Many of us dream of the day we can sell our big house, move to a warmer climate and cut expenses to make our nest last longer.

It’s a great idea, with lots of benefits beyond the obvious ones: less time spent cleaning and maintaining the big money pit.

[ad#Google Adsense 336×280-IA]Well, some folks have taken that idea to a new extreme.

Enter the 150-square-foot “mini-house” or “mini-apartment.”

Yes, that’s 150 square feet, not yards.

And tiny-house enthusiasts reportedly love the simplified lifestyle.

Tiny houses have traditionally been the choice of Gen Xers living in the Pacific Northwest and the Carolinas. They buy them because they’re looking to simplify their lives and reduce their footprints.

But an increasing number of retirees seeking freedom from the labor, costs and maintenance a traditional home requires are choosing tiny houses, too.

A reduced cost of living is the primary driver for most retirees making this choice. They’re putting their financial priorities in order and thinking harder about how they want to spend their money.

Big tax bills, maintenance costs and repairs can really cut into your travel and entertainment budgets.

And when you consider that almost 60% of workers have less than $100,000 saved, and 24% have less than $1,000 saved, they’ll need to prepare for some serious cost-cutting in their golden years.

Of course, as you probably assumed, lifestyle changes are required if you are to make a tiny home work. There won’t be any more trips to Sam’s Club for a year’s worth of toilet paper… and definitely no space for oversized wardrobes.

The minimalist lifestyle can also curb impulse buying, which is a big positive! If there’s no room for it, there’s no excuse to buy it.

But the most novel reason to make a downsize move is for something called a “Granny cottage.”

A Granny cottage is a tiny house planted in the backyard of one of your children’s big homes. They’re perfect for folks who want to be closer to their families… really close!

But be sure to talk this option over with both your child and his or her spouse before you make any decisions. These could also easily be renamed “divorce cottages,” too.

The costs of these beauties range from as little as $10,000 to $100,000, which is a steal compared to $200,000 for the average home. And the possibilities of locations are endless.

So if your retirement plan includes downsizing – to hopefully spend your money on something other than the upkeep of a home – take a look at tiny homes.

You can’t argue with the costs, and the pared-down, simplified lifestyle could be tremendously liberating.

Good investing,

Steve

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Source: Wealthy Retirement