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House hacking is a popular strategy, typically involving the purchase of a duplex where one unit is occupied by the owner and the other is rented out. However, there exists an alternative house hack that could significantly simplify your life and eliminate financial stress — provided you’re open to a different lifestyle choice.
Bree Steen resides in a compact 144-square-foot tiny home located in rural Maine, which she constructed for just $10,700. This minimalist dwelling features essential amenities such as a kitchen, a living area, and a lofted bedroom. Tiny homes have emerged from the minimalism trend, showcasing their potential for considerable savings.
How Steen Embraced Tiny Home Living
Contrary to what one might think, Steen did not grow up in an off-grid setting. A friend invited her to live on their off-grid property, which prompted her to rethink her lifestyle choices. After some contemplation, she moved into a camper while saving for her own tiny house, which she has happily inhabited for the past two years.
Initially attracted to the off-grid lifestyle after securing a traditional 9-to-5 job, Steen quickly realized that this standard path was not as fulfilling as she had hoped. She remarked, “I quickly realized that my life was not feeling like me,” echoing a common sentiment among individuals stuck in conventional jobs.
Affordable Living: The Benefits of Tiny Homes
One of the most enticing advantages of tiny home living is the overall reduction in living expenses. Steen has found herself less beholden to her job and is making strides towards financial independence. Her essential monthly bills amount to only $300 to $400, allowing her to save significantly each month.
With an annual spending range of $3,600 to $4,800, Steen can invest more freely in stocks and assets. This low overhead also facilitates earlier retirement, as her savings can comfortably cover her living costs. Notably, achieving a $3,600 dividend income requires a portfolio of just $120,000 — a target much more attainable within the context of a tiny home.
Adjusting to Life as a Tiny Home Owner
Although transitioning to tiny home ownership can present challenges, Steen emphasizes that getting accustomed to the lifestyle is entirely possible. She encourages newcomers not to hesitate in seeking assistance, especially at the onset of their journey. By engaging with neighbors, individuals can form connections that alleviate feelings of isolation in their new living arrangement.
Steen’s lifestyle includes chopping wood for heating, utilizing an outdoor bathroom, and drawing water from a hand-pump well — all stark departures from typical suburban living. However, this unconventional way of life can pave the way for much earlier financial freedom, illustrating that with effort and adjustment, living minimally can yield tremendous benefits.
