Budget Be Damned

[letsgetsailing3]

Originally Posted by Kenomac

I forgot to include diesel fuel in the 15 euro per day budget.... yes, it's included.

At 15 Euro a day, you're not including an awful lot of diesel, though it may be true that you're not using much.

But what doesn't seem to be included are boat storage costs, haul out and launch (if it's out of the water), general maintenance, travel costs to and from the boat, entertainment, data charges if you use the internet, chartbooks if you use any of those, and the inevitable costs associated with cruising.

[Kenomac]

Originally Posted by letsgetsailing3

At 15 Euro a day, you're not including an awful lot of diesel, though it may be true that you're not using much.

But what doesn't seem to be included are boat storage costs, haul out and launch (if it's out of the water), general maintenance, travel costs to and from the boat, entertainment, data charges if you use the internet, chartbooks if you use any of those, and the inevitable costs associated with cruising.

The system works for us, just like Sailorboy's system of budgeting works for him. I couldn't care any less what the naysayers think.

Any storage fees are inexpensive and paid well in advance. I do all the maintenance myself, I stay on the boat continuously following arrival, data costs are included in my daily budget (50 cents - 1 euro per day), charts and chart books are already owned. Haul outs are cheap in the Med compared to the US ($500-$600) and needed only every two years or so. I fill up once a year with diesel in Montenegro at the duty free pump, so the total cost is under 600 euros; if I need more, I buy more since I've been saving money all along.

We keep an eye on the daily budget, then the big items take care of themselves. If I need more money for a larger expense like new sails (ours are brand new), I simply go back to work for a month or two... I'm not trapped with a fixed pot of money.

[sailorboy1]

And that brings back to thread topic.

The amount of assists you leave with need not always be looked at as a “fixed pot of money”. In general people assume the pot will get smaller as life happens, but it may also go up.

[daletournier]

Originally Posted by sailorboy1

And that brings back to thread topic.

The amount of assists you leave with need not always be looked at as a “fixed pot of money”. In general people assume the pot will get smaller as life happens, but it may also go up.

This is true. My wealth increased considerably over the 10 years I've been cruising, going backwards now.

If you owned assets (property, stocks) in the last 10 years your wealth proberly has gone up, particularly if you purchased these assets at their lows post GFC, easy money has made them grow.

[letsgetsailing3]

Originally Posted by Kenomac

The system works for us, just like Sailorboy's system of budgeting works for him. I couldn't care any less what the naysayers think.

Any storage fees are inexpensive and paid well in advance. I do all the maintenance myself, I stay on the boat continuously following arrival, data costs are included in my daily budget (50 cents - 1 euro per day), charts and chart books are already owned. Haul outs are cheap in the Med compared to the US ($500-$600) and needed only every two years or so. I fill up once a year with diesel in Montenegro at the duty free pump, so the total cost is under 600 euros; if I need more, I buy more since I've been saving money all along.

We keep an eye on the daily budget, then the big items take care of themselves. If I need more money for a larger expense like new sails (ours are brand new), I simply go back to work for a month or two... I'm not trapped with a fixed pot of money.

I believe you misconstrue some of the comments. Nobody is "naysaying" your finances, your economizing prowess, or your financial strategy. We were just saying that you weren't providing an actual budget.

What you're doing is clearly working out well for you, and that's cool. But as far as providing useful budget information, if significant expenses are left out of a budget with a "I buy stuff when I need it" strategy, it isn't of so much use for someone else trying to plan expenses. That's all we were saying, I believe.

[Kenomac]

Originally Posted by letsgetsailing3

I believe you misconstrue some of the comments. Nobody is "naysaying" your finances, your economizing prowess, or your financial strategy. We were just saying that you weren't providing an actual budget.

What you're doing is clearly working out well for you, and that's cool. But as far as providing useful budget information, if significant expenses are left out of a budget with a "I buy stuff when I need it" strategy, it isn't of so much use for someone else trying to plan expenses. That's all we were saying, I believe.

So.... you find only the sell up and sail, fixed pot, diminishing asset strategy to be helpful? It might be beneficial for you and others to open up your minds to different budget/cruising models.

[Kenomac]

Originally Posted by sailorboy1

And that brings back to thread topic.

The amount of assists you leave with need not always be looked at as a “fixed pot of money”. In general people assume the pot will get smaller as life happens, but it may also go up.

Precisely, and apparently difficult for some to comprehend.

[Jason Flare]

A notoriously frugal friend of mine was asked, “How much does it cost you per month to cruise?”

Now, Chuck was frugal. He knew every free dock and mooring ball in the east coast of the US. If a museum was free Chuck had been there.

Chuck answered , “$6,000.00 per month.”

I chuckled. I knew Chuck.

“It costs me $6,000.00 per month to cruise.” he said, and he began ticking off his expenses; five cars, (a few collectible,) a house, insurances, taxes, utility bills, yacht club dues, boat maintainance.

Frugal Chuck had figured everything and it cost him $6,000.00 per month to live, on a boat.

[Paul L]

Originally Posted by Kenomac

So.... you find only the sell up and sail, fixed pot, diminishing asset strategy to be helpful? It might be beneficial for you and others to open up your minds to different budget/cruising models.

Just because you keep calling your 15euro a day a budget does make it a budget. Yours is simply a troll way of trying to implu that you live sooo frugally on your two Oysters. At least try and live in the same universe as the other CF readers. When posting. If you want to offer real information then include what others include in a budget. BS numbers like 15euro a day are useless. It as useless as me saying I plan on spending zero a day while on a 3 week passage.

[letsgetsailing3]

Originally Posted by Kenomac

So.... you find only the sell up and sail, fixed pot, diminishing asset strategy to be helpful? It might be beneficial for you and others to open up your minds to different budget/cruising models.

Well, no. I'm open to any cruising model. Certainly in terms of sailboats someone can pay up front, or they will surely be paying later.

I find the data from the people who actually provide it to be useful. Saying "I pay any expenses as I run across them" is a great strategy, but not so helpful to anyone else's planning. Nobody cares about grocery costs. They care about cruising and boat maintenance costs.

No worries, none of it really matters. Different people plan differently, and it all works out in the end. Didn't mean to be offensive.

[cyan]

Originally Posted by Kenomac

Question: Why do the red walkers have handlebar brakes?

Ok, I know the question was just for fun, but I got an answer today. I visited the assisted living home earlier, and I read a lot of this thread from my laptop to the nice old (sorry) lady (Jean) with the warning to "live while you are alive". She had a wry smile through most of it... a smirk, perhaps. When I was done, I thought she would have more words of wisdom for you youngsters. Instead, she simply had an answer for the brakes question:
"They have brakes because they like to run out in front of you."

[a64pilot]

Originally Posted by Kenomac

So.... you find only the sell up and sail, fixed pot, diminishing asset strategy to be helpful? It might be beneficial for you and others to open up your minds to different budget/cruising models.

Apparently you don’t quite understand the “fixed pot”
In order to ensure very long term sustainability, you need enough money so that the majority of the time it’s gaining in wealth, not decreasing.
If you don’t size your fixed pot large enough or your draws on it small enough, then in the unlikely event of another 1929 event, your not going to make it.

Way mine is set up, most probable result will have me having more money I have now at age 90, adjusted for inflation.
However there is a 7% chance that I won’t make it to 90. I’ll run out of money first, but a 93% chance that I won’t.
I picked 90, just cause you have to pick something, for me that’s 30 more years.
I don’t feel lucky, I need to stack the odds.

Depends of course on how much risk your willing to accept.
How lucky do you feel?

[Kenomac]

Originally Posted by a64pilot

Apparently you don’t quite understand the “fixed pot”
In order to ensure very long term sustainability, you need enough money so that the majority of the time it’s gaining in wealth, not decreasing.
If you don’t size your fixed pot large enough or your draws on it small enough, then in the unlikely event of another 1929 event, your not going to make it.

Way mine is set up, most probable result will have me having more money I have now at age 90, adjusted for inflation.
However there is a 7% chance that I won’t make it to 90. I’ll run out of money first, but a 93% chance that I won’t.
I picked 90, just cause you have to pick something, for me that’s 30 more years.
I don’t feel lucky, I need to stack the odds.

Depends of course on how much risk your willing to accept.
How lucky do you feel?

Ok, you and the others are right... I’m doing it all wrong because I “don’t quite understand” proper CF budgeting.

You win.

[Sojourner]

We tried (out of fear, or prudence) to maintain a land life for a while. But things improve dramatically when you cut those ties. We sold everything, put a few boxes with friends for safekeeping, and moved onto the boat full time. Since then, it's been a lot better, both in terms of money and stress. The feeling of freedom is incredible.

A s for finances, we have a few single family rental properties free and clear in some good locations that give us enough to live, and some stocks/ savings for the unexpected. Rents keep rising to match inflation, and I can deduct incredible things from my taxes. If we overspend, all it takes is sitting tight for a few months for it to return. End of life scenario, since we don't have or want children, I'll reverse mortgage them all and go out with a bang. Investment advice from this former MBA? Rental properties all the way.

[valhalla360]

Originally Posted by Kenomac

Ok, you and the others are right... I’m doing it all wrong because I “don’t quite understand” proper CF budgeting.

You win.

I don't think anyone is taking issue with you "doing it wrong". Feel free to spend as much or as little as you like and track your budgets any way you like for your own purposes.

They are taking issue with you posting misleading information on the subject. Now if you had said 15euro per day not including, boat, insurance, travel, etc..etc...etc... it would have at least been honest and any newbie reading it could easily screen it out as useless information for determining an overall budget.