This is a guest post from Ryan Mitchell who blogs at TheTinyLife.com About small houses. I know many of you, myself included, have talked in the forums about building one, but here’s someone actually building one!
It started one Friday afternoon, my co-workers and I stood on the sidewalk outside our old office with the contents of our desks now in a cardboard box; The entire company had just been laid off and there were a million things going through our heads. How will I pay my bills? Rent is due next week! How will I find work in a declining economy?
Fortunately, I was able to find a job quickly, but that feeling never left me. I started to look at the way I approached life, my relationship with money, what was important to me and how I could make sure I would never feel anxious again. After taking a critical look at my spending, I realized that most of my income was going toward housing, at that time, a whopping 50%! At that time I decided that I had to figure out how to get rid of this item and get half of my salary back. I started exploring options to address this and came across the concept of tiny houses.
Tiny houses are small homes that typically range from 100 to 400 square feet in size for one person. They focus on design, efficient use of space and simplified living. They are often built on a trailer to allow you to move them easily and exceed building codes. One of the most attractive aspects is that you can build one of these at a much lower cost than a traditional home and in a very short time, you can own a tiny home with no debt.
Tiny houses cost anywhere from a few thousand if you borrow most of your materials to $50,000 if you have someone build it for you. Most people choose to build it themselves, even if they have never built anything in their life. The size of a tiny house is pretty manageable for anyone willing to work hard at it.
As for my small house, I chose to build it myself. Having no construction experience, it was a great learning experience, but I wouldn’t trade it for anything. In the end, it will cost me the equivalent of two years’ rent, but I will have a home that I can live in for the rest of my life at almost no cost. Most importantly, it has allowed me to never worry about where I will live, and I can now get half my salary back.
I knew my financial situation was going to change dramatically, but now that I’m just a month away from moving into my home, I’m starting to see that the impact is much greater than I realized. What I need to live now is next to nothing. My monthly expenses are down to $900 per month (Food: $250, Gas: $125, Utilities: $75, Insurance: $150, Cell: $30, Clothes: $25, Car: $100, Entertainment: $100, Other: $45 (all extra income goes into savings), which is more than Jacob’s monthly expenses, but not a lot and there are a lot of frills involved. I should point out that this is what costs me to live; My income is much higher than this.
Money aside, tiny house living brings something more valuable. It brings opportunity and peace of mind. Since I have significantly reduced my monthly expenses, it has opened doors to many things. This means I’m able to quit my old 9-5 job and become self-employed. This means I don’t have to work at a job I didn’t like, I can forget the stifling suits, I can now work from anywhere. This means that 2014 will be the year I live in a foreign country; I will have more vacation time, and I will be able to focus on what is most important to me. It also means that if something were to happen, I could live off my savings for a very long time (measured in years, not months) if I had to. Peace of mind is something I’m starting to realize is very valuable to me.
At 29 years old, I am semi-retired. I still have work to do, but honestly if I had $10 million in the bank, I’d probably do what I’m doing because I choose it and I love doing it. Since transitioning to freelancing, I’ve found that I can make the same amount of money, but with fewer hours of work, making decisions and with a lot less stress. This means I can pay off my student loan early, save more, and also start exploring some of the techniques Jacob uses at ERE.
Some common questions about tiny houses:
Q: How big is your house and how can you live so small?
A: My house is 150 square feet plus the loft for my bed. Although my home isn’t for everyone, you’d be surprised what a well-designed space can do for such a small footprint. It also means expanding my home and community outward. I have a great outdoor space with an outdoor kitchen when the weather is nice. Otherwise, I’m at coffee shops, with friends, in the park, traveling the world, or working in a coworking space.
Q: Where do you put all your stuff?
A: The question is not where do you put all your stuff, but how can I reduce the amount of stuff I own that I have to store later? By reducing your possessions to the essentials and a few valuables, fitting it all into a tiny house is not difficult. I always tell people to minimize their possessions and then design the house around what’s left. I have a few things (tools, camping gear, out-of-season clothing) stored in a small enclosed trailer. Honestly, I don’t miss things, and if I did, I’d go for a bigger house because now I have that flexibility.
Q: Do tiny houses have running water, toilets and lights?
A: I definitely do! Honestly, it’s just like a house, but smaller. I specifically chose devices designed for small spaces (RV’s and boats). In my home I have a full grid-tied power system, a standard plumbing system with an on-demand water heater, my bathroom can be hooked up just like a regular bathroom, and I now use a composting toilet.
Q: I’ve seen tiny homes often built on trailers, isn’t it just an RV or mobile home.
A: There are some overlaps, but the main differences are that a tiny house looks and feels like a traditional home. When you look at a tiny house, it says house, not trailer. They also contain a much higher grade of materials and are designed for full-time living. RVs are only for seasonal use and will not hold up well if you live in them full time. Most RVs have r-4 insulation which will keep you very cold in the winter months, but my house has r-20.
Q: Where can I learn more or see a tiny house in person?
A: We blog about tiny houses on our blog TheTinyLife.com . In April 2014, we will be holding the Tiny House Conference (tinyhouseconference.com), where you can see many tiny houses in person and learn all about them from our amazing speakers!
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Originally published on 2014-01-01 07:15:54.
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