As a self-proclaimed personal finance enthusiast, people frequently ask me for tips on how to combat debt and pump up anemic bank accounts.
You can strip down my top wealth building secrets to two rules: 1) Stop spending money, and 2) Live lean.
Let me break down my first point into an easy-to-follow, if-then argument. IF you earn money and exercise the fiscal discipline to not buy stuff, THEN your net worth will increase.
Of course, you’re still on the hook for basic necessities. But by sticking to this simple advice, many people can turn their financial situation around overnight.
My second point is a bit more nuanced. Too often, we shackle our earnings to contracts that choke off our ability to amass a fortune. Which brings me to one of the worst offenders to your wallet . . . housing.
From 1975 to 2010, the average size of a new single-family home jumped 45% and 81% in the United States and Canada, respectively.
Where’d this notion come from that human beings “need” ever growing quantities of space? I know we’ve gotten fatter over the years, but not that much fatter (I hope).
At an early age, my mother taught me—perhaps unintentionally—that, given the opportunity, an undisciplined person will fill a container to its capacity.
More than once, my mother duped me into believing she’d bolt in and out of the supermarket for bananas.
As soon as my mom reached for a shopping cart, I knew we’d linger in that horrible place long enough to grab bananas and lettuce and pork chops and aluminum foil and whatever other random item my mother set her sights on.
That’s what I think we do with our living quarters.
Recently, Michael Bloomberg, Mayor of New York, challenged developers to design a 300 square feet, apartment dwelling for the city’s growing population of single, childless inhabitants.
A friend asked me if I could live in a space that small. Well, my current apartment is more than twice the size of one of the proposed “micro-units.” Soooo, yeah.
If downsizing to an apartment that rivaled the size of a luxury doggie hotel afforded me the chance to live in one of the world’s most exciting, culturally interesting cities, then I’d hock half my wares and hunker down in a freakishly tiny, yet fabulous, place.
But even if you opt to live in the ‘burbs, you’re not forced to live in a monstrous size house.
Here’s the quick and dirty guide to making the most of the space you have.
Stop buying stuff.
As I indicated before, you don’t need more room, you need less stuff.
Get rid of stuff.
Don’t waste money organizing and housing junk.
Trash it, donate it, sell it, recycle it, or–dare I even suggest–use it. Consider getting rid of any item you haven’t used within in the last twelve or more months.
I know it’s every packrat’s nightmare to need a product—at any time during the coming decades—that they tossed out during a purging session, but don’t fret. If you realize you truly do need a bread machine, buy one with the money you saved by forgoing a larger home.
If you cluttered your home with tons and tons of crap that you can’t mentally or emotionally bring yourself to prepare for donation, throw it out.
Vertically organize your remaining stuff.
Shelves and clear shoe boxes were a godsend for us noncreative types.
The trick to maximizing your existing space involves arranging your items in such a fashion they go up to the ceiling and down to the floor, instead of out from the wall.
What do you think? Would you live in an abnormally small space to save money?
Shawanda Greene is a free thinking, frugal gal whose only vices are boxed wine, lip balm and money grubbing. You can find more of Shawanda's musings at 
Your post came in extremely timely. I am in the exactly position as you described in the post. I have moved into a 450 sq ft space (to save money and to live in a neighbourhood that is close to everything I need). I am in process of purging my stuff. My intention is to get rid of at least 50% of my stuff and attempt to leave lean from that point onwards.
We’re in the “getting rid of stuff” phase. It feels really good taking some of our old books to the library and tossing clothes that I never wear into the donation bin.
2 places ago was 400 sq ft and I loved it: so easy to keep clean. I think when I’m done with school and move, I’ll return to something similar in size.
My current space is 220 sf, so 300 would suit me just fine. 😉
I’m not sure I could live in a 300 square foot apartment. My current place is a little more than 4 times that size. It would take some getting used to, but I guess it’s all about the layout and design of the place.
That’s one of the reasons I like living in a small apartment. I realize I don’t need that much space to be happy and I don’t feel the urge to fill it with stuff! Plus I have to purge stuff I don’t use or need when things feel a bit crowded in my place. And my BF lived alone in a bachelor that I believe was 250 sq. and it was fine. A bit cramped when I came over but fine for a single person.
Yes, Yes I would because it would do 2 things one it would force my mother and in laws to stop buying so much junk, stuff whatever for my daughter (she unfortunately is the only grandchild for both families so far). The second thing it would do is force my husband to stop buying so much junk, stuff, insert what you want here. No I am not perfect but, I do not buy as much stuff as my husband does on a weekly basis.
I personally am loving the FLYLady she is helping me sooo much. Right now since we still have a lot of our stuff in boxes I am currently trying to get things either put up, donated, or trashed for the living room so that way I can stop living in CHAOS or cant have anyone over syndrome. One great thing she states in her book is that you cant organize clutter in boxes, totes or whatever organization system you find. It is still clutter it is now just wrapped up in a pretty bow so to speak.
This sums up everything about my home-plan. I’m currently saving for a deposit and hope to be purchasing within the next 2 years. I sway between the flashy new build flats which are £120k and the slightly older, fair bit smaller £80k flats. No one ‘needs’ that much space.. the latter of the two will do nicely thanks! 🙂
300 sqft is small but if I was single I could make it work. I’m currently sharing a ~400 sqft apartment with my wife, have been for over a year. Its just too small for too people. We’re moving up soon – to about 500 sqft 😀
Totally agree with you. We moved to the ‘burbs 2 years ago, but choose a small-sized home. I loved the fact that it was detached (after years of living in a semi-detached home that was slightly larger). And while we’re not all that organized you have a good point about getting rid of stuff – our basement is filled with crap – we’ll have so much more space once it’s gone.
I used to organize homes professionally and the CEO of the company said : people aren’t disorganized because they’re messy. No one WANTS to be messy. They just have too much stuff.” Great post!
I was just checking out tiny houses yesterday, and I think they make a lot of sense. There was also a girl living in 89 sqft in NYC and while it did look cozy, I wouldn’t want my life reduced to that little space. I did it when I was a student but I’d like the luxury of being to cook without standing in the shower! Hurray for tiny energy bills and minimalist lifestyle though.