 numbers.

For many people, living at home is the only way to save money. One Gen She believes this is the only way to give them an advantage in this economy.

So, whether your child is broke or completely broke, living at home may be the smartest choice for them, and hopefully for you too.

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This article is for information only and should not be construed as advice. PROVIDED WITHOUT WARRANTY OF ANY KIND.