This 31-year-old Texas man makes $220K/year, owns 4 investment properties — but still lives at home with his parents. Is he being smart or childish?

Sal Khan makes $220,000 a year from his job in tech sales for a software company in the San Francisco Bay Area.

The 31-year-old doesn’t need to live at home, but in August 2020, he decided to move back in with his parents in Houston, Texas. He now works remotely.

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

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However, Khan got over any insecurities about moving back home about it pretty quickly once he started to reap the rewards of savings. He’s since saved more than $200,000 and owns four properties — and is looking to buy a fifth.

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

Know you’re lucky — and milk it

It may appear as though Khan is taking advantage of the freedoms that come with living with parents. For starters, he admitted that he doesn’t pay for rent or groceries, so he’s able to save his high salary and invest it into stock markets or real estate.

But Khan also has a timeline for his current situation. He plans to move out when he has $2 million in assets, which he believes will be in approximately two to five years. He’s using his time living with his parents to set up a future for himself — and his mom and dad.

Khan said that, wherever he goes, he knows his parents will move with him. He eventually wants to move in with his girlfriend, who also lives at home. The two are considering living with both sets of parents all in one house.

“For me, that’s my biggest honor,” he said. “I get to be with them.”

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So, Khan’s not just thinking of himself, but also his parents and future in-laws. You could say his mom and dad are getting quite a return on investment by letting him live at home.

Kids must contribute

Even if Khan isn’t currently paying for rent or food, he does pay for his parents’ medical bills, Costco membership and other miscellaneous items.

The issues, however, come when parents let their kids crash at their house and they don’t contribute at all. Nearly 20% of parents said that having their kids living at home is hurting their future finances, according to a recent Pew Research Center study.

But the good news is that Pew also discovered that, overall, 72% of kids who live with their parents do financially contribute to the household in some capacity, whether that be items like utilities and groceries (65%) or the rent or mortgage (46%).

If you feel weird about asking your kids for money, personal finance celebrity Suze Orman has some advice for you.

“I sure hope you won’t let your adult kid freeload,” 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 holds in retirement savings — how does your nest egg compare?

Why adult kids might want to live at home

About one third of young adults currently live with their parents, Pew discovered in the aforementioned study. For most families, it’s a good arrangement. The parents like having their family at home for company, and the adult kids can save money.

A 22-year-old Californian went viral on TikTok for scoffing at anyone who said he should move out because he knows he has a great life eating free food and not paying rent.

You can understand why he said that when you realize that the average median rent in the U.S. costs $1,964, according to Rent.com’s February 2024 numbers.

For many, living at home is the only way to save money. One Gen X mom even took to TikTok to explain that she’ll let her kids, who are in their 20s, stay at home as long as they want. She believes this is the only way to give them a leg up in this economy.

So, whether your kid is making bank or completely broke, living at home may be the smartest thing for them — and, hopefully, you.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.