by Michele | Dec 21, 2012 | Preparation Stage
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!
by Michele | Nov 7, 2012 | Preparation Stage
Well Election Night has come and gone, and once again we all chose a president. The real question now is so what? While it’s nice to hear what a candidate is “planning” to do, what we really need to know is how their policies are going to affect our everyday lives. Unfortunately, it is almost impossible to find good concrete information about how US policies affect our future plans. We have been trying to find better information about what our status will actually be once we move out of the country essentially as nomads.
Here are a few of our most pressing questions:
- Where is our legal “residence” once we no longer live anywhere specific?
- Would we have to pay state income taxes in addition to federal if we aren’t a state resident?
- Through which state/city do we do our absentee voting, and where do we have our ballots sent?
- How is the federal health insurance mandate going to affect us? Does it apply if we aren’t living in the country?
- How do we maximize our tax status to use the system to our advantage while we are living on interest only?
- Do we have to pay capital gains tax on the sale of our house if we don’t “reinvest” it in another house? (This one we have answered now: only if we sell our house for more than $250,000 more than we bought it for. In our dreams.)
- How do the new overseas banking regulations affect us?
The difficult thing in finding the real answers to these questions is the fact that every cruiser is different and most policies aren’t exactly written with roaming nomads in mind. And while both of us are fairly confident in our abilities to read and understand legal contracts and other important documents, we aren’t very comfortable with basing very serious decisions on our own knowledge of tax, immigration/emigration, and healthcare law. I mean have you ever tried reading raw tax code? Not recommended for the living.
by Michele | Oct 19, 2012 | Preparation Stage
Our first batch. Those strawberries were delicious!
As you may have figured out by now, I don’t exactly consider myself the “domestic” type. This would certainly include my cooking skills or lack there of. My father-in-law used to joke that my best dish was bagel-bites and that wasn’t really an exaggeration. That is why you will find “Learn to Cook” on our To-Do List page. My best dish is no longer bagel-bites but I do still have a long way to go before I could peruse a Julia Child cookbook with confidence.
At the beginning of the summer, I heard an ad on the radio for a local crop share program which ran once a week from May through October. I figured this would be the perfect way for Dan and I to get a taste of what it might be like to only be able to cook items that are readily available, instead of relying on out of season fruits and vegetables. We know that there may be a lot of new foods in our travels that we haven’t eaten before and so we wanted a little practice with finding new recipes and getting out of our comfort zone.
Well, it sounded good in theory anyway. In the beginning of the season, we were doing pretty well trying out arugula in chicken breast with sauteed radishes. We had some fabulous green beans and spinach, fresh garlic and blue potatoes, corn on the cob and delicious blackberries. However, those were all the things that we had eaten before and already knew that we liked to eat. When we started getting shipments of squash, parsnips, turnips and beets, we were significantly less successful in our enthusiasm. Mostly, we would just drop off our whole box of food at Dan’s parents’ house and go out to eat. Not exactly what we had hoped but I guess that’s life.
I’m not sure if we learned more about cooking or about ourselves in this exercise. We certainly know that we have a long way to go before we could live reasonably on $1000-$1500 a month, which is our eventual goal. Maybe we’ll just start by eating bagel bites and move on from there.
by Michele | Oct 10, 2012 | Preparation Stage
Dan recently took this photo while on his day off with Carter
Recently, I had the opportunity to be part of a leadership seminar through my department at work. There were many excellent points discusses throughout the entire course of the seminar, but the portion on change is what really hit a chord with me. Hmm, I wonder why? The speaker, Chuck Stoner*, spoke specifically about the fact that every change in life comes with a sense of loss and grieving, even when the change is something positive that we are looking forward to.
When change comes, there is always a different path that will never be available to us again. Dan and I are currently standing in that divergence of choices and the other paths that we will be walking away from are so clear to me I can almost physically see them. I can see Carter at his first day of kindergarten, baseball game, and a host of other things that every mom cherishes and it does fill me with a sense of longing for that path. I can see that our grandparents are getting older and know in my heart that there is a very real possibility that being gone for 5-10 years or more means we might not get to see them again before they die. We may miss births of nieces and nephews, friends’ weddings, and a lot more events that we can never get back once they are over. We will be moving away from Dan’s very close-knit family that we spend time with multiple days a week.
All of these things and more impose a real weight to the decisions that we are making. They give more value to the good life that we are leaving behind to follow our dream of cruising. Does that mean that we will regret the choice to leave? I don’t think so. The excitement of moving forward and doing something new is far too great for us to look back wistfully for very long. But it does make me appreciate the time we have left a little more.
Follow your Dreams. Follow the Horizon.
*Dr. Charles Stoner and his speaking partner Tom Bower gave one of the best seminars I have ever attended. If you ever have a chance to go to one, I would highly recommend it. Also, you can find some of Chuck’s books on business and leadership here.
by Michele | Aug 2, 2012 | Preparation Stage
Dan’s mom, Shelly, and Carter at the pumpkin farm last year.
Step 1: Put a big sign in front of your house that says it is for sale.
Step 2: Wait for your family to freak out.
Okay, this is exactly what we didn’t do and hopefully anyone reading this blog will try to avoid this approach as well. We were not looking forward to telling Grandma and Grandpa that their adorable grandson would soon be living on a boat out of easy cuddle range, however we decided that it would be very unfair to put our house up for sale without letting them know first.
Let me just insert a little history here to help everyone understand why we were hesitant to tell our parents. First of all, we have a very good relationship with Dan’s parents. They live only a few blocks from us, which means that we see them a lot. It will be a major change for us (and them) to not see each other basically every day. Secondly, sailing off on a boat is not the first time that we have told our families that we are moving somewhere else, but it will be the first time that we actually do it. We wanted to make sure that we were far enough along in the planning and preparation that we would be taken seriously, as well as have as many answers to their questions as possible. Finally, over the last year we have been trying to prepare them for the idea of cruising by talking a lot about sailing and other people that we have met who are currently cruising.
To be honest, I think our general preparation worked to make the idea sound feasible, but I’m not sure that we overcame the obstacle of being taken seriously. We told Dan’s parents at dinner at Cracker Barrel (his mom’s favorite restaurant, mine less so) that we were putting our house up for sale in August and that we planned to move to Florida as soon as possible to find a boat to live on. And then…nothing happened. It was extremely anticlimactic. Eventually they did ask some of the basic questions like “What about pirates?” and “How do you make sure Carter doesn’t fall in?”, but the overall mood was so subdued I almost wished someone would cry or yell or something. It felt like being a kid again…
“Hey mom! I’m going to be an astronaut when I grow up!”
“That’s great, honey, now wash your hands for dinner.”
Since that day, a week and a half ago, there still hasn’t been much reaction. Things have been mentioned in an off-hand kind of way, but no more questions or concerns have been voiced. I have a feeling that may change once we are actually leaving, but for now I just don’t think that it is real to them yet.
Note: some of you may have noticed the lack of information on my family’s reaction to the news. That’s because we would like to tell them in person, but we haven’t been able to get up to Chicago to talk to them about it yet.
We are normal (well ok, not so normal) people that have a dream to see the world and live life as it was meant to be. We both have successful careers in the healthcare industry, even in this terrible economy. We want to break free of the current cycle of trading time for dollars and dollars for more and more things we don't need. So, we have decided to forego the fruits of our economic success and "retire" well before we are 30 and set out to see what is over the Horizon.