Hello! Here’s an awesome post from my friend Emma. As you know, we recently downsized and we now live in our RV. Life is awesome!
In August 2015, we returned from 15 months of travel through Mexico and Europe with our young son.
We had saved diligently during my pregnancy and used those funds to support 15 months of travel.
Eventually our savings were depleted and we had to return home. Although our savings account had taken a hit, my outlook on life changed completely.
I was hooked on travel and wanted it to be a central part of our everyday life. I set an ambitious goal: chase summer around the world, traveling for months at a time — switching hemispheres, crossing oceans, taking cruise ships, trains, and driving an RV across the US.
Wherever we wanted to go.
I knew this would require big changes. We needed to drastically reduce our expenses and build an online business so we could work on our own terms and earn money no matter where we were. Returning to the workforce would have hurt our retirement savings and meant moving back into a large mortgage that required a steady paycheck. Going back to an office job and putting our son in daycare just to cover a large mortgage felt like the exact opposite of my dream.
Not ready to give up, I kept reflecting on options. The solution arrived while my husband and I discussed our return home over a cafe con leche in Spain. We had assumed we’d move back into the large bungalow we’d left, which had been rented while we traveled and had all our belongings in storage. But after nearly a year living out of suitcases, the thought of unpacking everything felt overwhelming.
We realized we could live more simply; we had been very happy traveling with minimal possessions.
We also owned a smaller, two-bedroom 860 sq/ft townhouse purchased as an investment property. I suggested we move into the smaller place and keep renters in the larger house. After all, our smaller home was still larger than many hotel rooms and vacation rentals we’d stayed in.
After running the numbers, we decided to try living smaller, and it has suited our lifestyle perfectly.
Here’s why:
Drastically reduced expenses
All our major bills have dropped — we now pay a lower mortgage, lower property taxes, and significantly less for utilities.
Combined with rental income from the larger house, this change nets us over $1,000 per month. That means we can cover our lifestyle on my husband’s income while I build our business without immediate pressure to earn right away.
Related: How To Live On One Income
Potential Airbnb income
One strategy to fund our travels is renting our larger house on Airbnb while we’re away.
The older suburban house isn’t as appealing to vacationers as a smaller, well-serviced property close to transit and beaches. The house will need a full renovation — a new kitchen, bathroom, and converting a dining room — to reach vacation-rental standards. The work isn’t urgent; we can postpone it until my business generates more income.
Less time spent cleaning
Trying to build a business with small children around is challenging. I want nap time to be used for working on my business, not cleaning.
Now I can vacuum most of the house from a single outlet and we only have one small bathroom to maintain. Less cleaning time frees up more hours to grow the business. Saving time is as valuable to me as saving money right now.
Forced minimalism
We’ve actively decluttered, keeping only essentials and items that bring joy. It’s ongoing, but our goal is to eventually be able to pack our personal belongings in a day and store them securely so we can travel, leaving just the essentials for Airbnb guests.
I’m committed to donating one bag of items to charity and listing one valuable item for sale online each week. So far I’ve earned over $200 by selling things we no longer need.
Better neighborhood
Smaller homes are often located in denser neighborhoods with better local services — that’s true for us. We bought the smaller property for $30,000 less than the larger suburban home.
Our new neighborhood offers easy access to amenities and is an employment center with manufacturing and services nearby. We have everything within walking distance — supermarket, playground, preschool — which reduces gas and car costs and improves our overall health because we walk more.
No long commute
We focused our job search on the surrounding area and my husband found a position a ten-minute bike ride away.
He gets home sooner, which gives me more time to work while he watches the kids. Staying a one-car family also helps keep expenses down.
Our dream life is now within reach
I dream of chasing the sun around the world, traveling internationally for at least three months each year.
For two adults and two children, we estimate a travel fund of about $15,000 per year. To achieve this we need a location-independent business and for our home to generate income while we travel.
By downsizing and cutting expenses, we’ve aligned our finances with our dreams. I’m excited to put this plan into action and hopeful that a lifetime of travel will be worth the trade-off of sharing our single bathroom with three boys for the next 18 years.
Author bio: Emma Healey is a mother of two who writes about living well in small spaces with kids on her blog Little House, Lovely Home.
Are you interested in downsizing? Why or why not? How much could it save you?