Where and How Do You Get The Money

[captain58sailin]

The poster asked for advice about how to make money for the cruising lifestyle. I offered some of what I know to be true. He can either accept it, reject it or modify it to work for him. There are no easy answers unless you go into drug smuggling which has it's own set of down sides. Jail and other unpleasantness notwithstanding. I have learned over the years that it takes time, work and attention. Some others hit on a big "Gee whiz" idea that sets them for life, which is great, I am just not one of them, I have to earn everything I get, I do apply basic sound investing fundementals which has helped me to increase my ability to earn. The old saying goes, if you think education costs, you should try ignorance. I spent a lot of time and money trying to find the magic stock trading bullet and other ideas, none of which were very effective the way I applied them, but along the way I learned a lot about investing and what works for me. Everyone has to find their own answers. It is always good to get ideas, then apply what you learn to your circumstance and ability. My Father was fond of saying, "the harder I work the luckier I get." He also said, "work smarter, not harder."

[Lifegoal2sail]

Originally Posted by captain58sailin

The poster asked for advice about how to make money for the cruising lifestyle. I offered some of what I know to be true. He can either accept it, reject it or modify it to work for him. There are no easy answers unless you go into drug smuggling which has it's own set of down sides. Jail and other unpleasantness notwithstanding. I have learned over the years that it takes time, work and attention. Some others hit on a big "Gee whiz" idea that sets them for life, which is great, I am just not one of them, I have to earn everything I get, I do apply basic sound investing fundementals which has helped me to increase my ability to earn. The old saying goes, if you think education costs, you should try ignorance. I spent a lot of time and money trying to find the magic stock trading bullet and other ideas, none of which were very effective the way I applied them, but along the way I learned a lot about investing and what works for me. Everyone has to find their own answers. It is always good to get ideas, then apply what you learn to your circumstance and ability. My Father was fond of saying, "the harder I work the luckier I get." He also said, "work smarter, not harder."

That was/is the intent of the question. I know some people just have it. Some people (maybe even most) are older and already retired. So I can’t use their information per say, but the guys that are a little younger could have ways that I could either model after or modify to get me going. I also just wanted to make sure there wasn’t some secret EASY button that I over looked.

Wouldn't that be nice

[captain58sailin]

I wish there was an easy button. The trick is to learn from the mistakes that us old geezers make and try to avoid the pit falls. One thing that I found to help me enormously was to put down in writing a 5 year goal and then write down the plan to get there, and then continue to modify the plan and update it as things progressed, the more detailed the better and don't be afraid to change it. I keep a copy of that in my wallet, it helps me to stay focused on the prize. Every now and then I pull it out and revise it as circumstances change. After work when you get home, take out your spare change and put it in a jar.

[Jim Cate]

How we did it: (somewhat simplified)

1. ALWAYS pay cash. If you don't have the cash, you can't afford it.
2. Live below (way below) your means.
3. Save/invest the surplus thus generated.
4. When you reach a balance between available funds and your personal minimum comfort level of security, go cruising.

It isn't easy, but it is fairly simple and it isn't instant gratification... but we've been cruising full time for 25 years now with only one 18 month timeout for working (still living aboard on the cheap).

Cheers

[Lifegoal2sail]

Originally Posted by captain58sailin

I wish there was an easy button. The trick is to learn from the mistakes that us old geezers make and try to avoid the pit falls. One thing that I found to help me enormously was to put down in writing a 5 year goal and then write down the plan to get there, and then continue to modify the plan and update it as things progressed, the more detailed the better and don't be afraid to change it. I keep a copy of that in my wallet, it helps me to stay focused on the prize. Every now and then I pull it out and revise it as circumstances change. After work when you get home, take out your spare change and put it in a jar.

I do that now. That's my beach weekend money for our gulf fishing trip in Aug.

Originally Posted by Jim Cate

How we did it: (somewhat simplified)

1. ALWAYS pay cash. If you don't have the cash, you can't afford it.
2. Live below (way below) your means.

Cheers

You know, I use to be poor. I thought people that were dirt poor were rich! After I got on my feet and built my credit back I like somany others went into hock. But at the time I didn't think I'd be wanting this.
I'm almost to the point that I'm willing to say screw it to all my debt holders and start putting that money away. The only problem is I'm too responsible for that.

One card, buy a boat
Line of credit at CU, fit the boat
One card take out cash
Sale all things of value

Leave it all behind.

I wonder if collection companies can get sat. phone numbers? Wouldn't that be a bit#$ to get a collection call at 1 a.m. in the middle of the ocean?

[boasun]

I've played the Lottery many times.... The one thing that I've learned in this life is: I've NEVER WON the Lottery. So I can not depend ever on the lottery for an income of any sort. Ever!

[rowingdude]

Originally Posted by Lifegoal2sail

... I wonder if collection companies can get sat. phone numbers? Wouldn't that be a bit#$ to get a collection call at 1 a.m. in the middle of the ocean?

It's not illegal to owe money, after 4 months, you can file bankruptcy with an attorney, then you stay in a port for 6mo (typical BR proceeding time), your case will likely go through and then you just leave. Just understand you won't be able to get credit for a few years at least Also, I hope you'd change your number if you were planning something like this.

[Jim Cate]

Originally Posted by boasun

I've played the Lottery many times.... The one thing that I've learned in this life is: I've NEVER WON the Lottery. So I can not depend ever on the lottery for an income of any sort. Ever!

The odds of winning the big enchilada on the lottery are essentially the same whether or not you buy a ticket. The frugal cruiser recognizes this fact.

Cheers

[spostamento nobile]

As I've stated earlier I don't have a pot to piss in. I'm 43, my field is no longer hiring nor paying how it used to. Throw in a couple of wrong partners, some terrible personal chioces, and here I am. So I joined the Boilermakers union and they are teaching me how to weld. Huge difference between an office setting and the ship yards. The point is I know this is a world wide skill, it pays well here and now, and I am willing to forget how I made money in the past to make money in the now. You have to really want to go sailing. Its not easy going from $0 to something. I've been at it for 3 years and still have at least another 3 before I start making real offers.
Even now I still throw out the old 'Owner holding the note ' offer. The worst thing they can do is laugh at you and say no. After the 5th or 6th time it doesn't sting anymore. I know my offers are real, and if I don't try, then I can't feel like I've tried everything to get onboard my own vessel.
If you really want to go, then go. Get your life and habits in order all pointed at one main goal. Its hard. It supposed to be that way. Otherwise it wouldn't be cool.

[osirissail]

Originally Posted by Lifegoal2sail

. . . But reading all that I have, I can't understand how they (or anyone) finance it.

I see costs running 20-50k a year, but these people don't work. So either these people are silver spooned kids or filthy rich. My question is how do you support your HABBIT?

I know some saved up, but even if you saved all of your money, what do you have planed for after sailing?. . .

So, without getting too personal, how do you do it?
Thanks in advance, Bryan

Back to the OP's questions - -
- - It helps to be filthy rich but it is definitely not necessary. Basically long cruising versus living on land involves making some dramatic lifestyle choice changes.
- - If you are young and a naturally healthy individual cruising is quite economical and easy. See the "Under $500" early posts on how to do it. A lot involves not having expenses such as health costs and ties to land based assets. Food is extremely inexpensive if you go native and eat what the locals eat.
- - If that doesn't work for you or you are at an age where physical infirmities are a problem, then the $20K - $50K budgets enable you to cruise long term but you need to have those resources. Many folks in this group have significant investments and live off the interest.
- - Short term or sabbatical cruisers work to earn their cruising kitty money with a 6 month cruising and 6 month working schedule. This works quite well as normally cruising involves half a year of hiding from tropical or other bad weather.
- - Then you get to your last question - "what do you have planed for after sailing?" Simply put, long term, minimalist budget cruisers totally ignore this concept. You cruise, you live the good life, and when you get too old or too sick - you die. Simple and clean. It is a personal life choice available to those outside those countries where such choices are forbidden by bureaucrats or other "do-gooders."
- - I have and have had long term cruising friends who quite bluntly will tell you that their years of great experiences cruising is the all and end all of their life. When they cannot do it anymore, they opt to depart this existence with dignity.

[smurphny]

For those suggesting that it is smart right now to invest in real estate or "investment properties", all I have to say is that one of the lessons of investing I learned years ago is that assets can go up or down from ANY point. Things often look wicked expensive and then double or look cheap and then get cut in half. Don't bet the real estate market is at the bottom. It is just a guess.

[JRM]

Originally Posted by boasun

I've played the Lottery many times.... The one thing that I've learned in this life is: I've NEVER WON the Lottery. So I can not depend ever on the lottery for an income of any sort. Ever!

The Lottery is a tax on people who are bad at mathematics.

JRM

[rowingdude]

Originally Posted by smurphny

For those suggesting that it is smart right now to invest in real estate or "investment properties", all I have to say is that one of the lessons of investing I learned years ago is that assets can go up or down from ANY point. Things often look wicked expensive and then double or look cheap and then get cut in half. Don't bet the real estate market is at the bottom. It is just a guess.

I personally think we have another "dip" coming. I'm not happy about it, but it would not surprise me one bit if/when it happened.

[Hillbillylad]

I think in reply to the OP, the best use of this forum is to break down the issue to its many varied component parts.
Goprisko has an excellent thread on here on how to cruise on $5oo a month. That may not be your intention but it gives a great example of how the parts fit together to make it work.
By not losing money on buying useless or unnecessary gear you are already on the way to achieving the goal. This forum is great for dissecting every aspect of your boat and folk will genuinely guide you to the best answers.
So all those initial aspects to get going, can all be found on here somewhere.Be it buying the right boat for your needs or the gear to go with it and the best use.
As far as the funding afterward that can only be determined by you.
For myself and my fiancee, I have a small war pension and she is studying to be an online teacher. Obviously for us, a regular internet connection will be a must for her to work.That should give us a joint income of around 4k a month, which I believe is way more than adequate for our humble needs. Perhaps with your teaching experience it may be a route to look at.
We are still plotting and working towards our goal and it gets ever closer. Hope you get the same fantastic info from here that I have.

[callmecrazy]

Originally Posted by osirissail

Back to the OP's questions - -
.
- - Short term or sabbatical cruisers work to earn their cruising kitty money with a 6 month cruising and 6 month working schedule. This works quite well as normally cruising involves half a year of hiding from tropical or other bad weather.

That's what I'll be doing, at least until I win the lottery, or land that elusive career that pays me for doing nothing all day

That's the idea of living off 50% of your income. If you can do that, you can go cruising 6 months out of the year right now, with your current income... The only catch is you have to find a new job every 6 months.

On top of being able to do this, I'm going to be (and would recommend) spending the next year or two building some additional income streams. I don't have anything to invest, and I don't own any property (except my boat) So I'll be doing other things...I'd like to get a master diver cert. first thing. And I'll start adding up sea-time to work towards a captains license in the future...And if I can pick up any other skills along the way, the more the merrier.
Eventually I should be able to make all I need by cruising to the touristy spots to work for a few months, then spend a few months cruising to the next spot. It's still the same 6mo on, 6mo off deal, but without coming back to the states to work (unless I have to)...

Now about that whole retirement thing... I don't believe the Social Security and Medicare will be there for me when I get that age, so I'm not counting on it. I figure if I cruise like this for the next 15 years, I'll just find a nice place to settle down for a while (and still live on the boat, spending next to nothing) and find a job to do for the next 10 years... 10 years worth of savings ought to be plenty to allow me to retire in a third world economy