Cost of living in the road

DallasSteve wrote:
This thread doesn't give me a headache. It's a very interesting subject to me since I'm planning to (semi)retire and start full-timing in 6 months. I want to compare my budget to what people are actually experiencing. At $25K to $35K per year, I'm in good shape. If it's more than that I will need to generate some more income on the road which I may be able to do with some part-time remote programming jobs. As for putting 20% of my life savings into a rig, I might put 30% or 40% into a new motorhome or 15% to 25% in a used one. Depreciation is high, but it's not 100% in the first year. If you get out in a few years, you can recover a lot of the cost. If you stay in it (full time) you are offsetting the cost with housing costs that you don't pay.

There are always deals to find on slightly used RVs. Personally I would find it extremely hard to sell our house and use the proceeds to buy an RV or cover day to day living expenses..... I would need to know that when we are done with RVing we would have money available to buy a new house which could cost double what we sell the old one for 10 years earlier.

This thread doesn't give me a headache. It's a very interesting subject to me since I'm planning to (semi)retire and start full-timing in 6 months. I want to compare my budget to what people are actually experiencing. At $25K to $35K per year, I'm in good shape. If it's more than that I will need to generate some more income on the road which I may be able to do with some part-time remote programming jobs. As for putting 20% of my life savings into a rig, I might put 30% or 40% into a new motorhome or 15% to 25% in a used one. Depreciation is high, but it's not 100% in the first year. If you get out in a few years, you can recover a lot of the cost. If you stay in it (full time) you are offsetting the cost with housing costs that you don't pay.

In our case our expenses will vary from year to year. We just retired last year and went full-time. We treated that first year like we were on vacation for a year. If there was something we wanted to do we did it. This year we are heading to Alaska and plan on taking part in many attractions. We expect it to be pricey, but we had planned on that. After that we still plan on traveling, but will sitting a little more and have a very nice place that has offered the camp host job to us for a 3 month stretch each year. So not only will we not have camp dues, but we might make a buck or two. So, you see, the variables are infinite even with the same campers.

I just picked the 165000 out of the air. I thought it seamed like a reasonable retirement income for someone buying a $600,000 coach. I just punched that value into a savings withdrawal calculator and it turns out that based on a 3% return I would need 3000000 dollars in savings after buying my coach to be able to withdraw 165000 annually for 25 years.

I think most people with 3 1/2 million dollars in savings would have a hard time blowing 20% of their life"s savings on a rapidly depreciating asset such as an RV. And on the other hand I'm left wondering how many people driving $600,000 motorhomes actually have the RV paid for and 3 million in their savings account.

In the end I have come to realize that the posters here are right ... there is no rule; people just do what they feel like with their money and I guess it all works out somehow.

If you have an extra $165,000/year to spend in retirement then God bless you! You have worked very hard to get where you are. Spending that kind of money in retirement would quickly bankrupt most retirees.

This thread gave me a headache.

It's not math, it's personal choice. Do you want to spend a ton of money living the half million dollar MH dream, or do you want to just enjoy life?

Keep up with the Jones's or just be happy?

It all depends on how you want to travel/live. Do what makes you happy, not what you think others will think.

4x4ord wrote:

Bill.Satellite wrote:


Did you really mean you expect to have to spend $165,000/year to live in your RV? NO. $452/day would not be normal. You would really need to work really hard at it!

I actually have no idea what people spend in retirement. I had one old fellow that I know quite well tell me that it is pretty easy to go through 200k a year.

Many full-timers do it on $30-$35,000/year.... some less, some more. But $165,000? I really doubt it.

Full-timing is a lifestyle not a constant vacation. There are many, many awesome things to do that don't cost anything and likewise, many gorgeous boondocking spots that don't cost anything. In addition, the size and cost of a RV has nothing to do with it. If you go to the big gathering in January at Quartzsite, AZ you'll see mega-buck RVs parked in the desert. I don't think folks change their habits of spending when they full-time. If they've been frugal for 30-40 years that's instilled in them.

My COLA is different for Va-Oklahoma-VA in 2 weeks time versus a La Tx Ok trip or Fl. from Va. I figure CPM is a standard .50, CG cost per week and then food is the same for us as we buy at Costco or on Military bases. Oil changes are about the same at any AmBest Truckstop. I wash it at Blue Beacon avg $50/wash. If I have it detailed 1 X a year that's about $300. Last year we went 13,000 miles and average Cost was $1.00/mi. I missed Insurance too. We have everything paid for and we have a Bass Boat so fishing costs money. We probably go through $100000 for everything but still own 10 head of cows, turkeys and chickens.

Bill.Satellite wrote:
Maybe this is not really the question you meant to ask as the answer is really quite simple.

I'm kind of wondering if there is a direct correlation between the value of a person's rig and the cost of living. I'm wondering if it could be something as simple as 35%.

NO

So those whose rig is worth $300,000 might have about a 105,000 lifestyle where as it might cost $210k per year to live for those who are living in a $600,000 rig.

NO

If your unit is worth $100 k can you live on $35 k?

YES, but this has nothing to do with the cost of the RV $100k or $300k.

I think it is of some value to have an idea otherwise I might think I can afford say a 500,000 unit and after purchasing it come to realize I can't really afford the $165000 per year it cost to live the lifestyle that goes with it.

Did you really mean you expect to have to spend $165,000/year to live in your RV? NO. $452/day would not be normal. You would really need to work really hard at it!


What are your thoughts?

NO, the cost of living is not based upon the cost of the RV but rather the personal wants and desires of the person making the purchase. Some folks might want to buy an expensive RV so they could show off their wealth to everyone including every stranger in every RV park. If that's you then you are also going to need to stay in the best RV parks to maintain your perception of status. The problem with this is that when you pull into that best of the best RV park you will find a whole lot of folks with a whole lot more RV and a whole lot more money than you which will quickly force you to figure out your place and find that happy medium that works for you.

I think your basic premise is all wrong.
I can have a 500K mortohome and live a $165K lifestyle or I can Have a 100K motorhome and still live a 165K lifestyle.
Or I can have a 500K RV and live a 100K lifestyle.
Your RV is not a reflection of your lifestyle budget.
Some of us own our rigs out right some are far from paid off.

Bill.Satellite wrote:



Did you really mean you expect to have to spend $165,000/year to live in your RV? NO. $452/day would not be normal. You would really need to work really hard at it!

I actually have no idea what people spend in retirement. I had one old fellow that I know quite well tell me that it is pretty easy to go through 200k a year. This fellow is a pretty frugal spender but he is also very busy and extremely generous. I'm thinking my spending habits are likely going to increase dramatically if I'm no longer spending my time working...... doesn't it cost money to do stuff every day?