Rainy Day Pot

[svmariane]

Originally Posted by Nostrodamus

Many people on the forum ask “How much money do I need to go sailing?” which as most of us know is a very difficult question to answer…. It all depends

What I don’t see asked is “How much contingency money do I need?”

I think or hope that when we first “go cruising” we have a rainy day pot for when things go wrong. As we continue our journey things do go wrong and we dig into that pot until it gets smaller and smaller.

Is there a point at which we should stop sailing because if something major goes wrong we no longer have the finances to fix it?

Has anyone been out there when say the engine or some other major part finally gives up and you know you don’t have the money to repair it… what did or can you do?

You figuratively take a deep breath and step back from the problem, then sit down to re-evaluate life. Couple of shots of Tequila helps.

Seriously... You take atoll's advice and EARN some money - somehow. Re-read his post up there, as t'was sound advice. Better than just putting the tail twixt legs and slinking away.

We've been there, okay? Sold the house, sold the car, sold the kids, bought a boat. Went sailing across the Pacific. So what happens? Coming out of New Zealand we got caught out, ended up limping into Tonga with serious storm damage. Decided to make our way up to American Samoa as a better place to ride out cyclone season. And a lower cost place for importing parts.

Boat damage was greater, repairs more extensive, and replacement costs higher, than I'd first calculated. And so instead of six months it's been 24 and counting. But we should be "back to normal" by the end of this cyclone season... Knock on teak. And no... I'll not discuss exactly how we've been acquiring extra funds. Well, not 'till the statute of limitations expires...

Again, re-read atoll's comments. Boiled down they say: look for opportunities, be inventive, take action.

Oh yeah... one other point: don't drink imported booze - get the local stuff.

[Nostrodamus]

I think with this post I am trying to say to others out there thinking about going long term cruising is to be aware of the other side.

When people are planing to go cruising it is often with rose coloured glasses. It has been a dream of theirs for some time and occasionally reality is substituted for that dream.

It is so important to have some back up money if you can because unforeseen expenses do occur.

It is the same as the first years cruising. Be very wary of it financially. A lot of people including ourselves looked at it the wrong way and treated it like a bit of a holiday which really knocked the finances. After the first year or two reality bites and you realise you can live so much cheaper and extend the dream.

Shop for local produce
Avoid expensive marinas and anchor wherever possible
The wind is your friend.. use it to sail and not motor everywhere.
Avoid eating in restaurants... you can cook better yourself at a tenth of the price.
Always do any work you can do yourself to the boat and keep on top of it.

I am sure there are others who also have good tips.

This cruising life is a wonderful life ... there is no better and by looking after your finances you will turn that 2 year trip into a five or ten year one.

If you don't that 2 year trip will only last months and you will kick yourself.

[monte]

good points Nos, also I would recommend keeping a spreadsheet of expenses. Clearly after 6 months you can see where you can reduce the unnecessary larger ones (marina's , eating out) and try to offset some of them with income. You can plan less expensive places to sail where there are more protected anchorages, better wind. This year I found the Tuscan islands and adjacent mainland pretty inexpensive. Last year Galacia and Portugal, even Ibiza as there are enough protected anchorages that theres no need to spend 200EU/night in a marina. Also have some guests aboard occasionally to offset expenses is great. Meet new people, share experiences, teaching and training is all good fun and beneficial to all.
You're right about restaurant meals. Maybe 1 in 20 comes 'close' to Jenijanes cooking! I'd much rather eat on board.

[Doodles]

Originally Posted by Nostrodamus

Many people on the forum ask “How much money do I need to go sailing?” which as most of us know is a very difficult question to answer…. It all depends

What I don’t see asked is “How much contingency money do I need?”

I think or hope that when we first “go cruising” we have a rainy day pot for when things go wrong. As we continue our journey things do go wrong and we dig into that pot until it gets smaller and smaller.

Is there a point at which we should stop sailing because if something major goes wrong we no longer have the finances to fix it?

Has anyone been out there when say the engine or some other major part finally gives up and you know you don’t have the money to repair it… what did or can you do?

I assume since you have an Oyster you are not sailing on a shoestring and you have some source of annual income plus some principal. Therefore, you should be replenishing the rainy day pot at a minimum as it get used but even better you should be adding to it to compensate for inflation and an aging boat. If instead you are spending all your current income on everyday living expenses and you have no way to replenish the pot then at some point you have to go back to work or dip further into your savings or retirement funds. It really kind of simple.

[Nostrodamus]

Originally Posted by Doodles

I assume since you have an Oyster you are not sailing on a shoestring and you have some source of annual income plus some principal. Therefore, you should be replenishing the rainy day pot at a minimum as it get used but even better you should be adding to it to compensate for inflation and an aging boat. If instead you are spending all your current income on everyday living expenses and you have no way to replenish the pot then at some point you have to go back to work or dip further into your savings or retirement funds. It really kind of simple.

Why is it that people think you are loaded if you sail certain types of boat?
We had to sell our house to buy her and live on a very modest pension.
We may have actually been pretty green when we set off three years ago but you soon learn...you have to otherwise you cannot survive.
Hopefully this thread may make others think or help them in some small way.
This year has been or cheapest yet so far because we anchored 98% of the time, ate local foods and sailed at every opportunity.
Finding a cheap winter berth has also helped.

[DainyRays]

My "rainy day" fund has quite a different meaning since the name of my boat is "Rainy Days"! At the moment I am living in Annapolis, Maryland--not cruising. I have lived aboard my boat for 10 years and cruised only for 6 months of that time. I expect to be cruising full-time in a few years when I retire. My perspective on this question is that everyone has had a different lifestyle before cruising and therefore a different lifestyle during cruising. So, everyone's expectation, result, and amount of money needed for emergencies will be different. I think the more expensive your boat, the bigger your emergency fund should be.

[Doodles]

Originally Posted by Nostrodamus

Why is it that people think you are loaded if you sail certain types of boat?
We had to sell our house to buy her and live on a very modest pension.
We may have actually been pretty green when we set off three years ago but you soon learn...you have to otherwise you cannot survive.
Hopefully this thread may make others think or help them in some small way.
This year has been or cheapest yet so far because we anchored 98% of the time, ate local foods and sailed at every opportunity.
Finding a cheap winter berth has also helped.

Hmmm, o.k. so you're not loaded, just a modest pension. An Oyster is an expensive boat. In hindsight do you think you should have bought something cheaper and put more in the rainy day pot? Not trying to be a smart ass, but it's a common mistake to spend too much on the boat and not hold enough back for repairs, etc. That could be something others could learn from the thread don't you think?

[sailorboy1]

Probably in the end the cruising kittery is more important than the boat! I could afford a much more expensive boat, but the kittery would have to starve.

I feel that the size of the cash fund you need to keep around in case of a major item needs fixing on the boat depends on how you are feeding the kittery. If you are just getting living on your boat your trip is over if a major item happens and the only way you are going to get by is if you can find a job. If you have an income source then you have to cut back till the source refunds the kittery and you an make the repair.

I showed my wife the projected kittery recently. I thought it looked impressive for its' needs but she wasn't comfortable and says it isn't enough. If my wife and I can not agree with each other what are the chances people on CF are going to agree with each other?

[Nostrodamus]

Originally Posted by Doodles

Hmmm, o.k. so you're not loaded, just a modest pension. An Oyster is an expensive boat. In hindsight do you think you should have bought something cheaper and put more in the rainy day pot? Not trying to be a smart ass, but it's a common mistake to spend too much on the boat and not hold enough back for repairs, etc. That could be something others could learn from the thread don't you think?

Doodles..you make a good point and it is one we deliberated over long and hard before buying our boat.
On one hand we wanted something very safe as we intend to cruise for a long time and have no plans so we can end up anywhere. We had a lot of work done before leaving trying to make sure all major items were in the best condition we could get them in. A boat is never an investment but at least on an Oyster there is a good chance we would get a good amount back. We did have our emergency fund which we don't use unless there is an emergency.
On the other hand we could have bought a cheaper boat and had more in the bank but it can be easy to spend that money on meals out or thinking to hell with it, we will go in a marina.
Buying the more expensive boat we don't have that choice.. we have a budget and after the first year we managed to stick to it and actually save some money.
This year, as I said, was the cheapest yet because we anchored so much. It was also far more social because you tend to be invited on other boats for drinks or we did the same.
A special night out included on a couple of occasions, going to one boat for starters, another for the main meal and another for the sweet. Good fun and then the costs are about equal for all three boats... you also get to try other boats national food if they are from other countries and don't have to cook too much yourself.

[JPA Cate]

Originally Posted by Nostrodamus

Many people on the forum ask “How much money do I need to go sailing?” which as most of us know is a very difficult question to answer…. It all depends

What I don’t see asked is “How much contingency money do I need?”

I think or hope that when we first “go cruising” we have a rainy day pot for when things go wrong. As we continue our journey things do go wrong and we dig into that pot until it gets smaller and smaller.

Is there a point at which we should stop sailing because if something major goes wrong we no longer have the finances to fix it?

Has anyone been out there when say the engine or some other major part finally gives up and you know you don’t have the money to repair it… what did or can you do?

Well, we've known a couple whose broken transmission kept them from using their motor for a season. They sailed everywhere, on and off the hook, and had no problems with that approach. When they were ready to go into a marina, another cruiser with a dinghy stood by to help if needed when they sailed into the marina (in another country). They fixed it and went on to cross the Pacific the next year. This pattern of problem, pause, fix it. Is common. People fit it into the concept of living within their income enough to save. Most people we've talked with about it, don't have a contingency fund, per se: it's all together in the cruising kitty.

Obviously those who are handy and enjoy fixing things are able to make savings by doing their own work. This is a common idea here, how many "how do I do _______________?" threads are generated a week?

It is probably a hard sell in this day and age to sell the concept of living within your income. That takes some self discipline, motivation, knowledge. Sure can pay off in the long run.

Ann

[Kenomac]

"A rainy day pot," isn't that the same thing as having a zero percent, no annual fee credit card handy with a zero balance?

If a problem comes up, just pay it back over twelve months or so.

[Doodles]

Originally Posted by Kenomac

"A rainy day pot," isn't that the same thing as having a zero percent, no annual fee credit card handy with a zero balance?

If a problem comes up, just pay it back over twelve months or so.

No, you have to have the money or income coming in to pay it back. It is just a loan not equity. What if you can't make the payments?

[boatman61]

Originally Posted by atoll

you are hillarious! my piss pot is £2000,when it gets below that it is time to find a job,more or less been cruising since 87,2 circumnavigations.

develop some skills that you can sell when in the ****

Rich Ba$tard....

[atoll]

Originally Posted by boatman61

Rich Ba$tard....

speak for yourself!
swanning around on lagoon380's and getting paid for it

[Kenomac]

Originally Posted by Doodles

What if you can't make the payments?

What if you can... Because you planned ahead and have a steady income stream. Not everyone lives "hand to mouth."