If you asked most people what their biggest payment was each month, it would be their mortgage. Given that I’m just moving out of my parents house and looking to enter the real world, I’ve been doing a lot of research about these sorts of things. When I sat down to find out how much housing costs, as well as how much the mortgage payments on the housing would be, I was shocked. Expenses add up REALLY fast.
While I could afford a fairly decent smaller home at this point, I’ve found that there’s usually a way to circumvent or at least improve on the things that most people do. And housing is no exception. Plus, as I’ve decided that credit cards and financing a car are all really bad ways of handling money, I knew I wanted a way to create adequate housing without having to borrow money (and paying interest) to do it.
This is the solution I found.
Go Small and Go Home
The truth is, most American housing is way oversized. The only reason it might not seem big enough is because we as a consumer nation collect an absurd amount of junk in our lifetimes. But with some simplicity and a little Zen thinking, it’s quite possible to live well and spaciously in a very small house.
How small do you think I’m talking about? If you’re anywhere over 1000 square feet then you’re way off. If you’re thinking closer to a studio apartment that’s perhaps 500 square feet, then you’re getting closer. Of course, I hate monthly payments, and I’d rather own something than rent it, so apartments are personally out for me, but for size comparisons it’s a good starting place.
Of course, even 500 square feet can be pretty roomy if you’re not a complete packrat. Try *drum roll* 89 square feet. That is not a typo, and you’re not in the Twilight Zone. While most people’s argument against a really small house is “my bathroom is bigger than that”, your argument may now be “my toilet is bigger than that” but don’t worry, just watch this video.
Did you watch it? If not, please do. It’s short, and awesome.
Honestly, the house is still somewhat cluttered by unnecessary items. You can make it look even roomier if you wanted to. The point is that even just 89 square feet is quite liveable.
The Tiny House Movement
I’ve been doing a lot of research into small homes like this, which are collectively referred to as the Tiny House Movement. The idea is to reduce consumer waste and save a lot of resources, including money. You can build one of these things from anywhere from a couple thousand dollars to around 15 grand if you really want to get fancy. They cost almost nothing (literally nothing if you get solar panels) for utilities and are a fantastic idea in general. They can also be quite quaint – I love the one in the video.
Of course, all this being said, I decided that I don’t want a “tiny” house. I think it’s a cool idea, but ultimately unnecessary. The main benefit behind having such a small house is that you can build it on a travel trailer and literally live anywhere, plus they’re small enough to get around any housing regulations so you can put them just about anywhere. But for me, I want something a little bigger.
I’m still in the beginning stages of this idea, but I’m thinking of somewhere around 400 to 600 square feet. It has to be small enough for me to build it myself, which I’m very determined to do, yet large enough so I don’t feel entirely claustrophobic when I’m in it. I’ll probably go for a similar design as you saw in the video, meaning there will be one or two large rooms and a loft, which I really love for some reason, I think it would be awesome to sleep up there by a nice window and wake up with the sun shining through every morning.
See, it doesn’t sound so bad now does it?
How I’m Going to Avoid Paying a Mortgage
The most obvious way that I’m going to avoid paying a mortgage is that I’m going to pay for everything I do in cash, which is quite a possibility in this scenario. I’ll be building my home step-by-step, which will allow me to pay for each part of the work individually. I can save up for a month or two and complete new portion of it. And because I’m building so small, I don’t think it’ll take me very long to do it. Of course I’m not going to move forward until I know specifics, as well as more about building, but this is my plan thus far.
I still need a place to actually put the home. My parents have an extra field on their land, but due to regulations I probably won’t be able to build there. My dad told me he would give me the field if he could, but I would insist on paying for it anyway. I really want to do everything myself, fair and square.
Do It Yourself
I’ll probably end up buying land here in Oklahoma somewhere. As I understand it, land is relatively inexpensive here as compared to a lot of places. I could probably pick up an acre or two for around 10 grand or less. Add on another ~10 grand for my housing project, and you’ve got a homeowner and landowner with no mortgage and absolutely zero loans – not a bad proposition.
It will probably take me a year and half to two years to save that this much money as I don’t earn all that much. If I could become a regular at the post office I could likely do it in six months, but it takes ages (approximately 5 years here) to become a regular, so I’ll be keeping my one day a week job at the post office and I’ll pick up something else on the side.
The reason I’m saying that is to tell you that it’s actually quite easy to solve the main big kid problems of life without going into crazy amounts of debt. At the time of this writing, I have approximately 0 net worth. 
Yet I’ll easily be able to purchase land and build a home for myself with cash within the next couple of years, even if I had to work a minimum wage job most of the time. If land is more expensive where you live, or you have a family, it may take longer, but it’s still doable.
The problems come when we add things into our life that we don’t really need. When traveling between my parent’s house (2700 square feet) and my friend’s apartment where I often stay (650 square feet), one thing I’ve noticed is that I really don’t feel much different staying in either one. I never think “WOW so much room!” at my parent’s, nor do I feel cramped at my friend’s. Part of this is due to sheer lack of clutter in the apartment, but even then if I’m being honest her apartment is a little cluttered, yet it still doesn’t feel cramped. Given my almost anal nature about not accumulating crap, I am sure even 450 squre feet we feel quite adequate. Or perhaps even smaller.
Part of the reason I’m doing this is because of money, but a big part of it is to prove to myself that I really don’t need that much to be happy. Even if I were going to inherit millions, I’m fairly certain that I would still undertake this project. I can already imagine how satisfying it will be to build my own simple home that I paid for myself. Plus, being able to say that you never had a mortgage or car payment and you did it without having any more money than anyone else is pretty darn cool.
What are your thoughts on this idea? How much space do you really need? Can you forsee any problems with my idea? Let me know in the comments below!
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Less is more. The video was awesome and I would love to build one of those in my backyard. I have an acre and quarter I can sell you a small parcel near the woods.
Justin Mazza recently posted..Getting to a Higher Perspective About Your Life
Lol, that is such a bad idea. If you lived somewhere nearby I might do it. Then again, maybe I’ll do it anyway. You live near the ocean don’t you? Like within a state or two? I’ve never seen the ocean.
I live in Maryland. We have the Chesapeake Bay which is about 20 minutes from my house and of course the Atlantic Ocean.
I can’t believe that you’ve never seen the Ocean before. Wow, I love the Ocean and couldn’t imagine not living near it.
Justin Mazza recently posted..Peter G James Sinclair Self Development Mastermind Course
Rub it in, dude, rub it in! I know.. It is quite horrible.
Downsizing and living within one’s means, qualities which have been forgotten in an age of instant gratification and easy money. A very wise decision indeed!
I’ve seen the video before, and although I think I would be seriously claustrophobic in such a setting, as well as having too little work space, I can understand that some people honestly want to cut out the crap and live soberly and efficiently.
Cheers, Bart
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Hi Fred,
The Tiny House Movement in America, how funny. I thought this was something for the Netherlands only. ( They have very small houses everywhere )
In Europe, the size of the houses are very dependent of where you live: the houses at the country size or a lot bigger than the ones in the city. In the cities, 500 square meters is normal for single person houses.
Paying mortgage is indeed a huge monthly cost for living, but it can pay back itself, already after 5-10 years. If you move every 5 years, you can start benefiting from the every time increasing budget you have by selling and buying. It is a great investment when you do this wisely.
take care
marc van der Linden recently posted..How judging others can fool you
Hey Marc, let’s see.. 500 square meters is roughly 1500 square feet right? I think a lot of houses in the city are like that, at least the ones that are in the really fancy districts. I deliver to a lot of very rich neighborhoods though, with houses over 4000 square feet I’m sure! I wouldn’ Upt know what to do with all that space.
Yeah, I do like the idea of buying a house, renovating it a little bit, then selling it for more later. While I may end up doing that later, I really like the idea of getting my own place situated right now.. The only problem is getting close enough to the city while still living out in the country so I can avoid paying lots of gas prices. I recently found out about hypermiling which will help me in that area – be sure to look it up if you drive a car regularly!
Oops correction. It is 50 square meters (150 square foot). 500 square meter is for mufti millionairess and Hollywood stars I think
marc van der Linden recently posted..What are your core values in life? – the series (1)
500 square meter is just 1500 square feet right? that’s not THAT big. My parents have a 2700 square foot house.. and I think that’s rather average. Lol confusing.
Yes, it is. But to give you an idea: houses above 180 square meter (540 square feet?) get a lot higher taxation in Belgium. So most houses are smaller than this size. The bigger one’s are considered to be “villa’s”. It is WITHOUT the ground, off course.
marc van der Linden recently posted..What are your core values in life? – the series (1)
I have a friend who lives about two hours from me and he owns a home that’s less than 100 sq. ft. He resides there with his girlfriend and they both LOVE it. It’s on a lake, too. Nice, secluded, quiet, and surrounded by nature.
I’d enjoy such living accommodations myself; however, a family of 7 requires slightly more than 89 square feet of living space, lol.
Intelligent post.
Lol.. yes, a family of seven would require at least, say, 150 square feet, right? Maybe more like 1500! I’d love to live on a lake. How did they find themselves in a situation? Did they know about the tiny house movement, or did they just happen to find a small house somehow?
How cool!
I’m not sure if they knew about the movement or not. I know he was looking for something secluded and isolated. When he moved in there he was trying to find a place of serenity so he could focus on writing his book. It’s actually very nice.
Hi Fred,
I personally don’t think I could live in such a small space. I think I would be happier living in a yurt, but that is just me.
Here is a decent looking one.
http://www.youtube.com/watch?v=71Uqu9_I-qM&feature=related
Todd | Channelingmyself recently posted..Embrace Infinite Consciousness
Wow, how cool. I’ve never heard of a yurt before. So it’s some kind of circular tent-house hybrid? It looked really nice and there, and the music for the video was amazing. Makes you want to learn how to play flute ( or whatever that was, doubt it was a flute ).
I think I’d like a place like that quite a bit actually. Thanks for the link.
Fred,
You know I love you but you wouldn’t get me up in that claustrophobic bedroom on a dare!
That house is exceptionally well designed, making excellent use of every square inch.
Kudos to you for the idea. You can sell it to a bachelor when you start having kids
My ridiculous square footage is a blessing because if I couldn’t run away from the husband, children, and myriad of dogs running around, I would really go nuts. Acreage is a big plus.
Julie | A Clear Sign recently posted..The Puzzle Of Synchronicity And Setting Personal Boundaries
Lol, come on! It isn’tvTHAT small. He said it comfortably fits too, after all – and I think he said it with a smirk, lol.
Man, I definitely wouldn’t have kids in a house like this. I don’t plan on kids, but if I did, I would go somewhere bigger. There is actually a video on YouTube about a family.. I think with one kid.. That lives in a pretty small house. It looks cramped though. I definitely favor being able to run away and go off by yourself every so often. Tiny houses and families don’t go together in my book, and not yours either it looks like.
I think the funniest thing you said was: “I think I’ll just buy a piece of land in Oklahoma” or something. The reason why I think this is hilarious because you said this so nonchalantly.
You’re also right. I am a 23 year old person who does not have a lot of money. So I’ve been eliminating and minimizing my living coordors. I live in an apartment, actually it’s pretty spacious, and I’ve gone ahead and made sure that I share a room. Not only have my costs decreased but I have a place away from my home, home.
I can proudly say I live alone. Hopefully, one day, I can buy a piece of land somewhere in the mideast (I’m thinking Indiana) to get things started.
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Lol, I didn’t know that part of my personality leaked through to my writing. I do that kind of stuff a lot, actually. Back when I first started meditating, and people would ask me something like, “what are you going to do today?” I would reply, “I dunno, I guess I’ll get enlightened or something, you know, no big deal.” Unintentional humor is always the best humor haha.
By the way, you said you share a room, but that you live alone. How does that work? I’m confused.
Sorry I didn’t see this earlier. Live alone? But yet share a room? I meant to say I happily live away from my parent’s home. Oops – should have clarified (:
Jonathan Gaurano recently posted..Is Your Relationship Stunting Your Personal Growth?
Wow Fred. That house is seriously tiny. I’m always shocked when I go back to the US. All my relatives have these huge houses with yards, and they all complain that they don’t have enough room/storage, whatever. I have a tiny apartment in the center of Barcelona. It’s 50 square meters, with another 20 square meters of terrace space. It’s great for one person, but if I had to share it, I’d feel cramped. I have no storage, so I only have stuff I actually use. Every year I do a spring cleaning and am brutal about getting rid of stuff that I haven’t been using anymore. I need the room. It’s great. But I don’t feel like I’m a minimalist. I have pictures of my friends and family in frames, tons of books on every wall, and bits of decoration here and there. It’s really cozy (and I recently discovered that I’m allowed to use my fireplace, so now I have that, too!). In the summer, I live on the terrace.
I figured out that buying an apartment here would be MUCH more expensive than renting is. Astronomically. And then I’d have to invest at least €100.000 to fix it up to livable status. No way. Perhaps some day I’ll buy something, but why? I’m so flexible…
Thanks for sharing this. Post pics when you’re done building your mini-mansion. LOL.
Hugs!
Melody
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Lol, my mini-mansion… You know, I do want to make it look nice. I don’t want to live in squalor. I want to live small but elegantly, although if I get a composting toilet, I don’t know if I can call that elegant, haha.
70 total square meters – that’s like 200 ft.² right? I would love to have a chance to live in something like that. Right now the smallest I can get is 650 ft.² in Sara’s apartment, which is plenty. We have a dining room for God’s sake.. And not a clue what to do with it.
Hmm, I would probably be a minimalist if I have my own place. I hate clutter. I think it’s a genetic thing – my dad hates clutter too. Then again, my mom collects it like none other, it’s kind of funny to see them in action.
I’m actually considering selling all of my books. I have realized that if I reduce all my expenses to a bare minimum, then buying books.. Even if I only buy a couple of month, is a fairly significant increase to my expenses. Plus, the library’s awesome. I’m still unsure about it. That’s actually the only thing I’m not sure I want to sell. Every thing else is pretty much already gone, including my musical keyboard, one guitar, and my amplifier. Woot!
I have considered renting instead of buying. It’s a way to be much more flexible and mobile, like you said. The only problem is that if I save up for a couple years, I could buy a plot of land in a house that would allow me to have my entire monthly expense be less than that of just the rent for living here. That’s one bonus of living in the middle of nowhere though, stuff like that is cheap. If I lived in Barcelona or Paris or something, there’s no way I would do anything but rent, that’s for sure.
When I save up enough money to undertake this project, I will definitely be posting pics, actually probably a video or two – or maybe a video series. I can’t wait.
I am LOVING that tiny house and I’m glad you had that extra line to encourage us to watch it. I have to admit, I was going to skip it over. =P It really had the feel of a trailer and had me thinking that maybe I wouldn’t mind living in a trailer either. =P
I am TOTALLY with you about size! I prefer cozy environments and cozy means small to me. Excited about all these plans you have and I really look forward to your house building posts in the future! =)
Samantha Bangayan recently posted..This Expat’s All-Encompassing New Year’s Resolution
Lol, I would have skipped over it to – that’s why I added it! Yeah, lived in a trailer as a kid before we moved to a much nicer house in my teens. Honestly, the experience isn’t that much different, except that you’re closer together in a smaller space.
Thanks Samantha! I’m really excited about it too. I’m going to start out small and build something like a coffee table first, I’ll get there eventually.
I have about 300 square feet and it’s more than I need. I guess I could live well on about 230 square feet. I wouldn’t want less because I want to invite people and also be able to dance around at home.
Also, I need enough place for my audio equipment.
I do want to live in the city so paying rent is not optional for me. However my plan is definitely to buy a house at some point (and to actually earn the money, not “borrow” it and live on credit for years).
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You’ve inspired me lol
I’m definitely gonna look into this, thx man.
It’s funny how things don’t really translate from country to country. I didn’t read the whole article but to avoid a mortgage in N.S.W. Australia you’d have to buy near Broken Hill which is where they filmed Mad Mad 2, which is fine.