Family of Four Builds 168 SF Home as a Drastic Move to Save Money

Families Discover Creative Ways to Save Big Money

April 9, 2012

Anderson Cooper - After losing their business to the recession, Carl and Hari decided to make a drastic move... out of their 3-bedroom home, and into what they call their "Tiny House" -- a 168-sq. ft. home.

Moving their family from a 1,500-sq. ft. home to such a small space was a major downsize, but one reaping big savings. Their space is small and insulated, resulting in an electric bill of around $40 a month. They have also been able to bank Hari’s entire salary each month. Their “Tiny House” is part of their bigger plan to build a mortgage-free home. That home will still be small, but Hari says it will be large enough to at least find space to be alone (and perhaps add a bathtub).

How did the couple build their "Tiny House" for so little? Carl says they scoured Craigslist for materials, using many donations and secondhand items from friends.

After the holiday season, has your family tried to cut back on spending? The Dunning Family created an ultimate challenge for themselves and decided as a family, not to spend a dollar for the entire month of February.

The family bought about $400 worth of food for the month, plus whatever was found in the back of their pantry and refrigerator, and managed to feed their family of six all month long. Twenty-nine days of the month, divided by 6 people, equals about 70 cents per meal.

Since February, has the Dunning Family been able to keep their spending down? They say they have, and now spend about 20% of what they used to spend. Take a look at their trick for spending less money on milk...