Our good friend Michael over at TinyHouseDesign.com posted this great video on his Facebook page and it just really hit home on some really key truths. I have talked about how when you downsize to a Tiny House, you actually gain. You gain freedom from debt, you gain time, you gain deeper relationships, you gain insights to what is important.
Now many of you who are looking to actually live in a Tiny House have some level of awareness of this cultural phenomenon we know as consumerism. It essentially functions by creating social pressures to buy more stuff, our culture has an instilled mentality that we need more stuff to be happy.
The more stuff, the more happiness right? Wrong. Studies have actually shown that the purchase of stuff gives us a quick high, but ultimately leaves us even more unhappy. Buying more stuff means we need to work more to pay for it, we incur more debt. All of these things bring stress, give us less time to relax, time away from family and friends and when we do have free time, we are hounded by collection agencies. When we move into a Tiny House, we need to reduce the amount of things we need to fit in, this actually reduces stress, focuses us on what is important and create greater value for what little we do have.
I encourage you to have some time set aside to do some introspection. During that time consider what you have purchased over the last month using receipts and a spreadsheet. I have seen it a million times, people who don’t track it, don’t realize how bad the problem is. This is a pretty well document phenomenon. Studies have shown that when people track things, they typically spend 1/3 less, just by tracking it!
It has taken me a long time to really weed through my subconscious to get to a point where I can realize when these deep rooted influences are pushing me to buy something. I have been on this journey now for 2 years and still am struggling with it. I do intentionally strike a balance between separation of consumer culture and still staying generally socially acceptable. Clothing for example is a big societal function, fashions and trends drive us to buy more and I think many have a hard time breaking this cycle.
Now it is true, men’s clothing is easier to do this with, but I still believe anyone can do it. My clothes literally can fit in a big suitcase, all of them. I own 1 suit, 3 pairs of pants, 2 shorts, 10 shirts, 15 undershirts, 30 pairs of socks, 30 pairs of underwear, 3 work shirts, 3 shirt that get dirty, 2 pajama pants, a hat, rain jacket, winter jacket, one pair of dress shoes, one pair of running shoes, and one pair of garden shoes. I have also worked to be able to work from home or a job that I can dress casually, this drastically reduces the amount of clothes and limits social pressures.
So today start looking at what you have spent, take some time to think about how these cultural norms influence you behavior and check out the story of stuff to help understand these mechanisms.
So we have got you in the right state of mind, got you excited to build your house within minutes. Yesterday we talked about what basic tools to get and how to learn to use them, it may take a few weeks to complete this step, but we are moving on. Today we talk about getting your finances in order.
The sad truth is that it will be difficult to get a loan from the banks, your best bet for this is to have a good relationship with your banker/lender and get creative with how you approach it. There are some easier ways to get loans for the purchase of land (depending on your state), but they often come with 8-9% interest and 20% down. Of course there a loads of exceptions and variations depending on what bank and where you are.
For many of us we will have to rely on the money we have in hand to finance our construction. Depending on your choice of house to build you will need as little as $3,000 up to $23,000 if you do the work yourself. Now you can make your money go a lot further if you scavenge stuff off of craig’s list, ReStore, dump, etc. When it comes to building your house remember that it is almost always going to be more expensive than you expected, so budget for it; I suggest 15% additional for things that come up.
The other key thing to do is make sure if you are going to start without all the money, think about key steps in the building process that you need to finish. For example, some people lay their flooring down, then put up the framing, you would be wise to have enough cash on hand to finish sheeting the sides and the roof so that nice brand new floor doesn’t get rained on.
So when I speak of finances I go beyond just affording your house, I want to shift your entire financial life, why? A few reasons: first to be fiscally sound will mean you can more easily get into your house, next it means that you will be able to overcome any financial hiccups during the process and finally, having all your affairs set means that when you start to live in your home you will also be happier because you no longer have debt, collectors calling you, you have a security blanket for rainy days and reduced stress. With all of these reasons you will be much happier because there will be no more financial stress and you will enjoy your new house more.
When it comes to finances I subscribe to Dave Ramsey’s approach. His process First establish a $1000 emergency fund, start viciously paying down debt you have, establish 3 months living expenses in savings, then and only then, you become stable and able to take on a loan and/or start saving for your Tiny House.
When it comes to your house I can’t stress enough, you need to have your finances in order. Part of this process is also educating yourself about needs and wants. To do this we really need to understand how our society places pressure on us to consume things. Consumption is obviously tied to money, because we need to purchase things in order to consume. If we are able to reasonably take ourselves out of this culture (to a point), we can reduce our spending instantly.
More on consumer culture tomorrow!
So now that we have already established a system of ongoing motivation and made your psyche a bit more resilient to setbacks, we are ready to learn some things. Like I have said in the past, we are starting small and simple.
When you start to build your home, it is probably going to require some new skills that you might not have yet. Many people who endeavor to build a tiny house haven’t ever swung a hammer before, let alone installed a gas line. So where to start?
First off I suggest going and grabbing the basics from your local hardware store (craigslist), even if you don’t build a Tiny House, these are really useful and pretty cheap. Go out and pickup a
- 16 oz claw hammer
- tape measure
- screw driver (Phillips and Flathead)
- utility knife
- small level
- wire cutter
- vise grip pliers
- needle nose pliers
- combination pliers.
If you have no idea what this stuff is, print this list and just hand it to a sales person at the store.
Tools are one of those things that can go from a few bucks to hundreds of dollars, while there are different levels of quality, you can do well by most any brand. If you go to a Harbor Freight, Walmart, Northern Tool you could easily do this for under $50. I typically go to a chain hardware store, spend a few extra bucks, but they are better quality and will last a long time; Going the route of the chain store will run you about $75. Whatever you decide, make sure you have eye protection and ear protection, it is worth it, trust me.
From there I suggest you look up your local Habitat for Humanity and sign up on a work crew. They specialize in taking people who don’t know anything and getting them up to speed, to eventually build a house! The advantage to this route and why I promote it is first off its good to volunteer, second you gain real world house building experience for FREE. The other things it affords you is that you can also get some insights to local building codes, meet people (who might be willing to come help you frame your house) and it is fun! Now sometimes with Habitat’s program they only take groups, if this is the case see if you can start a group or push them to let you on a team or get the names of team leaders for you to call.
If this isn’t available in your area, there are other options. First off many of the chain stores like Home Depot or Lowes have free DIY classes, call your local store. You could also spend some time watching some of the DIY TV shows, but that is only so helpful, learning by doing is easier. Finally you can look up a local community college / trade school, most all of them have classes on wood working or DIY home repair theme classes. Here in Charlotte this would cost $115 for 8 weeks of classes.
The other option is to help out a friend who is doing some home repairs, remodel etc. If none of this is available, you can learn some basics off of youtube and you’ll need to bring a friend or family member to help you out on your first few days building.
Once you have the basics down of how to hammer, screw a screw in, measure and level you can look to expand your skills. I suggest you do this by going to the library and taking out a good do it yourself book, a book on framing (how to build the walls), plumbing, and electrical. At this point don’t worry about remember too much of this stuff, you are just getting a general overview on this, later when it comes time to wire or plumb your home, you will take this book out again and do it step by step. When it comes to wiring I’d suggest focusing on breakers, junction boxes, determining what system load you have. For Plumbing focus on venting, draining, material types, also remember your house will be a different setup because it might be on wheels. Now depending on your comfort level you might feel the need to hire a person to do this for you, which is up to you, but have a basic jist of these skills will still be valuable in repairs and – hate to say it – check the work of the professional. Depending on the professional he/she might be willing to come in and just give a safety assessment where they review your work and tell you how to fix it, this can be cheaper, but not all professionals will be comfortable doing this.
Tomorrow we will talk about nailing down your finances.
Starting out on the path to build a Tiny House is can be daunting, difficult, frustrating and a whole host of other emotions, but it is also paired with hope, dreams and the promise of a better tomorrow. Let’s no sugar coat it, it will be difficult, but what in life that is truly worth it isn’t and this guide will get you there more easily.
At this point I have been blogging about Tiny Houses for almost 2 years, learned a little bit, so I wanted to put together a practical guide to building your Tiny House. As you read my posts, my approach may seem a bit out of order as I lay it out here in subsequent posts, I have a very good reason for my method. While I try to do things in logical order I also work under the assumption that starting need to be small, simple, and successful. From there we work up to longer goals that increase in difficulty. So the order is more dictated by level of difficulty and ease to make it more likely that you will actually achieve the goal rather than give up.
When you stand at the beginning it can be difficult to know where to start. I have found a few simple ways to start right now! The building of a Tiny House or purchasing of land takes time, some can lose interest or get disheartened, so what I recommend is do simple things right now that can let you build up to it.
Finding your motivation outlet is a key step. For me it is this blog, I invite you to submit stories of you on this journey, this blog keeps me plugged into my dream, and it allows me daily exposure to it. In short, it keeps up the motivation. Now this motivation can take any form, in the beginning it was sketching floor plans, then it was an insatiable reading of every blog on the subject (I literally have read every post on almost every tiny house blog), then I found myself standing in a Tiny House in Philadelphia, which prompted me to launch the blog. It could be painting, photography, finding other who like Tiny Houses too (big help!) I find methods to keep up motivation work the best if I can see them, if they are visual. I talk more about this topic in this post: Seeing is Believing
Now many will point out “how is doing this going to build my Tiny House?”, the truth is, it’s not. But what it does is maintaining the motivation, keeps the dream alive and more importantly, it allows us to be more resilient to a setback, which is huge. It also is simple; you can grab some paper and a pencil right now and start now. Subconsciously this gets things rolling; I have seen this work, essentially it is a small and guaranteed to succeed, which means somewhere in your mind it keeps your motivation up.
However you do it, start now!
What is next? Gain the skills to build your house, come back tomorrow for the post!