With the pandemic’s financial effects loom on, the Google search term “financial help” peaked to the highest search rating of 100. This is much higher than ever before, and even higher than the 2008 recession. The Federal Reserve recently released that there was a 4.4% annual increase of consumer debt, totaling almost $4.2 billion dollars. American credit card debt is almost $15 billion dollars. Americans are being forced to reduce their spending, redo their budgets, and get crafty with new ways to bring in income and pinch pennies.
The need for affordable housing has become so clear during this financial crisis that eviction bans are in effect in many cities, however; the so-called bans really aren’t a ban. As people search for answers, we are here to suggest: take control of your life by living simply.
What is living simply?
The practice of simplifying your lifestyle will never make sense to some people, and that’s okay. But if you are feeling overwhelmed with financial burden, you can’t pay your bills, and you are not feeling gratified, maybe it is time to consider simplifying your life.
Simplifying your life can be small steps towards minimalism. Start by reducing your material things and selling things that you no longer need or serve you. It can be enjoying moments with friends and family, and caring less about material things.
From traveling in a van, I learned the only things I truly need are food, a variety of layering clothing items, toiletries, my laptop, and the presence of my dogs and partner. My favorite pillow felt like a luxury item, and it’s good to have those things.
A popular choice for minimalism is tiny house living. Recently we shared how to adjust to the minimalism tiny house lifestyle. Moving into a tiny home can be an overwhelming downsizing experience that requires getting rid of a lot of your things. We suggest packing the thing you absolutely cannot part with and put them in storage, and eventually you will find that you will disassociate with those things. Your necessity list is smaller than you probably realize.
Once you downsize, you will have to get rid of something whenever you buy something new. Knowing this, you will accept and find gratitude in the possessions you own. You will appreciate the little things more, just like I appreciate my favorite pillow. Going tiny is a lifestyle choice that can reduce stress, clutter, and financial hardships.
How much money will I save by living in a tiny home?
Buying a tiny home can be anywhere between $8,000 to $150,000 and are growing in popularity for those who want to live simply and save money.
Tiny homes are often on trailer hitches making them portable, flexible, and great for the nomadic type. The median cost of a tiny home is $59,884, according to Spruce. The median cost of a home in the US is $320,000 and usually require 30 year loans to be able to afford. By going tiny, you are reducing your housing cost, which allows you to budget differently for other things.
When you reduce your housing cost, you can start spending more money on paying off your debt and getting closer to financial freedom. According to research, 89% of tiny house dwellers have less credit card debt than the average American, and 60% have zero debt. Going tiny can be your chance to take control of your finances by living simply.
As you continue to explore the pros and cons of tiny house living, there is an abundance of resources out there and bloggers who have shared their experience like Tiny House Giant Journey. Even if you aren’t ready to jump into the tiny house movement yet, just remember that reducing your life even with small steps can positively impact your life and finances.
Read why now is the time to buy a tiny house next.
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