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Home Hack: Live with your Mom (in-law)

Home Hack: Live with your Mom (in-law)

Home hacks are all the rage these days. There are so many DIY tips and tricks to make your house worth more, but what if you could double your net worth by “home hacking.” Now I have your attention…

In this week’s podcast, Matt Robison and I will tell you how living with your mom could be the home hack that helps you double your net worth. Now I not only have your attention, but probably some of your fear, too. 

Sit back, relax and listen (or read on) to learn how you can “home hack” with your parents. It’s not a notion that typically crosses our minds, but it could be a game-changer, especially when it comes to caring for aging parents and building your financial nest egg. Let’s learn how with a real-life client story.

Doubling Net Worth

I’ve been working with Dan and Ruth (not their real names), for years. Recently we figured out a way to increase their net worth from $1 million to an impressive $2 million in just three years by home hacking.

Dan and Ruth had been diligently saving and investing for years, steadily building their financial portfolio. Their journey took an unexpected turn when Dan’s father unexpectedly passed away. Dan’s mother was living in the midwest while Dan and his family are in the Northeast. It was clear his mother would begin to need extra support so they decided to explore unconventional solutions.

Rather than opting for traditional elder care facilities, Dan. Ruth and Dan’s mom chose to upgrade and combine their living situations. They invested in a larger home, one spacious enough to accommodate Dan’s mom comfortably. This decision not only provided her with a suitable living arrangement but also presented a unique opportunity for financial synergy.

By sharing the mortgage with his mom, Dan and Ruth not only eased the financial burden for all three of them, but also turned their home into a wealth-building asset. This innovative approach allowed them to leverage their existing resources to enhance their financial standing significantly.

A Growing Trend in Multigenerational Living

Their story isn’t an isolated case. According to a U.S. Census Bureau report, approximately 6.7 million adults aged 30 and over lived with their grandchildren in 2021. This trend highlights a shifting paradigm in housing dynamics, one that emphasizes the value of multigenerational living arrangements.

Here’s the bottom line: Home hacking works, but it requires a strategic approach and careful consideration of various factors.

Will Home Hacking Work for You?

The first step in home hacking is to figure out if it is right for you. Next, you need to evaluate the logistics. Then, you will want to break down the financial aspect of the move. Lastly, you want to sanity check by looking toward the future to be sure you haven’t missed an important factor. Use these five questions to see if home hacking would be a good fit for your life:

  1. Relationship Dynamics: Before embarking on a home hacking journey, it’s crucial to assess the dynamics of your relationship with your parents. Clear communication, mutual respect, and shared expectations are essential for a successful arrangement.
  2. Living Arrangements: Do you have the physical space to accommodate your parents comfortably? Consider the layout of your home and whether any modifications may be necessary to ensure accessibility and privacy.
  3. Health and Aging: As our loved ones age, their healthcare needs may evolve. Make sure your home is equipped to handle potential health challenges, whether through modifications, access to medical facilities, or proximity to healthcare providers.
  4. Financial Arrangements: Before moving in together, discuss financial responsibilities and expectations. Will your parents contribute to household expenses? How will property ownership and inheritance be handled in the long term?
  5. Long-Term Planning: While home hacking can provide immediate benefits, it’s essential to have a long-term plan in place. Consider how your living arrangements may evolve over time and how they align with your overall financial goals and aspirations.

Home hacking offers a creative and pragmatic solution for supporting aging parents while bolstering your financial future. By thinking outside the box and exploring unconventional housing arrangements, you can leverage your resources to create lasting value for yourself and your loved ones.

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Home Hack: Live with your Mom (in-law)

Episode 142 •

13th May 2024