Living alone has its perks and drawbacks

If you're living with roommates to cut expenses during the pandemic, you're far from alone. A Pew Research Group survey shows 52% of adults age 18-29 now live with their parents – a high water mark since the end of the Great Depression when 48% of young adults lived at home. Of those still in their own space, 10% have taken on a roommate to share expenses.

However, that may be changing. With renewed hope for an economic rebound as COVID vaccination programs expand to more people, some are beginning to plan their exit strategy. If that's you, make sure you weigh its pros and cons before going solo:

Financial

Living alone (generally) is more expensive. Without a roommate splitting expenses, more of your budget is consumed with fixed expenses like rent. On the other hand, you may be able to downsize to a one-bedroom or studio near your job (goodbye, commuting costs). Without the cushion of a roommate's contribution, you'll want to build an emergency fund of at least three months' living expenses to carry you if your income unexpectedly drops. The financial gurus at Intuit recommend the 50/30/20 rule: Budget 50% of your income for essentials, 30% for wants, and 20% for savings. And under essentials? Factor in renter insurance.

You have more control over groceries and utilities. Cooking for one is cheaper than springing for takeout night after night. Learn how to make some budget-friendly basics like chili, spaghetti and stir fry that provide leftovers for busy nights. Living alone also means no roommate taking marathon hot showers, constantly leaving lights on or complaining if you turn down your thermostat to save energy.

You need a just-in-case file. If you're ever injured in an accident or become too ill to handle your finances, make sure someone can step in (also a good idea even if you live with a partner). Create a virtual or paper notebook of passwords, bills that need to be paid, account numbers and other pertinent information and give it to a trusted friend or relative. That person also should have a key to your home and the alarm code if you use a security system. If you become permanently incapacitated, make sure you have a legal document called a power of attorney that gives someone else the right to manage your finances on your behalf.

Peace of mind

No one has your back 24-7. It doesn't take a major crisis to be a hassle. Even if you're just swamped with work or sick with a cold, it's nice knowing there's someone there to handle cleaning, meal preparation, dog walking or grocery shopping if you're not up to it. You'll lose a built-in ride to work if your car refuses to start or someone to save you if lock yourself out. Roommates also provide companionship, an added perk if COVID socializing restrictions continue for a while longer.

Plan for emergencies. Choose your home with safety in mind and consider installing a security system, since in a true emergency, you'd be on your own until first responders arrive.

Freedom

WFH is easier. Post-COVID, many employers will continue offering WFH opportunities. You're more likely to be able to take advantage of them if you don't have to worry about a roommate interrupting Zoom calls or disturbing your work area.

You're the boss, baby! The biggest perk of living alone is living by your own rules – guests, pets, hobbies, décor, quiet or noisy, early or late, healthy or junk food, messy or neat … the list goes on, and the choice is all yours!

Insurance

Any major life change can affect your personal insurance. Log in to your pemco.com account, talk to your local PEMCO agent or call 1-800-GO-PEMCO if you're striking out on your own. We can review your coverage and make sure you're getting all the protection you need with the discounts you deserve.