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Posted on Feb 27, 2013 | 0 comments

Stop Being and Start Doing

I don't think that smile could be any bigger.

I don’t think that smile could be any bigger.

Our son Carter has had an obsession with toothbrushes since he was six months old. Not trucks, helicoptors, or trains…toothbrushes. He wants to hold them and brush his teeth, carry them around the house, and he knows exactly which brush belongs to which person. I don’t know how many times I’ve heard someone say, “That kid is going to be a dentist someday.” Being a dentist would certainly not be a bad career path for my son to aspire to in the future, but my real hope would be not just that Carter would find a profession he wanted to be, but find something he loves to do. 

I believe that our culture is a little too stuck on this idea of being. I am a Mom, Engineer, Waitress, Police Officer. I want to be a Ballerina, Teacher, or Baseball Player. What if instead of aspiring to be someone, we aspire to do something instead? What do you want to do? Teach, scuba dive, sail, help people, save lives, play baseball, dance…you name it. Now, instead of trying to fit your actions into your label, just forget the label and do the actions. When you are doing what you love, who you are to other people becomes a lot less important all of the sudden.

That’s all nice and fluffy to think about, I know. What about food, and house payments, and my student loans to get that label, you say. Well, the beauty is that usually the people who are really loving what they do are the ones who are the most successful at it. And, unless what you want to do is own a fancy sports car and million dollar yacht, you probably need a lot less money than you think. So let me ask you, what do you want to do? Then go do it.

Follow your Dreams. Follow the Horizon.

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Posted on Feb 7, 2013 | 0 comments

Passive Income: The New American Dream

Live on the Margin websiteWhen people, including ourselves, first start looking into cruising there is one big question that everyone wants an answer to and is for some reason difficult to find. How much is this going to cost? aka How much longer do I have to scrounge and save in this boring life before I can gtfo? Most people cruising today count on some form of savings to finance their cruising plans and once that “kitty” (as the community likes to call it) runs out, they have to stop and work either permanently or in temporary jobs until they can keep going. Pat Schulte (of Bumfuzzle fame) and Nick O’Kelly have found another solution: Live on the Margin.

Disclaimer: The book is really good, but remember trading stocks and options isn’t like gambling, it is gambling. If you read the book, follow the advice, and lose your butt, don’t blame us. We just found the book entertaining.

Pat and Nick have been traveling throughout the world for many years while making money in essentially one way: trading stocks and options in short term trades. And lucky us, they’ve written a book about it so we can all do the same thing. Now I know what you’re thinking, “Really? You want me to read a book about trading stocks? I think I’ll just go count the blades of grass in my front yard instead.” Normally, I would agree with you, but this book is easy to understand and actually funny. That’s right, I said funny. I actually laughed out loud a few times while reading it clandestinely in my cubicle. If you’ve ever wanted to learn the basics of trading without wanting to blow your brains out afterwards, this is the book for you.

Here are a couple of my personal favorite quotes from the book:

The stock market is brutally sincere when it tells you that it wants to suck every dollar out of you. The guy on the other side of the trade wants your money. He will lead you by the hand and mug you and take your money.

When describing what happens when a “celebrity” stock crashes and takes a long time to go back up:

Nobody wants to dance with the popular kid who just crapped his pants on the dance floor in front of the entire school, and that’s the problem you run into with celebrity stocks.

After reading the book I took their advice and opened an account with an online brokerage that allows you to trade fake money as if you were making real trades to help get accustomed to the ins and outs of trading before you start risking real cash. So far, I’ve learned three things from trying it out myself:

  1. I actually know nothing about stocks. I’ve had to reread parts of the book a couple of times while looking at a trading platform to figure out how to make it work.
  2. If ice in the veins is what is required for making good trades, I think I might have hot chocolate. So far, I’m waaay too reactive to little things that happen and get hyped up waiting for the market to move. This causes me to make stupid decisions and act like a member of the “anxious herd of sheep” that I’m trying to avoid being.
  3. I’m pretty sure that Dan will be the one doing all the trading in this family.

I’ll admit it, I totally suck at trading. I have yet to make any fake money in my lousy trades, but at least I’m learning and not using real cash yet. I just hope I don’t run our fake account into the ground before Dan can finish the book!

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Posted on Jan 30, 2013 | 0 comments

We Interrupt This Winter…

Strictly Sail Chicago 2013Whoever first started scheduling Strictly Sail Chicago in the middle of January was a genius. Winter has never been our favorite part of the year (hello, planning to move to the Tropics for more than just the piña coladas) but this year has been doubly hard with the knowledge that we could have moved to Florida instead of staying here to pad our purse a little more. This past Saturday we were able to leave winter behind for a few hours and spur the excitement we’ve been missing for the last couple months. Just one day of being able to talk openly with people about our dream of cruising does wonders for our attitudes.

Three Cruising Budgets, Snapshots from the Life of Jimmy Cornell, and Perspectives from a Cruising Couple seminars filled our schedule. These seminars weren’t really intended as fact finding for us, in fact we hardly learned any really new information at all. What they lacked in new information, they made up for in validation and motivation. It’s one thing to read a bunch of cruising blogs and forums and compile a $1000-$1500/month budget that we think is realistic; it reaches the next level to hear the founder of Blue Water Sailing confirm that for us in his Three Cruising Budgets seminar. (He actually described four budgets, but the highest was labeled “Silly and Unnecessary” aka why are you even in this seminar, just go hire a 5 man crew for your million dollar yacht.)

The boats were what we really wanted to see. We won’t be buying a new boat when we leave, of course, and we probably won’t even be looking at buying a used version of any of the brands available to tour due to quality and dependability recommendations; what we wanted was to feel the size of the living space. Last year, we hadn’t done a lot of research into boats when we came and toured all of the boats. We left that day saying, “yeah, the smaller ones are okay, but I think we should look at boats in the 40-45′ range.” And look I did…at the price tag. There are hardly any good boats on the used market in the 40-45′ range that are under $50,000, and especially not ones that are close to being ready for ocean voyaging.

This year we needed to go in with the question “what can we do” instead of “what do we want to do”. It’s amazing how much that question changes your perspective, because we quickly realized that 30-35′ boats would probably do just fine for us and one little boy. (Depending on the boat, of course.) We are now looking for boats in that range with one cabin/quarter berth layout or two cabin layout (which is much harder to find in older boats that size). To be honest, I was a bit shocked to see how much that downsize of 5-10 feet slashed the price tremendously. If you search yachtworld.com for boats 38-45′ in the US between $30k-$50k, you get 197 boats boats to choose from. And let me tell you, they aren’t exactly the cream of the crop most of the time. If you search 30-38′ instead, you get 757. That’s a significant difference in selection, making it much more likely for us to be able to find what we are looking for in our budget.

While we had intended to stay for 2 days of the show, winter fought back and forced us to return home early with a nasty ice storm that came through Chicago on Sunday. We didn’t want to brave the ice in my mom’s car that she let us borrow – Thanks Mom! – because my brakes went out just as we were getting to their house Friday night. (Whole story in itself.) It seems that we will have to wait until next year to get a good second day, since last year Dan spent most of the day on his back on the floor outside of the bathroom of Navy Pier or puking his guts out inside of said bathroom. Even just one day though was enough to refuel our systems until the end of the dreariness when we can start sailing and diving again.

 

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Posted on Dec 21, 2012 | 0 comments

Even the Best Laid Plans

In any major venture in life, honest and objective evaluation must constantly be part of the planning. That is especially true for us as we try to make decisions regarding our finances and how best to provide for our dream of cruising. When we first started making plans for cruising, we estimated that we would require approximately $1000-$1500 per month for basic necessities and boat maintenance. Using this estimate, we calculated that we would like to have around $70,000 in hard savings in addition to whatever money we decided to use for a decent boat. That would give us a very comfortable 4-5 years of savings that gave us plenty of options for continuing just by adding small amounts of income from scuba diving and other odd jobs.

Then came the wait. Three to four years starts to feel extremely far away when you are constantly reading and learning about how amazing that life could be, and when the cruising experts all say to go cheap, simple, and as soon as possible. And so, we decided to move up our intended departure date to the fall of 2013. We would sell our house and use the equity to buy a boat, and hopefully save enough money to have only two years instead of five in reserves.

That brings us to today, when the honest evaluation comes in. Our house has sold and we are six months into this phase of saving. At closing, we will be receiving around $40,000 from the equity of our house. We have also saved just under $10,000 in additional cash for our kitty. It might sound like a lot to be sitting on, but we’re honestly a little less than excited about it. If you’ve ever been boat shopping, you will note that there aren’t many family friendly boats on the market for only $40,000, especially if we want to do more than coastal cruising.

After the long, hard look at our money, we’ve decided that we need to make our money work a little harder to be able to meet our goals. The way we plan to do that is by purchasing two houses immediately which we will rent out to increase our monthly income while cruising. We will live in one while saving our kitty and rent the other as soon as possible. If all goes well, we will add 2-3 more by the end of the year. The much lower mortgage payment will also allow us to save more every month towards our goals.

While our new plan may not get us on a boat in the next year, we are very confident that it will give us much a higher chance of success and that still within the original time frame. What do you think about our new plan? Let us know in the comments below!

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Posted on Nov 21, 2012 | 0 comments

Thankful

At the risk of going along with the obvious theme for the week, I’m just going to go with the obvious theme for the week and say Happy Thanksgiving!

One year for Thanksgiving when Dan and I were dating, we rode with his parents and brothers to my mother-in-law’s (Shelly) family event at her mom’s house about half an hour from Dan’s parents’. On the way there, Shelly asked everyone to go around and say what they were thankful for. Being the adolescent boys that they were, Kyle and Alex (Dan’s younger brothers)  immediately started complaining about how they were tired of having to do this every year, it was so overdone, and they just were not going to cooperate. And so, she didn’t make them say what they were thankful for, but I could tell that they had really hurt her feelings by not participating in her tradition.

I would guess that the majority of American families have their own little traditions that make the Thanksgiving/Christmas holidays unique to themselves, and most families will have to face the day when those traditions are challenged. Sometimes this comes from challenging children, busy schedules, or adding new members to the family, but when it happens it is always a little disappointing for someone.

This year is the first year that we won’t be spending Thanksgiving with any of our grandparents due to family schedules and it is may also be the last Thanksgiving that we live within easy holiday travel. If our plans continue moving forward, Dan and I will be in Florida next year, preparing our new home for traversing ocean passages. Not exactly the tradition we are used to. Because of that, I’m trying to do a little extra savoring of the season this year. Being a little more gracious with our family differences, and a little more thankful for the time we have left.

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