There are many benefits to living tiny, and one that gets everybody’s attention is the financial impact it can have on your retirement.
While the average couple living in a traditional home can be looking at a 30-year mortgage and retirement at 65.
For a couple living in a tiny home, this could drop down to an 8-year mortgage and the ability to retire by the time they’re 40.
Many families living tiny follow the FIRE principles; FIRE stands for Financial Independence Retire Early and is a framework to boost income, lower expenses, and increase investments and savings – to allow for earlier retirement.
And before you say, “But I love my job,” well, that’s fabulous, and I’m happy for you. But following FIRE and having the option to retire early – doesn’t mean you have to!
It does, however, mean that if you end up not liking your job at some point in the future, or that you decide you want to spend more time on passion projects or with your family – you can, and without worrying about where next months mortgage payment is coming from.
It sounds both too good to be true and a little overwhelming, doesn’t it? And that’s why I’d recommend getting started by listening to one of my favorite audiobooks on the subject – Playing With Fire by Scott Rieckens.
I’d love to hear from you in the comments about whether financial independence is a factor in your decision to live tiny?
Keep Living Tiny xx