Housing can easily eat up a third or more of your income and drain your funds. If you don’t want to be house poor here are alternative housing options to help you save.
Tiny Houses
While I couldn’t see myself living a tiny house I do think tiny houses are fantastic options for those looking to downsize their space and monthly housing payment.
The prices on tiny houses can vary widely. Check out this article for tiny houses that range in cost from $489 – $40,000. Another price consideration is land. However, even after buying a small lot and a tiny house your costs will likely be substantially less than a normal mortgage or rent payment.
Mobile Homes
Mobile homes aren’t quite as popular as tiny homes but can offer some of the same conveniences. When I got divorced in 2012 I bought a trailer for $1,500 and then fixed it up and had it relocated, spending a total of $10,000. The four year loan payment on my mobile home was $226/month.
With a mobile home you’ll also need to find a lot or purchase land.
Living with Roommates
Living with roommates can be a fun and financially wise decision based on the roommates you get. Consider splitting an apartment or home with one or a few roommates. Just be sure to establish clear house rules and expectations for everyone.
You could save up to 75% on rent by having roommates.
Renting Out Part of Your House
If you’re stuck with a mortgage that is a little more than you’re wanting to pay your best option is to either rent out a room or a part of your house.
Here’s an article to check out on a man who lived in his basement, rented out the main floor of his home which in large part, allowed him to pay his mortgage off extremely early.
Get Creative
There are ways to save money on absolutely everything. With housing being such a large expense this is one area where creativity can definitely pay off.