Money and costs.

[Jayco-noslide]

I guess, for a variety of reasons, finally, in our 70's and after 40+ years of RVing in various forms, we seem to have a little more spendable cash. For example, we decided we wanted a bedroom window awning for our 30 ft. Class C and we felt free to go ahead and spend the $300 or so. Same thing with making a bunch of reservations for next winter at risk of having to cancel. Also don't live in dread of the next expensive repair that we know will come. These kinds of expenses used to make RVing really stressful and made us wonder if we could really afford it. I guess I don't have a point except that RVing is expensive and not for everyone. Our income is well under 6 figures but we are debt free. Yea.

[2oldman]

Debt has an emotional factor too. I just feel better with the least debt possible, and that's worth a lot.

[Cloud_Dancer]

Most people know what is meant by "debt free". In my case, it means haven't paid interest for about 40 years.
And, YES, in my case RVing is very expensive. It includes writing a check for $175K for a motorhome.

[bid_time]

noplace2 wrote:
Math is still math. Anyone subsuming that to incur any interest paying debt will pay off in the long term is simply kidding self. Add up the interest you've paid over X years and 'splain how you might have used that money Lucy.

I used that money by keeping it invested which paid 7 percent (approx.) (Average Annualized Return) in interest while over the same time my interest on the RV loan was 4.6 percent. I won by and average of 2.4 percent (approx.) interest to me over the 12 years of the RV loan. Got it Lucy? - Some people refer to that as smart debt.

[noplace2]

Math is still math. Anyone subsuming that to incur any interest paying debt will pay off in the long term is simply kidding self. Add up the interest you've paid over X years and 'splain how you might have used that money Lucy.

[Jayco-noslide]

By "debt free" I don't mean free of monthly expenses (utilities, insurance, etc.) but really mean free of loans with interest such as car loans, home mortgage, credit card, etc.
Some of you argue that RVing is "not expensive". I agree that the cost can sort of be what you make it but I do notice that most RVers tend to leave out the cost of their RV's and/ or tow vehicles. In other words; depreciation. If you do the math on how much your RV will depreciate over a 5 year period and divide by the number of nights you spend in it and add camping fees it can easily equal or exceed the cost of a hotel. Especially if you bought a $100,000 MH, less if you bought a $10,000 used trailer of course.

[DrewE]

JAXFL wrote:
How are you all debt free? I owe nothing but am not debt free...

There are insurances, taxes for the properties, and unities... I think of all these as debts. Every month someone of these companies get some of my money.

Just saying debt free means I keep all that comes in and live with no costs.

Insurance and (some) taxes are generally paid in advance, and so not debts. Utilities are likely debts, in a technical sense...I think that's what you meant by unities.

I suspect most people who are debt-free really mean that they are carrying no long-term debt: no mortgage or car loans, paying off the credit card in full every month, etc. It's very hard to live without having any debt in a purely technical sense. You're in debt for a short while at least every time you eat at a sit-down restaurant where the bill is paid after the meal is consumed.

[Lantley]

JAXFL wrote:
How are you all debt free? I owe nothing but am not debt free...

There are insurances, taxes for the properties, and unities... I think of all these as debts. Every month someone of these companies get some of my money.

Just saying debt free means I keep all that comes in and live with no costs.

Debt free is sort of a state of mind than a reality.

[JAXFL]

How are you all debt free? I owe nothing but am not debt free...

There are insurances, taxes for the properties, and unities... I think of all these as debts. Every month someone of these companies get some of my money.

Just saying debt free means I keep all that comes in and live with no costs.

[tragusa3]

Nice post Phil.

[pnichols]

Being debt free can sometimes be based more on emotional money management than overall smart money management.

i.e. We've not yet paid fully for our 10 year old RV that we bought new. It's part of a loan on our home that started out as a 2.7% variable rate 2nd loan that we later converted to a 30 year 1st loan at only a slightly higher fixed rate. We could have paid cash for the rig, but will earn more over the long run on that cash than the low rate loan will cost.

Also, our home is worth far more than the loan against it that paid for the RV ... so having a small loan against it (relative to it's value when we sell it in our extreme old age) is well worth any feelings of insecurity that we might have, but do not have, from not being debt free. We consider this approach as rational money management as opposed to "debt free at all cost" money management. 🙂

[quoyfab]

" I've always been confused when people talk about how expensive things are." Amen to that...

DEBT is a 4 letter word....

[tragusa3]

My wife and I married at the age of 29 and 34. I had no debt at the time...she had 2k on a credit card. The day after our wedding I paid off that card and we haven't had one again. We have taken loans on vehicles, but paid them all in no more than 3 years. We have 5k left on our one year old trailer and will have that paid this year.

As one poster said, my kids are right at that sweet spot. Even though it goes against our financial philosophy, if we waited to pay cash, we would have missed a third of our families sweet spot.

I've always been confused when people talk about how expensive things are. I believe a lot of people just make it that way. For instance, a golf day with my buddy. He stops for Starbucks for his coffee while mine is from home. He picks up a pack of balls at the course for twice what I did elsewhere. He grabs a sandwich at the clubhouse, I brought one from home. He needs a drink on the drive home, I have a thermos in the truck with cold water.

We had a similar experience that day, be he spent at least $30 more than I did.

This pattern is present in almost every family that we are friends with. For this reason, I truly believe that my wife and I WILL be able to afford retirement, even though we don't have the millions that financial advisors say we will need. I've seen it all my life so far, and don't expect it to change.

As for changing the habit of pinching...I don't believe I will be able to. It's become me.

[filthy_beast]

Homer wrote:
Being debt free will actually make you wealthy. Just keep it that way and you will always have plenty of money to spend. I have never figured out how people can afford to finance a RV of any kind. You are under water the day after purchase and it just goes on. This is not meant to insult any of you that have financed you dream machine, I just can't see how it can be done. You can tell I am a retired bean counter.

I would think that not everyone finances the full amount of their RV. If you have a down payment or trade in you would not be underwater right off.

[NYCgrrl]

We still enjoy tenting well at least I do.
The man prefers RVing so we're buying one to tour the continent for a few years. After the trip is over the RV will be sold since it's too expensive to keep in the city.

We still have debts as I write but I find them acceptable and not stress inducing.

[FunnyCamper]

HAPPY FOR YOU! It is your time to relax, enjoy, spend some of that hard earned cash you squirreled away and go live life to the fullest!

Debt free--oh yea we are also and what a world of difference it makes!!

We are setting up for early retirement now and even if 'most' travel is expensive, that is where we are going to spend our bucks. on travel and heck with the rest LOL RV'ing is in our blood, costs, eh, we will work around everything to have what we love...our rv travel!! Rv'ing costs are fixed on some like gas prices etc. but very flexible in how you spend on vacation tho.