With a few exceptions, and very big ones at that, it may be true that a person can live tiny and inexpensively in a moderate house. The exceptions: 1) fixed location, 2) tendency to accumulate stuff to fill the space, 3) tendency to adopt a lifestyle more characteristic of the house than tiny living, 4) if more than one person, really need to be on the same page, 5) having the funds to acquire the land and house without being tied to a mortgage, and 6) probable need for transportation which can be expensive (car or truck, fuel, maintenance, insurance).
The end of 2014 was a good time to run the numbers on our home:
a) 1500 sq ft main level with walkout basement, partially finished; no mortgage
b) situated in a rural area 12 miles from the nearest small town and 40 miles from a small city which includes big box stores
c) real estate taxes and assessments for 2015 projected to be $1504.00
d) septic system and well, therefore no water/sewer expense
e) grid-tied PV which should +/- a bit meet 100% of annual electricity cost
f) heat with wood from the land, little out-of-pocket heating cost (but need equipment to cut wood)
g) homeowners insurance $954
h) house is substantially maintenance free and was re-roofed 2 years ago
i) basic expense total (real estate taxes + insurance) is $205/month
That's the good news. Now the "bad" news:
j) medical insurance and out-of-pocket expenses $10,550
k) land line telephone, internet and mobile phone $2,900
l) groceries $4,960
m) auto gas, maintenance and insurance $8,740
n) misc household, laundry, etc. $3,340
o) clothing, personal $1,650
p) eating out $2,695 (ouch!)
q) total of bad news $2,903/mo
Total of above $37,295 or $3,108/mo (not including income taxes, FICA, medicare).
Other expenses: church, charity, gifts, recreation, travel $ *%&*#.00 (from "necessary" to excess, double ouch).
Observations:
1. Medical insurance/expense is the largest single expense we face, 37% of the total. As the largest single expense category by far, it is clear that medical expenses are the main driver of our lives, and seems perverse to me to live in a country where the need to meet medical expenses dominates life.
2. Auto related expenses are the second largest, 23% of the total. Much of this is the result of the choice to live in the country.
3. Groceries are the third largest, 13% of the total
4. Most expenses are not house related and probably still would exist even if living in a true tiny house. The tiny house is not a ticket for a free ride.
5. No children-related expenses, and these could be very large in a family.
