Originally Posted by elspru
The only way I can imagine that you are spending 70k without enough left over for a boat, is because you have an expensive car and/or expensive house or even other huge debts. Or possibly just a lot of frivilous expenditures, like fast-food, restaurants, parties, consumerist goods etc.
Typically for world-cruising and things people just have their boat, and at most some cheap land-base somewhere, with minimial to more likely no debt at all.
I think to a future looking personality type that is a trailer sailor budget. To a live for the moment personality type, it is easily a long distance boat budget.
Are any of you young cruisers saving for retirement? Are you middle aged cruisers with kids saving for your kids college education? I believe these costs have changed a bit since the 70s.
There are few pensions available for young people these days. The equivalent of a $40k/yr cola pension that was common for retirees only a decade ago is $1M in a 401k. I'm in my mid-30s I personally expect enough inflation over the next 30-50 years that I don't see $40k/yr being a luxurious retirement when I get there. I also hope to get a full social security payout, but I don't think I can count on the full amount so far in the future. So I want more than $1M when the time comes.
Start with a 70k salary. Subtract 20k in social security, medicare, federal income, state income, and local property taxes.
Lets say I plan to enjoy retirement and save 12k/yr between a 401k and Roth IRA.
Lets say I plan to pay for my kids college education like my parents did for me. In state tuition for state universities is up to an average of $22k/year and increasing about 7% every year. That means $550k to send my kids (2 and 7) to a typical in-state state university. Lets hope for 20% in scholarships and 8% return on 529 plans. I still need to save 7k per year per child for state university.
Subtract $3k for employee contributions to health insurance
Subtract $1k for liability insurance
So 70k - 15k taxes - 12k retirement - 14k college savings - 3k health insurance - 1k liability insurance = $25k net spending money
Even if someone owns a modest home and car outright and doesn't spend a lot on fast-food, restaurants, parties, consumerist goods etc, I can easily picture a long distance cruising boat and its ongoing costs beyond the budget of someone with a $70k/yr salary ... IF they are thinking about the future.