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Money tips and advice for new graduates: From student to homeowner

Tips and advice for college graduates, including home ownership.
Tips and advice for college graduates, including home ownership.
Wikimedia Commons/Kit from Pittsburgh

The first thing some students want to do when they graduate from college is to run out and start living like their parents do once they get their first well-paying job. And to prevent them from making poor money decisions as a result of that desire U.S. News and World Report provided seven money tips for them to follow, according to Yahoo News on April 29, 2014.

Avoid becoming a victim of a rapid lifestyle inflation was one of those tips, and the warning about not taking on too much debt at the beginning of their career was another. The graduates were also advised not to wait when it comes to saving money for their future retirement, even if it will be four decades away, and not to fall into bad spending habits, like those $4 lattes they might want every day.

The other three tips included the need to remember that they aren't done studying, just because they have that degree, and that maintaining their paperwork (check stubs, health insurance forms, tax documents) is critical, as is trying to get a higher salary from your job, if possible.

But what the well-known publication did not tell the recent graduates is that they can start off as a homeowner relatively quickly if they have supportive parents or others who will let them build their new tiny house in their backyard, with their new job earnings.

The tiny house movement is growing with baby boomers, so why not the recently graduated group? It makes sense given the need to live frugally and simply when first starting out on your own in life. And living in a 400-square-foot-sized home, or less, is a great way to do that, since these tiny homes can be built upon trailers, which make them mobile for transplanting to other locations later, where the graduate might one day build a larger home for his family.

Living in a tiny house requires less stuff, so there would be no need to worry about the expense of large-scale furniture, humongous utility bills or even rent expenses, allowing the graduate to pour most of their income into building their own home and buying a future lot of land in which to put it--or helping their parents by paying them for the spot they already have.

Once the degree-obtaining student has become more financially secure, they could always rent or buy or build a bigger home if needed or wanted, with all the money they saved from living in a small home. And their family or friend could use the tiny house they left behind as a guest cottage for visiting family or friends. And if it was built on wheels to the correct specifications, like the one Dee Williams built and talks about in her memoir The Big Tiny, it could be transported to any location in the country, if need be, since it would meet road rules and laws governing such items.

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