Tiny houses can provide a fantastic, fun, and affordable option for recent graduates. Our friend Jacob at www.DollarDilligence.com is in his 20s and on track to retire by the age of 35. Below he lays out why recent grads should consider living in a tiny house. If you know someone who has just graduated (or is close to doing so), feel free to forward this article to them…perhaps it will save them from the trappings of a 30 year mortgage!
By Jacob, Blogger and Thinker @DollarDiligence
If you’ve just graduated from college and you’re more than likely burdened by student debt, you are probably looking for any way to reduce your expenses and free up money to put toward your student loans. You can reduce the amount of items you own, cut back on your lifestyle, follow a strict budget, and even cut costs on housing. When you’re reducing everything to save money, why not reduce the size of your house?
What is a Tiny House?
A tiny house is just like it sounds! It has all the same amenities as a standard size house, except only 400 square feet or less! With the average home being over 2000 square feet, tiny house dwellers are making a point to do a lot more with a lot less. Tiny houses are growing in popularity because they’re cheaper than owning a traditional home.
So why should you consider living in a tiny house? Let’s look at some major perks of tiny house living.
Tiny Houses Helps Graduates Save Money.
Recent college graduates can save money with a tiny house in a ton of ways. First, you’re not spending $100,000+ on a home, having a mortgage for thirty years, or paying to have utilities in rooms you rarely ever use.
Tiny homes are easy to save for or even build from scratch, utilities are far more reasonable, and a lot of them are easy to move from one location to another. Tiny homes can also be completely self-sufficient and support off-grid living or you can live as a digital nomad and have portable wifi and work from wherever you are.
Get a Tiny Loan for a Tiny House.
Let’s get to the real point. Tiny houses help people save a ton of money while still really having a home. Buying a traditional home can cost you over $80,000 in the first year alone just from the down payment, fees, and whatever upgrades need to happen to get the house in proper working order. Of course most people don’t have that amount of money ready to go, so they’re getting loans to purchase their home.
If you already have student loans, adding a mortgage to your debt isn’t a good idea. You can get a loan for your tiny house too, but the smaller principal makes it so much quicker to pay off. With the money you save on lower housing payments, you can pay off your other debts, such as all that money you spent on education!
Tiny Houses Promote Minimalism and Reduces Stress.
Another advantage of a tiny house is that it also promotes minimalism, which is is a movement that encourages simple living through owning and buying less. Some people are really extreme and have ten shirts, two pairs of pants, and one pair of shoes, and other people take their possessions and reduce them by half. Either way, having less possessions reduces your overall stress level.
Clutter is similar to multitasking in that it is overwhelming. Clutter can overload your senses, rob you of your mental energy, and make you anxious, according to psychologists. Having a tiny house makes it impossible to hoard possessions because you have limited space and a weight limit if you travel with your house.
Tiny Houses are Relatively Easy to Move/Transport.
Tiny houses are easy to move. Did you know that the majority of people live and die within about thirty miles from where they were born? When you invest in a tiny house, you’re investing in being mobile and being able to see more than the block and around the corner. Tiny houses give you the ability to move state to state and take your house with you. It makes moving for work or school easier, giving you more choices for pursuing success.
With a tiny house, you’ll not only save money that you can put toward your student debt, but you can also get the other benefits of living small! With a low-footprint living space, you have lower bills, buy less stuff, and pay less for housing. Financing your tiny house may even improve your credit score, which can let you refinance your student loans too!