How much money to cruise fulltime?

[Shrew]

At that rate, when the money runs out, you'll 81 with a boat 30 years older. You don't mention what country you're from. Will you be factoring in a government pension (social security in the US, for example?) That will slow the burn rate. If you're eligible to work (e.g. not in a foreign country), then that might be an option to further slow the burn rate.

[GordMay]

Originally Posted by Mike OReilly

... To me, the key is being debt free. And I mean truly debt free. Boat paid off, no house mortgage, no car payments. Nada...

Little to no health care costs ...

[Mike OReilly]

Originally Posted by GordMay

Little to no health care costs ...

Yes, that's another one. I guess the real point is not to be burdened with ongoing financial costs which you have no control over. If your finances control you, then you have far less ability to cruise at low cost.

[FAST FRED]

" I’m looking for a moderate to minimal life style- not something lavish".

If you prefer to anchor out and enjoy your own cooking
Very little money is required.

The marinas with pools, petting zoo, golf course , tennis area can be expensive.

The difference between zero and $3.00-$5.00 per foot per night.

[sailorboy1]

On the other hand, I think some of the least expensive transient slips I've stayed at the last 3 years had pools, good ship store, and courtesy cars. Meanwhile some marinas that feel they are 5 Star and were more expensive had none of those.

I don't really feel that marina costs are the budget busters. Based on my limited 3 years the budget busters are the boat and medical. Everything else is pretty easy to control and plan around.

[a64pilot]

Originally Posted by Mike OReilly

Of course you can. Two of us live and cruise (1/2 year on the boat, 1/2 year doing other stuff) on far less. To me, the key is being debt free. And I mean truly debt free. Boat paid off, no house mortgage, no car payments. Nada.

With that you are free to live as you please.

This is the key, the reason it’s the key other than maximizing your money of course is that it allows you to be flexible.
If you have $500 a month in payments, then obviously in fact you have $6,000 less a yr to cruise on.
By flexible I mean that you can if necessary stop moving or really slow down and only anchor out and get real cheap for awhile and even if need be take a temp job to get by on.

Then I’d bring up that conventional wisdom has been for quite a long time to plan on 4% to last you for 30 yrs, that includes adjustments for inflation and historically based of course.

However this pretty much depends on nothing bad happening like a blown motor or storm damage, and even things like sail replacements, ground tackle etc become difficult.
Then as you age your need for some way to pay for medical expenses becomes more important.

If you quit working now research what it will do for your Social Security also.

Then as was stated, the boats not going to last forever, sorry to be the buzz kill, but to me it seems that you will very likely turn 70 yrs old, be flat broke and have an old junk boat, if the boat makes it.

I think maybe a better plan is to draw down 3% or less of that money, and plan on seasonal work of some kind to pad the kitty from time to time, you know like try to get a job with UPS during Christmas season, or boat yard work in Summer etc.
That would mean that maybe your initial money can grow some while you very rarely hit it for expenses that will occur from time to time, even bottom jobs pretty much have to be done, and you may find blisters etc.

However and this isn’t what you want to hear, but if you continue to work for another 10 yrs, if you do so with the attitude that I’m going to save every penny I can, then it’s very likely that you can start cruising in ten years and that’s ten years less time the money has to last and you can do so with a Million as opposed to a half a million.
Remember that 500k will continue to grow too, getting to seven figures isn’t as hard as it sounds, not hard at all actually, and just to give myself more incentive, my goal would be to start the day it hit seven figures, you may well can trim that ten years by a lot.

If assuming it has to last for 50 years, 500K isn’t a whole lot of money, especially if your SS isn’t going to be that big too.
Then not to sound ridiculous, but it’s not as much money as it used to be.

[a64pilot]

It’s been quite a long time ago but there was a thread about how to cruise on $500 a month that you can find with a search I’m sure.
Not to get bogged down on whether $500 a month is sustainable, I don’t think it is, but the thread did give a lot of tips on how to live frugally, like getting your clothes from a Good Will etc.
Then I’d just make the comment that while I could do that personally and it wouldn’t bother me cause I don’t care about clothes, but I think that pretty quickly I’d be cruising Solo, cause I don’t think my better half would tolerate that.

[thomm225]

Originally Posted by Sofa King Fishy

Is it plausible to cruise full time on $500,000 US? That’s what I have saved. I’m single, 51 & have a Catalina 42 that’s in great shape & paid off in full. I’m looking for a moderate to minimal life style- not something lavish.

The answer is it depends since everyone's idea of cruising is different.

Are you going to cruise full time for a year, 5 years, 10 years, or more?

What is a minimal lifestyle to you? What is moderate?

This is minimal as far as I can tell but this guy also did software programming and built his own autopilot (the pypilot) along the way. And his boat was paid for also. I think he paid $1,000 for it.

https://towndock.net/shippingnews/se...-and-alexandra

As far as I can tell, he has crossed the Atlantic and Pacific Oceans on his Bristol 27 then he was hold up near here heating his boat with a homemade stove using pine combs when the temps were single digits. As I remember, he had to wait for the ice to thaw before he could continue South

I believe I heard once that his goal was to spend $1.00/day while cruising

Video is of his autopilot with a windshield wiper motor doing the heavy lifting

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

[Mike OReilly]

Originally Posted by a64pilot

It’s been quite a long time ago but there was a thread about how to cruise on $500 a month that you can find with a search I’m sure.
Not to get bogged down on whether $500 a month is sustainable, I don’t think it is, but the thread did give a lot of tips on how to live frugally, like getting your clothes from a Good Will etc.
Then I’d just make the comment that while I could do that personally and it wouldn’t bother me cause I don’t care about clothes, but I think that pretty quickly I’d be cruising Solo, cause I don’t think my better half would tolerate that.

Doesn't everyone already shop at Goodwill or Value Village?

It was a good thread. Love to see it revised, or perhaps updated. It's really about cruising frugally, not just cheaply. The "$500/month" headline is really just a descriptor, or aspirational. I don't think anyone here (outside of perhaps Sailorchic) is living at this level. But some of us aren't far off .

[mvweebles]

Originally Posted by sailorboy1

I started 3 years ago with a paid for boat and about $500k and have posted monthly since the start. My spreadsheet is attached and you can search my monthly threads by clicking my user name. ChuckR also has post 10-11 years of very detailed costs.

Good luck and have fun

First, thanks SailorBoy for these posts with XLS - best I've seen on the topic. Question: have you kept the original $500k relatively intact?

Second, to the OP, the cruisers I've seen go bust do so relatively quickly and directly traceable to spending much of their time in marinas when they budgeted for anchor-out. It's not just the slip-fees, but the dinners/drinks/bauble-shopping that gets them, especially in high-cost areas such as much of the Caribbean.

Bottom line: question isn't whether it's possible to cruise with a $500k war chest - it definitely is though there are a couple potential gotcha's such as health and major boat failure. The question is whether you can be happy on that budget. If you're a social person who enjoys daily happy hours with friends, chances are you won't somehow be happy long-term as an anchor out reading books just because it sounds romantic.

[TravelinLight]

I cannot offer any advice on full time cruising costs. (I am here to learn also)

I will ask, what is your current rate of return on your investment? Is this liquid assets which can be consumed or is it hard to get to?

Do you manage your money or have someone else manage your money? It may be worthwhile to have someone who knows your goals and objectives create a plan for you as it will allow you to focus on cruising and not on the markets while afloat.

Your past rates of return should give you an idea of future payments / distributions.

[sailorboy1]

Originally Posted by mvweebles

First, thanks SailorBoy for these posts with XLS - best I've seen on the topic. Question: have you kept the original $500k relatively intact?
ic.

Market has been good. So even though I have spend all that money on the spreadsheet I still have most of what I started with, which is a plus as I didn’t plan it that way. But, that is a different thread.

[daletournier]

Originally Posted by sailorboy1

On the other hand, I think some of the least expensive transient slips I've stayed at the last 3 years had pools, good ship store, and courtesy cars. Meanwhile some marinas that feel they are 5 Star and were more expensive had none of those.

I don't really feel that marina costs are the budget busters. Based on my limited 3 years the budget busters are the boat and medical. Everything else is pretty easy to control and plan around.

For me it's the boat, and I have a good one , yet it still costs, it's also depends on the nm's one does and the standard he/she expects. I dont let stuff fully wear out therefore it costs.

Boat is my number one expense.

[tarian]

Have a look at these guys been at it for 4 years and do a great break down of costs and what they spend in a year , no frills but they are happy and seeing the world , there explanation is for us no Investment Gurus

https://www.youtube.com/watch?v=5TDSDDU-5lg

[jmorrison146]

Not much has been said about the condition of the boat other than its "in good shape". I recommend that you make sure that everything is in VERY good shape before calculating your cruising kitty. Replacement of major systems -- engine, rigging, sails, electronics, survival gear, refrigeration, etc. -- can be expensive and these systems should be reliable before setting out. There's also the question of spares for those critical systems that you should carry because they may not be available where you're headed or may be more expensive there.