Knowing our budgets - advice sought

Spiky · Member

Knowing our budgets - advice sought

rockylizard · Guru

Gday...

Firstly, welcome to the forum Spiky.

Welcome 02.jpg

Obviously, what is sufficient 'budget' for one is not necessarily sufficient for others.

I travel solo so my costs etc are going to be different to a couple ... and probably quite different to the circumstances of other solos.

I live on $25,000 per year travelling full-time for the past eight years - most years I have been able to save a quid or two.

There has been the odd time I have had to draw down on my savings but that has only been a couple of times with unforeseen family problems.

To help you get some idea of just what your financial circumstances will dictate as a 'budget' I have attached a spreadsheet I have found valuable.

Cheers - John

brickies · Guru

I have a buffer amount in the bank which I like to maintain , So if it starts to go down I spend less , If it start to rise I can spend more ,Has worked for me for 10 years .

Spiky · Member

rockylizard wrote:
Gday...
Firstly, welcome to the forum Spiky.

Obviously, what is sufficient 'budget' for one is not necessarily sufficient for others.
I travel solo so my costs etc are going to be different to a couple ... and probably quite different to the circumstances of other solos.
I live on $25,000 per year travelling full-time for the past eight years - most years I have been able to save a quid or two.
There has been the odd time I have had to draw down on my savings but that has only been a couple of times with unforeseen family problems.
To help you get some idea of just what your financial circumstances will dictate as a 'budget' I have attached a spreadsheet I have found valuable.
Cheers - John

That's brilliant stuff John.

Nice work!

Desert Dweller · Guru

brickies wrote:
I have a buffer amount in the bank which I like to maintain , So if it starts to go down I spend less , If it start to rise I can spend more ,Has worked for me for 10 years .

We also maintain a buffer amount in a separate account to our everyday account.

If you spend a lot of time camped out in the bush like we do there's nowhere to spend money.

We always get a pleasant surprise when we get a balance when we get back to civilization.

STRETCH ARMSTRONG · Senior Member

Hey spiky, welcome! All the above advice is good.l have a buffer amount and use a budget. The buffer helps with unforseen problems and budget to keep spending in check. Stretch

Gaylehere · Guru

Hi there. We don't do a budget at all, but then we have never been extravagant spenders - I do know about living payday to payday as we did it for many a year. We usually do a combination of CPs, low cost camping and free camping (this, at times is with friends and family (and they know they are welcome to our place too). Fuel is our main cost as we're not ones to sit in one place for extended periods of time. Meals/food probably no more than at home. If you are looking at travelling the coast CPs can/will be quite expensive. Our motorhome is an ex rental and tyres were our big expense as they all needed to be replaced around the same time (on our first big trip).

Don't stress and make yourself sick. If you are too stressed/worrying too much you may not enjoy your tripping around. Yes, prepare a budget if you must. Add something on for unexpected incidentals. There is lots of beautiful countryside out there that is free for the looking. There is also lots of expensive "tourist" attractions they can add up very quickly. But having said that different people love seeing/doing different things and I and hubby like looking at the countryside.

Cheers and enjoy.

PS: I don't do a budget before a trip but I do write down expenses to see where we spend money (just for interest sake). Last trip 75 days - Average spend $77.35 per day being food $14.98, Entertainment $14.26, Overnight stops $12.68; Laundry $0.56; Other $4.57 and Fuel $30.31. This could be twigged a bit as whatever got bought at the supermarket ended up in the food section. Entertainment biggest spend by far was a full day tour of the Painted Desert costing $440 for 2. There are some place a motorhome just can't go.

-- Edited by Gaylehere on Monday 9th of October 2017 06:31:56 PM

the rocket · Guru

Hello spiky and a very warm welcome. $575 per week. Includes everything, even van repair, tyres etc. every one has different ideas, just depends what u like to spend money on. Enjoy.

macka17 · Guru

Budgeting never \not often work.
Unless you have good reserves.

I know a lot of "pensioners" NOT cashed up retirees.
That do it comfortably.

Basically just find a nice cheap spot
till bank book gets a coupla dollars\pensions in there.
Then off you go again.
Remember. You DON'T have to travel EVERY day.

Figure out your AVERAGE weekly cash income.
and reduce by 15%.
THAT is your living expenses.
The 15% normally covers Tyres on special bought by the set.
Servicing. Buy oils and filters on Spec. (I buy in bulk)

DO NOT go near Main agents.
Ask around wherever you are.
and use local recommended mech.
Taxi Co's are a good starting point.

They have a decent mech usually.
And if he working for taxi Co.
I often find he'll give you his addy and do you for cash. (suggest such)

IF you can afford a reserve. (for main work in car\van).

Put it in separate account and forget it.

One day.....

EVERYTHING breaks down\wears out. Eventually.

I know one bloke bought a 14ft Evernew coupla three yrs ago.
It and his old single cab petrol ute. Combined cost $14k.

Purchase. Ring\shells\\bearing kit for donk and set of "on speshul tyres".
.
He good for 5 or 10 yrs.

Another bloke I meet regular.
. His 35yr old van and Valiant ute on gas.
Owe him around $5\6grand.
Same thing.

It's not what you got.
It's what YOU want to do with it.

They do same job as a 200k M\Home

I've been round on a 600cc Suzi dirt bike and tarp . 30 odd yrs ago

The last 10\14 yrs of doing it..
we allocated around $1000\1200 per week. Comfortably.

Buy what you can afford while leaving you a reserve.
and make your travels fit your wallet.

If you going in a $45\80k rig.
Forget I spoke.

You can afford.
Unless you stupid with it.

AND ALWAYS....
Have the TOP cover with your States RACQ?

for rigs. NOT just car.

THAT will get you home Mostly.

gold dandelion · Senior Member

$1000 per week if you keep rolling, a tank of fuel a day. this includes the terri-tour bit. food, grog, licences, wear and tear.

mezza56 · Senior Member

Spiky

As a famous sports wear co says , Just do it ! Your going to be debt free and money in the bank . Wow at 55 you'd be the envy of most grey nomads . half of them live from pension cheque to cheque .

Stop procrastinating and go.

TheHeaths · Guru

Chris,

it is a bit difficult to give a meaningful figure to you without knowing how you intend to do the travel.

A person free or low cost camping will spend somewhat less than one who stays in CP's every night. One who does all the tourist things will spend more than one who does nothing more than travel around looking at the free scenery and things (which is still great, believe me). The people who eat out every night spend more than those who cook in the van every day. All obvious I know, but with out knowing who you are and how you will do it, you need to take the figures with a pinch of salt and a large margin of error.

From our perspective the following applies.

We are a couple, tow a 21 foot van with a 100 Series Land cruiser. We spend about 90% of the time in van parks. Eat out or buy tea once or twice a week, and do the tourist things that attract us, within reason. As an example, in 4 months in the Top End and northern WA, then home across the Nullarbor last year we did 9 boat trips, ranging from an hour to 3/4 of a day. That was our chosen treat in a number of places. Other than that we saw everything else we wanted and did everything we wanted, including Kakadu for a 2nd time, The Bungles, Katherine Gorge a second time, and so on. We travelled a bit over 20000 kms from our home in Adelaide for the trip, and towed for about 13000 of those.

As with our other trips over the past 9 years, it fitted a pattern of cost. That was that we spend between $0.80 and $1.00 per kilometre of travel on our journeys. Our trip last year came in at about $16500, everything in. So that included our normal food, drink and allowance costs ($400 per week), accommodation (averaged $32 per night all up), fuel at ~ 17 litres/100 kms overall, and our touring. We are not extravagant, but are happy with what we do.

If you take out the "tourist cost" from the normal "pay them whether touring or not costs" we probably spent $7000 or $8000 on the trip. In our opinion a very cheap holiday in the best location in the world for 4 months!

My advice is look at a map, work out where and how far you are going, and then allow a dollar for each kilometre. That should be a sound starting point for you. Then adjust based on your preferences for free camping, fuel usage for your vehicle and the likelihood of touring.

Then you can work out how you are going to fund the trip, being either savings or something else. Certainly I wouldn't be touching the Super until you turn 60, as prior to that you suffer some major tax penalties. We were lucky using some money from redundancies to fund the travels over the past 3 years.

Anyway, hope that helps and all the best when you get out there.

Mackayak · Veteran Member

Hi reading this there is some great info for us starting and full agree budgets will be different for every one a lot will deepened on accommodation free camp or parks mixture. Look forward to reading more.

brickies · Guru

It does show anybody can do it , Live to your budget We have one person can do it on $575 a week an another can do it on $1000 a week and both are happy

Aus-Kiwi · Guru

Nike . Just do it ., Your fine . Take it EASY ! I found taking my / our time slowing down the problem . Even after a few years . Travel wise .,

Hey Jim · Guru

Hi Spiky,

1.You are starting on the correct path. Leasing out your home is the smart way first and most important = Cash + continual Capitol gain. Work out a true annual spend on out goings on your home. Utilities, insurance, will you lease it yourself or through an agent. Check out their fees (very important.)

Then you will know your true cash return on your home. = Cash up front. Say $350 as an example. =$18,200 pa.

2.You mentioned savings. Does this include investments in shares = dividends, investment property, or other.

What ever the outcome lets use an example and say you have $60,000 in savings at 2% in a Bank term deposit = $1200. Second year Balance $48000 x 2% = $960 and so it go's.Not the best investment. Are you going to work again after 55years. If not then the big question is how much will you take from your savings??????? eg: $12,000 pa x 5 years = $60,000 GONE at aged 60.

So we start at first year we have $31400 to spend = 52 weeks =$603.85

If the rent go's up say $20 and the savings are going down in the second year's return=$960 your savings balance will be $50,000 plus the rental income as the above starting point.

Can you live on $31400pa or better. If so then your money will go further and remember your property is increasing over the same 5 year period.

If I was in your position, I would do your trip of up to a year, then continue working full time and stuff as much away till after 60years.

Its hard, But. you don't want to end up with bugger all. This government will give $#&*@ by the time you reach their finishing line.

There is many factors to consider. You and your sole mate may receive an inheritance down the line one day.

If you do, Invest it well. Become smarter and keep your destiny in your own control. and have a good safe retirement.

Do not access your super till after 60 years as mentioned.

Do not sell that house, unless you buy another straight away. You will end up blowing that instant cash and never catch up again.

It will happen, start planning now.

Regards Jim

-- Edited by Hey Jim on Wednesday 11th of October 2017 12:11:45 AM

-- Edited by Hey Jim on Wednesday 11th of October 2017 12:13:35 AM

Yaketty · Veteran Member

Hi Spiky & Missus Spiky - love your website BTW You are already intrepid travellers so well done for getting to the debt-free stage of your lives and longer term nomad adventures!

We used the Australian Caravan Club spreadsheet - under Travel Costs Analysis Tool on this link: www.australiancaravanclub.com.au/index.php/on-the-road-mainmenu-71/tips-and-tools-mainmenu-38 for a 5 week Kimberley trip we did in May-June this year from Perth to Broome, then the Gibb River Road & back to Perth from Kununurra via the Gt Northern Hwy. We found that spreadsheet was really useful and comprehensive enough for a shortish trip to gauge how we could budget for a longer trip like the Big Lap. We also have the Big Lap spreadsheet as uploaded above by John (rockylizard).

On that Kimberley trip we spent $7522.40 all up - that included $2978.95 Sightseeing & tourist items and $1671.25 on Diesel. We had pre-booked some big ticket touristy things like the overnight Horizontal Falls tour so we packed a lot into the 5 weeks. If you take off the touristy spend, that leaves just over $4500 which considering the kms we covered was a fabulously cheap holiday in some spectacular scenery. We would not be spending so much on fuel and touristy items on a longer trip - at least not within the same time frame.

Another useful take on nomad budgeting is by a couple called Ben & Michelle who wrote a great post a couple of days ago - benandmichelle.com/blow-your-budget-road-trip-around-australia

I'll be 61 next month, hubby's just turned 59 and like you we're a smidge off being debt-free. All that's stopping us now from renting out Chateau Millstone and heading off on the Big Lap is fear! Hubby is a tradie and I'm in a long-term, secure job in the academic sector and walking away from that is the last hurdle. We've both read your 'about us' section of your website - very inspirational and we need to take that next step and as mezza56 says above, 'Just do it'.

Love this forum and I'm sure you will get as much out of it as we have - some very sage, amusing and useful information from the experienced and wise folks hereabouts.

Cheers, Kay

-- Edited by Yaketty on Wednesday 11th of October 2017 01:07:07 AM

Spiky · Member

Thanks everyone!

There's been some great stuff written here, and many thanks for all the useful links. The biggest obstacle that we have to overcome is the fear of taking the plunge, but I suspect that when we do, we'll never look back. We've been lucky enough to be able to take some fairly extended 'short' breaks in our Hawk of late, and I always make a point of speaking with any Grey Nomads that I bump into. I ask everyone of them the same question: if you could do it all again, what would you change?

Without exception, everybody has (so far) given me the same reply: we should have done it earlier.

It seems that it's about time I started looking at second-hand vans with a bit more gusto...

Terryt · Veteran Member

Playing a bit of devils advocate here. Have you spent much time on the road together in a van. It is not everyone's cup of tea. If you lease your home for 9 months and after a month decide the life is not for you breaking the lease might be problematical. Maybe try a few months just leaving the house empty. I'll pop back in my box now. NB everyone has said don't touch super till after 60 for tax reasons. You may find you have a tax free component that you can access pre 60. My partner certainly did.

macka17 · Guru

AND SMALLER.

Equates to less Junk. LESS weight. LESS fuel. Cheaper maint.
LESS INITIAL COSTS.
Plus plus all round.
18ft 6ish INSIDE. will cover most Long Termers.
WITH ANNEXE.

Travel lighter, cheaper. THEN. If staying longer. Just erect annexe. and Instant NEAR double the size.
A person only takes up so much room. Why drag all that dead space around.
We had a 6.5mtr offroader for around 14 yrs. NOW. 535 Tandem full height.

Wife's fav, Compass semi. Single axle Pop top 17ft 3 in OUTSIDE body 1.56ton loaded.

We lived in very comfortably for 3 or 4 months at time. Easily do it for 12 mths or more.
Patrol gave 7+ kmpl towing at traffic flow speed, everywhere. Didn't know it was there.
Tinny on roof. Collapsable trailer round spare on rear.

Pretty much the smallest I've had on 50 odd yrs. and the second most comfortable.

$38k then. (97'ish)

-- Edited by macka17 on Wednesday 11th of October 2017 12:25:19 PM

-- Edited by macka17 on Wednesday 11th of October 2017 12:27:51 PM

macka17 · Guru

Whoops. ('04ish) Last line.

Tony Bev · Guru

Welcome to the forum, Spiky

You have received a lot of advice here

The Excel spreadsheet from John, (Rocky Lizard), is a good ballpark method of trying to figure out your budget

But...
As others have already said, we all have different situations

My method is that, (I only travel part time), I just add on about 20% to my home base food bill, as I am prepared to spend in smaller towns, to help them along
I calculate how many kilometres I will do, to estimate how much I will pay for fuel, I will have access to this money before I depart home base
I mainly use free/low cost camps
It then makes no difference to me, what my time frame is for each trip

I have talked to many travellers in the free camps
The permanent travellers, on a fixed income, know roughly

How much their yearly rego/insurance/maintenance cost will be, each pay period they will put a portion of this money aside
How much their food, and entertainment cost will be for that pay period, this money also goes to one side
What is left is their fuel money, this will dictate to them, how long they must stay put, until their fuel money has built up enough, to allow them to go to their next stop

I once met a couple on the road, who had taken three weeks to travel about 300 kilometres, they were happy with what they were doing