Tiny House Photo

Tiny House Photo

Sunday, April 21, 2013

Money, money, money, monnneee, money (just like that song)

Money, money, money, monnneee....money. Just like the song says, "some people got to have it, some people really need it". Whether you are building or purchasing your tiny house, you can't do without it.

I found out that banks were not very open minded about financing tiny houses. I went to several banks and credit institutions but the loans they were willing to give me had a higher interest rate than if I used a credit card! So, I called my credit card peeps and asked about low interest rates or 0% rates. I ended up saving part of the money and putting the rest on credit cards. This was not ideal, but I had a deadline (I'll talk about that later). I knew that once I was in my new little cottage I could pay off the balances quickly.

Or so I thought! Just one month prior to moving in, my income was suddenly cut by 20% and my health insurance by another 50%. What was going to take 12 months to pay off, now became 24 months. At least I have a job. So many people are in such dire circumstances I consider myself very lucky. And just 10 months in my tiny house and I have paid off 60% of my debt! Living tiny definitely has its perks.

According to a recent study, 60% of people will never see their house paid off but mine should be paid off in another year! I think I will need to celebrate by doing something fun. Hmmm? Maybe you can give me some suggestions on this?

Whether you are in a financial crisis, an educational debt hole, scaling down for retirement or just want a new simpler life, tiny house living can be the answer. If you choose to "go tiny" for 2 years or 20 the benefits can be huge. You can payoff debt, finance travel or save for property, purchase a vacation home or large family home. Maybe you want to further your education or start a business. Your imagination is the limit. For me, I doubt that I will ever return to a more traditional sized home.

1 comment:

  1. Hi Nancy, thanks for posting the financing. So many tiny owners leave this aspect out of the picture. Beautiful part of the country you live in!