Young family’s divisive housing sacrifice makes them feel ‘rich’: 'Redefining success'

A young family of four has opted to live in a converted garage to give them the life they want. While living in a studio can feel like close quarters for just one person, Sarah Bernardo is making it work with her, her husband and their two kids under three.

While the living arrangement might not sound like the typical Australian dream, the 29-year-old said it has made her feel wealthy in other ways. Despite what many might think, she told Yahoo Finance that their unconventional setup wasn't prompted because of the cost-of-living crisis.

"Money wasn't really like a factor... It was more like we thought we wanted to have more help with the kids and stuff like that," she said.

"I wanted to be a stay-at-home mum, and we both agreed on that, and we just thought it would be easier."

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A few years ago, Bernardo was living in a rental with a roommate and her husband was living with his family in Melbourne.

But when the couple fell pregnant with their first child, they decided to move in with her in-laws.

The soon-to-be grandparents transformed their unused garage into a granny flat and the couple has been living there for the past two years while their family grew.

They don't have to pay rent and the whole family is supported by Bernardo's husband's wage from his IT job.

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"I think people assume that bigger is always better. I think that's generally what people chase. But I think there's a lot of benefits to having a smaller space," she explained.

She said not only has it drastically cut down the amount of cleaning she has to do but it also allows them to save money to travel and eat well.

"We're trying to redefine what success is for us," she told Yahoo Finance.

"I understand that success looks different for everybody. So we see a life rich of experiences, travel, spending time together and making memories. That's what success means to us, as opposed to owning lots of things.

"We're in a world where your value is determined by how much you have. We prefer to go down more of a holistic route and look at it as experiences. And, you know, a real measure of being wealthy is how much time and freedom we have to spend with each other."

Aussies divided over Sarah's living arrangement

Bernardo recently posted a video of her family's living setup and she was overwhelmed by the response.

She showed off how her and her husband's king-sized bed was nestled right next to their six-month-old's cot and two-and-a-half year old's bed.

While the dining table can only seat two people, she said the family rarely ever eats there all together.

That area sits very close to the newly built kitchen and living area and a small bathroom could be found at the back.

Comments came in thick and fast, with many Aussies giving their two cents about the arrangement.

"This is sad. Why aren’t people prepared before they have kids so they don’t have to live like this," wrote one person.

"You've done well with the space. People saying it's sad are ridiculous. People would kill for this around the world," added another.

"I get stressed with my small unit with one child. Pregnant with a second and worried how we will fit but this inspires me that it will be okay," wrote a third.

Bernardo admits this isn't forever and they are allowed to stay in the in-laws' home next door whenever they please.

She said she's not that keen on buying a property to live in, but they might invest in one down the track. The 29-year-old added that her husband's job might allow them to become digital nomads, which she said could be an awesome experience for her kids.

"If we had decided to buy a house, even though we could have afforded it, I think the interest rates going up, we probably would have been in a bit of trouble, or I would have had to have no choice but to go back to work," she said.

"And that's the thing. We want choice. We want freedom. We want options."

Generational shift in owning an asset

Finder's personal finance expert Sarah Megginson said it's great to see young families carve out what success means to them.

"The majority of parents spend hours cleaning, tidying up... all of that housework," she told Yahoo Finance. "[Bernardo has] eliminated a lot of that. So she's gaining back quality time with her kids. And probably, I would say, when you've got such small living quarters, she's probably going out and about more with them, taking them to parks and things."

Finder recently released research showing 6.3 million Aussies are pushing themselves to the financial brink because they have felt pressured to make a purchase to match the lifestyle of a friend or family.

Nearly half of those people (3.1 million) have been plunged into debt to "keep up with the Joneses".

But Bernardo is on the other side of the coin who is making choices that directly benefit her family; and she's not alone.

"The last decade, especially, we've become much more comfortable with sharing in things and accessing things when we need them, rather than necessarily owning the asset," Megginson said.

"So I think there's a double edge to this. I think part of it is financial and what we can afford and being realistic about what we can actually afford.

"But there's also a generational shift in terms of what we value. And for a lot of young people, they really value experiences, and they really value, you know, having a good quality of life, and they value that more, perhaps than they value the idea of owning and having an asset."

Megginson encourages all Aussies to have a look at their priorities and work out what's best for them rather than following in others footsteps.

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