Sunday, September 29, 2013

Road Trip Budget 101 (Lindsay)

This is part II of the scary financial overview and is a reference for other dreamers hoping to follow in our footsteps.  When Jim and I started researching how to pull off such a trip, we found very little information on how much it would cost.  I bought a book about a retired couple who travel in their RV full-time but their budget was almost triple ours and our interests were vastly different.   Thankfully, in this day of the internet, more blogs are popping up.  We found this one after we started the trip and while there are a lot of similarities, they took their trip in the early 2000's which affects the gas budget.  So, I will now delight you in "how to take a roadtrip like ours in 2013".  Take from it what you will.

The first piece was to determine the setup for the trip.  Jim has already done a fabulous job revealing how we came to the truck camper decision.  However, during the planning stages, we had no idea how much it would really cost up front to purchase our new home and required quite a bit of research on the market for used class B vans, used trucks and campers.  We were fortunate enough to have an entire RV store in NH dedicated to truck campers as they were otherwise difficult to find and improperly installed by large RV dealers.  We met with these guys, asked lots of questions, looked over the inventory and then went home.  (Jim is the King of delayed gratification.)

This is how Jim deliberates.
Three weeks later, we went back and settled on a used 2008 model that had only been used by a retired couple when they drove from New England to Florida and back each year.  It was in great condition save for one cabinet that still smelled like cigarette smoke.  Total price was $9,500 including all the stuff we needed to keep it from flying off the truck and the installation.  We had not yet purchased a truck so the warehouse offered to hold it for us for free until that happened.

The used truck market was a headache but our search was reduced drastically by the fact that we needed a 3/4 or one ton pickup to carry the camper safely.  Interestingly, there were only a handful of trucks near our town in NH which met our needs.  One was eliminated immediately as it had a bench seat and I would not have been able to both see over the steering wheel and reach the peddles without crushing Jim's legs on the dashboard.  We also needed a crew cab or extended cab for the precious poochies. 
She's so smoochie.
In the end, Jim found a F-250 extended cab with 118K miles and a limited warranty that didn't look like it was going to blow up and I invested $9.20 in this beautiful booster seat so I could assist in the driving.


No caption required.
The rest of our budget had been worked out in the previous months and it was as follows: (I apologize for the off center chart.  It hurts me more than it hurts you.)

This led to our goal a few years ago to each contribute $15K in savings for a total of 30K.  We knew we wanted to sell the house prior to leaving - not because we thought we'd make money but because this trip was about setting aside normal responsibilities and we didn't want to worry about such a huge investment while we were on the road.  When I calculated how long it would take me to save my portion, we figured we'd be ready to leave, at the earliest, in spring of 2013.  So we put the house on the market in March, priced it well and basically crapped our pants two weeks later when there was a reasonable offer with buyers who wanted to move in at the end of April.  Rather than sitting around for months waiting to leave on this trip, we were put in a lovely position to have to negotiate a later closing date so I could save the remaining portion and give my work a respectful notice.

But even with $30K, we attempt to be frugal when we can.  Here are some lessons learned from our experience: 

Parking has remained very low as we rarely stay in cities.  It's just a personal preference so if you're a city goer, plan accordingly.

Food: This is a biggie.  We try to save as much as we can by cooking in the camper.  Our grocery bills are slightly lower than what they were when we lived in a house and while we both love a good meal out, we try to save the restaurant part of our budget for a special occasion.  I do admit that this is a hard one for me as there's nothing better than a hot chocolate after a cold hike in the woods.  (And for Jim, there's nothing like a swig of whiskey which led to a hilarious memory of me standing outside a grocery store at 9am with a loaf of bread and a bottle of whiskey waiting for him to return from filling the water on the camper.  He showed up just as people started handing me their spare change.)

Our diet is super exciting and I'm surprised by the number of people who have asked us what we eat so for you weirdos, here's the basic diet:

Breakfast = eggs or oatmeal and the occasional pancakes if I whine enough.
Lunch = PB&J on the trails, granola bar and fruit (hello carbs)
Dinner = some combination of rice, beans, quinoa, lentils, tomatoes, veggies and cheese


Campsites:  This has had a huge impact on our budget in a positive way.  We had no idea how often we'd want or need a real campsite and if we'd be any good at this whole boondocking idea (parking for free anywhere).  I don't like to get yelled at so we overbudgeted this one just in case.  However, we've found that we're pretty damn good at boondocking and here are our tips:

Walmart - I know, I know, it sucks but it's free and they are everywhere.  We've stayed in Walmart parking lots five times since we started which is a savings of $99.90.  (Average cost of a campground is $19.98 with the most expensive being $59 - damn you Rhode Island - and the least, $6 - thank you primitive and beautiful campgrounds.)


It's just.  So... Peaceful.

Couchsurfing - Free website where hosts let people crash on their couches.  You just set up an account, email possible hosts and they tell you if they can have you over.  For us, we just need a driveway which has allowed us to stay with some people who didn't have space in their homes.  The added perk to this setup is a plug in (incredibly helpful on the hottest days of the summer), free laundry and SHOWERS!  Woohoo!  We've spent a total of seven nights at the mercy of strangers saving us $139.86 although the savings are more significant as we pulled this off on 4th of July weekend in Bar Harbor, Maine during which time campsites would have been much more expensive.

Harvest Hosts - $40 annual membership gets you access to wineries and farms throughout the US which will allow you to park on their properties.  We've just started doing this as we had plenty of places to crash in New England and it's been a good experience.  We parked at a winery where we were forced to drink free wine, a hay lot and a beautiful apple orchard among others saving us $99.90.

Random other options - Friends and family have been gracious enough to host us and we've spent a whopping 54 nights near our loved ones or on their properties including the majority of the first month we were on the road (hence the very low gas budget for the first six weeks of the trip).  This has been a true gift and we encourage everyone to send out updates via Facebook on your next general area as you never know the connections that will pop up.  Total savings = $1078.92!

The rest of the time we've boondocked, parking on the street in Halifax next to a beautiful park and the same on a street in Newport, Rhode Island.  We've parked in grocery store lots after batting my eyes at the manager to get permission.  We even parked in the hotel parking lot in Grand Teton National Park and didn't get caught.  Parks are notorious for fining people who are boondocking or even kicking them out of the park altogether so we spend most of our campsite budget when we arrive at a park.  Total boondocking savings = $239.76.


Boondocking in a farmer friend's field.

Hotels: We weren't sure how wimpy we'd be on this trip so we budgeted two nights a month in a hotel.  I'm proud to say we aren't wimpy at all and have only taken advantage of this twice.  Once when my mom paid for a room for us in Lake Placid when we were waiting for the truck to be fixed and the other for my birthday.  What girl doesn't want to spend her birthday in her pajamas watching movies and eating pizza? 

Phones:  I've mentioned this in the previous post but it's worth repeating.  Cell phones are the devil but I realize most of us need them.  Stop paying a premium to be part of a company whose name you recognize.  Every cell company out there has a competitor.  We switched from Sprint to Ting but there are comparable companies for AT&T, Verizon, etc. out there.  I get charged for how much I use the phone, I don't have a contract and it's the best customer service I've ever had.  Once, calling for help, the 800 number was answered on the second ring with this greeting: "Hi, it's Tim".  I paid $3.32 in the month of July because we were in Canada and I didn't call anyone.  They even waived the 60 text messages I sent.


Health Insurance:  This is too complicated for me to cover and obviously your needs may be different from ours.  We both signed up for individual plans with Anthem with a $5,900 deductible.  Meaning, we don't plan to get checked out this year but if a bison happened to gore one of us we wouldn't go bankrupt after 80 surgeries.  Hence the cheap rate.  Mr. Money Moustache does a better job than me explaining so for your reading pleasure, I suggest you read the following.  Followed by this one.

Student Loans:  This is the only debt that either of us carries and I've made a conscious decision not to pay this off the way I paid off the rest of my debt.  Why?  Because the interest rate is 0.875% and I'm better off saving money and investing than dumping it all into this.

Car Insurance:  I chose to keep my old Ford during this trip even though I'm risking some damage by not driving it through the winter.  That's where good ole mom comes in who is keeping little Fordie in her driveway and driving her on the weekends for me.  The insurance only covers medical bills if someone gets hurt and does not cover the cost of a replacement which saved me a bunch.  Keeping the car (I considered selling her at one point) means we have a fuel efficient option when we get back to the real world.

Fees: We knew entrance fees for national parks would be a large expense.  Luckily, you can get an annual pass for $80.  We have already saved $140 (after the cost of the pass) with this setup.

The rest are quite variable depending on your experience.  Keira costs us some - apparently she needs to eat but I took care of all of her vet bills before we left so I don't expect to spend money in this area while we're traveling.  (I have budgeted just in case)  We also have a cat being cared for at the in-laws so I have a budget for her.  (She is 17 years old and 17 is unpredictably expensive)  I thought I'd have to board Keira more in the parks where dogs are not allowed on trails but one of the greatest perks to the camper is the ability to safely leave her for the day at a campground while we go hiking.  Technically it's against the rules but well, I don't agree with this particular rule so I choose to ignore it.

The amount you see for gifts are actually for weddings and babies and not souvenirs for family and friends (although we've picked up some nice jams to thank people) so this was a matter of timing and not necessarily what one would spend on a trip like this unless you're a heavy gift giver.

So, that brings us to how we're doing compared to budget.  (are you still with me?)



As you can see, we are on budget to be on the road about seven months.  We figured between six and nine when we set out - six if we were extravagant (by our standards) and nine if we didn't use toilet paper and ate Ramen noodles.  We woefully underbudgeted on gas (not the amount per gallon but the amount we'd actually be driving) but overbudgeted on campsites so things even out.  We are preparing to enter areas of the country where we have fewer connections so we hope to be good enough at this couchsurfing/boondocking/harvest host thing to save money. 

I hope this has been helpful and you aren't currently keeled over in your chair snoring with boredom.   Feel free to ask us questions or provide new suggestions for saving money as we're always up for new tips.  (I'm not giving up my boxed wine so don't go there).  And remember, there are lots of ways to do this.  You just need to find what works for you.  For some, it's a bus of an RV and years of saving.  Some live out of their mini-vans or save the upfront capital expense of a camper and just stay in motels along the way.   We know people who tied a tent to their motorcycle and slept wherever they felt like.  Do what works for you, figure out a budget and start saving. 

"Little by little.  One travels far."
~J.R.R. Tolkien




4 comments:

  1. I have no idea if it would be legal for your to move your residence to Mass (probably too late to be practical for you guys), but the MA Health Connector plans offer pretty cheap health insurance, especially if your income is essentially 0 for the road trip. Might be more helpful for future road trippers.

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  2. Is it ridiculous that I OCR'd the image of your spreadsheet to use it as a base of my own?

    Suggestion: add an annualized column at the end, even if you don't go for a full year and it's dumb because one could just double the 6 month column, many people think in terms of a "yearly" budget on stuff, so it just makes things a little easier.

    The $80 one time national parks pass costing $50/week, or 1800/yr may be a typo.

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    Replies
    1. HA! No problem at all and thanks for the suggestion. To clarify, the fees line includes items other than the national parks so while we spent an initial $80 on the pass, we spend money on other fees which you see in that line. Thanks!

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  3. Ok Guys
    What model of Okanagan. I think it is a 80W

    I'll be joining you guys in a year
    doug

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