One major goal when working to achieve financial independence is to save and invest 50% of your income while living off of the other 50%. However, in the US, most people spend 50% of their income on housing and cars alone! How on earth are you supposed to save 50% of your income and keep a roof over your head?
Let me tell you a little personal story. Just two short years ago, my husband and I were working full time and making a combined income of just over $100k. To us, that was an insane amount of money! We became super frustrated very soon because we still felt as though we weren’t able to make progress paying down our debt. After taxes, $1200/month in rent for a 2-bedroom apartment, utilities, a car payment, renters insurance and car insurance for two vehicles, gas, vehicle maintenance, daycare for two kids, huge insurance premiums and deductibles, tithing, and basic living expenses, we were still super tight on our budget. We could barely afford the minimum payments!
Today, my husband is working in a similar position in IT but for a nonprofit organization. His salary is $26k/year, and I stay home the majority of the time. I have started working seasonally part-time in the mornings before the kids wake up for the same organization, and I will make a maximum of $500/month while the position is available. Since June, we have been able to pay down just under $8,000 in debt. That’s $6,700 more than the minimum payments! How are we able to have so much more margin in our budget now with an extra kid than when we were making $100,000 a year?!?
There are several components to that answer, but the most major one is free, and tax-free, housing! We have a very comfortable 3-bedroom, 2-bathroom home with two living spaces and a schoolroom provided to us with all utilities, internet, and repairs included. The company he works for values the residential portion of his package at $27,000/year. Tax FREE. In my opinion, this is a huge FI hack for the low-income, nonprofit-career community.
Not only are the home savings huge, but we also are saving thousands a year in transportation. When you live onsite at your work, your commute is neither nonexistent or minimal. We have been able to become a single car family because we are comfortable knowing that Mr. Sim can bike, walk, or hitch a ride to wherever he needs to be if I need to take the kids into town for therapy, doctors appointments, or dance class. Our insurance is only $440/biannually for our van, and our gas costs have dropped dramatically. Maintenance is much less of an expense because we are putting less wear and tear on our van.
I know, I know. This sounds wonderful in theory, but where do you find these jobs? I’m so glad you asked! Here is a compilation of 5 places to look for work for in order to access this incredible benefit.
1. Children’s Homes
This was the second place where we were introduced to free housing. We worked first as respite houseparents and then as primary houseparents. We essentially became either “aunt and uncle” then “mom and dad” to youth and children who needed an alternative living and school solution. We had up to 10 children in our home at a time, providing for their needs and giving guidance. It was a very intense position. The hours were around the clock for all but 4-5 days of the month. But we were able to work side-by-side and really make a difference in the lives of the kids we loved. Additionally, other staff like teachers, administrators, maintenance technicians, and social workers also received free housing as part of their compensation. There are many children’s homes of various varieties all around the country.
2. Camps
There are dozens of camps in the US that also are in need of full-time staff who are willing to live on-site. While there are some incredibly fun careers as camp directors, activity coordinators, and wilderness guides, there are also the more traditional careers available like IT, accounting, maintenance, guest services, and housekeeping. You are also likely to get cool benefits like free camp experiences, living in a gorgeous location, and some really unique stories of bears hanging out in trees above your head while eating your burger by the lake.
3. Property Management/Caretaking
There are thousands of positions in the US that provide free housing for those willing to live at a property that they care for or manage. For example, we used to work part-time for a company that sought to increase resident retention in mega-apartment complexes. To do so, we would conduct welcome visits for all new residents, renewal visits for residents who had a lease coming to an end, and hosted three community events every month. In return, we were received our rent for free. There are also those who live at a large estate and provide maintenance and housekeeping for the owners year-round. So many variations for this position!
4. Clergy
It used to be that a clergyman could expect to reside in a parsonage with his family as part of his benefits package. While these positions are becoming less common and harder to come by, they do still exist! If you are willing to live in a more established, smaller community, you will be more likely to find a parsonage available to you as a clergyman. If one is not available, it is still common for clergymen to receive a housing allowance.
5. Nanny or Caregiver
While these positions aren’t great for people with spouses or families, they can be great for single individuals looking for a job that provides free housing! In many areas, families are happy to provide nannies or medical/senior caregivers room and board as part of their compensation package. It’s convenient for them to have someone immediately available for assistance, and it’s a convenient set-up for the provider!
While we’ve only worked in 3 of the above options, I can vouch for how incredible of a benefit free housing, and potentially even free food, can be when you are trying to cut expenses and increase your savings rate. There are obviously dozens of other alternatives, and they’re also very valuable. It’s ok to be creative! It’s ok to disagree with the cultural norm that tells you that you need to buy a house to be a successful adult. Living in “alternative” housing situations can open up your eyes to other ways to be more creative and cost-efficient. Use that creativity to push yourself to FI!
