On the outside, the family appeared to have everything.

But on the inside, they were feeling increasingly stressed by their finances.

So, the family of four decided to downsize in a major way.

Tiny house

Photo courtesy of Andrew and Gabriella Morrison

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Andrew describes it as an aha moment.

Shed never even heard of tiny houses before.

So naturally, she did a quick internet search.

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It was literally like dominoes, she says.

We went down the rabbit hole and never looked back.

So the family created something they called a 365-day rule.

Each time someone went into a room with a drawer or cabinet, every single item was pulled out.

With each item, they asked, Have we used it in the last year?

If the answer was yes, then they could decide if they wanted to keep it.

If the answer was no, it went in an ever-growing pile in their two-car garage.

After a couple of months, that pile of cast-off items grew about two feet high.

The more we did it, the easier it became and the more excited we got, Gabriella says.

When the pile dwindled to heirlooms and childhood tokens, the family took a breather.

They put them in a small storage box to return to a few years later.

Their inevitable solution for many of those items?

Take photos of them or digitize them.

For example, theyd transfer old photos to CDs and take photos of old trophies.

In the end, the family rid themselves of about 80% of their belongings.

The couple continued to operate their business,Straw Bale, which focuses on homes made of straw bales.

However, it wasnt all frolicking in the Sea of Cortez (though that did happen a lot).

Gabriella remembers being shocked and disturbed during that first month in the camper.

Then, for our daughter, it was with the social media channels.

They start pretty young these days.

At one point, the trio was so uncomfortable, they almost packed up and returned home.

He was able to see the incredible paradise we were living in and the incredible opportunity before us.

Gabriella and her daughter soon followed.

Today, the Morrisons consider it the best experience theyve ever had.

Although the ZIP code was expensive, the family resolved to stay where theyd already established a life.

But the couple wasnt willing to go into debt.

During that time, which ultimately lasted two years, they rented the smallest house they could find.

Even then, the space wasnt small enough.

Andrew and Gabriella settled into the walk-in closet about the size of a queen mattress.

It was our bedroom, it was our library, it was our hanging clothes closet, Andrew says.

But even that was too big.

We couldnt find anything small enough for us.

Gabriella chimes in: We werent comfortable being in a big space [anymore].

There was even a creek cutting through the property.

But it was cold.

We didnt have any running water.

It was definitely a mistake.

How Much Money Can You Save Living in a Tiny House?

Theyre no longer financially stressed.

Utilities have been slashed, too.

Heating a 207-square-foot home is a lot less expensive than a 2,200-square-foot home.

Their monthly bills have been shaved down to internet, phone and garbage.

They pay their propane heating bill twice a year.

Theyve also noticed a difference in their grocery bill.

By American standards, their refrigerator is about half the size of a normal one.

Andrew and Gabriella have also become more aware of their spending habits.

Neither was ever a shopaholic, but impulse buying definitely happened.

Now, they just dont have room for it.

Thats $3,600 a year at least, Gabriella emphasizes.

Then we would have been sitting on a half-million dollar housing payment for the next 30 years.

Instead of paying off debt, the power couple built a business from their passion:Tiny House Build.

Carson Kohler (@CarsonKohler) is a staff writer at The Penny Hoarder.

(Can you sense my millennial sarcasm there?)

You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…