Rainy Day Pot

[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?

[44'cruisingcat]

I've heard pot can brighten up a rainy day. Running out shouldn't be the end of the world though.

[smaarch]

I don't know .... Maybe I'm confused
How do you go sailing responsibly if you cant afford to?
I'd like to lease a Maserati this week.........but jeeze the insurance......

Edit: I'm starting to think this forum is irresponsible. It tends to encourage everyone to go out there and do it. Anyyone here who is thinking about going out there has a responsiblity to themselves and their family to understand whether they can make it happen. Information is one thing, but if you are looking for a forum to answer these sort of questions about whether you should go on....well all i'll say is you will discover the answer on your own ...and there is risk in it. And you may want to think twice...

[Nostrodamus]

Originally Posted by smaarch

I don't know .... Maybe I'm confused
How do you go sailing responsibly if you cant afford to?
I'd like to lease a Maserati this week.........but jeeze the insurance......

We all set out responsibly but the longer you cruise the more bits break and the less there is left in that pot.

[smaarch]

yeah and i only leased that Maserati once.
No offense but there's the limit. (at least in my eyes)

[GreyBeardVA]

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?

With absolutely NO experience as a cruiser I will contribute my 2 cents of what I consider to be common sense: if you live a "normal" (non-cruising) life how much money do you put aside for an emergency? 3 months , 6 months of expenses? Personally, I prefer 6 months. As an example, I am actively searching for a boat for which I expect to pay ~$50k; I expect that I will need another ~$10k to ensure its soundness, safety and comfort. So, before I sail away I will have another $10k in a "no-touch" account (that's $70k total to adopt the cruising life) for major repairs to the boat. Not everyday expenses but major - emergency repairs.

Now, I can sail into the sunset without worrying about being stranded in some far-away land with a broken mast, hole in the hull, or whatever emergency / major issue arises.

This does not address everyday expenses which I think should be budgeted at $1-1.5k per month - could a person live on less? Probably but IMO this amount is comfortable and reasonable.

[Nostrodamus]

Originally Posted by GreyBeardVA

With absolutely NO experience as a cruiser I will contribute my 2 cents of what I consider to be common sense: if you live a "normal" (non-cruising) life how much money do you put aside for an emergency? 3 months , 6 months of expenses? Personally, I prefer 6 months. As an example, I am actively searching for a boat for which I expect to pay ~$50k; I expect that I will need another ~$10k to ensure its soundness, safety and comfort. So, before I sail away I will have another $10k in a "no-touch" account (that's $70k total to adopt the cruising life) for major repairs to the boat. Not everyday expenses but major - emergency repairs.

Now, I can sail into the sunset without worrying about being stranded in some far-away land with a broken mast, hole in the hull, or whatever emergency / major issue arises.

This does not address everyday expenses which I think should be budgeted at $1-1.5k per month - could a person live on less? Probably but IMO this amount is comfortable and reasonable.

Grey Beard.. you make a very reasoned argument and in the first year or so you may be fine. Over time you have to allow for haul outs, services and parts which, depending on where you are, can differ by huge amounts. In various places in the Med you are not allowed to do any work yourself so you may have to factor in paying someone else. You may have to fly home for an emergency leaving your boat in a marina with the additional costs.
The longer you are out there living the life the more your rainy day pot will go down and at some point it will be so low as not to cover your boat should their be a major breakdown.

[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 ****

[GreyBeardVA]

Originally Posted by Nostrodamus

Grey Beard.. you make a very reasoned argument and in the first year or so you may be fine. Over time you have to allow for haul outs, services and parts which, depending on where you are, can differ by huge amounts. In various places in the Med you are not allowed to do any work yourself so you may have to factor in paying someone else. You may have to fly home for an emergency leaving your boat in a marina with the additional costs.
The longer you are out there living the life the more your rainy day pot will go down and at some point it will be so low as not to cover your boat should their be a major breakdown.

I don't disagree. I am assuming that some part of the $1-1.5k per month is set aside for maintenance - say 15-20% - so that the emergency fund is truly for emergencies. Also, the emergency fund is replenished sooner rather than later after being tapped.

In the end, I think my financial anxiety is driven by ignorance. My plan is to get certified as a small marine diesel tech (1 year program at local comm. college) at the same time get certified as an ASA instructor hoping that either skill along with 25 years in IT will provide for me while cruising.

I do recognize my inexperience as a cruiser, it is feeding my fears of adopting the life.

[atoll]

greybeard in response to your pm.

whilst cruising morocco,senegal ,gambia and brazil on my way to the caribbean, i invested $1000 in buying leather money belts,batik shirts,cotton sarongs,hammocks and sexy bikini's,these i sold to tourists,bare boat charters's,other yachts etc,these i sold for in the region of $6000!,met loads of nice people.

there will allways be people willing to share the adventure,if you don't mind having a few guests on your yacht,this is also fun and goes a long way to covering your costs.

skippering ,cooking and crewing on charter boats is another lucrative sideline,as are deliveries.

failing that the superyachts are allways looking for day workers to do the dirty work!

i have also worked many times as an "extra" on films,taught english,been an "odd job man",for expats homes,worked in boat yards scraping hulls,and antifouling.

i have also used my boat as "mother ship" during many of the caribbean race weeks,supporting race boats that have little or no accomodation for the crew.

apart from that buying and selling outboards,generators that need repair,and reselling.
building dinghys for people,when there's dies

the list goes on!......treasure hunting,beachcombing,diving for lost anchors,selling time share,working as a rep for local bars and tour companies.........been there done it!
i even ran a pub in malaysia!

apart from that we ran our boat as a sailing school for 6 years on one circumnavigation!

writing articles for sailing mags,newspapers,and travel mags is also lucrative,and editors allways need fresh new copy.

easy!.......and beats being part of the rat race!

i salvaged a few yachts as well that i have repaired and resold,the last one i got for nothing,a 26 footer and the one before that a 50 footer for a dollar!

[sailorboy1]

I keep getting sucked into reading this thread by its' title. Then I'm all disappointed and I feel the title needs to be changed to "Rainy Day Money"!

[Sand crab]

It was raining when I saw "Reefer Madness". Does that count?

[harleybeach]

When your house needs a roof, a new ac unit, insurance, or paint do you just sell it and move? Or do you do what we do here it's our home. Me I work a regular job if something breaks I find a way to get it fixed just like I did when I lived on land

[minaret]

Originally Posted by Sand crab

It was raining when I saw "Reefer Madness". Does that count?

Forget the original, this one is WAY better. And I generally don't like musicals. Hilarious!

Reefer Madness - The Movie Musical 2005 | Greek Subs 720p - YouTube

[smaarch]

Originally Posted by harleybeach

When your house needs a roof, a new ac unit, insurance, or paint do you just sell it and move? Or do you do what we do here it's our home. Me I work a regular job if something breaks I find a way to get it fixed just like I did when I lived on land

Yep: that was my point.