Handling Finances While Cruising

Posted by Liz

Ed’s brother Charlie recently inquired about how we handle the basics like paying bills and credit cards. I thought that was a good question, because it actually took some preparation and fore-thought before the trip to figure out a plan.

We had to spend a bunch upfront on boat prep (new life raft, updated medical kit, new dinghy and numerous updates to the boat) and painfully watch cash just go, go, go….but now that we’re out cruising, our expenses are really under control. We anchor (free) wherever possible instead of paying for moorings (and often there is not even the option of a mooring) and our only real expenses are for food and fuel. (We’re crossing our fingers that we don’t have any major boat repairs needed – that would be another story.)

Before we left home, we prepaid all utilities (electric, gas, cable), insurance (homeowners, car, life, health). Mortgage payments are deducted automatically from the checking account each month. To pay credit cards, we call in to the credit card company once a month and pay via our checking account (you give them the routing number and checking account number and funds are automatically moved). So, we made sure that our checking account was adequately padded.

I just exclaimed that my recent credit card bill was practically NOTHING, especially compared to what goes on it at home: groceries, dry cleaning, movie nights out, restaurants. It’s GREAT – I actually feel like we’re saving money while we’re out doing this!!