Many people are curious about the cost of going cruising, so here are our facts and figures for your consideration:
Purchase price of the boat
$72,000
Approximate cost of fitting-out for cruising $50,000
Total boat investment
$122,000
Annual budget
Hull insurance
$0 *
Health insurance
$0 **
Food ($90/week) $4,700
Mail Service
$250
Replacement parts $1,000
Maintenance
$3,600
Trips and
Tours $1,000
Port Fees
$1,000
Total
$11,550
The first year (2001) we exceeded our budget by $4,000 due to a variety of unanticipated expenses that we consider (hope) to be one-time costs – items that would have ideally been part of the fitting out but were unknowingly deferred: purchase of an outboard motor, repair of the SSB (Icom did not honor their warranty when a power supply board failed, in our opinion – they claimed it was lightning damaged though we had not encountered any lightning for weeks before the failure), replacement of some old batteries, and other minor items.
In 2004, we spent more in the shipyard than planned ($9,000) on some comfort and appearance improvements as well as some essentials. We added a hard-top bimini, replaced the old steel fuel tank, and did a lot of painting jobs. We also replaced some old stays and made some repairs to mechanical systems. This was an expensive yard visit, but in line with the annual budget considering the lack of spending over the prior two years in Maracaibo, Venezuela.
Hull insurance - with a $10,000 deductible(!) was $2,200 per year and increasing at 10% per year. We considered that we already do everything possible to avoid major disasters and if our boat sank, we would probably not be of a mind to replace her anyway – it would be back to work in one way or another. We have heard stories from other cruisers of insurance claims denied on various major damages due to “lack of adequate maintenance” – and we became concerned that even with coverage, we might not be able to make a successful claim. Therefore, we stopped carrying this expensive insurance. In US marinas, insurance is often required, but there are no such requirements in our cruising grounds.
Health insurance - for both of us was $2,200 per year and increasing at about 12% per year. The coverage for overseas medical care is for emergencies only, with repatriation to Miami. There was a high deductible. We have visited a few clinics out of the US and never paid more than $20 or $30 for a doctor visit, including medicines and various procedures. Therefore, like many other cruisers, we have elected to forego insurance.
Food – the price of food is generally quite a bit lower than
$90 for a week, but there are times when we have splurged and visited
nice restaurants or bought some expensive wines. We could probably cut
this
budget item in half, but good food is a joy and why deprive ourselves?
Mail – we use forwarding by St.
Brendan’s Isle. They are
very reliable and easy to work with. They charge about $16 per month
plus the cost of postage whenever we have them forward a collection of
mail.
Parts – large ticket items fail from time to time. We carry a budget item to anticipate those expenses. This charge may cover a stolen outboard, a major radio repair, a replacement of an instrument system component, etc.
Maintenance – we have to make minor fixes and adjustments
all the time. We paint the bottom every couple of years at a cost of
around $1500 to $2,000 all things considered, and we have to replace
hoses,
change oil, replace filters, varnish and paint, regalvanize, replace
worn
fittings, replace halyards, the list is literally endless. Included in
this
budget item is fuel – we use the diesel engine about 200 hours per
year, so we have
to buy about 150 gallons of diesel fuel, and we use a few pounds of
propane in the stove. We hope we have enough budgeted.
Trips and Tours – the coasts and islands of the world seem
to provide an almost endless source of fascination and interests, but
sometimes we hear of a truly amazing sight that is just over the hill
or
otherwise out of easy reach – an infrequent and low-budget inland
expedition is required.
Port Fees – although we seldom enter marinas, we occasionally have to pay mooring or visitor fees in aquatic preserves, and we have to pay entrance and visa extension fees of various sorts as we enter and remain in various countries. Over the first year of travel through Central America, we have encountered an average rate of around $40 per month, but we understand that we have been traveling in a relatively inexpensive part of the world.