When you are getting serious about paying off debt (which we are, in case you’re new here), you are willing to make sacrifices that you otherwise wouldn’t make. What each individual or family is willing to give up is different. That is fine! Some of the ideas I’m going to share may sound a little crazy, but hear me out, okay?
What is your biggest monthly expense? For most people, the mortgage payment or rent is the biggest check they write each month. Housing costs take a large chunk of income, yet they aren’t always on the radar when we’re looking for ways to save money.
Here are some ideas to get you thinking about how you could save money by thinking outside the box (or should I say” house”?) when it comes to your living arrangements.
Live with relatives
My husband and I both prided ourselves in the plan that we’d never live with our parents once we were “grown up.” Well, pride really does come before the fall! When we decided to make some audacious financial goals guess where we ended up? We (or at least “I”) laugh at ourselves now, two years into living in my in-laws’ basement with our three little ones. Our pride has morphed into humility and gratitude.
If you have a relative that has extra space, you could ask about the possibility of renting from them or living with them free-of-charge. Tell them your goals and reason for wanting to save money on your housing costs. It may feel a little awkward, but at worst they say ‘no’ and at best you’re saving thousands of dollars a year!
Some things you will want to consider and discuss before deciding to live with relatives:
- Price– Be willing to pay something, yet humble enough to accept whatever help they can give. Would utilities be included? Could you barter or work for part of your rent?
- Privacy– How much do you need? How much do they need? What about shared spaces?
- Length of stay– What’s the time frame? Setting a goal date to be out will probably help both parties.
- House rules– Be extra considerate of your relative’s rules. Remember you are their guest and they are doing you a huge favor.
- Chores or other contributions– Could you offer to keep the yard up, babysit children, make dinner or do regular cleaning to make yourself an asset to your relative? This is especially important if you’re living rent-free.
Share Your Space
Do you have a room that you could rent out to a relative or friend? Having someone else contribute to your monthly housing costs is a great way to keep costs down. Look around and see what the going rate is for a bedroom or basement apartment. To find a renter, start with the people you know: family, friends, church members, work associates, and neighbors and have them spread the word. You’ll want to be sure to address the list of considerations above. Be sure to have the arrangement in writing and signed, even (and especially) if it’s with family or friends.
Another great way to share your space is renting it out to strangers. Have you heard of Airbnb? Their popularity has become serious competition for the hotel industry. You can rent out your room (or house) to travelers for any length of time. You set the cost, minimum and maximum length of stay, and choose the amenities you’ll offer. To get an idea of what others are offering, browse your area (or somewhere you want to travel). You will get a $25 travel credit in your account when you sign up through my link.
Be a Caretaker
When I was in college, the university newspaper often had ads looking for students to help with a disabled person (some college-age, some elderly) in exchange for free rent. My good friend and her husband (and later their kids) lived with an older gentleman who was pretty self-sufficient, but his grown children who lived out-of-state wanted someone to be in the house with him. He enjoyed the company and being able to live out his last years in the comfort of his own home. My friend and her family loved the experience, which helped them out financially while he was attending law school.
Besides taking care of people in exchange for rent, you can find opportunities to take care of houses or facilities in exchange for housing. Older couples may be leaving their home for years at a time to serve as missionaries or take a foreign sabbatical. They will want responsible people to take care of their home while they are away, which often translates into free or reduced rent in exchange for house-sitting.
Get Creative!
Maybe you’ve heard about the guy who lived in a van 
My blog friend Sarah lives with her husband and 3 children (and one on the way) in a bus on their property while they work to start building a house there. They face some interesting challenges and make some definite sacrifices, but they do so with grace and humor. Sarah documents her family’s adventures on her blog Little Bus on the Prairie.
When my in-laws were building their house (the one whose basement we call home), they lived in a pink trailer on their property. They started out with 3 kids and moved into the real house when number 6 was born. My mother-in-law recalls it being lots of work, but my husband only remembers the fun adventures he had playing outside all day.
It Takes a Special Person
Alternative housing arrangements definitely aren’t for everyone, but they may be worth considering depending on your situation. Sometimes desperate times call for desperate measures. While I don’t expect you to go scour craigslist for a van or bus to start calling home, I hope you can start thinking outside of the box when it comes to reducing those big expenses in your budget.
What do you think?
- Would you consider any unconventional living arrangements to save money?
- Do you have (or have you had) an out-of-the-box housing situation? How did it go?
- What other alternative housing arrangements have you heard of?
You’ll Also Enjoy:
We lived in a travel trailer for 2 years while my husband when to aviation mechanic school. At the time it was my husband and me and our daughter.
You can read more about it here: http://purposelyfrugal.com/category/small-space-living/#.U-aKBeNdWSo
That’s awesome Katy! Thanks for sharing. After a peek at your blog, I see you’ve lived in several unconventional living situations. It’s amazing what you can adapt to when you have a greater purpose in mind!
I always shared apartments in my 20s and early 30s, except for a three-year period when I had a studio. My wackiest living arrangement in NY was definitely when I moved into a spare room in a convent for a few months; I paid them $400 a month (dirt cheap for NY) and lived with three elderly nuns and about ten other women who were residents. I also shared a loft with a 70-year-old artist and racks and racks of her paintings; it had no insulation so it was too hot all summer and too cold all winter, but it was a cool place.
Right now, having finally moved out of NY, I’m still sharing space to save money; I’m splitting the mortgage/insurance/etc with a friend who owns a house, and paying her $300 a month (housing is way cheap here.) It’s only for a year so we figured we’d be ok, even though it’s not an ideal house for sharing (little privacy and a tiny kitchen.) I would be in a much tighter spot without the money I’m saving by doing this though.
You have had some interesting living arrangements for sure! That’s great that you can be so flexible. I’m sure you have some fun stories from all your adventures!
I live with strangers I met through Craigslist! I pay $300/month. But it’s fantastic! Great house and normal people!!!
A wonderful success story for you and them! Thanks for sharing!
When I was traveling a lot for my job, I was used to living in a one room hotel room. I liked the fact that I could keep it tidy and of course daily housekeeping was a bonus. This, and the fact that I spend a lot of my ‘at home’ time in my bedroom, make me realize that I could be very happy living in a tiny little space. Less room to store junk and easier to keep clean. If I need to get rid of that cooped up feeling, I prefer to go out of doors. So I personally look forward to downsizing. My husband, not so much.
There can definitely be some pluses to living in smaller spaces!
My husband and I along with our 2 kids live with our relatives. We were able to save a lot of money but privacy is PRICELESS although bills/utilities/mortgage are shared by everyone, so that’s a good thing I guess right?
You’re right! Privacy is priceless. Privacy isn’t a huge issue for us in our current situation. Since we have our own kitchen, bathroom, and living area, as well as a private entrance, we have a comfortable amount of privacy.
I’ve never really needed to have unconventional living arrangements, but both of my siblings came back and lived with my parents for a time as adults. It’s nice to know that the door is always open within reasonable limits. Though I am quite interested in the Little Bus on the Prairie blog!
My siblings lived with in-laws as well at some point, but we always said that we wouldn’t be doing something like that! Ha ha! 🙂
Way back when …. in 1991 … at the age of 21 … I was ready to go on my own. I didn’t like the idea of throwing away money on rent so saved enough for a down payment on a duplex. I lived in half and rented the other. All but about $200. of the mortgage was covered by the incoming rent. I lived without furniture for a while and had fun slowly building a home. I wouldn’t consider this ‘roughing it’ but I was fairly creative in my housing situation;0)
That’s awesome that you bought a duplex so young and slowly built a home! Definitely creative and entrepreneurial!
My husband and I, along with our 4 young adult children, co-share a 5 unit apt house. We bought it, and each of the 4 kids have taken an apt, with us taking the 5th unit. Everyone pays towards the taxes, property insurance, utilities and repairs/maintenance. In due time, when the mortgage is paid off, they will each receive their names on the deed.
When we travel, we house sit for others. They are strangers, not people we know.We look after their home and pets while they are away, in exchange for accommodation. The house sits last anywhere from a few days to 5 months, so far.
What an interesting situation Karthryn! I’m glad it’s working out so well for you guys!
That’s nice that you can house sit or pet sit when you travel! That sounds like a win-win situation!
When my husband and I were first together we had a roommate. Out rent was right at $1000 for a two bedroom/ 1 bathroom (about $800sqft). We charged her $400 for the room because we had the master suite, and she was in college. I can honestly say that I will never do that specific situation again. She was a really good roommate, and in general aware of house rules. BUT, the loss of space in an already small apartment was hard for money saving strategies. Also, when the hubs and I wanted free time we almost had to spend money (even if only gas) to NOT be around someone.
Now on the other hand if I had a finished basement or MIL suite I would ABSOLUTELY rent it out. I think that my situation was unsuccessful because we were always tripping over each other’s feet.
That can be hard having shared living space, especially when you were first together. I know our situation would be a lot harder if we didn’t have our own space and privacy.
I actually switched to a roommate living situation for a year when I was in the midst of paying off debt. It was difficult for me at first but it was a really good financial decision that helped to speed up my debt repayment.
I’m glad that it worked out for you Kassandra. Knowing that it’s a situation for a limited time helps.
Thanks for the link, friend!
This is so true – I’ve seen people do some pretty extreme things to save money, but the thought of changing their housing arrangement has never occurred to them. Great ideas!
My pleasure Sarah! You have a neat story!