Low Cost Cruising Details

[Gadagirl]

Boat insurance
@ $4k per year
$333 month
Boat maintenance
@ $6k per year
$500 per month
Fuel, gas, propane
$60 per month
Groceries, household supplies, all consumables
$420 per month
Restaurants
$120
Coms services
$150
Mail Service
$20
Savings for gifts
$200
Savings for travel/excursions
$200
Health insurance
$400 ? Who knows!

$2,403 per month total

My "pretend" budget, because I am not yet able to cruise. I have based this on reading here and elsewhere. I thank all others willing to share. The data is important and does matter because I can take that data and adjust it to me. And I am meshing what I know I spend now, what my comfort level is, and what I anticipate from reading other people's budgets (OPB).

I am planning on being on board a 34-38 foot boat. Hopefully a small catamaran. But have not discounted a mono haul. I plan to pay cash for the boat. I will have $20k reserved in emergency fund when I leave. I am thinking that would be a cushion enough for emergency/severe medical and/or emergency boat repair. I will be living off of 401k, other small investments, and in 10 years can collect SS.

Since I can not have my cake and eat it too. I plan to sell the house, buy the boat, and live aboard while I continue to work until I can retire. So there is an entire other budget, pre cruise, which would include slip fees, electric, having and maintaining a car, etc. during those first years.

During which I would be sailing the boat as well as refitting/upgrading, preparing. So, I will do my best to document both phases in order to help others, when the time comes.

Boat insurance- I feel this will be necessary. It will be my only home. My plans initially have me in Bahamas, Caribbean winter, Chesapeake summers.

Boat maintenance- I am pretty handy and mechanically inclined but there will be a learning curve. And I am getting old. Not sure if I have budgeted enough.

Fuel, gas, propane- Just a guess based on what I have read. I realize some months maybe zero , some way over that amount. I was just trying to average it out.

Groceries, household supplies, all consumables- I based this on my spending now. I live in an fairly expensive area, but I know groceries are more expensive on islands. Less in other places.

Restaurants- I rarely eat meals out. Not even fast food. But if I were visiting a place I would enjoy dinner out at least 1x a week @ $30. If it were closer to $50 I wou do it 2x a month. I think it is important to not only support the local economy while visiting but to enjoy the flavors and meals and to experience the culture. If it ends up being $5-$10 even better! But importantly it is sharing the culture through local ingredients and recipes, passed down and prepared through generations. Ok, so yeah, I can see that I might go over budget on local culinary experiences.

Coms services- I pay $40 for phone service now. But budgeted more from reading here. I will want the ability to hot spot to watch shows where free wifi might not be available or unreliable. Also, people mention having services for weather routing, tracking services, etc.

Mail service- Just a guess. I have no idea what it costs.

Gifts- It is what I currently budget and spend for during a typical year. I guess this could be trimmed once I am out there. But realistically even if I cut it in half I would be only saving $100 month.

Travel/excrusions- I want to be able to go on excrusions to enjoy the culture and sights of the places I am visiting. And/or fly home to visit family. I think budgeting $2400 a year is worth that and maybe not even enough. Depending on location.

Health insurance- Who knows what the future will be. I am sure I have underestimated this cost in current times, but one can hope. But being a US citizen, and based on what is available currently, this is what I can assume. But I am also contemplating all options, IE setting up residence in another country. I will see where I am at when the time comes.

[Gadagirl]

So that is where I am at as a single cruiser and planning as a US citizen. If i knock off $400 for health insurance I am still at 2k. And as I am sure you have all noticed I have not included the occasional frivolous, but often times necessary days spent at a dock or mooring. I had supposed that would have to be included under my $500 maintenance account?

So one of my questions in planning is where in the hell can I shave $500 to come in at $1,500 a month? Given my stated lifestyle and aspirations? If I am thinking realistically I would expect to spend minimally $2,200 per month.

Correct me if you want, give tips, encouragement, and critiques.

This is a good thread and I have been reading, hoping also that I can squeeze out details of others that have lower budgets than Sailorboy1. And I thank him for sharing and trying to go further into encouraging others to share their budgets.

[sailorboy1]

[QUOTE=JPA Cate;If A64's thought is correct, that you have financial concerns that were not troubling you 4 yrs. ago, and that's creepy to have happen, but you're a smart guy, you'll figure out how to survive, as long as you have health.

Wishing everyone good health,

Ann[/QUOTE]

I have no more financial concerns than anyone would have that stopped working and left to cruise at 56 (having concern is same as paying attention and being aware) But even with the recent market reduction i have the same assets as just last Oct. That means i have twice what I forecast at this time when i started, so my plan is working much better than expected.

The thread has nothing to do with me or my budget. I know when m money goes and that makes me in charge of it.

Thanks for the thought and well wishes

[a64pilot]

Where can you shave?
Well boat Insurence is one, ours is $1,500 a yr. the funny thing is I increased its insured amount by almost 50% last year based off of of course a survey. I hadn’t changed Insurence since I bought it, but had a whole lot more money in the boat now.
Rate changed very little, which surprised me as I thought it would be based on a fixed number based on insured value.
But someone on this forum pointed out that the biggest risk isn’t the insured value, it’s the Million dollar environmental clean up etc and increasing insured value doesn’t increase risk to the Insurence co all that much.

But back to the Insurence, if your world cruising, then your number may even be low. But a I suspect that your not? Cruising grounds have a lot to do with it, but even then if it’s a seasonal cruise as in 6 months or so you can take almost everything with you and save mucho money, if it’s a high cost of living area, key is to try to find out what’s expensive and take that, not the stuff that’s not.

Now starting with a 20K oh crap fund is good, but that fund needs to be replenished monthly as you will be digging into it from time to time, not for the continual expenses of course but for new sails or new electronics or whatever, the big ticket stuff. But to plan on a one time oh crap fund of xxx isn’t going to work long term.
One way to do that is pump your xxx dollars a month maintenance fund into it, there should be some left over each month and over time of course it accumulates.

It’s discretionary spending that really drives budgets, even new sails are discretionary, sure new sails are nice, especially high speed low drag ones, but they are expensive, a decent used sail or just keep what you have knowing it’s not the greatest performance sail is an example, until of course it’s lost structural integrity, then it has to be replaced, but do you replace sails based on performance or structural integrity?
But do you eat Fliet Mignon or hamburger?

Do you have to have a new or nearly new boat or is an older one fine?

Now my Wife would recoil in Horror if I said let’s go look at the clothes at the Goodwill, that’s just her thing, I have mine too. Tell me Harbor Freight tools are just fine and I do the same as she does. But Harbor Freight works, and if your in a town where the Rich Yankees move to die like say Sarasota for instance, there are used clothes that still have the tags in them, and very expensive brand names too.

But my opinion is that maintain a good standard of living, in a paid for boat, $3,000 or so per month is about what it will cost.
Plan for that, budget for that and if it’s less, bank the remainder.

We have a lot of non cruising expenses so I believe that our costs run about $3,000 a month, but we do stay in a rather nice as in not inexpensive Marina for Hurricane season, and buy some toys and luxuries.

[smj]

[Quote
Well boat Insurence is one, ours is $1,500 a yr. the funny thing is I increased its insured amount by almost 50% last year based off of of course a survey. I hadn’t changed Insurence since I bought it, but had a whole lot more money in the boat now.
Rate changed very little, which surprised me as I thought it would be based on a fixed number based on insured value.
But someone on this forum pointed out that the biggest risk isn’t the insured value, it’s the Million dollar environmental clean up etc and increasing insured value doesn’t increase risk to the Insurence co all that much.QUOTE]


Not sure if that is true. They wanted over $8k a year for full coverage on the boat we are on now and only $130.00 per year for liability. The liability covers I believe $800k in spills/ clean up etc.

[GRIT]

GADAGIRL

Your insurance "guesstimate" is probably far too high, for a 34-38 foot boat.
Boat insurance will tend to cost about 1.5% of the boat's agreed value.

I think your maintenance fund is high too, but if you do as A64 says, and invest what you don't spend on maintenance, then it's just about right.

There's a couple of dollars for you. Gifts is discretionary and health insurance anywhere outside the USA will be quite a bit less expensive than your estimate.

As an example. When in Spain, my wife had to be hospitalized for a week, and had a spinal tap too. Total costs, $5400 US, in 2007. Many cruisers "self insure" for health, due to the affordability in most of the world.

SMJ, wow, that's quite a quote, at $8000. We're paying just under $5000 US for $360,000 US in coverage. It's as low a value as they'd allow to the boat, due to the surveyor's take on it's value. You can only go so low, before they'll balk.

Cheers.
Paul.

[sailorboy1]

Originally Posted by Gadagirl

So that is where I am at as a single cruiser and planning as a US citizen. If i knock off $400 for health insurance I am still at 2k. And as I am sure you have all noticed I have not included the occasional frivolous, but often times necessary days spent at a dock or mooring. I had supposed that would have to be included under my $500 maintenance account?

So one of my questions in planning is where in the hell can I shave $500 to come in at $1,500 a month? Given my stated lifestyle and aspirations? If I am thinking realistically I would expect to spend minimally $2,200 per month.

Correct me if you want, give tips, encouragement, and critiques.

This is a good thread and I have been reading, hoping also that I can squeeze out details of others that have lower budgets than Sailorboy1. And I thank him for sharing and trying to go further into encouraging others to share their budgets.

I wish you good luck.

Where i started thinking of getting into cruising around 2007 i was thinking i could do it for 2 on $1500/mo. More research got me to $2000/mo. My wife looked at it and it finally became $3000/mo. But the real number has proven to be around $3800/mo on average.

Yes we could do it for less. But if we cut out all the fun plus all the marinas (that we mainly do when we “have” to) it would still be around $2800-3000/mo.

It gets written , but no one not cruising really gets it, cruising costs more to maintain your boat than you think. Plus most of us aren't kids and even if healthy we need medical.

There are of course those than are more willing to get by on less to be “out there”. But i want more out of life than just getting by and worked hard to make that happen.

[smj]

[QUOTE=

SMJ, wow, that's quite a quote, at $8000. We're paying just under $5000 US for $360,000 US in coverage. It's as low a value as they'd allow to the boat, due to the surveyor's take on it's value. You can only go so low, before they'll balk.

Cheers.
Paul.[/QUOTE]



The boat has a history.......:-)

[Gadagirl]

Thanks all! Great input! This is why I like threads like this! I'm encouraged to know that I'm not too far off in my expectations. Adjustments need to be made. My insurance expectations are based on what people are getting quoted for cruising the Caribbean, but yeah hopefully I'm over rather than under budgeted for that.

After thinking about it, probably 30k-40k would be a better cushion. If I start with 20k I'll aim at adding to that. I have to agree whatever the cushion, it's got to be topped up after each hit. I'll try to start with a higher cushion, but try not to make that my excuse for not cruising .

love burgers and hot dogs too! LOL But in my frugality I'd choose to eat a burger lunch out in order to socialize, and cook a fillet aboard for dinner in order to save money. Or better yet eat a local cuisine out and cook more expensive cuts of meat and fish aboard on occasion. I'm not that fancy or picky. I just really like good tasting food. And I know that doesn't necessarily always mean expensive.

[sailorboy1]

Originally Posted by Gadagirl

Thanks all! Great input! This is why I like threads like this! I'm encouraged to know that I'm not too far off in my expectations. Adjustments need to be made. My insurance expectations are based on what people are getting quoted for cruising the Caribbean, but yeah hopefully I'm over rather than under budgeted for that.

After thinking about it, probably 30k-40k would be a better cushion. If I start with 20k I'll aim at adding to that. I have to agree whatever the cushion, it's got to be topped up after each hit. I'll try to start with a higher cushion, but try not to make that my excuse for not cruising .

love burgers and hot dogs too! LOL But in my frugality I'd choose to eat a burger lunch out in order to socialize, and cook a fillet aboard for dinner in order to save money. Or better yet eat a local cuisine out and cook more expensive cuts of meat and fish aboard on occasion. I'm not that fancy or picky. I just really like good tasting food. And I know that doesn't necessarily always mean expensive.

Nothing wrong with that. Eat out during happy hours and save having steak on the boat (even though thats not has much a savings as it seems)

Best way to not spend money, don't go ashore!

[Mike OReilly]

Gadagirl, your budget seems a tad high in some areas, and probably bang on in others.

Insurance is literally 10x higher than I pay, but you are clearly aiming at a much more expensive boat. So my first question is, do you need a 34-38' catamaran? You say it is just you. That's a large living space for one person (in my estimation). If you simply cut this to a 34-38 monohull of moderate age but good pedigree you'd save big bucks right there. And not just in insurance. As almost everyone agrees, smaller is cheaper.

Your boat maintenance item is again a lot higher than I pay, and mines is a 44 year old boat. Mine comes in perhaps 1/3rd of this, although this can vary depending on which system just died. Again, smaller boat means less maintenance cost.

Groceries seem high for one person. That's close to what we spend for two, and we're pretty extravagant on food and booze.

Restaurants ... that's completely discretionary. I might go out once every two months. Up to you.

Comms. I pay about 1/2 to 1/3rd of your budget. Depends on what you need I suppose.

Gifts?? My gift is a perpetual invite to any family and close friends who want to come sailing. Some have.

Travel/excursions, again completely discretionary.

Health insurance ... always the weird one for you Americans. Apparently SB has figured out a way to pay very little. I know he's explained in elsewhere. Maybe he'll do it here ... although I certainly wouldn't dare ask.

As far as your nest egg goes, I'd aim for a lot bigger than $20k. That can disappear pretty quickly with an engine melt down or having to replace a few sails.

Again, with a smaller boat you can put less into the hull and save a lot more for your Oh Shyte! account.

[Matt Johnson]

Our catastrophic health insurance with a $2500 deductible and $2 million lifetime coverage is $1600 a year for my wife and I (we're 37). This is available as long as we stay outside the US for more than 10 months a year (I think that's the number).

Our current boat is liability only, but our last boat was around $2,400/yr while in the US. Once outside the area (US/Bahamas) we were able to get a European policy for half that amount and with much better coverage.

As was stated before - It all depends on where you cruise.

Matt

[smbdyiam2]

Originally Posted by wingssail

I think that's a bit of a twisted outlook, Lee, and sort of grumpy. Apparently what you would like to see are tips that are valuable to you to reduce your INCEMENTAL costs of cruising. You're complaining that people's records include lifestyle expenses. Well, cruising is a lifestyle. What does it cost?

Most folks contemplating cruising want to know what it might cost them, in TOTAL (because none of their costs are likely to remain the same as living ashore). So costs of food, entertainment, boat maintenance, fuel, everything that other people have been spending, are germane.

Sailorboy1's original post and request for examples is pretty useful. Your idea about what cruising means to you is less so to most other potential cruisers.

I could say I'm sorry to upset you. But I won't and I'm not. I stated why I was looking at this thread--Low cost Cruising Details-- to help Me in my plans.
Since I made that post I've seen Mike mention thrift stores as cost reducers. Thanks Mike.
Saw a post with expenses then saw they was wantabes. did not help. Then saw lots of posts how to lower make believe Insurance. Rest was all off topic 25 posts after mine. Try real hard and understand. LOW COST CRUISING DETAILS.

[sailorboy1]

Originally Posted by smbdyiam2

I stated why I was looking at this thread--Low cost Cruising Details-- to help Me in my plans.

This was never met to be that. It was just met to be a monthly cost with a category breakdown. Of course that is just what I met it to be and it never really had a chance.

What you want is this old thread:

https://www.cruisersforum.com/forums...-ii-79067.html

[sailorboy1]

Originally Posted by a64pilot

Where can you shave?
Well boat Insurence is one.................

well while that saves money (maybe) it comes at great risk, same has having no health insurance

To me these are cost savings of last resort. You only consider them when you are down to having serious problems meeting other needs.