This is so common a dream that there should be an article somewhere outlining some of the strictures.
A basic rule of boat ownership is you will work about 10 weeks a year to keep it tied up to the dock and maintained, and another week for every week you are away from the dock. Or more. Some variance depending how new your boat is (cheaper) and how fancy your marina may be. So it is much cheaper to charter a couple weeks a year, although the more exotic the locale the more the cost (to get there.)
Yes, you can be a sailor extremely cheaply, keep your boat on a mooring, do all your own maintenance, eat rice and beans underway, and row your dinghy ashore. But we’re talking about the average sailor here, who has a family to be wooed into enjoying sailing and would really rather have dinner at a nice restaurant ashore after a day-long passage and cold beer if it’s an option.
But if you must own your own boat on the limited budget in the title, buy a small boat, the smallest boat you can possibly get away with. Do not measure the size of the boat by how much money you have now, but by how much you earn now. If you can’t afford to take 20% out of your annual income to spend mooring and maintaining a 40 footer, can you afford 10% to spend on a 20 footer?
This isn’t a hard and fast rule, but “One-third for the boat, one-third to prepare the boat, and one-third for the cruising kitty” is a good guideline. If you have $75k, then don’t spend more than $25k on the boat. This should leave you enough to upgrade some of the systems as necessary, spruce up the boat generally, and some luxuries for cruising (good cushions for sleeping berths!) And you’ll have a good cruising budget at the start, plus everything you can add to it before departure. Financial planning is more vital to a cruise – where almost all the money is going out rather than incoming – than it is ashore, employed.
So, now that you’re down to $25k for the boat, and your guideline for selecting a boat is how much you’re earning now to pay for the ongoing costs of boat ownership, you have a much better idea of how much boat you can purchase. Probably not your dream boat. DON’T GIVE UP THE DREAM. You’re just changing the parameters.
There is another way to do this – to buy a boat and go cruising, but on a bigger boat. And that is to assume the cruise is a life experience that has a beginning, a middle, and an end. Here’s the basic idea – you purchase a boat which requires little or no preparation and, almost immediately, you leave on your cruise. As soon as your cruise is done, and even before the end if possible, you sell the boat.
With that your finances for the boat double – $50k for the boat. But you have to be aware you’re stuck with whatever the boat has, so the survey has to be better than if you were buying a boat to spend a few bucks on for new sails or upgraded batteries. And, with the bigger boat, even though you can sail faster you probably won’t have as long a cruise due to higher costs en route.
But, I can hear you saying, I have $75k just for the boat; I’ll earn more before departure/have a pension I plan to cruise on/will be selling the house for the cruising kitty. The only wise course is to make your decisions on what you really do have in the bank, not what you hope to have. Guaranteed income – such as most pensions – may be just fine, if you can also guarantee you can access that income where you plan to be cruising.
As a sailor you plan everything out, including possible disasters. You must be at least as diligent about your finances.
And, generally, that means having cash in hand after you’ve paid off the boat and are ready to cast off the dock lines for the last time. Planning to use your bank card to get access? what if it’s stolen, or your bank goes belly up in the present recession, or the ATMs at your destination don’t accept it, or your bank assumes all uses of their card in country X are fraud? I just spent a very frustrating day paying the Government of Canada money to import my boat – my bank’s network assumed Canada was trying to fraudulently withdraw money from my account, even though I was talking with my bank before, during, and after 6 attempts to pay the bill. The seventh attempt finally worked, but that’s in a first world nation – imagine the issues elsewhere!
Using checks or letters of credit can be even more frustrating, involving weeks of delays. Traveller’s checks are not particularly convenient, but if you have researched your destinations to make sure they have an office for the kind of traveller’s check you’ll be carrying, they are a very good choice.
Personally, I tend to carry some cash – enough for a few days – traveller’s checks, a couple of bank cards, and a couple of credit cards. And a cell phone, with numbers to my banks and my credit card company programed in. So far no serious problems. But you have to have enough money in your kitty to carry all four, so don’t go for broke on just the boat. Keep a reserve.
But, as I said at the start of this rant, most likely you should take your cash and charter a boat once a year someplace nice. Only insane or extremely wealthy people should own a boat they are not living aboard. I fall into the former group, of course.
