Living in a Van Was the Best Financial Decision I Ever Made

Ken Ilungas

By Ken Ilgunas, Special to The Motley Fool

On the first night I tried to sleep in my van, I was lying in my sleeping bag sprawled out on the backseat, parked in a mostly empty Walmart parking lot. I'd wake up every 15 minutes because I was nervous that the security guard driving past my van would knock on my door and make me leave.

My new home had 60 square feet and four wheels. While most people would consider living in a van an embarrassment, a low point, or even a "rock bottom," it would -- though I didn't realize it then -- turn out to be the greatest financial decision I'd ever made.

No one would end up waking me up in the Walmart lot, and, over the next two years, almost all of my other fears would prove to be entirely unfounded.

Debt-free; Dirt Poor

In January 2009, when I'd decided to move into the van, I was nearly broke. I had just $4,000 in the bank and no possessions other than a laptop, camera, cellphone and a suitcase full of clothes and a backpack full of camping gear.

I had next to nothing because I'd just finished paying off my $32,000 undergraduate school debt. Still, after two-and-a-half years of working, I wanted nothing more than to go back to school and get my master's degree in liberal studies at Duke University. But how could I afford tuition and not go back into debt?

My answer: a $1,500 '94 Ford Econoline.

I'd cook in it, sleep in it, study in it, and live in it. I'd do whatever it would take not to go into debt again.


Expense chartA Nation of Potential Van Dwellers

I'm not the only student in America struggling with the high cost of education.

Currently, there are over 36 million debtors saddled with more than $1 trillion in student debt. In 2011, two-thirds of graduating students left with an average $26,600 in debt.

But the problem isn't always tuition. The enormous cost of room and board -- averaging $8,500 a year for students living on campus -- can set students back just as much. For freshmen at Duke University, which would be my graduate school, the cheapest dorm option is $5,464 an academic year. The cheapest meal plan is $5,540 an academic year, or $27 a day.

By living in a van, I figured, I could reduce (if not entirely do away with) many of the costs that are drowning students in seas of red ink. And if I picked an affordable graduate program, then, well, maybe I could leave school with a debt-free degree.

Amazingly, it worked. This is how I did it:




Ken Ilgunas is the author of Walden on Wheels -- a self-deprecating travel memoir about his two-and-a-half-year journey to pay off his enormous student debt load. It's also about frugality, wilderness, the liberal arts, and living in a creepy red van.

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434 Comments

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hairyguy2014

masters degree in liberal studies. LMAO! no, really, laughing my Fuk|ng ass off! what an ldiot.

July 06 2014 at 10:42 AM Report abuse rate up rate down Reply
Kristen

I love it! What a great story!

July 02 2013 at 6:28 PM Report abuse rate up rate down Reply
elnpet

Good for him. It might have been uncomfortable but it worked for him..His determination proved to be a winner. This man will go far in our modern country. I would like to see him in 10 years. Bet he has a good job and no debt hanging over his head. Practise makes perfect. He might have been at rock bottom but it paid off for him. Way to go and good luck in the future. Thumbs up.

June 20 2013 at 5:15 PM Report abuse rate up rate down Reply
wadisplace

I drove the big trucks for 4 years. Yes you can live in a small space and be quite comfortable in it. But you MUST have a bigger goal to achieve. Ken Ilungas's was to finish college. Mine was to save enough money to retire.

June 20 2013 at 1:32 PM Report abuse +1 rate up rate down Reply
Woodstock

Add a YMCA Membership and you can do a few laps in the pool before hitting the shower on your way to morning classes...........worked for me!!!

:o)

Peace

June 18 2013 at 5:23 PM Report abuse +1 rate up rate down Reply
Andrew Reckles

probably not a big hit with the ladies.

June 17 2013 at 4:57 PM Report abuse rate up rate down Reply
kay

u cant use the bathroom in it dont have so what do u

June 16 2013 at 2:11 PM Report abuse rate up rate down Reply
garry

Living in a Van ...down by the river !!!! RIP Chris.

June 16 2013 at 12:59 PM Report abuse rate up rate down Reply
Lifes a Beach

A queen mattress fits perfect in a GM van (don;t know about others). In my younger days, a gal & I travelled the country for a year in one of these. Park on a flat surface, zero compromise. Non stop driving with two pilots & the sleep is good quality.

June 16 2013 at 12:01 PM Report abuse rate up rate down Reply
hpycmpr155

Hey..living is a van is a LUXURY,
I had a friend live in my yard (I have 7 acres in the country).
He slept in a TENT for 6 months, saved 6 moths rent and was able to move to the city he wanted to live in, got a nice job and rented a small studio apartment.
Best 6 months he ever spent.

June 16 2013 at 9:12 AM Report abuse rate up rate down Reply