A millennial saved $100,000 in 5 years by moving into a tiny house - Business Insider

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Moving into a tiny house helped one 35-year-old increase his income and save $100,000 in 5 years — here's how he did it

seven years ago. While he spent $30,000 on building costs over the first two years, he's since netted more than six figures during the following five years.

"Even after accounting for the cost of the house, I've saved over $100,000 going tiny, and it's been a great experience," Mitchell said. When asked about his savings strategy, he said: "It really was as simple as moving into the tiny house.", Mitchell, who previously worked in non-profits and human resources, was spending about $1,500 a month on rent, utilities, insurance, and other standard living expenses. He said that most Americans spend 30% to 50% of their income on housing costs, including rent or mortgage, upkeep, utilities, taxes, insurance, cable, and internet.

"I knew if I could eliminate housing costs, I'd win big," he added. "When people think about saving and budgeting, too often people try to 'cut out the lattes.' You saving $4 on your coffee isn't going to move the needle; you taking your rent from $1,500-plus down to $30 per month — that's huge.""It's hard to put into words how different this life is when your bills are so low; it's life-changing," he said.

But creating and selling a business wasn't Mitchell's only source of income. Running The Tiny Life earns him a little more than enough to cover his monthly expenses and allocate about half of his overall monthly income to savings, he said, adding that he only has to work about five hours a week to meet all his bills, savings, and retirement needs, which gives him "a great lifestyle.

 

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