Are you nearing retirement age? For many people, this is the perfect time to pause for a while and re-evaluate where they are in life. One of the most difficult things to prepare for is budgeting your money for retirement. There are plenty of things you can do to help save for retirement, including moving to a smaller house. In this article, you will learn the best reasons why you might want to consider a tiny home retirement.
Not Just For The Younger Generation
When thinking about tiny homes, many tend to associate them with young professionals and childless couples. But the flourishing tiny house movements are becoming more attractive for older people, particularly those who are inching closer toward retirement age. Tiny houses are accommodations that do not exceed 400 sq. ft. In fact, there are tiny homes and micro-apartments that measure only 150 sq. ft., which is smaller than the average master bedroom in the US. Although they appeal for various reasons, the main thing going for smaller homes is price.
Slash Living Costs By Moving To A Tiny House
Smaller homes mean smaller utility payments. Many financial experts say that getting into a tiny house can help you save up to 70% of recurring living costs. This can be of tremendous help for older people and retirees. The Employee Benefit Research Institute says that 60% of workers do not have $100,000 in savings for retirement. More alarmingly, 24% have only saved less than $1,000. Tiny houses provide people with a tight budget an option to build, purchase and maintain their own home without putting a dent in their pockets.
A tiny home can cost anywhere from $10,000 to $100,000. This is considerably lower than the average home price in the US, which stands at $200,000. Similarly, smaller apartments cost far less compared to bigger rental units in the same neighborhood. Although there are only a few thousand people living in tiny homes in the US, there’s no question that they’re becoming increasingly popular for people of all ages. A huge reason behind this surge in popularity is that aside from lower upfront costs and monthly bills, there are other advantages to living in a small home.
Additional Benefits Of Tiny Home Retirement
Your needs change as you get older. Back in the day, you may require a home with 5 bedrooms to accommodate your children. But now, you might only need a single bedroom for you and your partner. A house with multiple bedrooms may prove too huge for your needs. By choosing to sell your existing home, you can have a smaller house built and enjoy a surplus of cash.
Many retirees would appreciate more disposable income in their hands. As mentioned earlier, tiny homes cost much less than the average US house. The money can be spent on your day-to-day needs or even to pay for some luxury vacations once in a while. This is incredibly helpful for those who may not get much from their Social Security. Not to mention, you can expect fewer problems in terms of taking care of a smaller home.
Less space doesn’t only mean lower utility payments, but reduced impulse to buy new stuff you may not really need. You would have to think twice whether or not to get that new sofa since there might not be enough space in your new home. There’s also the added benefit of being able to clean the entire home in just a couple of hours, instead of dedicating a full day when cleaning a huge house.
It’s easy to see why more and more people choose to retire to a tiny home. People who are nearing retirement age find smaller houses attractive as they help cut down living costs, provide them with more disposable income, and eliminate hassles associated with living in a big house. After weighing the pros and cons, you might find yourself the newest member of the burgeoning tiny house movement.