Successful preparedness involves living within one’s means – unlike the messaging that the mainstream pushes on us (to borrow and spend to one’s limit).
Similar to how this family downsized to a tiny home, more and more people are opting out of the McMansion ideal and are choosing smaller homes (less expensive) instead.
A tiny house costs just a fraction of the median price of single-family residences, and while not for everyone – they offer financial freedom.
Downsizing to the extreme enables a massive increase in one’s ability to use excess funds for other things. To have financial freedom and peace of mind.
Doug Immel recently completed his custom-built dream home (just 164 sq.’), and said “I wanted to have an edge against career vagaries,” Having a dwelling with minimal financial burden enables him to invest the money he would have spent on a mortgage and related costs, halving his retirement horizon to 10 years and maybe even as soon as three. “I am infinitely happier.”
Dramatic downsizing is gaining interest among Americans, gauging by increased sales of plans and ready-made homes and growing audiences for websites related to the niche.
The pared-down lifestyle allows people to minimize expenses and gain economic freedom.
“It shows people how little some need to be happy, and how simply they can live if they choose,” said Shafer, 49, who shares a 500-square foot home with his wife and two young children.
People want “a more modest lifestyle now,” they don’t want to “waste their time or be a slave to a house they don’t fully use.”
Historically, residences under 500 square feet weren’t considered “tiny.” In 1950, houses averaged 983 square feet, according to data from the National Association of Home Builders.
The psychological aspect of paring down one’s possessions restrains many from going to a smaller house. It’s liberating for some, but for most it remains a challenge. Changing one’s lifestyle to live with less is not what we’re ‘programmed’ to do in today’s world.
While extreme tiny homes are catching on, the actual market is extremely tiny.
It sets a good example though of the peace-of-mind gained by simply buying a smaller home and living with less, such that there is an excess of funds in one’s budget. It enables financial freedom. Perhaps an earlier retirement. Or simply living life within one’s own desires rather than being a slave to a mortgage your entire life.