Economy and Cruising Plans

[Keegan]

How will the current bad economy and world financial crises impact your cruising plans? For some it will probably delay or postpone cruising plans and for those who lose their jobs it could actually help them finally cut the land ties and go have some fun for a change. Tell us your situation.

[AnchorageGuy]

we have no plans to change anything.

[skatastrophy]

I'm a younger guy who recently (in the last year) purchased my first home.

These financial times give me an opportunity to only contribute to my 401(k) to maximize my company's matching funds and use the rest of my money that I'd normally put into the stock market towards paying down my debt.

Both my mortgage and car loan are around 6%. I have 0 confidence in the market to give me a return of more than 6% in the next year, so paying off debt is the way to go for me until things begin to turn around.

A bad market will leave lots of people with less "fun money" too. That combined with the increasing restrictions on who qualifies for loans will enable the continuation of the buyers market in the boating world. This is just what I need to finish saving up the last bit of my fund to buy a great boat at a reasonable price!

[Weyalan]

The future cruising fund has taken a hefty hit the last 12 months. (Thanks 'merkin Financial Institutions)... but thats ok... e.t.d. is probably still the same, just monthly budget will be slightly more austere.

[Ex-Calif]

I've taken a big hit but as a dollar cost averager and a buyer for now I am not concerned for now.

[ess105]

We have almost completed our transition to living aboard. 8 months ago, when we made the commitment to cut the ties, we had the resources to make our trip open ended. Now that outcome is not clear. This may just end up being a sabbatical which, truth be told, was what the trip was likely to be. We have left enough in cash to last a couple of years during which we'll have to evaluate our options.

[SMcD]

Our cruising plans continue as before: work, work, work, save, save, save, eventually purchase our boat. We have a tentative plan to leave in five years but always knew that we might need to stretch that to 7 or 8.

The economy is terrible, but one silver lining (for us and said cruising plans, anyway) is that we can afford to purchase more shares of stock in solid, growing companies that have weathered economic storms in the past. I'd say the current economic crisis has inspired us to look at our investment plans more closely. We aren't a well to do family by any means, so in a way this may afford us some opportunities.

[Palarran]

In my business I've lost one new 50' cat and 5 years of cruising over the last two years. My etd will still be the same but now it's a used charter cat with a re-fit instead of a new boat. Pretty much no chance I'll get back what I've lost so no sense in worrying about it. I would be really depressed if my loss run keeps going for another couple years as then the whole plan may go into jeopardy. Kid's college funds will come before my dreams.

[iiii]

Don't see it affecting our plan to leave next year. Expect it will affect where we go or hw long we stay in certain areas; buying power of the dollar will determine that.

[David M]

I will probably get tomatoes thrown at me for saying this but historically these are the best times to buy shares, especially healthy large cap companies that make money. My investments are mostly in overseas land which has not taken much of a hit, so my cruising plans are still on track so long as the Euro does not collapse.

[stevensc]

Early in 2007 I made a plan to sell the trawler I then owned in 2008. I did so and closed that sale in July 2008, now I plan to buy a larger trawler in November 2008, to get to know her and fit it out like I want during 2009. The next step will be to depart on a cruise, (about 18-24 months)through the Bahamas, Dominican Republic, Puerto Rico and the USVI's. Then we'll see about continuing down the islands or returning to the mainland and do coastal cruising, maybe the loop, or down the east coast of Mexico to Central America.
I'll keep an eye on the economy for the next few weeks barring a big disaster we'll keep on track, if things look real bad we may put things on hold for a while.
I am concerned about the availbility of diesel fuel down the islands in the future, I have corresponded with cruisers down there now and have been told that while expensive, diesel is readily available.
Good Crusin'
Steve

[Keegan]

Seems like the old idea of going now and going simple makes alot of since. Otherwise, work work work, save, save, save, and just when you are about ready to go, your mutual funds or other investments tank by 30% and you must work work work some more, to pay for that newer 50 footer..., years go by...still on land...

[maxingout]

My thoughts on the economic crisis:

1. If you wait to go cruising until you can afford it, you may never go.
2. If you wait to go cruising until you can afford it, you may be too old enjoy it with full gusto.
3. No matter how much money you save, if you don't have your health, it will be difficult to go cruising and much less fun.
4. No matter how much money you save, a single major illness can wipe you out financially.
5. If the government destroys the value of your currency by devaluation, your cruising funds will wither while you wait.

Most cruisers that I know are not rich people. They aren't financial wizards. There is no correlation between the size of their dreams and the size of the resources. I know many frugal long term cruisers who sail on the ocean of their dreams in 32 foot yachts.

I would rather downsize my yacht and keep my dreams of alive, than allow the current economic situation to extinguish my dreams. It's the same sunset, same turquoise water, and same exotic destinations regardless of the size of my yacht.

Here is a piece that I wrote called the CURVES OF LIFE:

THE CURVES OF LIFE - GETTING IT RIGHT THE FIRST TIME

You only get one life, so you better get it right the first time.

I have found that if you understand the CURVES OF LIFE, you have a better chance of getting it right the first time around. What are the CURVES OF LIFE?

There are actually three curves. The first is called the gusto curve, the second is the money curve, and the third is the time curve. You don't need an advanced degree in mathematics to understand these curves. Here's how they work.

The gusto curve describes your ability and desire to enjoy true gusto throughout all the years of your life. When you are eighteen years old, and you feel immortal, and life stretches out before you like an endless adventure, you are at the top of your gusto curve. You will fearlessly try almost anything, and you will probably enjoy doing it.

When you are eighty years old, acutely aware of your mortality, and unwilling to take risks that could fill your remaining days with unremitting pain, you are at the bottom of your gusto curve. That's not to say you don't enjoy your life at all. But it is to say that you now have a strong aversion to pain and suffering, and your definition of a good day is that all your organs are working properly, you can afford all your medications, and your arthritis isn't preventing you from enjoying your day. You are less concerned about gusto, and most of all, you want a pain free day.

The money curve is just the opposite of the gusto curve. When you are eighteen years old, you are stone cold broke. Money is in short supply, and you are at the bottom of your money curve. Conversely, when you are eighty years old, you have a pension with a mountain of cash in the bank, and you are at the top of your money curve. (Unless a stock market crash wipes you out or your money is an a worthless currency.)

The time curve runs parallel to the gusto curve. When you are eighteen years old, you have all the time you need to live your dreams. When you are eighty years old, you are at the bottom of your time curve. You savor each precious second because you don't know how much time you have left.

By now it should be clear that your gusto curve and time curve start at the top and eventually go down to zero. At the same time, your money curve starts at zero and exponentially climbs throughout your life.

At some point, these three curves cross paths. Before they cross, your life will have plenty of gusto and time, but not enough money. After they cross, your life will have plenty of money, but gusto and time will be in shorter and diminishing supply.

When the curves of life cross, an alarm should go off in your mind, because from that point on, time becomes more valuable than money. You are sliding rapidly down the gusto curve, and you are running out of time.

After those curves cross, you better be living your dreams, or they will probably never come true.

If you want to get it right the first time, check out the CURVES OF LIFE. This isn't a dress rehearsal, and you only get one life. You should live your dreams while you still have the ability and time to enjoy them.

I went cruising when I was 47, and the cruised lasted eleven years. Now I am back at work earning more Freedom Chips, and I'm glad that I didn't put off my cruising dreams until I was sure that I could afford them. I plan to go again, but I'll be further down the gusto curve the next time around.

[GordMay]

Originally Posted by maxingout

My thoughts on the economic crisis:

1. If you wait to go cruising until you can afford it, you may never go.
2. If you wait to go cruising until you can afford it, you may be too old enjoy it with full gusto.
3. No matter how much money you save, if you don't have your health, it will be difficult to go cruising and much less fun.
4. No matter how much money you save, a single major illness can wipe you out financially.
5. If the government destroys the value of your currency by devaluation, your cruising funds will wither while you wait.

Most cruisers that I know are not rich people. They aren't financial wizards. There is no correlation between the size of their dreams and the size of the resources. I know many frugal long term cruisers who sail on the ocean of their dreams in 32 foot yachts.

I would rather downsize my yacht and keep my dreams of alive, than allow the current economic situation to extinguish my dreams. It's the same sunset, same turquoise water, and same exotic destinations regardless of the size of my yacht.

Here is a piece that I wrote called the CURVES OF LIFE:

THE CURVES OF LIFE - GETTING IT RIGHT THE FIRST TIME

Well said!
For a less lyrical treatise on "The Curves of Life", see:

The Curves of Life ~ By Theodore Andrea Cook

Being an Account of Spiral Formations and Their Application to Growth in Nature, to Science, and to Art : with Special Reference to the Manuscripts of Leonardo Da Vinci

Goto:
The Curves of Life: Being an Account ... - Google Book Search

[Liberty28]

We find that we actually come out ahead living on the boat as opposed to living at home. However (and it's a big however), we are completely debt-free. I think that anyone who has the philosophy of "just go" because tomorrow we all might be dead or broke (or broker) are missing the point that you may also be sacrificing the later years of your life for the certainty of the present. The problem is that if you lose the bet and live to a ripe old age, you may find yourself on the government dole because of poor choices made when you were younger (and, in my case, more naive).

Tis a choice that every man and woman must make no matter what the economy or situation. You are right about one thing, without your health you have nothing. An old cliche by now and, I'm afraid' not really of concern to a healthy person who does not forsee health problems in the future due to the aging process (and the aging process isinevitable).

Anyways, whatever the choice, enjoy yourself to the fullest because this could be as good as it gets!!! And probably is!!!!!