Real Life Emer Fund Draws 1yr 4mos on road

[Jora]

I started the nomad life on 4/13/2017 with a 2000 Ford Expedition. Total cost to purchase and road ready the vehicle with tires, tune up and needed repairs was $6797. This did not include the hitch rack, awning or any containers, shelving, etc. for living in the vehicle. The vehicle had 128,000 miles on it at the time and the mechanics said it was in good shape.

I had what I thought was a large emergency fund. Two weeks into my trip the air suspension system was making terrible noises. Had it replaced by a coil spring conversion kit, $1357. In February 2018 after the RTR, heater core failed, $678.93, repaired, but then the AC did not work, $417 to fix the bungled heater core replacement.

Most recently in August 2018, front brake pads, calipers and upper control arm replacement, $1356.79. 

These repairs were unexpected and urgent, total car repairs $3809.72 for one year four months time. On top of this I needed a dental crown in Flagstaff, $1585. I did not go to Algodones because it was summer and I have a dog and did not want to leave her in the car in 100 degree heat. Also felt better with an American dentist, at least until I know more about Algodones.

Total emergency fund draw: $5394.72

Please have a sizable emergency fund before you hit the road. It might be a good idea to choose a vehicle based on reliability rather than size. I chose bigger because I have a large dog and yes, it cost me. Once the dog passes on, I am planning to downsize to a newer Toyota or Honda for greater reliability (hopefully).

I had been planning to live on social security of $1100/month. I am rethinking that as it would take me more than a year to replenish my emergency fund with such a low income. I will now be looking for some part time employment. I love this life, but had not been expecting so many emergency fund draws. I am now more realistic as to expenses. 

I wanted to share today so that new folks are financially ready when they hit the road. There is no such thing as too large of an emergency fund.

 

[John61CT]

Some simply cannot afford to, just one misstep away from homeless.

But for those who have choices, IMO it is important to realize that you are "actually spending" your vehicle budget every mile you drive.

Like having a two-month supply of non-perishable food, that's like money in the bank. You are only "spending" from that budget when you open a can to eat.

A vehicle "break & fix, maintenance, upgrades and replacement" fund should really be built up separately from a true emergency fund. An engine rebuild, or new diff is really a predictable type of expense, almost an investment in future miles.

Having a system in place to slow down, drive fewer miles when things are tight is IMO important.

Feedback on this idea https://vanlivingforum.com/showthread.php?pid=353330#pid353330 would be welcome.

 

[Jora]

I have learned the sudden large expenses is what can throw off a budget.  These are medical, dental, veterinary and car repairs.  A one or two thousand dollar emergency fund to cover all these is really inadequate.  It pays to control them, if you are one step away from homeless, with medicaid or Algodones for the first two, no pets for the third, and as reliable a vehicle as possible for the fourth.  

Please do a really careful budget before leaving for van life.  Yes your budget can break down car expenses separately from the rest of the emergency fund if you find it helpful, but if you are relying on savings of only a few thousand why bother?  You are going to be borrowing from the other emergency fund budget items with your first car repair anyway.

Driving fewer miles, say only one tank of gas a month instead of two, would have saved me $65.  Not really significant in this case.

An empty wallet can dispel delusions quickly.  We are not talking "tight," we are talking dumpster fire.

PS: I want to add not to buy an American car. I love America, but it is a matter of survival if you are low income. Buy Toyota, Honda, etc. Your financial health depends on it.

I would welcome feedback or any comments. Maybe I was an idiot who should have known better!

 

[John61CT]

The cost of gas is usually well under 25% of the total running costs of the average vehicle.

A lot less than that for those driving low miles, say 600-800 per month.

My point is, allocating $1 per mile for the vehicle fund, and putting that cash in the account before travelling, is a useful discipline to build up the account

 

[Jora]

Good idea!  So if a person plans to drive 20,000 miles per year, have a $20,000 vehicle fund.  That would definitely do it.

 

[John61CT]

Obviously it's the process, a segregated account that's important.

For those who just can't do a dollar, pick another number.

But anything below 50¢ IMO you're just kidding yourself, unless you get lucky for a stretch,

remember, including acquisition / replacement costs, all repairs averaged over maybe many years

or do your own wrenching with junkyard parts or something.

When it rains it pours, and best to get ahead of the curve quick as you can, rather than always playing catchup and getting behind the 8-ball.

 

[Blanch]

When expectations meet reality sometimes they collide.

My initial emergency fund was $6,000. All gone now with truck repairs and unexpected expenses. I just had a break down and two truck repair visits. I had to apply for and use a credit card. I live on $1298 a month. I’ll never save that amount of money again. I guess I’ll ride this nomad thing until I can’t anymore, then move onto some property with my travel trailer or move into public housing.

I started on the road 6/30/2016. My hope is to pull off a few more years.


Sent from my iPhone using Tapatalk

 

[bullfrog]

Vehicle reliability is truly important, but every vehicle wears out and most Hondas and Toyotas are just as or more expensive to fix when they do break. They will break if you try to carry or pull more weight than they were built for and most are not economic to rebuild when they do wear out. With a solar system, water and all the additional gear we accumulate they just can not handle it plus the roads we use to boondock are difficult on axle joints that they use in most models. Several people on this forum are not able to do their own repairs and finding someone honest and able to do them is difficult. Older Chevys are getting expensive but the factory parts are still the cheapest. Van build outs have helped many here. Maybe some day mechanical build outs can be a part of what we do to make it possible for everyone to know what to get to have a truely reliable vehicle that will hold up to the nomadic lives we lead with out costing more than most can afford.

 

[Annie W]

Some simply cannot afford to, just one misstep away from homeless.

But for those who have choices, IMO it is important to realize that you are "actually spending" your vehicle budget every mile you drive.
Like having a two-month supply of non-perishable food, that's like money in the bank. You are only "spending" from that budget when you open a can to eat.

A vehicle "break & fix, maintenance, upgrades and replacement" fund should really be built up separately from a true emergency fund. An engine rebuild, or new diff is really a predictable type of expense, almost an investment in future miles.
Having a system in place to slow down, drive fewer miles when things are tight is IMO important.

Feedback on this idea https://vanlivingforum.com/showthread.php?pid=353330#pid353330 would be welcome.

After working very disciplined full-time for 4 decades & frugal, & giving most earnings to others, I managed to actually have a 13K emergency fund by 2011, that was destroyed overnight when (on no previous drugs whatsoever), the ama with a single drug forced me into heart-failure !! & for a condition I never had. That was followed by two other related malpractices, that I continue giving it my all to recover from.

Following that several other entities broke a written contract, so now 45K !! damages they're single-handedly responsible for, are left to me - until I figure out how they can be made to pay for a decade's  willful negligence.

Past full retirement age, but lacking experience with legal matters, all I can think of is to keep working past 100
pursuing my lofty :heart: dreams which yet are achievable... 

Read that other thread too, & the more read of "Savings accts, bonds, investments, stock market, 401k's" etc. etc.
the more I think that just owning a little plot of earth & mostly growing own food makes the most sense.
This way Travel can be limited to under 2-3000 miles/year (no one to force moving every 2 wks, or even less).
with minor maintenance, the Honda is doing well.
And you can grow what you value eating within reason for good health.

Rather than insisting 'only full-time nomads can be happy', I'm glad that Bob allows such of us healthy Alternative choices... Thank you Bob.

 

[Dingfelder]

Annie, I know what you are talking about. My brother has a rare condition and doctors tried to treat it with drugs that could dramatically increase his chances of heart attack and strokes. Well, he had heart attacks and strokes. Little chance of it before. D'oh! Who's winning when your doctors are killing you?

Best of luck on your new adaptations working out for you. I don't mean to detract from your own story and your hardships.

Re growing your own, doing so is great, but still requires an ample emergency fund. It's amazing what even a few bugs or a run of the many kinds of bad luck farmers are subject to can do.

I feel for those whose bank accounts/emergency funds are decimated by happenstance too. The truth is that even most middle class people are only a month or two away from disaster. People on a less happy plane are basically living that disaster all the time, a rolling disaster from one to another as something untoward ALWAYS HAPPENS sooner or later. Not seeing it this month just means you are increasing its chance the next. Be it a cavity or root canal, a child's illness, or more commonly a car or home repair, or even living in a rental with someone who screws up on their responsibilities (sometimes even with casual malice), there's almost always something nipping at the heels of people trying to get ahead with few resources.

I've been there, and it looks like I'll be there again soon enough. I hope we all have the strength to carry on and try to muster some happiness. Few of us aren't good people.

 

[becida]

When expectations meet reality sometimes they collide.

My initial emergency fund was $6,000. All gone now with truck repairs and unexpected expenses. I just had a break down and two truck repair visits. I had to apply for and use a credit card. I live on $1298 a month. I’ll never save that amount of money again. I guess I’ll ride this nomad thing until I can’t anymore, then move onto some property with my travel trailer or move into public housing.

I started on the road 6/30/2016. My hope is to pull off a few more years.

$6k is a  lot of money to save up! 

You've been out for 2 years now so none of this is probably going to be new to you...  Staying out in the desert for a season can save you some money by not spending it. Finding a cheap RV park in a reasonable place might save you some cash, again by not spending.

FWIW even boondocking in the desert costs. It costs to dump the tanks, if costs to fill the water tank, driving anywhere takes dollars & fuel.  An in town park that was cheap enough might be a bargain in the long run by not having to spend drive. 
I spent a winter in Quartzsite at Patty's RV park, it came out to around $200 a month but with my bicycle I didn't have to drive anywhere. I was saving money by not spending it & I did enjoy myself. I thought Quartzsite was quite a show all by itself....but that's me. 

I did end up working after that winter in Quartzsite, I workcamped at Adventureland in Iowa. The pay was ok (I hear it's gotten better) and I enjoyed the work. Being there for that 6 months put $3,388 in my account, I left early the second year (as soon as the full time work was finished) & received $3,959 in my account (this is what I actually received). At Adventureland I walked to work. 
I did a month at the beet harvest in North Dakota and that put a LOT of money in the bank.

I have at times wondered about the economics of a winter at the Slabs in Calif. Do what the locals do for sewage & water, bike when you can, drive when you must and save by not spending the money.

Looking at the long range picture ("until I can't anymore") I'd look for an RV park that was in a place where I could stay year round, pay the rent and live in my RV. Much better than getting on the list for public housing...

 

[Jackpine]

Brake repairs are something one should plan for. They are also something many people can learn to to on their own for about a quarter of what a shop will charge you.  If you suspect that your brakes may nearing replacement have them inspected by a shop or just someone who knows what to look for. Have them show you what they look at. 

     If they need replacing try to find someone willing to let you watch/help them repair your brakes for $100 or a good meal with drinks. You can then decide if it's something you might try on your own at some point. Even if you feel it's above your capabilities you saved money and learned something. There's minor differences between vehicles but the basics are the same. You can learn the specifics from a repair manual or Youtube. 

Main thing is to have your brakes inspected after a year or two on new brakes and every six months after that. That will help you avoid emergency repairs and the number of parts that need to be replaced in many cases.

 

[WanderingCanuck]

Jackpine beat me to it, but that's exactly what went through my head when all of the vehicle repair costs were adding up.

Now, I will acknowledge that some of the things you certainly don't want to be doing in a parking lot or even at a camp ground with time to spare. But as was mentioned, brakes are not at all difficult in most cases. They don't even require many tools. With the wealth of knowledge available for free online I don't think there's much reason for someone not to learn the basics of vehicle maintenance and repair.

It's kind of like saying "oh, I don't know how to cook so I just eat at restaurants", then proceeding to talk about how eating out is so expensive.

 

[Jora]

Thank you.  Do it yourself is a good idea in some cases.  It was an expensive repair because it needed upper control arms too.  It made a great difference in the steering.  I don’t think that is something that can be done easily outside a shop.  I understand brakes are maintenance like tires batteries etc.  The point I wished to make is that maintenance and repair in van living can be sudden and costly and wipe out a smaller emergency fund before it can be replenished.  I will be setting aside more of my monthly income to plan for this.  I hope that others do too.  

And frankly, eating out is a luxury.  Car repair is a necessity way beyond the skill level of boiling an egg.  Brake repair is not so easy anyone can do it after watching a YouTube video.  A brake shop that does it all day everyday screwed it up.  The right front fell apart while I was at highway speeds on I40.  Another brake shop had to fix it.  Brakes done wrong can kill you.  I was lucky. 

Staying on top of car maintenance and repairs is the best way to save money, you are right.  And doing what you can yourself.  Having an adequate emergency fund is the next best in my opinion.

 

[IGBT]

Brake repair is actually pretty easy.  I usually feel safer doing stuff like that myself than trusting some by the timeclock mechanic to do it.  I use things like torque wrenchs so my brakes don't fall of on I40

 

[Jora]

It seems people are trying to be helpful here but are missing the point.  We all know brake replacement needs to be done as regular maintenance.  That is an affordable repair.  Again, it was the upper control arm replacement that made it four figures.  That is not regular maintenance.  I have owned cars since I was 16 and this is the first time I ever had to have it done.  

Second, not all of us have mechanical ability.  I do not.  I am a small older woman cancer survivor and I feel it is safer to have a trained mechanic do the work on my car.  I don’t think I am alone in this.  Kudos in spades if you can do it yourself.  You are a rugged individualist winner.  

Those of us who lack such a talent better know someone like you to do it free for beer or food or whatever or be prepared to pay.

I dislike beer and am only a passable cook nowadays so I will be paying.  Hence, a good emergency fund.

 

[travelaround]

Jora, you're not the only one who doesn't have the skill to do mechanical work. I will not be doing any van repairs either. Honestly, I've never even changed a tire. My strategy is to get the best vehicle I can plus good roadside assistance. I understand the issue about the emergency fund. That's essential. And as an older woman, where do you get a seasonal job to store up money?

 

[Almost There]

And as an older woman, where do you get a seasonal job to store up money?

As an older woman with a camper of my own, I found out last spring that my skills were very much in demand in high tourist areas. Housing for summer staff is often critically lacking so having your own is a big plus. With very few exceptions the employers understand and appreciate the long skill list that we can bring to a job. I ended up with my choice of jobs. I only had one prospective employer concern himself about mixing me with people 40 years younger who might be my supervisor. I was quickly able to convince him that it was not problematic...I've been working for younger people for 30 years....

In addition to work skills, we, for the most part, are more dependable and have superior work ethics than any summer student they'll ever get.

Yes, we have to pick our jobs carefully - the first one I had this summer failed to mention (and I failed to ask) that there was some heavier lifting involved. I took if for granted that there wouldn't be heavy lifting for front counter at a bakery. The owner took it for granted that everyone could heft 30 lbs of water bottles down a century old staircase. I switched jobs within the same tourism area and had a lovely summer with bosses who would go out of their way to accommodate my older body.

All the national parks have visitor centers and gift shops, you don't need to be toting garbage bags and cleaning toilets. Start right after the new year to make sure that you get YOUR pick of the jobs. If you don't have a great looking resume, ask for help, either at a local job office or on line.

 

[becida]

 And as an older woman, where do you get a seasonal job to store up money?

I had a 73 year old woman working as ground crew on on a sugar beet piler in North Dakota last year. Her RV needed tires. 
The money was good & there was lot's of overtime.

 

[RoamerRV428]

I absolutely agree we always need a way bigger emergency fund than we think. We can only do what we can only do for each of us personally.

I also know life is expensive. Repairs and medical situations can deplete a fund in a flash.

But we all put away what we can. We all hit the road when we feel the desire. We are all on a shoestring of luck we hope just goes and goes and goes thru our journey. In the end tho, what happens will happen. We prepare as much as we can but at some point ya take the leap and go straight at what you want, best equipped we can and smile while doing it til the sh** hits the fan for us

'More' safety is a paid for small plot of land like mentioned. Somewhere to 'go' if we fail in some way and need a home. We have a little land. But many don't want that land holding them down either.

So it is just what do you what and what are you willing to do for it and how do you want to roll thru life?

But if a bigger fund can be had, oh yes, keep on building that fund if possible.