Live Small, Save Big: What You Can Learn from Minimalists

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downsizing
Kenneth K. Lam/Baltimore Sun/MCT/Getty ImagesThis 238-square-foot house for two was built on a trailer frame that can be towed.
Unlike Henry David Thoreau, you don't have to live alone out in the woods to be a minimalist. And you don't have to live like a hermit to enjoy a simpler lifestyle.

Whether your goal is to save money by buying less and spending less on maintaining what you have, or you just want to declutter your home, then you might want to consider minimalism as a way of life. Or at least an important part of your life -- it doesn't have to be as extreme as living in a 150-square-foot house.

"I think a lot of Americans have a lot of stuff that they don't use." --Ryan Mitchell

Or maybe it does. Ryan Mitchell of Charlotte, North Carolina, plans to move from an 800-square-foot apartment into a 150-square-foot house he's building on a trailer. "I think a lot of Americans have a lot of stuff that they don't use," says Mitchell, 30, who is writing a book about it called "Tiny House Living."

Anyone who has ever rented a self-storage unit to deal with the overflow of stuff knows what he means. And that's a lot of us: There are 2.3 billion square feet of self-storage space for rent in the U.S., equal to 78 square miles under roof, which would cover an area more than three times the size of Manhattan, according to the Self Storage Association. The going rent for a 10-by-10-foot unit was $115 a month in late 2013, or $146 a month for a climate-controlled one.

Mitchell estimates he'll save $2,000 a month in his small house, mostly by not paying rent again because a friend is letting him keep the tiny house on a trailer in his yard in exchange for working on a website.

Less Extreme Options

Becoming a minimalist can start with simple steps. Cutting cable TV can save $50 or so a month, though the non-financial benefits of spending more time with your family may outweigh the cash savings.

Being a minimalist doesn't have to be -- as authors Joshua Field Millburn and Ryan Nicodemus jokingly write -- living with less than 100 things, not owning a car or a home or a TV, not having a career, living in exotic places, not having children and being a young, white male from a privileged background.

It's a tool to find freedom. While money can buy you some freedom, such as paying someone to cook you dinner or wash your car, earning that money can eat up a lot of your time.

'It Doesn't Have to Be Drastic'

Tracy Freese, a minimalist in Cedar Falls, Iowa, is a good example of living with less stuff without going off the deep end. She left a finance job in the corporate world a year ago to live a simpler life, selling two of her three vehicles and the diamond in her engagement ring.

Calling herself an "everyday minimalist," Freese has a website to help others plan their finances as minimalists and has a goal of not buying things anymore and instead is working to get rid of stuff.

"It doesn't have to be drastic," she says. Her family -- a husband who works full time and two children, ages 2 and 3 -- still has Internet service and basic cable TV, but they don't go out often, and they still live in their 1,300-square-foot home. However, the only thing she buys regularly now are groceries. Freese says they're saving $400 a week in discretionary spending.

Their previous household income was $120,000, and it's now half that, Freese says. That change has required a lot more cooking at home and much less eating out. "The life I used to live cost a lot of money," she says. It included $100 a month on facials at a salon and expensive clothes for work.

Reducing Excess

A good first step on the road to becoming a minimalist is to get rid of things you don't use anymore. One rule of thumb is if you haven't used an item in a year, you're unlikely to need it. An easy way to gauge this with clothing, Mitchell says, is to turn a hanger around every time you use something in the closet. If the hanger hasn't been turned around a year later, get rid of that item. He found that 80 percent of his clothes hadn't been touched. He also sold large pieces of furniture to help him downsize.

Another step is to keep what you have for as long as it works. Comedian Jim Dailakis says having a laptop computer from 2005 is one way he keeps from being a slave to owning possessions. "My dad always taught me to spend money and to spend it wisely," Dailakis says. "Spend it on things you need and not on what you want. Occasionally, buy things that you want to spoil yourself [with], but maintain that discipline."

Margaret Kelsey, a public relations professional in Miami Beach, Florida, has a system to keep her wardrobe from growing. "If I purchase a new item of clothing, I have to give one away in order to accommodate the new item," Kelsey says. "I find that it causes me to pause before purchasing something new, knowing that buying it will force me to give away something else."

Kelsey, 25, says she's saving more than $1,000 each month by "living small" in a 250-square-foot apartment without a full kitchen or TV. She has a two-burner hot plate and toaster oven. Not having a full-sized refrigerator requires her to shop more often, meaning less money wasted on fresh produce going bad, she says.

A Tiny House

Mitchell built his tiny house on a movable trailer to help him get around building codes and zoning laws. He estimates his electricity bill will drop from $100 per month in his apartment to $10, and the monthly water bill will drop from $60 to $15.

The front half of the house is an open room with a few chairs, computer and a chair that can be raised to turn into a desk. The back half is split between a kitchen and bathroom, and a loft with a queen bed is the bedroom. To get up to the loft requires climbing a ladder, not stairs, since stairs would take up more room. "With a tiny house, you look at how much you use something and how much space it takes up," Mitchell says.

The house cost him $25,000 to build, though building one can be done for as little at $10,000, he says. "I just really enjoy the smaller space and the lifestyle that goes along with it," he says. That lifestyle includes the flexibility to work only 15 hours a week, thanks to the much lower bills.

That sounds like something that Thoreau, the father of simplicity, would support.

A former newspaper journalist, Aaron Crowe is a freelance writer who specializes in personal finance, real estate and insurance for various websites, including Wisebread, insurance websites, MortgageLoan.com and AOL.


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14 Comments

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djones893

like i really wanna be a cheap ass jew hoarding pennies

June 07 2014 at 4:33 PM Report abuse rate up rate down Reply
Renee Boochee

I can get rid of some clothes but not a smaller house

June 03 2014 at 6:01 PM Report abuse rate up rate down Reply
lpopenhage

AOL'S record for typos grows even worse. Try reading the first sentence from a paragraph on minimilast.

Anyone who as ever rented a self-storage unit to deal with the overflow of stuff knows what he means. And that's a lot of us: There are 2.3 billion square feet of self-storage space for rent in the U.S., equal to 78 square miles under roof, which would cover ab area more than three times the size of Manhattan, according to the Self Storage Association. The going rent for a 10-by-10-foot unit was $115 a month in late 2013, or $146 a month for a climate-controlled one.

IF YOU MISSED IT, SLOW YOUR READING AND TRY AGAIN.

May 15 2014 at 2:57 AM Report abuse rate up rate down Reply
ga7smi

live a minimal life so you die rich - makes sense to - no one

May 14 2014 at 6:59 PM Report abuse +1 rate up rate down Reply
1 reply to ga7smi's comment
katnip59

Did you even read the article, ga7smi? No one said anything about getting rich. If it's not for you, don't do it. But why be dismissive of other peoples' lifestyle choices?

May 16 2014 at 12:56 PM Report abuse rate up rate down Reply
rexeccoach

I believe the point in the article is not about living in a 150 sq. ft. house. There are many ways to minimize expenses. My brother acted as a role model for me. He lived in a beautiful beach city and sold his car relying on his bike for local transportation and renting a car when traveling out of town. Both he and I now enjoy basic amenities, but I don't own a car any more and have managed financially to have a nice place to live that is paid off. While my retirement is a small pension and social security I live well. I do not have a lot a material possessions (still have my skis and exercise equipment), but am perfectly happy.

May 14 2014 at 4:33 PM Report abuse +1 rate up rate down Reply
1 reply to rexeccoach's comment
gramargo

When all our children were at home, we had a largish house because we also had frequent extra folks visiting. After they all went out on their own, I saw no need for those extra rooms I still had to keep clean, so we moved to a nice apartment. We gave a lot of furniture to the children and sold other things at a garage sale, keeping what we really liked and would use. There were items that we had collected during our years as a military family from the places we had lived in overseas, and those had too many good memories to get rid of. So I've not gone really minimal on that score yet.
We had two cars, one being an SUV we traveled in, and the other a smallish "around town" vehicle. My husband's health failed and we got an electric scooter, which I use now to go grocery shopping in nice weather rather than driving the short distance to the store......unless I'm getting a lot of larger or heavier stuff. In comparison to the way we used to live, I guess I have gone pretty minimal. I don't spend anything on non-essentials, however.

May 14 2014 at 7:16 PM Report abuse rate up rate down Reply
mountainlora

How can he even HAVE a water bill or electric bill if he is on a trailer? You can't hook up to water, not to mention sewer. No one has ever explained this to me. They must be reliant on someone else's utilities, even if they pay them back. Especially the bathroom part.

May 14 2014 at 3:04 PM Report abuse -1 rate up rate down Reply
1 reply to mountainlora's comment
gramargo

We used to have a very small travel trailer, and could hook up to both water and electric service in most campgrounds, other than remote ones. We could also hook up to a sewer outlet, or drain our tanks into the one at the campground. We usually used the bathroom facilities, since it was included in our payment, but we did have a very small bathroom in the trailer.
I'm not sure how that would work out if you "camped" in someone's yard, and I wonder what sort of regulations there are about having a trailer (which this little house actually is) on your property year round with someone living in it.

May 14 2014 at 7:09 PM Report abuse rate up rate down Reply
unitedpaintings

He could save even more if he only showered once a month, also recycle his toilet paper for reuse.

May 14 2014 at 2:35 PM Report abuse +2 rate up rate down Reply
jim.lapt

My hubby is going to buy us a cute little house like that one. We were looking for new ones at home depot.
He's a pilot.

May 14 2014 at 2:15 PM Report abuse +1 rate up rate down Reply
crimeslawyer

These types are traditionally called cheapskates. Every generation has them. Just don't marry one. Life is here to be enjoyed. These people are just exhibiting another form of neurosis. They have to be terribly insecure.

May 14 2014 at 12:04 PM Report abuse -4 rate up rate down Reply
1 reply to crimeslawyer's comment
impactvqi

yes rake up as much debt that you can then skip out on them, that's the american way

May 14 2014 at 1:55 PM Report abuse +1 rate up rate down Reply
sojourner1208

He could have just bought a used travel trailer from an older , non smokeras I did for much less than he paid to build that little house. You really can't spend much money on things since you don't have room for them and as the other person said if I buy more clothes I have to first decide what I am going to get rid of to make room.

May 14 2014 at 10:56 AM Report abuse +2 rate up rate down Reply