For some people, the idea of moving into a tiny house is thrilling. You can dump most of your possessions, get back to basics, and live in a home where you have only what you need.
This is efficient living at its best, and it can be a savvy homeowner money move .
But there are a few blunders that pop up again and again, especially for first-timers. These are the most common mistakes that new owners of tiny homes make.
Make Money: 8 things to do if you're barely scraping by financially
1. Not trying out a tiny house first
Perhaps you are fired up at the thought of purchasing an affordable tiny home that will leave you with more money each month to help pay your bills . But living in a tiny house isn’t for everyone.
Unless you have tried it, it’s hard to know whether you could actually sleep, eat, and live all in one space.
The best way to give it a whirl is to spend a few days — or longer — experiencing it for yourself. Book a tiny house vacation rental to see if you can make it work.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. Not being clear about why you want a tiny house
Tiny living requires some big sacrifices, so it’s tough to make it work unless you have a clear reason to commit to the lifestyle.
Decide what it is that motivates you to live in a tiny house, whether that’s financial freedom, minimalism, or living off the grid. Make that your guiding principle.
If you don’t really know why you want a tiny house, maybe it isn’t the right choice for you.
3. Forgetting how much stuff you own
Most people think they own less stuff than they actually do. As you start paring items, you might realize that it’s not possible to declutter enough to fit your belongings into a tiny home.
It’s better to figure this out before you commit.
Avoid these money mistakes: 9 dumbest things smart people waste money on
4. Not using the right materials
Tiny houses may be less expensive than full-size homes, but that doesn’t mean you can cut corners on materials.
For example, if you choose laminate for the flooring, you may see even more wear and tear because it’s concentrated in a small area.
Instead, use this as an opportunity to get the best materials. This can be more affordable than you think, since you will need less of them.
5. Opting for a ladder over stairs
A ladder does save space over stairs, but that doesn’t mean it’s a good choice. The inconvenience of using a ladder every time you go upstairs might not be worth the tradeoff in space.
Do you really want to pull out a ladder and climb just to take a nap? Or navigate a ladder in the middle of the night to reach the restroom?
6. Settling for one bedroom
While some tiny homes may have room for guests, most do not. And that can be a problem.
Decide whether you are willing to sacrifice some extra space so you will have a second bedroom that can make tiny house living work better.
Get Out of Debt for Good: Try these 6 clever ways to crush your debt 7. Adding permanent elements too soon
Some people become obsessed with efficiency and add built-in elements such as tables, extra beds, and bookcases. But you may find that you don’t actually need these elements or that they make your home feel too much like an over-optimized camper.
Furniture could make your space feel more like a house — or you may find you don’t need these elements.
8. Overlooking storage
It is possible to build storage into your tiny home, but you need to think about this ahead of time. Space is at a premium in a tiny home, so you need to make every decision count.
Make an honest assessment of what you own and decide what kind of storage you need in your space.
9. Choosing the wrong windows
It can be tempting to choose the most cost-effective versions of everything, including windows. But think twice before going this route.
Some who purchase tiny homes end up regretting that they didn’t choose more environmentally friendly, moisture-resistant, or insulated windows over standard windows.
Grow Your $$: 11 brilliant ways to build wealth after 40
10. Forgetting to plan where you will place the house
Those who own tiny homes often think it’s going to be easy to park their house wherever the wind takes them. But the reality is a little more complicated.
There are few free places to park tiny houses. Make sure you understand local laws in advance so you know where you can — and cannot — place your house.
11. Not thinking about the outdoor space
When you have a tiny home, outdoor space is critical. Whether it’s an outdoor kitchen or an outdoor living room, this space will become critical, especially when you are hosting a gathering.
Don’t make the mistake of not giving more thought to integrating indoor and outdoor space.
12. Not making sure it’s appropriate for the climate
Whether you are in a hot or cold climate, insulation and a heating or cooling system are key. Cheap construction could mean fighting against the elements, particularly if the walls are not insulated properly.
You want to make sure your tiny home is built for your climate, whether you are facing -20 degrees or 110 degrees Fahrenheit.
Are you a homeowner? Discover 8 savvy money moves to stretch your budget
13. Rushing the planning
It can be harder to plan a tiny home build than it is to plan the construction of a larger house. Every square inch has to be carefully and intentionally planned.
You can’t rush thinking about how you will use the home and which spaces are critical to your daily routine. Take your time making sure the floor plan is both efficient and practical.
14. Not planning for how to power the home
Think about how you will power the home before you start the build.
Many who buy tiny homes look to solar to power their homes. It can be the most efficient and cost-effective way to make sure you have light, cooling, and heating throughout the year.
But make sure this is the right choice for you and where you live.
15. Thinking you will make money when you sell
A tiny home isn’t a surefire investment. In fact, you should expect that your tiny home will not appreciate in value and that you will not make money when you sell.
Of course, you might be pleasantly surprised and end up making a profit. But don’t bank on it.
Bottom line
Before you dive into tiny home living, it is important to think things through. Tiny homes can be great for single people, but how would you feel about living in one with a partner? Or a family?
Living in a tiny home can be a great way to get ahead financially . But you want to make sure this style of living is right for you.
Money tips that can work for everyone
No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.
Focus on paying off your debt. Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.
Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.
Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).
Local News
Comments / 0