$3,000 / Month Cruising Budget Planned

[Julie Mor]

There's an interesting article my SO found that discusses costs for cruising.

Jimmy Cornell: What It Costs to Cruise - Cornell Sailing Events & Publications
If it's been posted before, just ignore this

What I got from the article is your cruising budget is completely up to you, barring any unexpected disasters or medical emergencies.

I would add the size of the boat, the condition it's in, your mechanical aptitude, your sailing skills, your health, and where you plan to cruise are all factors too.

The more self sufficient you are, the less the needed budget. And the less you need human contact, the cheaper life aboard can be.

[brightontrader]

I quit work at 40 and sailed off thinking I was sorted for life on £600,000 (about $1M) total that included a house in London rented at the time for £1200 a month.

On my travels I invested money on markets and got around 6% average and at the end of yr 5 had more than I started with.

I was in Phuket marina for last year and then a marriage proposal decided me to return to UK. I put most of my spare cash in tech stocks (I had been in tech myself, should have known better) and sailed off Jan 2000 across the Indian Ocean, Red Sea etc. While out at sea with only a VHF for 2.5 months lost 70% of it.

Anyway, what saved me from complete misery was I still had the house, and boat plus a small windfall that a share I thought I had sold while drunk, I still had and it had rocketed bringing me some cash, enough to kick off an entirely new business making wood shutters..

I have just sold this business for quite enough and am going off again, now aged 59 on a newly bought money pit.

It was having the house that really helped but when I dived financially I really enjoyed the whole kicking off again although I had previously thought it would be the end of everything....but it wasn't...~there is no point in worrying about the future too much, stuff happens...sometimes bad things are followed by good things....more often than not.

My tuppence worth after also reading entire thread, had to post something..

[sailorboy1]

But what was your budget cruising during all of that?

[brightontrader]

there was no budget, I am a different person to you, I just figured I had had enough doing what I was doing and that was enough. Que sera sera.

[Julie Mor]

Originally Posted by brightontrader

there was no budget, I am a different person to you, I just figured I had had enough doing what I was doing and that was enough. Que sera sera.

But was there enough rum?

[zboss]

Originally Posted by Group9

I think for some people, the idea of cruising on a sailboat, exploring places, and meeting people, and having adventures, sounds very exciting and romantic in the abstract. The problem, is when they start to realize that the reality may not be quite as rosy as their romantic notions.

The flip side of that coin, and the stark reality with so many of my fellow Americans is that this concept is not only completely foreign but downright scary!

Meet foreigners? Talk to people with funny accents? Eat strange foods? Gosh no! I'm happy right here in No name, Indiana/Pennsylvania/Ohio!

My only contribution to this thread is to again mention "The Lending Club". I've been making a pretty penny there for over three years. This is not a scam, P2P lending is a real financial opportunity. It pays better than bonds but less than stocks, is more volatile than bonds but lots less volatile than stocks. However, don't fall for the "I'm making 15%" advert. Its true for them but requires a lot more work and a lot of money.

[sailorboy1]

Funny accents............too much time in the South?

Meanwhile I was looking at my home budget and adjusting a little for boat life it still comes to about $3k/mo.

For people with real low budgets I still would be interested in seeing a long term budget (beyond 2 years) breakdown and location


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[Kenomac]

What this entire thread comes down to, is that everyone who desires to go cruising, either part time or full time, needs decide personally whether they wish to "go fishing" or "continue to cut bait" for the rest of their lives.

If you need to consume yourself worrying about where every last cent is going to be spent... Cruising probably isn't a good lifestyle choice for you. It's the adventure, seeing new places and meeting new friends that got us started and keeps us going. We make the finances work.

Sailorboy, I know you probably won't read this because I'm pretty sure I'm on your "ignore list," but I was sincere when I offered to go over the expenses with you privately. There doesn't seem to be a shortage of persons willing to lend you a hand with casting off the dock lines... Seems more like you resist listening to well thought out advice.

[MarkJ]

Originally Posted by Kenomac

If you need to consume yourself worrying about where every last cent is going to be spent... Cruising probably isn't a good lifestyle choice for you. It's the adventure, seeing new places and meeting new friends that got us started and keeps us going. We make the finances work.

.

I disagree with that! I watch my finances like I watch the sails at sea. All the bloody time!
A spreadsheet adapted couple are going to do much better than someone who doesnt worry.
I don't use a spread sheet but I use a very strict manual method. Each month I get money into my account and that is strictly divvied up. Until relatively recently I would draw cash for my spending money and divide it into 4 envelops, one for each week. Inside each envelope I would pin a pice of paper to a banknote for what it was for.

If I ran out of money in any envelope I didnt eat till the next week's envelope.

I am sure to many people that I must sound like a total dickhead about this, but budget is a huge part of cruising. And its vicissitudes affect the boat dramatically. In the last 12 months the currency rate on the Aussie dollar has gone down by 20%. Well, guess whose budget that comes out of?

No matter what your currency, what your investments are, there are none that are stable. Your pension et maybe fixed, but not so cash rates and local cost of living.

Sailorboy maybe a bit too nervous about it, but its better imho to use 100% of brain power on budget than blithely chunder forth onto the oceans.

Especially when you intend to be out there for more than a year or two.



Mark

[Mike OReilly]

While I'm not as anal as Mark, I completely agree with the need to keep a close eye on my dollars. I don't have a lot -- have never had a lot -- so am aware of how fast the bank account is draining, or filling. I can't image not having this kind of awareness. But this is a far cry from fretting over every penny, or insisting on certainty when looking forward years or decades before deciding to cut the lines.

As you just pointed out, we are buffeted by financial vagaries well beyond our control, and mostly beyond our predictive understanding (even beyond the so call "expert's" understanding). I think the point Ken and others are trying to make is that if you can't live with this uncertainty, then you likely won't do well cruising.

If security is more important to you than freedom, then no amount of money is going to make you feel more comfortable while cruising. If certainty is more important than exploration and adventure (big, and small), then it doesn't really matter how much you have to spend per month. You'll never be content.

It's definitely safer to stay on land and stick with that wage-earning job. Keep working till you maximized your pensions earnings and your savings. It seems that many do it this way, and many are still able to cruise for a good chunk if time.

[Kenomac]

Thanks Mike, that's exactly what I was trying to say.

Examples of things that come up and why it's difficulty to budget: We sometimes go a month or two spending only $500-$1000 per month for everything while cruising (food prepared onboard, diesel, we ride bikes, no dock fees etc.), but then something like an engine turbo breaks, costing over $3000 to diagnose and replace in Europe. To minimize our expenses, we repair 90% of the stuff ourselves, but occasionally it's not possible.

So.... if this sort of uncertainty bothers someone.... don't go, you won't be happy.

[JazzyO]

Originally Posted by Mike OReilly

If security is more important to you than freedom, then no amount of money is going to make you feel more comfortable while cruising. If certainty is more important than exploration and adventure (big, and small), then it doesn't really matter how much you have to spend

I would expand on this and say that if you want certainty you shouldn't be in a sailing boat.


Onno


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[JK n Smitty]

I am in a similar situation as Sailorboy. We are getting ready to cut the lines in October (10 more months and I will be out cruising). My Bride is an accountant and we are both a little spreadsheet obsessed. How much are we going to need? How much will we have? etc.

On a road trip this weekend my Bride and I listened to several podcasts from Sail Loot. The creator of the podcast is also trying to figure out how to get out cruising. The part that I found interesting is that he had some interviews with some well known cruisers, specifically s/v Delos and s/v Totem. I had the impression that both of the cruisers had way more money than they do, especially s/v Delos. After listening to the interviews it's apparent that these two cruisers don't spend a lot of time thinking about the budget and just find a way to make it last or earn more.

This has me thinking that tracking your money and knowing where you are spending it while cruising might be more important than spending a lot of time budgeting it before leaving.

Just something to think about for now.

Fair winds,

Jesse

[MarkJ]

Originally Posted by JK n Smitty

This has me thinking that tracking your money and knowing where you are spending it while cruising might be more important than spending a lot of time budgeting it before leaving.



Jesse

Agreed, as long as one isnt in a precruise delusional trap like the $500 per month long term including maintenance.

The first year is very expensive buying junk you never need for the rest of your cruise, so its vital to be absolutely frugal in the first year. Then it does get eaiser even if you have less money because you know better where it goes.

[a64pilot]

I think if you closely track your expenditures, when and if you have to cut back, you can make some rational decisions as to where, otherwise maybe emotions will rule.
This spoken by someone who hasn't done it yet though.