Originally Posted by paxfish
Nice to be able to bank that cash at your young age. 10 years at $100000 a year savings will compound nicely! Done right, that can become $1.5M and generate $50,000 in investment income annually. You can have a good chunk of your retirement
ready and take a cruise before kids
Since you have some flexibility here, and you are looking at well used boats, consider buying
something nearer to your expected cruising grounds and then selling it when you are done with that area. This might reduce your exposure on longer passages until you build up some boat knowledge. For example, I saw a cool Bristol the other day for $15K in Annapolis
Many similar boats become available of similar capability (No, I am not the OWNER!
Sell it when you are done for the same $$$ and then think about the med, or baja
Definitely read and adopt some of the Mr Money
Mustache (Google it) principles.
you say MMM. I've been following him for the last 2 years. I've come a LONG way from where i started. I moved to the USA from Fiji
when i turned 18, had $100 in the bank. Moved to Seattle in 2010 at 19 with $2000 in the bank. I've slowly(ish) worked my way up the ladder since 2010 and working minimum wage jobs in the games industry(work 365 days, forced to go on 'contract' break for 3 months). Fortunately breaking out of the games industry getting paid $15/hour at the high end was the best thing that ever happened to me.
Fortunately my line of work is very profitable, and now that I am a FTE at a large ecommerce company, I'll be able to dive even deeper into the automation and programming world, which will only boost my value to the company and also my income. I still remember to this day, seeing that tax return showing i earned just under $19k for that year.
I've always had hard times with "spending" money, but i also am a technology nerd, so its hard to resist sometimes. That being said, over the last 2 years, becoming an avid fan of MMM, i've been able to withold my spending habits pretty well. There are times where i spend money on something i know i shouldn't have(like a new laptop), but each month, those things become fewer and fewer.
I'm also incredibly happy that my SO is an avid goodwill shopper. She loves buying shoes/clothes, but she hates paying retail price
, or even sales, so Goodwill is the next best thing!
We have debated about plannig for a longer term cruise, and pushing out the untying date, however I personally dont think either of us can wait longer. We both love traveling, and we both want to explore the world regardless if it means taking sacrafices.
Who knows though, I say all of this, and maybe in 3 years we could say that the time isn't right and we need to save more.
We have a large portion of cash already stashed away that is actively invested. Neither of us are too fond of this, however we have dumped the old manager, and replaced him with someone a bit more expensive but one who is a fiduciary. He's also actively helping us build out spending and savings budgets. The SO savings income is being diverted to him, while my savings will be diverted into investments of my choice, mainly index funds, lending club and a few other channels.
I like the idea of buying something near the expected cruising grounds. I think my biggest concern is buying a boat and coming to find out that i need to dump atleast the amount of money that i paid for it into just getting her sea-worthy, but that might be another discussion?
My theory was to acquire a boat here, and for the final 6 months to a year, live aboard to boost the savings significantly while being able to finish off the final "must do" projects. That way when we head
off, the list of things that need to be done will be signficantly lower? However the biggest question would be, which one is cheaper? Buying one up here, doing upgrades where needed vrs buying one for 40-50k that needs minimal upgrades?
Our idea was to spend around 20k on a 35ft boat(give or take some feet), and have about 20-30k for upgrades IF we needed to spend that much?