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Old 27-04-2008, 06:23   #1
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Failsafe Financing for Cruising Lifestyle!

Rule No 1. Never let your boat or boats represent more than 10% of your nett worth.

Rule No2. Own (this means you not the bank) sufficient rental real estate (professionally managed) or businesses with a sytem, that provide an income that is at least twice that of your cruising budget.

For strategies on achieving Rule No 2, read "The Cash Flow Quadrant" by Robert Kiyosaki.

If none of this fits your mind set, take your guts and you resources in your hand and JUST DO IT.

Just remember one thing:- "Nothing succeeds like a budgie!!"

Cheers from Cisco.
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Old 27-04-2008, 12:53   #2
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Originally Posted by cisco007 View Post
Rule No 1. Never let your boat or boats represent more than 10% of your nett worth.

Rule No2. Own (this means you not the bank) sufficient rental real estate (professionally managed) or businesses with a sytem, that provide an income that is at least twice that of your cruising budget.

For strategies on achieving Rule No 2, read "The Cash Flow Quadrant" by Robert Kiyosaki.

If none of this fits your mind set, take your guts and you resources in your hand and JUST DO IT.

Just remember one thing:- "Nothing succeeds like a budgie!!"

Cheers from Cisco.

Gawd, if that were a required criteria, then there would be about five cruising boats out on the ocean all owned by very wealthy people.

I don't know for sure but I would imagine most serious cruisers have more than half their net worth wrapped up in their boat.

It would be interesting to hear from those who care to divulge their financial situation regarding this.
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Old 27-04-2008, 13:24   #3
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Only 10%, bah mere pitance. I am more like 110%. Ummmm....did I understand the question correctly??? ;-) Flamin heck, as David said. No one would ever own a boat. Boats aren't about investment, nor about having an investment to fund it. Boats are about a way of life. About a struggle not to want to fit the "box" of Society. Savings is fitting a "box". It is bending to the fears that keep us on the land. To heck with that.
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Old 27-04-2008, 13:26   #4
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Only 10%, bah mere pitance. I am more like 110%. Ummmm....did I understand the question correctly??? ;-) Flamin heck, as David said. No one would ever own a boat. Boats aren't about investment, nor about having an investment to fund it. Boats are about a way of life. About a struggle not to want to fit the "box" of Society. Savings is fitting a "box". It is bending to the fears that keep us on the land. To heck with that. I bet Gord could write a very well worded speech of what I have just said above. Man I wish I had his word power.
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Old 27-04-2008, 13:50   #5
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Gordo is the word lord. We are only mere mortals.
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Old 27-04-2008, 15:16   #6
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So only Bill Gates gets to go cruising?
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Old 27-04-2008, 15:34   #7
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my philosphy for the cruising lifestyle -- and life in general!

Travel light in life,
Take only what you need:
A loving family, good friends,
Simple pleasures,
Someone to love, someone to love you;
Something to eat, enough to wear,
And a little more than enough to drink,
For thirst is a dangerous thing.

-- anonymous (Man, that guy was prolific!)
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Old 27-04-2008, 15:57   #8
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10%, hmmmmmm. So, should I go with the Walker Bay 8, or keep saving up?
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Old 27-04-2008, 16:33   #9
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10%, hmmmmmm. So, should I go with the Walker Bay 8, or keep saving up?
Lucky stiff! I'm stuck with the "floaties" or "swimmies"... you know... the ones you blow up and put over each bicep?

I'd say my boat's worth is about 400% of my net worth. Working on fixing that, but it's hard.
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Old 27-04-2008, 16:44   #10
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I agree with the original poster's basic ideas in principal... (1) Don't let your boat be too significant a proportion of your net worth, and (2) have an uninteruptable passive income stream... whether his actual figures are realistic for most, well, thats a different matter.

I'm currently trying to get myself to the position where long-term live-aboard cruising is achievable... it is still a few years away, but it is getting closer to reality every year. I figure that in about 5 years, my boat will be about 20% of my assets. My passive income stream will be enough to get by on, and if we need cash for anything above that,w e will will just stop and work for a while.
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Old 27-04-2008, 17:05   #11
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I love hearing about you Australians. You guys have a damn good economy over there. I know an Australian that defected to NY (long island). Big sailor (maybe the kind sailor is in your country... haha).

Seriously, he had nothing but bad things to say about Australia. He said you could never make a dime there. The place was horrible, etc... etc... He said he could make much more in NY working on boats than in Australia doing anything.

I find his story harder and harder to believe when I see what kinds of boats and financial plans you guys have. Very interesting.
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Old 27-04-2008, 17:14   #12
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Gawd, if that were a required criteria, then there would be about five cruising boats out on the ocean all owned by very wealthy people.

I don't know for sure but I would imagine most serious cruisers have more than half their net worth wrapped up in their boat.

It would be interesting to hear from those who care to divulge their financial situation regarding this.
Let's just say, I wouldn't have a mortgage on my house if it weren't for my boat!

Steve B.
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Old 27-04-2008, 18:21   #13
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Apart from Weyalan, you are all missing the point. The rules are the criteria for "Fail Safe FINANCING Of A Cruising Lifestyle" not "A Cruising Lifestyle".

And like I said, if it doesn't fit your mind set JUST DO IT.

Someone once said "All great voyages have started on a foundation of financial uncertainty."

To illustrate the "JUST DO IT" mentality, I will relate this to you.

About 20 years ago I picked up a copy of the "Courier Mail" which is the highest circulating news paper in the state of Queensland, which has a population of around 4 million and along the coast of which the Great Barrier Reef is located.

Port Clinton is located about midway along the north south coast of Queensland. It is not a port in the usual sense of the word. No wharves, jetties, town or road to it. It is a beautiful almost fully enclosed waterway lying adjacent to the Shoalwater Bay Military training reserve which will be familiar to many American soldiers and marines.

The front page of the news paper carried a most remarkable story. It told of a man who was found at Port Clinton in stressful circumstances.

He was 80 odd years old, wearing a pair of old army boots, his trousers were held up by a piece of rope, he had run out of food and he had little drinking water left. His boat was 14 foot long in the style of a clinker built couta boat and it's sails consisted of a patchwork of flour sacks.

Some 40 or so years prior, this gentleman had found that a "normal life" in the post depression years was just too hard and not for him. So he just got in his boat and dropped out and disappeared off the radar screen of society.

Apart from the occasional fishermen that helped him out, no one knew of the man's existence for over 40 years.

The sad part of the story is that the authorities decided that he couldn't live like that any more and that they would "look after him".

In today's taped, tagged, bar coded and silicon chipped society it is no longer possible to achieve this sort of annonimity, when we have our anchor down in a secluded bay, the only light is from the stars and moon overhead and your camp fire on the beach and the only sound is that of the tide thrown at the shore, we can still IMAGINE it.

Like Albert said, "Imagination is more important than knowlege." and some other guy said "When the Dream is big enough and strong enough, the facts don't matter.".

Just remember one thing:- "Nothing succeeds like a budgie!!" ;-) Cheers from Cisco.
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Old 27-04-2008, 18:27   #14
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Veeeeery Interesting,

My boat is less than 10% of my net worth. My monthly income next year will be approximately $1,500 a month and I still feel broke! What am I doing wrong? No I do not have any rental houses. Is that the problem? I have read books where they go off sailing with nothing and I feel broke. Is this a state of mind? With entry fees for the Bahamas at $300, and other islands costing $ to clear, how do they do it? The last time I took off for a week, it was $800. I ate peanut butter and had the boat filled with food. What is the secret?

John
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Old 27-04-2008, 18:32   #15
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I find his story harder and harder to believe when I see what kinds of boats and financial plans you guys have. Very interesting.
We learnt a lot of this financial stuff from you guys.
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