DEFCON 4: Money - How much will I need?
01:02:05
Money is relative!
“Zaphod felt he was teetering on the edge of madness and wondered if he shouldn’t just jump over and have done with it”
#14 How Much Will I Need?
In DEFCON 1, 'What About My Career?', we re-examined our relationship with work. Now, let's do the same with money. I'll cover 'Buying a Boat', 'Earning as You Go', and 'Budgeting and Finance' in more detail later, but let's start with an overview of this common challenge.
Few "sail away" books address the gap between making the decision to go and making the money to go. Yet, this is often the biggest obstacle.
Boat Costs and Expenses
It's hard to pin down a price for a boat—it depends on factors like crew size and whether you want a multihull or a monohull. Generally, cruising sailboats start at around £25,000 (US$30,000) and can go up to £400,000 (US$500,000) or more.
Avoid the "bargain boat" trap. Fixer-uppers will delay your journey and even demoralise you. Budget for a "turnkey-ready" boat, and expect to spend about 25% above the asking price on upgrades and maintenance in the first year, with 10% annually thereafter. Marina fees, insurance, and cruising permits also increase with the size and expense of your boat.
Knowing about these costs can save you stress and heartache later. This isn't to discourage you from buying a boat—I'll discuss "Alternatives to Owning a Boat" later—but to give you a realistic view of ownership.
One of the best things we did was to go line-by-line through our monthly bank statements.
Travel Budget
Is it expensive to travel full-time? Not necessarily. The average family income in the UK is around £2,583/month, and in the USA, it's about $5,725/month. We live on roughly £2,000 (about $2,500) per month. It’s not exactly luxurious, but you can manage..
As my dad used to say, "Earn 20 quid and spend 19 - you'll be happy. Earn 20 quid and spend 21 - you won't." Financial discipline isn't glamorous, but it's key to sustained travel.
Our Financial Journey
Our path to S/V Mothership was a chaotic financial rollercoaster. The 2008 banking crisis led to the loss of our sailing business, five years of savings, and forced the sale of our first boat. We embraced the gig economy through platforms like Airbnb, Etsy, and eBay. We renovated small properties, drove older cars, and had a budget wedding that cost just £200.
You can't always control when financial breaks or setbacks happen, but like snakes and ladders, if you stay in the game, you'll keep moving forward. The key is to commit to the process instead of getting too focused on the end goal. Yes, you will have ups and downs, but as Rudyard Kipling said, "Meet with Triumph and Disaster just the same.”
One of the best things we did when we began economising after losing so much was to go line-by-line through our monthly bank statements. We were horrified at the number of “hidden subscriptions” and automated renewals that were siphoning money from our savings. We canceled magazine subscriptions and made more use of libraries. Instead of gyms, we worked out at home and were amazed at the savings we made with simple changes and adjustments.
We embraced the gig economy through platforms like Airbnb, Etsy, and eBay
We thought we lived a relatively minimalist lifestyle until we began “the big clear-out.” I'll go into "decluttering" in a later post, but living in a house seems to attract a large amount of “stuff.” We had no idea how much was stashed away in cupboards, corners, garages, and lofts. However, one person’s trash is another’s treasure, and eBay became our best friend—not only helping us declutter but also adding to our boat budget.
The biggest asset was our home, so we leveraged it by renting out rooms and finding a better mortgage deal. This allowed us to put more money into our boat and travel budget. In 2017, despite not being fully ready, we packed our bags, took the kids out of school, and set off on our big adventure.
Seven years later, we're still exploring.
Passive Income and Side Hustles
Most families don't fund their adventures through traditional jobs alone. Explore side hustles, investments, or property development. A classic if somewhat dated resource is "Rich Dad, Poor Dad" by Robert T. Kiyosaki, which discusses creating passive income through investments, property, or business.
The 'FIRE' (Financial Independence, Retire Early) movement uses similar concepts, repackaged for modern audiences. If you're new to passive income, try "Atomic Habits" by James Clear. It emphasises small, consistent changes that can lead to significant improvements in wealth, health, and lifestyle over time
"Rich Dad, Poor Dad" by Robert T. Kiyosaki, which discusses creating passive income through investments, property, or business.
Re-defining Who You Are
Shifting away from an outward display of wealth requires strength of character. Focus on becoming a family that values freedom, travel, and adventure. Frame every financial decision by who you want to become, not how you want to be seen.
Instead of buying a new car, consider if you need one at all. Eventually, frugality will feel more liberating than restricting. This mindset shift can also reduce overconsumption, which is good for both your budget and the environment.
Generating Income on the Go
When we eventually started our adventure, we rented out our entire home, covering our mortgage and providing monthly income. This was a smart move. A less smart move was trying to maintain my furniture design business as a digital nomad. It failed within the first year. However, many people do work from their boats and I’ll cover, ‘Working Under Way’ in later posts.
These days, we earn a modest additional income from Patreon and social media, but it's not a reliable source of income. Building a successful YouTube or Patreon channel also takes years of consistent content creation and revenue barely covers costs unless you're already an established influencer.
eBay became our best friend—not only helping us declutter but also adding to our boat budget.
Embrace the Uncertainty
Many people wait for the "perfect" financial situation before making a big move, but that never happens. If we'd waited for everything to be perfect, we'd never have left.
At the end of your life, consider what you'd pay for another year with your kids or to experience the things you've always dreamed about. It'd likely be way more than what it would cost to do it now. You're not getting any younger, and your budget will never seem quite enough. Embrace the uncertainty and go for it anyway.
Time and tide wait for no one!
That’s it for this week. Before next week why not check out the books listed above?
Next week in DEFCON 5 - we'll be asking - What if I can't sail?
“Zaphod felt..”
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