Hey Hotsuto,

Welcome to Day 3 of our journey through the dark side of the tiny house movement! Today, we're talking money – specifically, how tiny homes aren't as tiny on the wallet as they used to be.

But first, has the rising cost of, well, everything got you reconsidering your tiny house dreams?

You're not alone. Let's dive into the financial realities of modern tiny living...

The Dark Side of Tiny Houses: Ballooning Budgets

Remember how Bryce mentioned that tiny homes aren't as cheap as they used to be? Well, he's not kidding. Let me take you on a quick trip down memory lane.

The Humble Beginnings: Jay Shafer, the granddaddy of the tiny house movement, built his first tiny house for about $5,000 back in the late '90s. It was a mere 8' x 12' and sparked a revolution.

Fast Forward to Today:

• Many tiny houses have practically doubled in size
• They're often built on massive gooseneck trailers with triple axles
• More space = more stuff = more money

Here's the kicker: while still cheaper than building a new traditional home, in some places you can buy an existing house for the same price as a new tiny home. Talk about a plot twist!

But don't despair! I've got some real-world stories of folks who've managed to keep costs down.

Carina's Creative Cost-Cutting: Carina Gibson, a multidisciplinary artist, built her first tiny house in 2019 with:

• No prior building experience
• A budget of around $20,000
• Lots of salvaged materials and DIY spirit

Her secret? Patience, creativity, and a willingness to learn on the job.

Further Listening: DIY Building a Beautiful Tiny House for $20k with Carina Gibson

Jay's Ultra-Light, Ultra-Cheap Design: Jay Shafer, not content with resting on his laurels, recently built a new tiny house:

• Just 50 square feet (7' x 8')
• Cost only $5,000 in new materials ($3,000 for Jay with salvaged materials)
• Weighs less than 2,000 pounds

Jay's approach? Advanced framing techniques, exterior insulation to minimize thermal bridging, and ruthless efficiency in design.

Here's my take: While it's true that tiny house costs have risen dramatically, there's still room for the DIY spirit that launched this movement. Financial savvy and sweat equity are more crucial than ever in the tiny house world.

Further Listening: The Past, Present and Future of Tiny Homes with Jay Shafer​

Financial Planning for Tiny Living

While we're on the topic of money, let's talk about the financial side of tiny living. I recently spoke with Laura Lynch, a certified financial planner who specializes in tiny house finances. Here are some key takeaways:

1. Upfront Costs: Tiny houses often require significant upfront money before you can sell your current home. Planning for this transition is crucial.
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2. Sweat Equity: Laura emphasizes that doing work yourself is still the best way to save money on your tiny house build. However, it's a trade-off between time and money.
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3. Long-term Perspective: Think beyond just the build. Consider factors like:
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   • Parking fees (which are rising in popular areas)
   • Maintenance costs
   • Potential need for community support as you age
4. Creative Funding: Laura suggests exploring options like family support or reprioritizing your current spending to save for your tiny house dream.
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5. Aligning with Values: Remember, the financial benefits of tiny living go beyond just saving money. It's about creating a lifestyle that aligns with your values and priorities.

Laura's bottom line? Going tiny can be a path to financial freedom, but it requires careful planning and a clear understanding of your goals.

Further Listening: Creating Financial Security in a Tiny House: Insights from a Certified Financial Planner​

So, here's what I want to know:

• Have you been shocked by tiny house price tags recently?
• What creative ways have you found to save on your tiny house journey?
• Is the increasing cost changing your tiny house dreams?

Hit reply and share your thoughts. Your money-saving tips could be gold for a fellow tiny-dreamer on a budget.

Remember, exposing these rising costs isn't about bursting bubbles. It's about helping all of us plan smarter and build better – without breaking the bank.

Until next week, keep dreaming big, living tiny, and watching those pennies!

Ethan

P.S. Missed the first two emails? Catch up on day 1 and day 2. Monday, we'll tackle the 'forced downsizing' dilemma!

Until next time,

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