As inflation drives up prices and interest rates rise, making borrowing more expensive, it’s not surprising that 90% of Americans would consider tiny home living.
Downsizing, having less debt, being able to save for the future, and improving their impact on the planet are major motivators. A lot of Americans are looking for a simpler, less expensive way to live.
Living in a tiny home is a great way to unlock financial freedom. Here are some of the ways tiny home living can help you financially, making it easier to pay off debt and save for the future.
Lower Living Expenses With a Tiny Home
Living in a tiny home is significantly less expensive than a traditional home, which is why it’s a great way to reduce money stress and move you toward financial freedom. There are a lot of ways to lower your expenses through tiny living.
Spend Less on Buying a Home
Because tiny houses are, well, tiny, they cost significantly less than traditional homes. You can build them yourself if you’re handy, which is less expensive than buying a prebuilt home.
If you choose to buy one premade, the average price is $60,000 — far less than the average cost of a traditional home at $540,000 in 2022. A tiny home also protects you from the skyrocketing rents you see in most parts of the country. Buying a tiny home also opens up the potential of selling your home in the future, and profiting from any earnings you make.
When you’re spending 84% less than most Americans on your home and your future is full of profits, you have a lot of financial flexibility that can help you achieve your dreams.
Use Less Energy
A tiny home will still need to be heated and cooled, but you’ll be taking care of a much smaller space, which helps you save on utilities and other daily living essentials.
You can also take advantage of all the usual energy-saving strategies available to homeowners, including insulating well, having high-quality windows, and using LED lights to reduce electricity use. A solar panel system could also make you entirely energy-independent, which also includes tax credits.
Using less energy not only saves money that you can use in other ways, but it lowers your carbon footprint and helps improve your impact on the planet. If you’re looking for an eco-friendly lifestyle, a tiny home fits the bill.
Far Less Maintenance
Finally, a tiny home saves you money by requiring less maintenance. Your home systems are more straightforward to care for. You won’t have a full HVAC system, for example, so you won’t need to worry about HVAC maintenance and replacement.
Even for parts of your home that need traditional maintenance, the fact that your home is so much smaller works in your favor. Repairing or replacing your roof will be a fraction of the cost of traditional roofing, there is less siding to maintain, and so on.
Using Your Savings to Build Your Financial Future
Saving money today can make your life more comfortable, but it also allows you to build your financial future so that you can attain independence more quickly.
For one, many Americans are behind on their retirement savings, but having a tiny home can help you catch up. With the extra money you’re not using on a mortgage, house maintenance, and utilities, you can invest in your retirement accounts.
You’ll also have more funds to prioritize paying off all debt and setting money aside for emergencies. Consider investments that can help provide for your future, such as wise real estate investments or a brokerage account invested in the stock market. Make sure your money works as hard as you do!
Many people have other dreams they want to achieve even before retirement, such as traveling, starting a business, or working part-time instead of full-time. Having a tiny home can allow you to save up and reach those goals more quickly than you thought possible.
A tiny home can also help you earn a side income. If you’re traveling in another part of the country (or the world), you can rent out your tiny home as a vacation location and make income on it while you’re gone!
A Tiny Home Can Help You Achieve Your Dreams
Tiny home living has its challenges, but the cost-savings, ecological benefits, and freedom more than make up for it. Having a tiny home is about more than saving money — it’s an invitation to redesign your life and embrace the freedom of intentional living.
In a tiny home, you have more opportunities to set aside distractions and align your life with your values, whether that includes paying off debt, traveling, or saving for future dreams. Once you’ve created a life you love, no one can take that away from you!