The Cost of Cruising, Part II
In my last post I talked about what I felt was a realistic capital investment required for purchasing and upgrading a comfortable 40-foot cruising sailboat. Cruising on a smaller, less expensive boat is possible, but for most retired couples in their 60s, I think a 40-foot vessel would meet their needs and not make them feel as if they are living in a sardine can. In this post I will discuss from my experience the approximate monthly/annual costs to comfortably cruise in the Abaco area of the Bahamas.
When you do a cost estimate such as this with lots of variables, you have to make some assumptions. So my assumptions are based on what I feel is the minimum requirements that a couple will need without feeling like they are denying themselves any fun. With that in mind, here are my assumptions:
- This couple has purchased a 40 foot sailboat with a 40 HP diesel engine for $120,000 and it has been equipped with two each 135-watt 12-volt solar panels,
- This couple rents a marina slip for the year,
- This couple does not own a home or any autos back in their home country that they must maintain (this is an added cost that most people have, but it has nothing to do with the cost of cruising),
- This couple participates in one special activity every month (e.g., biking, snorkeling, scuba diving, etc.),
- This couple spends half their time every month at their marina slip and half their time at anchor at one of the beautiful cays,
- This couple has either lunch or dinner out at local restaurants 4 times per week.
The costs to maintain a 40-foot sailboat can vary dramatically from boat to boat and from owner to owner. This is because an older boat will generally cost more to maintain than a newer boat. Also some boat owners can fix anything on their boat from replacing the wind instrument on the top of their mast to replacing their propeller shaft zinc anode in the water. Others (like me) have trouble figuring out why the water pump will not work when it is turned on. There are also parts to buy that can be expensive.
The ocean view from the Abaco Inn
When cruising, you will find that a lot of boaters are knowledgeable about boat repairs and have plenty of time to help you with a boat problem. We have used this network of cruisers a lot these last few months. So even though the cost of maintaining a boat can very significantly, I think for most people, a reasonable annual figure for budgeting is about 5% of the boat purchase price. In our example, 5% of the $120,000 purchase price is about $6,000 per year. This cost includes all annual boat maintenance, including a haul-out to clean and paint the boat bottom if necessary.
Boat insurance is high in Florida and the Bahamas due to the risk of hurricanes. In talking to many boat owners, it seems that boat insurance covering the Bahamas can be obtained for about 2.5% of the boat hull value. So a $120,000 sailboat will have an annual insurance premium of about $3,000.
In checking around for an annual slip fee here in the Abacos, I think a long-term monthly slip rate can be gotten for around $500 per month or $6,000 per year. The monthly fees are much higher during the months from March through July, but lower from August to February. But I have gotten quotes of $500 per month (for a vessel less than 50 feet) for an annual agreement. This $500 per month cost is for a marina slip, it could be $300 to $400 per month if you are willing to keep your boat on a mooring ball.
Consumable costs are water, electricity, and fuel. This is how I would estimate these costs based on half-time at the marina slip and half-time out at anchor.
Water usage is a little bit lower while docked because the marina has restrooms (we always shower on the boat), but the increase in water usage while out at anchor is not that much more. On Odyssey, our average water usage whether at anchor or at the dock, has been about 12 gallons per day. This equates to 360 gallons per month. We pay $0.35 per gallon for fresh water. This equates to about $125 per month cost for fresh water (this does not include drinking water).
Because we have 2 each 12-volt 135 watt solar panels, our electricity costs are lower than they otherwise would be. Even while in our slip I turn off the shore power during the day and let my 2 solar panels recharge my house battery bank. While at the slip we average about 2.5 KWHs usage per day. At $0.75 per KWH this is a cost of about $1.90 per day or about $28 for 15 days at a slip.
At anchor is where the solar panels really help. Our solar panels cost about $3,000 to purchase and install. It would take a long time for the fuel savings to offset the cost of the panels. However, the benefit of solar panels is more than just the fuel savings, it also provides for a better quality of life while at anchor. Because of refrigeration, without solar power support, we would need to run our engine for about 2 hours per day to keep our batteries charged. An hour in the morning while you are having coffee and an hour in the evening while watching the sunset. If you want to experience what this is like, imagine sitting on your back porch and having your lawn mower running right next to you for an hour. Because of the solar panels, we only have to run the engine for about 20 minutes per day at anchor.
Solar panels are a must when doing long-term cruising
Whether anchored or moving the boat from anchorage to anchorage, I would estimate we average about 2 hours of engine use per day (of course we sail whenever we can). Based on 15 days per month, this is about 30 engine hours per month. A 40 HP diesel engine consumes about 0.75 gallons of fuel per hour of running time. 30 hours x 0.75 gallons per hour equals to 22.5 gallons of diesel fuel per month. In the Bahamas diesel fuel costs about $6 per gallon. This equates to about $135 per month for diesel fuel. Add about $25 of gasoline fuel costs for your dinghy engine and total fuel costs are probably about $160 per month.
Provisioning is another large cost in the Bahamas as most food items are about twice the cost as the same item in the US. Running my Quicken Software for the last 3 months shows we have spent an average of $700 per month on provisioning. This figure includes alcohol and drinking water. To have a full accounting of our provisioning costs I need to add in the items that we purchased in Florida before crossing over to the Bahamas. We purchased about $600 of provisioning supplies in Florida which we are still using. So I would add another $100 per month to our provisioning costs incurred while in the Bahamas for a total of about $800 per month.
Special activities like snorkeling or diving are another cost that can vary greatly. Some cruisers don’t partake in any of these activities. Renting 2 bikes for a day is about $25. Snorkeling for 2 is about $100. If you and your spouse are into scuba diving, the cost is about $250 for each trip. I think allowing about $100 per month for special activities would suffice for most people.
The last big cost is dining out. It is hard to eat out anywhere in the Bahamas for less than about $40 per couple. I think our average cost is about $50 per outing. Assuming a couple dines out 4 times per week at $50 per meal, this adds up to about $200 per week, or $800 per month.
There are other smaller known costs. We purchase 2 bags of ice per week at $5.00 per bag. We also usually do 2 loads of laundry per week at $10.00 per load. These two costs equate to another $120 per month.
The adjacent table summarizes the known monthly costs.
|
Cost Area |
Estimated Monthly Cost |
| Boat Maintenance |
$500 |
| Boat Insurance |
$250 |
| Marina Slip |
$500 |
| Provisioning |
$800 |
| Water |
$125 |
| Electricity |
$28 |
| Petrol |
$160 |
| Dining Out |
$800 |
| Special Activities |
$100 |
| Ice |
$40 |
| Laundry |
$80 |
| Total Monthly Cruising Costs |
$3,383 |
There are other one-time costs such as purchasing the Bahamas cruising permit ($300) when you enter the country and flying back to the US. There are also some incidental costs such as tipping the dock hands, phone calls to the US (we use Skype which costs 2.3 cents per minute), oil and fuel filters, and island ferry tickets to name just a few. These other unpredictable costs may add another 10% to your overall cruising budget.
So based on the summary table the known cruising expenses add up to about $3,383 monthly costs or $40,596 annually. If you add on another 10% for incidental costs, the total annual cruising budget is about $45,000 or $3,750 per month for a couple. If I had to guess, I would say most cruising couples, if they do not have a huge boat, probably spend about $3,500 to $4,500 per month.
Remember these costs are only cruising related costs. This does not include health care costs which vary from couple to couple. It does not include maintaining a house or cars back home all of which can easily double your living costs. It does not include flying your entire family down to the Bahamas for a 2 week visit.
Attending Special events is what makes cruising fun. A golf cart parade in Hopetown.
Can cruising be done for less? Yes! Many people do not rent a marina slip. They just rent a slip by the day if they need one. Slips are cheap in the fall and winter (about $1.00 per foot per day), but they get expensive from March through July (about $2.00 per foot per day). If you only get a slip one day per week, you could save about $3,000 per year in slip fees. Many people do this. Because we were not planning to go to other areas of the Bahamas this year, we chose to get a long term slip in Hopetown at a greatly reduced rate. It would only take 8 days paying the Marina’s daily slip fee to exceed our monthly rate. Whenever the weather forecast is bad, we always have a place to go.
Another area of reducing costs is dining out at restaurants. It is not necessary to eat out at all in the Bahamas. There are some people who almost never eat any meals in restaurants. If you eat every meal on your boat, the estimated $800 per month dining out cost would be offset by about $200 per month more in provisioning costs saving about $600 per month or about $7,000 per year. But, in my opinion, if you never go out to eat in the Bahamas, you will be missing out on a lot of fun events with very interesting people.
The best part about cruising is meeting people and making new friends. An impromptu dock party at Hopetown Marina.
If the choice comes down to having a bigger, nicer boat, but having no extra funds for special activities or dining out OR having a smaller boat which frees up the extra funds for other activities, in my opinion, you will enjoy cruising more if you get the smaller boat. That is one reason why we have a 36-foot sailboat instead of a larger vessel. The cruising life is not about the boat. It is about the lifestyle and the people you meet.
So “How much does it cost to go cruising?” It costs more than it used to, but in my opinion it is still worth the money.
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Ted, all my life I wanted a 42 foot schooner. Had many different boats up to a 26 footer. Never could get over getting motion sickness, boy do I envy you guys. I retired at age 42 as a real estate investor and apparently land lock. The way you describe your trip is so beautiful, man I wish I could do the same. You have the perfect life. Best regards and many more golden sunsets, Jim.