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We all have dreams and hopes for how our lives will turn out, but how many of us can turn on a dime and completely reinvent our lives when those dreams don’t work out? A family of four did just that, going from a traditional home to a tiny 320 square foot home they built themselves.

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Hari, Karl, and their son and daughter – now known as The Tiny House Family – knew they had to start saving money when their restaurant was forced to close due to a sluggish economy. They wanted to live mortgage-free and on their own terms, so they bought a small plot of land in the Blue Ridge Mountains and began building their tiny home.

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The family wanted to use as little “virgin” material as possible, so most of their building materials were salvaged from construction sites and Craigslist. According to the family, it’s not hard to find what you need when your project is so small. They did all of the work themselves, saving a lot of money.

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All told, the new home cost the family $12,000. They live mortgage-free and have discovered that living simply has changed them forever. They have a new perspective on what is important in life. Although the tiny house can sometimes feel cramped, the family has learned to keep it clean and uncluttered, and to utilize the outdoors as part of their living space.

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These creative and hard-working people managed to create a home that is not only beautiful, but that serves every function a larger house would. The smaller space means that a lot of the features have to be miniaturized, but the space looks cozy rather than cramped.

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The home features a loft space with 3 feet of head room, a sunny partially-covered porch, and a huge garden. According to The Tiny House Family, one of the keys to living in such a small space is to ensure that everything in the home serves at least two purposes.

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Through their tiny home adventure, the family has learned to live simply and mindfully, to stay debt-free and to live sustainably. Although not everyone is suited to sharing an 8′ X 21′ with three other people, this particular family is inspiring in the way they have come together and dedicated themselves to this compelling lifestyle.

(images via: Inhabitat)