Financial Benefits of Tiny Living
We caught up with Kailey Maloney, from Believe & Budget who was excited to share some of the financial benefits of living tiny with us!
Kailey is a budget expert who found the joy in writing to help others live a lifestyle within their means, but also live their dreams. She fully believes you should listen, step out and find out, and take chances. Living tiny was always on her bucket list and so is traveling to all 50 states. Her and her family will be doing it all debt-free!
In this article Kailey shares some really great insights on tiny living and the financial benefits!
Let’s get started.
Living Tiny Can Help Financially
We want to share with you something that is not common in the United States, but is growing more and more popular – tiny living.
So many people have taken the plunge and want to live their dreams now rather than waiting until they are 65 years old.
Living tiny in a RV is a great decision at any stage of life and has huge financial rewards as well. Let us show you what tiny living can do for you to benefit your own financial wellness!
4 Benefits of Tiny Living
Live Mortgage Payment Free
Dream of having no payment for your housing?
It is a huge benefit to invest your money in other places rather than just a roof over your head. It allows you relief from the stress of a mortgage and daily housework. You can get out of the rat race of trying to live a lifestyle of bigger, better, and more. You can live with intent and have a peace of mind by enjoying traveling and giving back by helping others.
Let me tell you about someone who has become mortgage free and loving their life!
The family set a goal to pay off their RV in two years, and they made the financial goal in just 2 years and 2 months! They financed the RV at $45k and took out the loan for $50k to make sure they had a cushion for the title, tags, property taxes, etc.
A little over their goal, but they paid off their RV and are completely debt free!
They were able to make it happen on one income. And now they’re free of a payment for a roof over their heads.
The payment towards the loan was $1,150 per month now it is going straight towards savings for their next goal, and it is the best feeling in the entire world! It is so unreal.
It’s a dream come true.
You can do this too! You can become mortgage payment free too!
One Income Domination Is Doable
In today’s world, having two incomes is pretty normal.
However, what if being a stay at home parent is a clear choice for you or your spouse, or home schooling your children while traveling is what you intend to do?
Tiny living can help you live on one income and live comfortable. It can allow you to still travel and see the world. It can allow you to workamp and negotiate the cost of rent and utilities. It can also allow you to pay off your RV 100% and live without payments.
You can stop being a slave to the lender, and own all your stuff. The part many love is that it allows them to go home and see family, which brings us to the next point of tiny living and its financial benefit.
Tiny living can make living off of just one income possible.
Benefits of Tiny Living
The cost of living and building new homes has sky rocketed, so why not take the non-traditional approach and live tiny?
If you are questioning tiny living, try to think of all the benefits it will add to your life. If the benefits out weigh the negatives then it is the path to take.
And the benefits can be as easy as:
- not having to clean as much home,
- living off one income or a small income,
- travel anywhere by a push of a button,
- live on memories rather than materials,
- and controlling your spending because you just don’t have anywhere to put more stuff.
Try not to ignore your gut feeling and keep questioning it. Sometimes you just need to take a step of faith and find out.Kailey Maloney
Connecting With Family Is Important
Everyone of course chooses tiny living for different reasons.
Some live tiny because their spouse travels for work and this way of living in a RV allows them to travel when they are relocated for work.
They have to push a few buttons on their RV and go with their spouse to the next work location. The luxury of not having to sleep in a hotel every night and being able to sleep in their own bed. The spouse is able to see the kids grow up and seeing one another each night is also a bonus!
For another family, seeing and connecting with family is important to them too! They get to live tiny, in a RV that is 100% paid off without a payment of $800 – $1,500 each month, plus they get to buy airplane tickets to go home two or three times a year. (If you were to live in a big home with a big mortgage payment or had a car payment, this would not be possible to do on one income.)
When you live far away from family, or are traveling in an RV, being able to travel to see them is important! No matter how far away you live, you can still be close to your family!
Grow Your Net Worth
You may want to leave a legacy for your family instead of being a burden. This is very important to many people and for good reason!
Leaving your child or grandchildren without the burden of having to worry about money to take care of you while you are aging is a big deal. You want to leave your child with a peace of mind that they will be able to have a great starting point for their own financial future and cover any expenses related to your care.
By living tiny you can grow your net worth by the bushel!
Yes it’s true! We know a family who grew their net worth by over +430% in just two years of tiny living. (check out this post on testing RV life by renting your first RV!)
They paid off their RV so this was a huge increase of their wealth, but they also kept investing in a Roth IRA, Health Savings Account (HSA), and 401(k).
Your money works hard for you when you leave it in investments through dividends and many people can live off of them while traveling.
Not having a car payment, credit card debt, or other outstanding loans definitely helps, but if you do have debt, do not let it stop you. You can easily get out of debt faster by tiny living and this is a huge financial benefit!
You will definitely want to make sure you budget while tiny living, because all of the travel can really add up fast. You can make your money work for you through a budget and get to enjoy seeing more of the beauty of nature while still growing your net worth.
Workamping Bonus Tip For Tiny Living:
Don’t want to pay for camping spots each time you travel?
This is a choice you have to make and for many people they choose to get their living expenses paid for by work camping. There are many places you can stay that do not make you pay for a site while you work for them! This means you’re not only saving money but you’re also making money at the same time!
Here are some examples:
- Workamping at DigiKey.
- Workamping at the Grand Canyon.
- Workamping at the Sugar Beet Harvest
- Workamping at Amazon Camperforce.
- Workamping at Yellowstone National Park.
or take this course to learn more about how to work remote on the road .
What If I don’t Want to Workamp?
Some people who don’t want to Workamp, choose to stay at a private property location and pay rent to a landlord.
They will post an ad on Craigslist or Facebook Marketplace looking for land to rent. ****Be sure if you do this that you are mindful and ask a lot of questions to keep it safe for you and your family.
Negotiate everything from rent, utilities, and water. This is the best way to save money and make a difference in your finances. You can do this anywhere and everywhere! If they say no, move on to the next spot.
And remember…. It does not hurt to ask. It hurts you to not ask!
We know someone who negotiated the rent to be $360 per month, but they had to pay for utilities. They hired an electrician to install a 30 AMP to the property and use the hose for water. The downfall was to have to dump the grey and black water at Camping World each week, but this allows for you to ensure the RV engine is working well.
The next year, they negotiated the utilities to be worked off and do handy items around the property such as mowing, cleaning up after storms, organizing, and landscaping. This saves $40 – $120 in the winter when the utilities are the highest. Sometimes working extra and getting rent for free too!
Living Tiny Can Help You Financially
Whether you want to live tiny because you want to live off one income or see your family and travel the world. You can tiny living can help you financially to live a life of your dreams.
The financial rewards are there for you!