The £200 Millionaire: Buy a boat for 4738 € + live on board with monthly 375 €

[Skip JayR]

Before you start reading the story I give you one question on the way:

If we'd calculate 3.5 % Inflation annually in average since 1932, a boat that time at a sales prize of 200 British pounds would cost in 2015 round about 3,476 British Pounds = 4738.39 Euro = 5355.14 US Dollar :-)

You might think: Impossible to get one nowadays in 21st century ??? Wrong, very wrong assumption.

Actually one can buy a strong and safely seagoing FOLKE Boat (originally from Denmark) for round about ~5-6000 Euros, renovated with new sails... and built in wood around 1960-1965 (e.g. see the market place of German Folkeboat Association - Holz ).

FOLKE Boats are very good boats... e.g. demonstrated in this video by her owner sailing front US West coast... more than 35 years (since 01/1979) in her hands. A very, very smart sailor and charming lady Carol Hasse

https://www.youtube.com/watch?v=jIPf5mDxMcw

But: How to live with 190 British pounds per year in 1932 = 3303 British Pounds in 2015 = 4502.25 Euro = 375.19 Euro per month = 12.33 Euros per day in 2015 (inclusive insurance and boat maintenance).

I have my doubts that the daily living costs within this budget frame can work. - Or can it work ?

Why this question... because it worked 1932
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The £200 Millionaire
A Story by Weston Martyr, 1932

My wife and I were sailing a hireling yacht through the waterways of Zeeland last summer, when one day a westerly gale drove us into the harbour of Dintelsas for shelter. A little green sloop, flying the Red Ensign, followed us into port. She was manned solely by one elderly gentleman, but we noted that he handled the boat with ease and skill. It was blowing hard, and the little yacht ran down the harbour at speed, but when abreast of us she luffed head to wind, her violently flapping sails were lowered with a run, and she brought up alongside us so gently that she would not have crushed an egg. We took her lines and made them fast, while her owner hung cork fenders over the side and proceeded to stow his sails. Urged by a look from my wife which said, 'he is old and all alone. Help him,' I offered to lend the lone mariner a hand. But he refused to be helped. Said he, 'Thank you, but please don't trouble. I like to do everytt,ung myself; it's part of the fun. But do come aboard if you will, and look round. You'll see there's nothing here that one man can't tackle easily.'

We went aboard and found the green sloop to be one of the cleverest little ships imaginable. ......

Read the rest of the story here:

Source: The £200 Millionaire

[onestepcsy37]

I read that story maybe 25 years ago. When I bought my last boat I named it "one step" after that line in the story, "one step does it and you're out of the rut for good.".

Being in the USA I will convert to dollars. Lets call your 375 Euro 400 dollars. We have an elderly liveaboard/anchor out who lives on 700 dollars a month. I know he can live on less if he would give up cigarettes, liquor, and frivolous purchases. Not sure about 400 dollars, but I bet it could be close. And even on his 700 dollars I would not call it "living", more like "existing".

[Boatguy30]

I think inflation over that time span has been much higher than 3.5% per annum.

[sailorchic34]

Myself, I've been living on $500-$600 a month since 2010. Though this last year I've made a bit more, but most of the extra went into deferred maintenance items (Batteries, lifelines, topping lift, new stove, taxes, etc).

Is it possible to do it for $400, but OMG why. If I had too, I could do it for $400. But it's getting pretty thin on those little luxuries, like meat. Mind you I don't drink or smoke or even drink coffee, so my monthly costs are pretty low. Can it be done, yes. But really $600 ish a month is pretty low and at that your greatly limited on where you cruise/live.

As someone at the poor end of the gene pool, I think $750-$1000 is a far safer minimum amount to live on.

[haiqu]

One of my favourite stories. Of course the world has changed a lot since 1932 and I doubt one could just pull up at a farm on a river and barter for goods any more. Also, being a doctor, the author had unique skills and status, and the inherent respect those engendered wherever he went.

Working with an more reasonable inflation figure of 5% (and using the current exchange rate of UKP1 = USD 1.54) the boat cost him US$17,671 and he had US$16,810pa to live on. Quite realistic actually. [Note: Your inflation figure of 3.5% is for the US, not the UK.]

The downside is that regulations and fees would now eat into that money mercilessly if travelling the waterways of Europe. But don't let that discourage anyone, it's a great life.

[haiqu]

Originally Posted by Boatguy30

I think inflation over that time span has been much higher than 3.5% per annum.

According to this site Historical UK Inflation And Price Conversion the amount of £200 in 1932 money was worth £12000 in 2013. The correct inflation figure for the UK is about 5%.

[haiqu]

Originally Posted by sailorchic34

Myself, I've been living on $500-$600 a month since 2010. Though this last year I've made a bit more, but most of the extra went into deferred maintenance items (Batteries, lifelines, topping lift, new stove, taxes, etc).

Is it possible to do it for $400, but OMG why. If I had too, I could do it for $400. But it's getting pretty thin on those little luxuries, like meat. Mind you I don't drink or smoke or even drink coffee, so my monthly costs are pretty low. Can it be done, yes. But really $600 ish a month is pretty low and at that your greatly limited on where you cruise/live.

As someone at the poor end of the gene pool, I think $750-$1000 is a far safer minimum amount to live on.

SailorChic, I've always admired you. But seriously, no-name brand instant coffee is only about $2.80 for 500gm so live a little. :-)

[sailorchic34]

Originally Posted by haiqu

SailorChic, I've always admired you. But seriously, no-name brand instant coffee is only about $2.80 for 500gm so live a little. :-)

I'm actually a Coffee virgin. I've never had a cup, though mainly because that's what grownups drank and I never wanted to grow up. OK not the best reason. I do drink Tea though. 200 tea bags for $1.89.

[StuM]

Originally Posted by haiqu

SailorChic, I've always admired you. But seriously, no-name brand instant coffee is only about $2.80 for 500gm so live a little. :-)

That ain't living a little.

I'll drink plain water over instant coffee any day. And I really like my coffee!

[brownoarsman]

Yup-seen that story here a few times. I've always wondered if there ever was an old man, as Wikipedia explains the story as martyr's attempt to derail the cost of living low.
If he was alive today, CFers could have saved him a bunch of work with our million plus posts on what it costs to cruise!


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[Azul]

I've just acquired a 1976 Cal 27-2 as a fresh project boat. It has two brand new Harken 32 two speed self tailing winches which cost $1700 each and a lot of other nice features.

It's a little dirty and it needs some work especially a paint job, probably more than the boat is worth if it was to be done by a boat yard. The main reason I bought it was that it has a Yamaha 9.9 four stroke electric start high thrust kicker on a $200 heavy duty adjustable bracket which I have been trying to find used for my Boston Whaler 19 for several years. The motor just had a $581 extensive service documented with a receipt. The motor is worth $1500.

I paid $1500. Well actually I am installing some flooring in his house to work off the $1500. And he is letting me work on the boat at the dock in his back yard. One could therefore consider this to be a "free boat."

There isn't any shortage of boats to rehab if you don't mind a little hard work. The real problem is to not become a boat hoarder.

[Azul]

This is what the free boat will look like in a few months with about $1000 worth of supplies and a lot of labor:

[ranger58sb]

Originally Posted by haiqu

According to this site Historical UK Inflation And Price Conversion the amount of £200 in 1932 money was worth £12000 in 2013. The correct inflation figure for the UK is about 5%.

IIRC, £200 in 1932 would have been about $1000 U.S. ??

If a true story... I was slightly surprised he lost his wife and two sons in The War. I can imagine the sons might well have been soldiers.... but I wonder what circumstances caused his wife's passing. This would have been different from the air raids associated with the Second War.

-Chris

[Skip JayR]

Originally Posted by Boatguy30

I think inflation over that time span has been much higher than 3.5% per annum.

I took 3.5 % as average. e.g. Germany has an inflation in 2015 of 0.2% (estimated in 2016: 0.6%, in 2017: 1.0%).

Naturally it depends on national economics, currency exchange, energy prizes, import/export, regional wages etc. ... the historical inflation situtation for UK over last 60 years was this in reality...



(Source: Historic Inflation GB - Inflation.eu)

If you'd take 5 % Inflation in average, the boat prize would be 11,475 British pound, at an inflation of 6% the boat prize would be 25,201 British Pounds.

If you'd take 5 % Inflation in average, the monthly budget would be 908.41 British pound to live with, at an inflation rat of 6% the monthly budget would be 1.995.1 British Pounds.

[Skip JayR]

Originally Posted by ranger42c

IIRC, £200 in 1932 would have been about $1000 U.S. ??

Chris, I only found a database with eldest currency exchange rates going back to 1953... probably not very helpfully.

On 10th August 1953 it was:

200 GBP [British Pound / £]=557 USD-USA [US Dollar / $]
1 USD=0.359066 GBP
1 GBP=2.785 USD