I Have A Plan!

Posted August 10th, 2009 by Lelly and filed in Issue 11: Obstacles and Solutions
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Alright, I’m just gonna lay it on ya.  All of this is kinda ties together so please bear with me.

Currently my house in is a state of repair.  OK!  So it’s been that way since I moved in.  It wasn’t really a handyman’s special or anything and I loved it when I first moved in but the longer I live here, the more I believe that whoever designed my house needs to be shot.  Or at least be forced to take a design class before he or she wreaks any more havoc on anyone else’s home.  Let the remodeling begin!  (Please ignore the mess and the dust)new kitchen doorway

Because of the recent downturn in the construction industry half of my household income has disappeared, which means that all of my money has been tied up in my mortgage payment.  It also means that the remodel project that never ends is at a complete standstill.  I never had a whole lot of money to begin with and almost none for myself but at least the remodel was moving forward.

Those are the biggest hurdles that I am facing at this very moment in time.  But I have a plan!

My plan is to refinance my mortgage to lower my payment.  It’s going to be great!  In my mind it’s already happened and I’ve talked to my mortgage company and they’ll be able to do it.  Now it’s up to me to get my buns in gear and get the paperwork finished.

My next move will be to get the remodel show back on the road.  I’ve only got to finish my bathroom, (which is no small feat but it’ll be fun), painting, trim, and flooring.  Then on to the the next phase.

In order to lower my income obligations a little more, I plan to add a carport and rent out my “big” house for whatever my new mortgage payment is and then I’m going to turn my garage into a 400 sq ft house.   It’ll be adorable when it’s finished!  Plus, so I don’t get pinched by the man, I’m going to leave the front looking like a garage and add parking in the back.  I know it’s even more cash stuffed into an already overly expensive house, but I figure living in a converted garage apartment will ready me to move into a 140 sq ft tiny house!  Plus, when I do move into my tiny house, I can also rent out the garage apartment to make a little extra income!garage house

The only other hurdle I can see in my future after that is which model tiny house to build, and how I’ll support myself on the road.  But we’ll cross that bridge when we come to it!

Overcoming Obstacles, Past and Future

The subject of this issue of Small Living Journal was actually my suggestion. I thought it would be useful to hear how people have solved, and plan to solve, past and future challenges. Here are some example of common obstacles and my solutions.

Past & Current Obstacles

Debt Reduction

After watching the equity in my home evaporate I began to think very differently about money. I decided that for me, debt is to be avoided at all costs because the risk it too high. For example if I were to loose my job I would put my family in a very difficult position.

I’ve made some immediate changes in spending and have chosen to eliminate every unneeded expense. Living frugally immediately puts money back in my pocket and gives back some of the freedom lost by taking on debt.

When the housing market recovers we’ll be able to move on and into a smaller less expensive home on a larger piece of land. Once we’ve landed my financial focus will be becoming debt free.

Income Growth

I have a simple plan to create multiple revenue streams by leveraging my knowledge and skills. Most of us make money by selling our time to an employer. We make more money over time as our skills and knowledge improve, advancing as our contributions increase. The problem with this is that we’re reliant on someone else to support us and if that company should fail we go down with the ship.

There is another option that everyone can capitalize on immediately, and that’s banking your knowledge. To some degree everyone is an expect in something and when you take the time to record that expertise on a blog, book, recording, video, etc, you are banking your knowledge.

I’ve chosen to blog about my passion for tiny house design and have a couple book ideas in the works. Each one of these efforts becomes a small self-sustaining revenue stream. They don’t have to be large, they just have to be plentiful and require little effort to maintain. Blogging does require a lot of time and energy but I love to do it so I’d actually say the effort is low. In other words I’ve taken something I love doing and turned it into a revenue stream.

My long term plan is to create enough small streams to help eliminate debt and give me back more and more of my time. It’s a slow process but can work if you can maintain that entrepreneurial spirit.

More time with my Family

In 2006 Julia and I adopted our daughter Katie. As every parent can attest, having a new baby is life altering. The job I had at the time was a 100-mile commute away. I took the bus mostly and then the train when the bus route got canceled.

After Katie was born I began to make the trip to San Francisco by car because it was faster and gave me back about 2 hours a day with my family. But this was still not enough, I wanted more.

One day a job opportunity presented itself and a few months later I had switched positions and was working from home full time. Working from home has saved me so much time commuting and I can even have lunch with my wife and daughter.

Not every profession is as accommodating to working from home as mine. It’s also very hard to imagine working from home if you’ve always worked outside the home. But I think if you use your creativity and do some research you might be able to find a niche that fits your skill-set. My only warning is to look for real jobs and avoid anything that looks like a scheme.

Future Obstacles

Peak Oil Transition

I realize this is a loaded topic so forgive me for blurting it out like this, but hang in there with me for a few minutes.

At some point in the future the demand for oil will exceed supply. This will be due to increasing demand and fewer sources of oil. It’s clear that business and government are focused on the problem and are injecting more resources into finding a way to curtail demand, like using energy more efficiently, and diversify energy production by exploring coal, new oil exploration, tar sands, solar, wind, nuclear, etc.

In my humble opinion, all of this momentum has created a peak plateau and I’m certain it’s all in an effort to make a smooth transition to a new alternate energy source world. Some see our future powered by coal, nuclear, and natural gas; others see a wind, solar, hydro world… but they are all united in finding a way to make the transition smooth to keep human civilization strong.

Here’s a list of things I’m doing and plan to do. Ironically no matter what your predictions are for the future, none these choices can hurt.

  • Eliminate all debt.
  • Move to a temperate climate with adequate rainfall.
  • Become less dependent on an income by building a sustainable and self-reliant lifestyle and multiple small revenue streams that could theoretically survive a deeper economy downturn.
  • Move toward a sustainable lifestyle and live in balance with nature.
  • Buy only things I’d be happy keeping for a lifetime.
  • Buy only electronic devices that can run on 12VDC.
  • Invest in alternative energy equipment like photovoltaic solar panels, batteries, and wind turbines.

Life, Liberty, Happiness

While peak oil concerns have acted in part as a catalyst for my interest in simple living, downsizing, sustainability, and self-reliance; I think it’s really the desire to live a happy and free life that is my primary motivator, as it should be.

This is also something I think every human around the planet can relate to, we all ultimately want to be happy and freedom is a prerequisite. It seems many of us have strayed from that goal by giving into short-term perks powered by borrowed money and a society that seems to require the sale of our time, aka, a job.

Ironically the solution to this obstacle has been staring at us through the pages of history. Species that survive are those that are in balance with their surroundings. We are an incredibly resourceful animal. I’m certain that if we choose to solve this puzzle and take into account the need to be in balance with our natural surroundings we will prosper, be happy, and free. I suspect if we choose to use up our natural surroundings we will ultimately fail because we’ll be so far out on a limb when the branch finally decides we’ve gotten too heavy to hold.

So I’m choosing to get off the limb and climb down the tree. I certain I can find a way to live free and be happy by choosing to use my clever human ingenuity to architect a sustainable future for myself and family. I figure the more of us that put our focus on what truly sustains life the better our chances will be for a long and fruitful civilization. The first step is it to move our focus off the noise around us and redirect it on the things that keep us in balance with the life around us.

I invite you to follow me on Twitter, and visit my design blog, Tiny House Design.