Everyone in the tiny house industry is rooting for all of you, and striving to provide financing for your tiny house. Unfortunately so far, for many reasons, it hasn’t become available on a wide scale as yet. But there are many people diligently working on it.

So, if not through financing, how do you find the money to build your tiny house?

I would like to suggest some ideas that might help:

• Some may have the option of borrowing from a family member or friend. In this situation, you can provide an iron-clad document promising to repay and, of course, offer to pay a decent amount of interest, making it a win\win for the person lending and the borrower. When I was 16 and wanted to buy my first car, my father took out a loan for me at the credit union where he worked. I had a part-time job and faithfully paid it back each month. When I was ready to get married and my future husband and I wanted to build a house, my father again took out a loan so we could buy the property. Of course, I already had a good reputation with my father for paying off the previous loan. So this idea could be used to make small steps to show you are worthy of this kind of help.
• Keep in mind that if you are going to be saving money by living in a tiny house, compared to a costly rental or high mortgage for a big house, it might be worth it to you to use a high interest credit card. If you don’t have a credit card, you still might be able to work with someone else who is willing to let you use their card and their good credit. It is a win/win for both parties, as long as you are honest and reliable. By repaying your loan on time, it continues to raise the other person’s credit score.

But…what if none of this is available to you? There are other ways to make your dream happen.

Let’s look at a few:

• You can raise some money by actually downsizing now. Once you come to realize you don’t use or need and, for sure, won’t be taking into your tiny lifestyle, all the stuff you’ve been accumulating over the years, SELL IT!. Do this as fast as you reasonably can, because the sooner you get this done, the sooner you can start living tiny. Now, I realize this downsizing process doesn’t allow you to accumulate enough money to start your build, but it can allow you to live in a smaller space, an efficiency or a studio apartment, and that can save you money towards your build. Depending what area you live in, most of these small quarters are available for less money and usually include the costly electric, water, cable and wifi. And speaking of location, you may consider renting in a neighborhood that is not in high demand so you can save money. I am not talking about a run down or bad neighborhood, but I am talking about the neighborhood that is further from the beach, for instance, which, of course, would cost more.
• Another possibility is a ‘room share’, renting a room in someone’s home. Rooms are usually a decent size to allow you to bring your most important things. This will allow you to get a good feel for living small.
• If you are living in your own bigger house, you could rent out a bedroom and put that money aside towards your own tiny house. You don’t have to allow the renter to use the whole house so you have to interact with them. Most of these renters are very happy to have some cabinet space and a shelf in the refrigerator so they can use the kitchen and bring their meal to their bedroom. You can provide a nice table and chair, possibly along with a TV, for their use. However, keep in mind that you are still paying the high mortgage or rent, higher utilities, and maintenance upkeep, if you continue to live in that bigger home.

Okay, we have some good ideas to help you save towards your future and your own tiny house. Now that you have ideas for resources to start building, what are some other ways you can save money on the process?

1. Decide on your budget.
2. Instead of granite counters and expensive hard wood floors, could you install a formica counter and use the look-alike flooring that wears well and looks a lot like wood? As money will allow, you can always do those upgrades later.
3. Look for quality used appliances. I bought my own 10 c.f. refrigerator on craigslist for $40 instead of $400 at Home Depot. And even if you have to pay the $400, it is still better than the specialty appliances that can cost $1200.
4. If you research, you can find some good deals on repurposed building supplies.

Put your thinking cap on and you will see other the ways you can initially save money up front, until you are able to do the upgrades later. Be creative and see how fast you can take the steps to move into your own tiny space. Then enjoy a life of less excess and more time and fun to live a more fulfilled life.