What does everyone DO?

[Jeff H]

I generally buy boats that are are a lot of boat for the money for one reason or another, put them into shape, and sail the living daylights out of them. For that matter, I like boats that are a little unusual, and I typically buy boats that are not all that well known, or which are hard to pigeon hole which also helps. I typically have borrowed money to buy them with payments in the $200 or so per month range and pay them off pretty quickly. I tend to keep my boats for a long periods of time which also helps. I am an architect with my own firm. I make a reasonable living, but I also have done a number of successful real estate deals over the years which has helped a little. At this point my boat is paid off and I am slowly upgrading her out of cash flow. I drive old cars, and live in a small home on a couple acres of land on the water. Love the view, and having the boats out back. Its about setting priorities.

Jeff

[sneuman]

Hey Jim,

I'm a journalist working in Bkk. Give me a shout at 092007762. we'll meet up for drinks.

[jimbim]

sent ya an email

[Steve Kidson]

I own a joinery and cabinetmaking business, which has been most useful in the re-fitting of Vixen.

I can afford the boat I have because I bought her as an unfinished project and poured a lot of weekends, as well as some employees time into it. Most materials used in the fitout are available through my regular suppliers, and are available at the right price.

You have to make choices about what you want and what you can do without to get what you want - sacrifices.

You want it bad enough, go out and get it!!

Good Luck

Steve

[Charlie]

After college I went racing and cruising for four years. Ended up in Oz with just enough to fly home. Got a job and then ended up flying home anyway. I worked my way through college as a carpenter. (Fine use of a degree in English) Now I am a builder. Instead of selling everything I bulit I tried to keep as much Real Estate as I could. I then traded the houses for apartments. It's taken me almost twenty years but I now have enough passive income to cruise comfortably. My uncle had a saying "It's not how much you make its how much you keep." There were times when I barely made rent/mortgage but then things got better. I invested everything into the business sometimes not having enough money for myself.

Everybody seems to think of debt as bad but there are two kinds of debt -- good debt and bad debt. Bad debt doesn't make you any money. Fancy cars, clothes, toys. Good debt makes you $$ work truck, tractor, and my favorite -- rental real estate. Why is Real estate my favorite? Not only does it make me money, over the long haul Real Estate goes up in value. Right now would I invest in Real Estate. Only if the property has positive cash flow. Pretty Hard to find.

I still by my work clothes at Thrift Shops. I have older vehicles. I watch wher every penny goes (its that Scottish Heritage I guess). But now I have the cash to buy a nice cruisng boat. But in my calculations for buying is resale. If I should have to sell I want to lose as little as possible. I've got a Sceptre 41 under contract and am waiting for some items to be repaired before closing.

[Mack]

Not sailing yet, but I am an audio engineer in the US Army Field Band. I spend about 130 days a year on the road touring with the concert band and soldier's chorus. When I am not touring, I am in the studio recording these same musicians. Best job in the world. Thats one of the hard things about preparing for sailing one day is that I am fortunate to have the job I have and it will difficult to leave it. Not many people can say that about what they do.

www.armyfieldband.com

[David_Old_Jersey]

Originally Posted by Pblais

Mostly I work in banking . Unfortuanely I work on the honest side or I would have a bigger boat.

Me too.

It's a b#mmer being honest - IME mosts folks are, even in the "dodgy" world of offshore Banking!

Although used to have many weakness with money (wine, women, song.........and longgggggg holidays in SEA - doing all 3 ), however one thing I have always been frugal with is not paying credit card or Overdraft interest (apart from my first few years of workinglife ), if I can't afford it now, I don't buy it!

Secondly is the "car thing", I have never understood what the must ahve a new car every year (or at all!) is about??? Surely all you have to do is work out the first year's depreciation to get a good idea about what a donut idea this is long term??? FWIW I use a scooter 90% of the time (ok, I do have easy commuting to do on a small island) and also a very very old Toyota, which I do not even know what model it is - been due to die any day now for the last 2 years, but if I sold it would get me less than £100, and I figure that I would have to spend at least DOUBLE that for something else

Unfortunately some of my other ideas financially have not been so well thought out, but that is for another thread!!

[CaptainJeff]

I'm an English teacher at a US public high school.

I refuse to have any debt other than my mortgage, and I'm paying that off early.

No credit card (debit only: when I slide that plastic I'm spending my own money, not taking out a loan for dinner).

I have no consumer debt. None.

Small, practical, 30mpg, car that I bought new fifteen years ago and have been driving ever since. Turned 135,000 miles today, as a matter of fact. I'll get 200k before I have to think about another engine/clutch, and then just keep going. Now the only cost is fuel/oil/tires/minor repairs & maintenance like a timing belt every 60k. I'll never buy another new car: riding the depreciation down is just stupid. I'm totally immune to high-ticket status possessions. A car is for transportation, not impressing some jackass at the stoplight that I don't even know.

Oh, by the way: you don't need that SUV, you consumerist sheep.

I live in a 1000 sq. ft. condo that is more than I need by myself. It has appreciated in the last decade to 400% of its purchase price. The mortgage is modest.

Because I refuse to go into debt, even for big-ticket purchases, I saved seven thousand dollars a year for five years to buy my modest yacht with cash. (I was disappointed that I couldn't save ten thousand/yr.). She's mine free and clear (boy, that feels good!), and everything I need, or will be, when the upgrades are all in, to get me to retirement in fifteen years. By then I'll have enough for the bluewater boat, if that's what I decide I need at retirement.

I have a budget. Every dollar has a specified job to do, and nothing gets spent once the money earmarked for a category is gone for the month. I established a $1,000 cash emergency fund that grew to three months of net income, then six months of net income. It doesn't earn much, but it's liquid. Now that I have no debt, I have a healthy surplus every month that goes into a couple of good retirement vehicles and paying off that mortgage. The boat costs, including upgrades and building surpluses for bi-annual bottom-painting haulouts and upgrades, are figured into the budget.

Delayed gratification and cash are king. You become master over yourself and your finances. No offence, but "good debt" is an oxymoron (mostly moron).

Most people have too much house, too much car, eat too many meals out, spend too much on entertainment, have too many clothes, too many revolving credit card accounts (with rediculously high, ego-boosting limits) too many loans, too many bills, no cash reserve, go deeper into debt an avg. of $400 each year, and and have three yard sales of junk lying around that they don't use or need. Spending is a national obsession.

Debt is foolish. Not knowing what you spend is foolish. And living beyond your means when you should be investing in your future wealth during your wage-earning years is catastrophic. Most people are shocked to learn what they spend on out-of-the house meals (everything that goes into your mouth: Starbucks included) and entertainment each month. I see very few movies, because so much of it is garbage. Good books line my bookshelf. I still have a healthy social life. The single women are impressed when I bring a casserole to the church pot-luck.

And I've never been happier about my money or my financial future. You can get control, too. Visit daveramsey.com and imagine the possibilities.

[seafox]

I look after a few rentals for other people. It is very part time but brings in some good coin. My house is worth less than 25% of my total net worth. My boat is less than 5% of my net worth. My car is not even half of 1%. I don't have any debt and over 70% of my net worth is invested and bringing in income. My wife works and we save over half of her income, all mine and all our investment interest. We are at the point where we could stop and cruise now. Some days we are closer to doing this than others but for now we plod on and save so we can retire in comfort when we have had enough.
Just knowing you can stop at any time makes it a lot easier.

[swagman]

Hi,
We've had several different yachts over past years and can recall some periods when we had to 'downsize' to fit what we could (or rather could not) afford.
For me sailing is such an enjoyment even when completely skint we had to find something to sail than cost next to nix. Ended up with a very old Soling which filled the gap until fortunes revived enough to trade back up.
Guess what I'm saying is its not good enough to love the idea of sailing - you've got to love the sport enough to find a way to do it whatever your budget.
Fortunately - that is still possible.
Good luck
JOHN

[LaLeLu]

Originally Posted by markpj23

Several folks, like myself, stuck in that half-in half-out purgatory where we have a boat that we are working on in the hopes of someday casting off for good. Life keeps getting in the way for one reason or another and the departure dates keep slipping.

If we work for X more months / years we can have a bigger kitty / boat / new electronics / more toys / bigger waistline. And if (insert relative's name here) would just get their act together / get healthy we would be free to go.....

Until we commit to taking the plunge we're doomed to be marina queens I'm afraid. But even that has its satisfying moments

Ok, ok - you outted me! I am a marina queen stuck in purgatory. My husband and I work at professional jobs M-F and hang out at the boat/marina on the weekends. We have plans to cruise, but right now we are just paying the bills, equipping the boat, and dreaming of someday. (oh yea, and we buy lottery tickets every Saturday

[hellosailor]

CaptainJeff-
I'm curious about the real benefits vs what we've all been sold. Why would you use a debit card, when using a credit or charge card carefully (within your means) can give you a month's float on the balance, during which time it can remain in a high-interest savings account (don't laugh too hard, sometimes you can get 4%+) or other productive place?

And have you actually run the numbers for prepaying a mortgage? I never have seen real numbers showing the final balance, for prepaying one (with assorted tax benefit situations) versus letting it run--and investing the money in other places. With a mortgage running 5-6%, and other investments sometimes paying more, and varying tax scenarios...I just find it odd that no one ever presents real numbers to compare. ("No one" meaning the finance pros, not meaning the folks who are prepaying. And don't mistake me for criticizing the real security of paying off that monster note.)
Just wondering if some of what "we" are all told, really is good advice.

[h20nutt]

My secret is no secret. OPB

[Bruce roberts]

We bought an old house many years ago and have been remodeling ever since. The house has been paid for for a long time now. But we did take out a morgage on it to buy the boat. But it was for only a small portion of what the house is worth. The boat is worth 4 times what we paid and couldn't pass up the deal. Of course we have to redo the interior but when it is finished it will be exactly what we want. We have no credit card debt and we both drive old cars, '88 and a '92. Both have over 200,000 miles on them and will last quite a while longer if we keep up the good maintenace. I can never understand the people who build these huge monster of a house and then have to both have brand new cars, money wasted. I have talked to people that have these huge houses and some of them say that they only pay the interest and can't afford to pay on the principle, but as long as the bank gets the interest they are happy. They will never have their houses paid for but still they spend, spend and spend more money than they have. We enjoy our mini vacations every year on our boat and have a good time at it doesn't cost anything to go sailing and we never go into a marina unless we are on the hook. Everything we put into the house and the boat is bought only with cash never on a credit card. Never go out to eat, well maybe once in a while, cash only. We have a nest egg for the future and a nest egg for cruising. Just waiting for all of the remodeling to be done, sell the house, pay off the balance on the boat and put the rest with our cruising kitty, cut the lines and enjoy the rest of our lives at seA. Should be in the next couple of years. We decided what we wanted to do, figured out a plan, and going for the dream. Just decide what is most important to you and stick to it.

[GordMay]

I've just re-reead the thread, and note that the concensus seems to reflect an old cruisin' buddy's philosophy:
"It ain't what you earn - it's what you don't spend ..."
This'll apply to both creating the cruising kitty before you go, and extending it once you've gone.