Figuring Out the Cruising Budget

[VirtualVagabond]

1) B ... want to keep it as an open ended lifestyle option

2) E ... tied up in real estate so not that easy to access, other than line
of credit accessing the equity proportion.

3) A

4) D ... but as much of C as possible to prepare for when D is inevitable.

This is all theoretical at the moment. 2011 will see how the practical measures up.

[wingNwing]

BT,DT.

Budgeted $2500/month to live decadently from pension + social security, never managed to spend more than $2000/month even when motoring down the ICW ($400/month diesel alone!) and needing to rebuild the carb on the outboard twice (frikkin' ethanol). Don't need total cash because of the pension. Own the boat free & clear. Sorry its terse (limited bandwidth tonight) hope it helps.

[Hudson Force]

We are E - B - A - E liveaboard retired cruisers for long term.

[capt_douglas]

Originally Posted by Mambo

Aw shoot Douglas, we get at least a couple of weeks of new boat giddiness from you before you start getting grouchy again, now don't we?

Congrats, btw.

It's the holiday season Mambo - always brings out the grinch in me.

[Reckless]

Originally Posted by gettinthere

Yes or No or It depends

Really, anything goes depending on soooo many factors.

If you want to live off the interest, what is the interest rate you expect to receive? Currently it's, what 2%? And what will be the rate of inflation? Currently it's either less than 1% or it's about 3% or more depending on who is counting. And it's likely to go way up so factor in ?% inflation to any calculation.

And what are you paying for? Good meals in restaurants or cans of beans & rice?
Is your boat a 30' bare bones or 60' palace?
Health insurance?
Where are you cruising, USA, Europe, Carib, S. Pacific?
How many years?
Do you have a profession you can easily go back to?

Why bother responding to the thread unless you are going to actually read the OP question. He wasn't asking if it can be done, the variables you mention have no context in the original question. He asked where you stand in your budget plan.

There have been many can this be done threads, this isn't one of them. So please don't try and turn it into one.

[Reckless]

1. A - We have budgeted for a 5 year cruise, but actually will have a kitty saved up to sustain us for 10 years.
But hope interest rates improve and some potential side work comes up so we can cruise longer.

2. D, my wife and I tend to disagree on this one, she wants E, would be nice, but realistically it will be D.

3. A- Boat will be paid, even if it means reducing the budget for the boat. We will be 100% debt free when we leave.

4. D is what I am planning in the spreadsheets, but would prefer to stay in the B - C category if at all possible. We aren't fancy with how we eat and don't plan on many marinas. I am a over planner, so I would rather budget high, then deal with the stress of surprises down the road.

That being said, that over planning is also what has allowed me to make this dream possible before I am 45 and not have to come back to a 9-5 job.

And hey if the wife wants to fly the kids out to meet us somewhere or fly home to visit, we won't have to stress about where that money is coming from.

Although I have meet cruisers who sold everything, bought a basic boat and left with very little in the bank and never looked back and are having the time of their lives. Just not in my nature.

[indiana_ct]

1. A mixture - set a budget for cash, plus leaving capital untouched, plan to work, if I can, and factor in that investments and pensions will start to pay out later.
2. Hopefully E, but most likely D. The value of investments has fluctuated down then up in the last year so it's hard to say.
3. I owe nothing on the boat and don't plan to borrow for it.
4. B $1000 to $1500. We are already used to spending carefully at that kind of level, outside of house costs.

[JDGreenlee]

1B/C - retired, will "consult/publish" for champagne; otherwise, it's beer and beans
2E - to make 1B a possibility (note: will not completely cash out prior to departure so much of net worth will remain illiquid - risky)
3A - incl upgrades; strategy is to reduce 4C by front-loading prior to departure even though some upgrades/maintenance can be done for less elsewhere
4C - recommend cash flow analysis: some months will be zero. IMHO, adding up all of the foreseeable expenses and dividing by the expected duration will get you about 50% of the way there. Double it.

What is the maximum single incident expense you can withstand without quitting? If I take a $25K hit in excess of insurance, I'm probably done. That means I should be able to continue cruising even if the tender/OB is lost/stolen, or lightning strikes, or the mast falls - but if they all happen at once? I'm probably headed home. That's my emergency fund amount. Anyone else considering a separate emergency fund above and beyond the "sailing kitty"?

[zeehag]

there is a bunch af folks out there cruising on a lot less than you list. they do not quit when a big hit happens to their budget. i know--we had that last yr. i am currently repairing my own ketch --i bought it for 10k--is 41 ft. is formosa-- boats always need repairs and upgrades. to quit just because of need for repairs isnt practical--is vacationing.i am not on vacation. i havent a house to return to--home is where the boat is.LOL.
i bought boat for 10k
m putting into it less than 4 k for total repairs, including repowering her. i will be out of here in 1-2 months for permanent cruising.
i live on ssdi income alone. is enough to be able to support 2 people in food and daily incidentals and some extra for impending repairs. all boats need repairing.constantly, even tho ye dont believe that--is true. if not done daily or on a schedule, you end up having more catastrophic breaks later.
i have replaced my engine, will replace chainplates and packing gland, and finally i will replace my steering quadrant's cable. and i will keep a spare for that..LOL...i have engine spares, and i have other spares--some came with bot some i have to find. if you are inventive, things are findable for less than worst marine can even think. i dont pay 400 percent markup. i donht pay retail...LOL.l allso dont like nordstroms nor fancy dancy restaurants.
i enjoy mingling with natives and finding the foods they eat , rather than just going to the local touristy food shops and walmart and such--i find local family grown foods and markets the locals use are more interesting and have much better prices. if you seek that to which you are used to using at home--you will spend a fortune on nothing. but then i am somewhere between minimalist and purist in my thinking-- keep it simple. shiny attracts rats. both work well out in real life in other places besides usa.
i found only a few marinas needed liability insurance, so i am self insured--i do not support the insurance lobby.

[Hudson Force]

Originally Posted by zeehag

......i bought boat for 10k
m putting into it less than 4 k for total repairs, including repowering her.............

I'm with you on everything, but this 4K repowering and repairs is out of my low reach. Did you find some special priced used engine and self-installing? Back in 2000 I spent 10K on my repowering for my 41'. Tell me this good news! Aythya crew

[maytrix]

Well, I am not cruising yet, but see it in our future so I'll answer based on what I hope we will do.


1. D. Our goal is to have a business we can run while we are cruising. Could be a combination of things.

2. A. We'd definetely want some cash in the bank but if our business is working out well (something we will know prior to leaving) then we shouldn't need to be pulling from savings.

3.A. We'd definetely want it paid in full. I suppose if our business is doing REALLY well, then we could probably go with some financing.

4.D. I think we'd probably be looking at $2000 a month based on what I've researched, read and learned based on others.

[wolfenzee]

My income is under $1000/mo and before leaving to cruise I figure 60% of that is eaten up in "land ties" and 20% in the refit for the cruise I have a comfortable amount to work with.

1 E (gainfully unemployed/retired)
2 A (passive income)
3 A ( if all else fails you still have a place to live)
4 A (don't have any choice on that one)

(once I did spend $2200 in three weeks in BC spending every night at a marina eating out at restaurants for all meals, but I really had to work at it).

[Velma]

I can't help myself but I am searching for answers or advice so here is my question to you:

1. I plan to sell my home
2. I plan to purchase a fairly new bluewater cruiser to live on board
3. Cash in the bank once the house sells
4. Live onboard while working here and there if possible (to keep cash coming in)
5. Am I being realistic in thinking that we can do this?

Information is great and gives me idea's as to how long we can expect to do this but I'm a bit scared of what happens later....

[wolfenzee]

Originally Posted by Velma

I can't help myself but I am searching for answers or advice so here is my question to you:

1. I plan to sell my home
2. I plan to purchase a fairly new bluewater cruiser to live on board
3. Cash in the bank once the house sells
4. Live onboard while working here and there if possible (to keep cash coming in)
5. Am I being realistic in thinking that we can do this?

Information is great and gives me idea's as to how long we can expect to do this but I'm a bit scared of what happens later....

Actually sounds alot more realistic than the American dream of working your *** off to pay a bank more money than a house is really worth because you can't actually afford to buy it, only to find due to the economy the value drops so much you are stuck, with the same change in the economy making it harder and harder to keep up on payments on something you will never really own. Basically spending almost all your time and effort to try and keep your place in the "American dream". When you could own your home (boat) out right, with much few expenses only working until enjoying life is a higher priority than money (selectively unemployed).....yeah it is surprisingly realistic, just not by modern sociological standards that try to make us believe any form of life style other than a static life style (living in one place) with a "9-5" job is unstable ie...unrealistic...the way things are and/or are going nowadays it is actually more realistic.

[wolfenzee]

Thanks...this thread just reinforces what I am doing, what I have dreamed of doing all my life and what my father tried to but never was able to accomplish.