During my 20 years of hosting World Cruising Club’s Bluewater Seminars, one of the questions I was most frequently asked was: “How much money will we need to go bluewater cruising?”

The seminar programme is aimed at trying to answer this difficult question – among others – and to put the challenges of boat ownership and liveaboard cruising into perspective. To do so, experienced cruising skippers join panel discussions and share their experiences, and talk about different equipment choices and ways to live the lifestyle. I would also discuss in broad terms the types of expenditure to expect, share tips for mitigating some costs and give a range of budgets.

However, the problem with trying to give a definitive answer, a magic figure in dollars and cents, pounds and pence, is that the question is almost impossible to answer. Each individual cruiser has their own lifestyle, income, boat choices and cruising plans. So is it even possible to give a meaningful figure?

In an attempt to quantify the true cost of liveaboard cruising, I recently asked a range of experienced bluewater cruisers for more detailed information about various aspects of their cruising lives to paint a better picture of their true budgets.

The questions asked were specifically about living the bluewater lifestyle and deliberately excluded the costs of boat purchase and refit, or pre-departure preparation. An aspiring cruiser will have greater control over these expenses, and once they’ve set sail, this money is already spent, so does not factor in day-to-day living and cruising expenses. Here are their (anonymised) responses:

1 Running the boat

Owning a boat incurs costs which need to be included in a cruising budget, such as insurance, registration, docking and operating and maintenance costs. I have excluded any cost for depreciation, or the opportunity cost of the funds tied up in owning a boat.

There is an obvious relationship between boat size, hull type and age when it comes to quantifying running costs.

A larger, more technically complex boat will cost more to insure, more to dock and require larger sums for maintenance. For example, a cruising catamaran offers luxurious living space and comfort compared to a similar sized monohull, but the hidden cost will be paid in higher docking fees and a limited choice of boatyards, since not every yard can lift a boat with a 10m beam. And twin hulls mean twin engines, which doubles the maintenance and consumables bill.

The larger the boat, the stronger the sail handling gear needs to be, which equates to more expensive deck gear and running rigging, which will require replacement and maintenance. However, an older, simpler boat may run up against the ‘too cheap to insure’ problem, where the cost of writing the policy is not covered by the hull value and owners will find it difficult to obtain bluewater cruising insurance. Furthermore, the ‘old but trusty’ sail handling system may now no longer be in production, giving a potential headache to owners trying to obtain spares, especially in more remote parts of the world.

Most skippers I have talked to had paid upfront for their boats and were not paying monthly leasing costs, so the most significant ownership cost was insurance, averaging US$6,300 annually. This figure will vary significantly with individual circumstances and boat type and age.

Cruisers can also take action to reduce their premiums. One skipper explained: “We increased our policy excess from €500 to €1,000, which cut our premium. Also, we don’t insure our dinghy.”

Article continues below…

Others recommended keeping in regular contact with their insurance agent, as they received helpful advice on laying-up in specific locations for the Caribbean hurricane season, which saw their premiums reduced.
Docking was another variable cost significantly affected by location and cruising style. Do not assume that, as a bluewater cruiser, you’ll avoid docking fees by always being at anchor. The average monthly spend was surprisingly large at US$1,390.

However, this figure was influenced by sailors who cruise part-time and are laying up in a boatyard or marina for half the year. A figure of US$400-500 per month was more common for those full-time cruising, who are able to avoid marinas for longer periods.

Cruising location will also impact docking costs, potentially limiting the opportunities for anchoring.

2 Maintenance costs

Most cruisers are spending between 20-40% of their average monthly expenditure on boat maintenance and running costs.

It can be hard to get a realistic average, especially as the line between refit and maintenance becomes blurred with older boats.

Typically, cruisers were spending between US$7,000-8,000 per year on general maintenance and an average of US$2,250 annually on fuel, including domestic use and outboard fuels. “Sail more, motor less!” was the unanimous comment from skippers when asked about cutting fuel costs.

Replacement equipment spend was an average of US$3,119 annually, while boatyard work/lift-outs came in at US$6,720 each year. This brought the total for maintenance to over US$20,000 per year for boats in the 41ft to 60ft (12.2m to 18.3m) range.

Advice for managing the maintenance budget from long-term charter skipper Anna Black of Emily Morgan is to “do as much as you can yourself and be very strict about your preventative maintenance regime.”

3 Costs of life aboard

Once an aspiring bluewater cruiser casts off and begins the liveaboard lifestyle, there is greater opportunity to manage a cruising budget with more care through planning, detailed research on potential destinations and general lifestyle choices.

It may come as a shock to new cruisers, but crossing international borders by private boat often entails delays, interaction with bureaucrats, compulsory employment of local agents and, above all, paying fees to clear in.
These costs can run to several hundred dollars depending on location, so it pays to do research before choosing an itinerary.

The go-to place for up-to-date details of this type is the well-regarded website www.noonsite.com which has been sharing information on cruising destinations since it was established in 2000 by yachting guru Jimmy Cornell.

The typical monthly spend on clearance was US$200-300. There was a noticeable increase where cruisers were visiting countries that require mandatory use of an agent, such as Singapore or Indonesia.

Anna Black’s advice for reducing clearance fees was to plan ahead. “We try to manage our arrivals so that we avoid checking-in on a weekend or public holiday, as overtime charges can be a shock,” she says.

The daily cost element of living expenses is the easiest both to quantify and to control. We’re all used to managing our household and personal expenditure and it’s no different when afloat. In general, cruisers tend to opt for a similar lifestyle when living aboard as they enjoyed ashore.

For example, if your shoreside life involves eating out frequently, enjoying your entertainments, hobbies and sports, then your budget will match your lifestyle and you are likely to keep this lifestyle when cruising.

However, there are different approaches to managing budgets: some cruisers keep a strict hand on their wallet and if they overspend one month, then they’ll cut back the next. Often this is easy to do – just avoid that expensive restaurant and opt for another night at anchor and cooking on board!

For many people one of the real pleasures of bluewater cruising is the opportunity to shop in local markets, exploring the food and flavours of each new port of call. The most frequent response to questions on monthly budgets was: “We just spend what we can afford to”.

The average sum spent on food, drinks and essentials was US$1,500 per month, but that falls within a wide range from US$250 to $2,000 per month, which reflects lifestyle choices and the varying cost of living in different parts of the world. The eating ashore budget averaged US$745, again with widespread variation.

Other entertainment costs averaged just over US$700 per month. Surprise trips home resulted in unplanned flights and hotel costs for some skippers with US$2,375 spent in this area.

Anna Black’s advice on cost of living was to: “Prioritise what is important to you and then spend accordingly.”

Other skippers commented that liveaboard cruising is a lifestyle not a holiday and that cooking on the boat is far more cost-effective than dining out.

4 Entertaining and extras

Another area of expenditure that is easy to control is the sum spent on enjoying extras ashore. This could be a once-in-a-lifetime helicopter ride over a volcano, a scuba-diving course, or shopping in an outrageously expensive craft jewellery store. If the funds are not there, just walk away!

However, many of our cruisers agreed that they would dip into their reserves for ‘that special trip or experience’, which highlights the need for a reserve, either for these special occasions – as well as for an unexpected (and expensive) flight home or sudden breakage aboard.

Having guests aboard is another area that can affect monthly budgets. The choice when having guests or extra crew join you aboard is whether to absorb the additional costs of your guests, or whether – and how – to share these costs.

There is no firm rule to be followed and the approach may change with circumstances, but best practice is to discuss in advance with your crew to avoid surprises around money. Talking about this with friends and family can be awkward, but it is important to do it.

“Be fully transparent with all crew, record all costs, share your calculation and then split by number of people,” was one owner’s advice on this topic.

Our skippers were generous with their advice and shared their tips for keeping control of a cruising budget. “Keep a good record of your spending to detect money drains and establish healthy money spending habits from day one,” is one suggestion.

Another skipper commented: “If ever we want to reduce our spend, we: a) anchor instead of going to a marina; b) eat aboard instead of dine out; c) sail instead of motor; d) sweat instead of using the generator for aircon; e) DIY maintenance items instead of contract.”

5 Healthcare costs

Sailing in regions away from your home country has implications for medical care. Generally, most cruisers are well prepared with offshore medical kits and therefore are considering the impact of sudden illness or accident either ashore or afloat which are beyond their resources to deal with on board.

There were three approaches to dealing with this: to self-insure and just pay for care if needed, to rely on existing domestic health insurance extended for overseas, or take out bespoke sailing travel insurance. The specifics of a skipper’s home country health and insurance system usually determined which option was chosen.

The costs of using existing private health insurance were typically around US$1,000 to $1,500 per month (though this average is skewed somewhat by the higher premiums paid by Americans). Those with bespoke sailing travel insurance were paying between US$60 and $150 per month.

“We do our best to stay healthy,” was one skipper’s comment – good advice, and none of our skippers had actually needed to use their insurance policies.

Opportunity of a lifetime

When planning a bluewater cruising budget, the first lesson is that you’ll spend most of your money on buying and fitting out your boat before you set sail for bluewater. Once you depart the dockside, while the money keeps going out of your bank account, it will now be in more modest amounts.

Our skippers were all in agreement that they’d only spend what they could afford. Good planning, good record keeping and doing research before arrival all help to keep control of the budget.

The second lesson is to remember the freedom to choose, which often only comes about once aspiring cruisers have left their shoreside life fully behind and embraced the liveaboard life.

As one skipper put it, “There is too much to experience for free to pay for the tourist activities. We get out and walk, plus we have foldable bikes that take us on the best adventures! And we always pack snacks and water.
“We never feel like we’re missing out, but are still seeing the world!”

In short, the cruising life is what you make of it and how much effort you are prepared to put in directly. Doing things yourself, whether maintenance or cooking, using local transport or bikes, will help every dollar go a bit further. What you will gain are memories that are priceless, whatever your budget is.

---

If you enjoyed this….

Yachting World is the world’s leading magazine for bluewater cruisers and offshore sailors. Every month we have inspirational adventures and practical features to help you realise your sailing dreams.

Build your knowledge with a subscription delivered to your door. See our latest offers and save at least 30% off the cover price.

---