Dave Ramsey has a blunt message for young adults who live with their parents — here are 3 things they need to do to get ahead (and get their own place) in 2024

Personal finance author and radio host Dave Ramsey criticized the trend on The Ramsey Show, calling it “a trainwreck.”

In 2023, more than half (56%) of all young adults aged 18 to 24 are living with their parents, along with 16% of those aged 25-34, according to U.S. Census Bureau data.

Rising rents and high mortgage rates have made it much more difficult to move out. And high inflation is impacting everything from gas to groceries, while interest rate hikes are raising borrowing costs.

“The problem is you’ve got debt, you’re not earning enough money and you’re not doing enough to go out and change it. Mom and dad can’t do this for you,” says The Ramsey Show co-host Jade Warshaw.

While living with your parents may permit you to splurge on luxury items, the instant gratification is not worth the long term hindrance it’s putting on your financial health.

Here are three ways to focus on your finances so you can improve them and get a few steps closer to having a place to yourself.

Clear your existing debt (instead of adding to it)

Opting in to a buy now, pay later offer might make sense in the moment, but ask yourself if that new designer necklace is really worth the drive further into debt.

Rather than accumulating debt using the extra money you’re saving from living at your parents’ house, you should be paying off what you already owe to improve your credit for future housing applications.

Paying off your debts can be intimidating, but by consolidating your debt you can save money on interest, lower your monthly payments and pay it off faster.

With Credible — an online marketplace of vetted lenders — you can shop around for debt consolidation loans to make the task of cutting down your debt manageable.

After answering a few simple questions about yourself and your finances, Credible will provide you with a list of loan rates from top lenders within minutes. You can choose which is best for you and start chipping away at the money you owe.

Save a little every day

You might already be saving on rent by living with your parents, but you should also make sure you’re putting aside some of that spare cash to eventually leave the nest.

Acorns — a saving and investing platform — is a great way to start saving money without ever having to think twice.

All you have to do is link your bank account and spend as you normally would and Acorns will round up your everyday purchases to the nearest dollar and put that change into a smart investment portfolio that suits your financial goals.

Signing up for Acorns takes less than five minutes, and you can start saving and investing for just $3 a month.

You can keep a close eye on your portfolio through the app and watch the spare change you might’ve been wasting grow into a solid fund to support your next move.