The following article was published in the May/June, 2014 issue of Escapee's Magazine.

Full-Time RVing, What Does it Cost?

One of the most frequently asked questions by those who are considering RVing fulltime is what amount of income is required in order to live comfortably. Planning a budget is challenging but can be done.

There are many expenses which will remain the same when on the road as living in a stick house. It will be helpful if you keep detailed records of all expenses for a year or two before you make the change and examine each to see which will continue as currently, what will go away and which will increase. Things like life, health, and long term care insurance will not be changed by RV living, but may if you change domicile. Home owner’s insurance will go away if you sell the house, but your RV insurance will increase because most RV policies do not allow use of the RV as a home, unless you add full-timer coverage. Not all underwriters have this available and it will increase your premiums significantly. Health insurance can be a budget problem if not supplied by a former employer. Make sure that your coverage will continue when out of your home state. Some plans limit periods of “out of network” coverage. Utilities will only apply if in a monthly park where you must pay electricity, but you will buy propane.

Consider the cost of cell phone and internet services you will need. Some people find systems like Skype or prepaid phones work well. Internet access is vital to most people today. While most RV parks now have Wi-Fi available, it is often spotty at best. The satellite dish is still the most universally available access but it is also most expensive. Cellular internet has become very widespread, but there remain large undeveloped areas where it is not available.  Smart phones and phone hotspots may be a good answer but data service can be expensive. For the budget minded, it is possible to use free WiFi as long as you are willing to visit nearby businesses at times. You will find it available at most restaurants and chain stores.

You will need some type of mail service to provide a permanent address and to forward your mail to you. States require you to have an address in order to register vehicles, maintain a driving license and to vote. Make sure that the chosen address meets your state’s requirements.  There are a wide range of services and prices. You may consider using a family member to accept and forward mail but that can be an experience much like loaning relatives money. For most people a service such as Escapee’s provides will serve much better as a permanent address.

A major expense will be RV sites. You can decrease this cost by staying longer, paying for a site by the week or month, spending some nights in parking lots, dry camping, by working as an RV volunteer or campground host with RV site, buying a membership in one of the campground groups such as Thousand Trails or Coast to Coast, and there are discount park groups like Escapees and Passport America. To estimate the cost of RV parks purchase a copy of a major campground guide, checking prices in places you plan to travel. The cost is greatest in areas of major tourist attractions and less in rural areas. If you are past the age of 62, you can save at federal parks by purchasing a senior “America the Beautiful” card for $10. They are permanent, lower price by half in federal campgrounds and gain free admission to federal parks. State park campgrounds sometimes save money and may have an annual pass. Most people find that Corps of Engineer’s parks are nice and inexpensive. Others spend time in the Long Term Visitor areas of the BLM dry camping. There are also “Stoppin Spots” for members of Escapees RV club which have little or no cost.

Just as longer stays can save campground expense it saves on fuel. As you plan, think about the total mileage that you expect to travel each year and using the fuel consumption of your RV can give you a pretty good idea of what this expense will be. Always project fuel prices to rise over time. You can get price information from websites like “Gas Buddy.” Most RVs increase fuel consumption by about 10% for each five mph of speed increase. With careful planning you can spend summers north and winters south traveling 6-7,000 miles per year. Most RV’s will get between 6 & 10 mpg so be careful not to under estimate fuel cost.

If interested in work-camping, magazines like the Workamper News can provide leads to sources of income ranging from RV park positions to seasonal work such as beet harvests or fireworks stands and Christmas tree lots,  Amazon and volunteer locations. While it is difficult to make the wage most of us enjoy, it is very easy to find ways to supplement your income. Most positions have hourly pay rates ranging from $8 to $15 and most supply an RV site.

You should budget for maintenance and repairs to the RV and vehicles. This expense will be affected by travel distance and the age of the RV. Remember that RV appliances typically have a life expectancy of around 10-15 years, when in constant use. You need to allow money for replacing or repairing appliances as they fail. If you are able, doing your own repairs you can save about half. There are excellent RV repair & maintenance books which help. Routine maintenance for the RV, such as caulking and cleaning is inexpensive if done yourself, but expensive if you pay others to do it for you. Expect several hundred dollars each year in routine maintenance. Any leak is of major concern in an RV and must be corrected as soon as possible whether from weather or plumbing. If chosen wisely, an “extended warranty” can protect you from major repair expenses and allow you to budget more accurately, but shop very carefully.  An alternative is the setting aside some fixed amount for repairs at the beginning of your travels into a repair fund or self-insurance plan. Each year continue to add money to this repair fund, just as if it were required and by so doing when repairs are needed, there will be money to pay for them. Setting aside 10% of the cost of your RV and adding 5-10% each year should be sufficient. Another option is the use of money from savings, but be very cautious of depleting your nest egg too soon.

The activities and hobbies that we enjoy do not change much moving from a house to an RV, so build into your budget some provision for you to pursue them. RVing is a lifestyle and not simply an extended vacation, so there will be times when you want to busy yourself doing those things which you have always enjoyed. Budget based on what you spend today as this typically remains fairly constant once adjusted to the RV lifestyle.

Your plan should consider when or if you will wish to replace your RV, tow truck and/or car. Remember that these things will wear out. Consider what you will do when things need to be replaced. Also give thought to what happens at the end of the road, when health or age demand that you stop traveling. Each of us will reach that time eventually and preplanning will make it less stressful.

Sometimes folks look to RV living as a means of lowering living costs, but that is seldom true. Most people prefer a similar standard of living to what they have enjoyed in the past and day to day expenses change very little. Attempting to live as you would when vacationing will increase expenses, while if you live as you always have, but with changing scenery you should manage well. The lifestyle should be relaxed and enjoyable, without constant running about or worry about money. Adjust your budget much as you have while living in a conventional home. An advantage of RV life is that walking, taking pictures, and dozens of other things which do not cost are more attractive with the changing of locations.  Each budget is unique and personal. Budgets can range from as little as $1500 to more than $5000 per month.

What does it cost to live in an RV? For most of us it will cost however much we have available!

Summer Trip

5/20/2011 through 10/3/2011

 

Travel itinerary: Lindale, TX to Wichita, KS for 4 days

Wichita, to Council Grove, KS, for 4 days

Council Grove, KS to Loveland, Co. for 6 days

Loveland, CO to Sequim, WA for 15 days

Cape Lookout State Park, OR for July (Tillamook, OR)

Carl G. Washburne State Park, OR for August (Florence, OR)

Travel down Oregon & California coast to Pescadero, CA for 3 days

Travel to Redlands, CA via Yosemite National Park, 5 days

Redlands, CA for 14 days, then 4 days travel back to Lindale, TX.

Total RV travel, 5,472 miles, burning 676 gallons of gasoline at a cost of $2,491.22. We averaged 8.1 mpg, towing a 2009, Honda, CR-V for the entire trip.

We made one propane purchase of 10.4 gallons at a cost of $33.14.

We also had some minor maintenance done at Erik’s RV in WA. Total cost of maintenance including all cleaning materials, fluids, minor repairs to the coach such as drawer latches and similar items was $296.02.

Total of all food costs, including groceries and dining out, such things as soda pop, wine, beer and all consumed items was $2,292.63.

Automobile expenses were $50.44 for one oil change and some cleaning supplies and an air filter. Automobile fuel cost was $813.33 for a total of 219.3 gallons of gasoline. I failed to record the starting mileage for the CR-V so my best estimate based upon mileage when serviced would be a total of 5,600 miles.

We spent a total of 48 nights in commercial RV parks at a total cost of $1,672 for an average cost per night of $34.83. The most expensive park was one on the California coast which cost $71/night.

We spent $433 on entrance fees and similar entertainment items. General household supplies like paper towels, t-p, dish detergent and such things was $360.49.

Of course we also had the usual expenses for cell phones, internet air card, and the usual insurance and related expenses. We had no unusual health or other expenses that would not have happened if we had stayed all summer at our home base.

Total of all expenses related to the trip was $8009.27.

RV folks often wonder which source of energy is more costly to use. Keep in mind that in many RV parks the site includes electricity so those situations make it pretty clear since they don't include propane. But when you stay for longer periods, then most parks charge a monthly rate, plus electricity.  Here are a few facts that with simple math should allow you to compare the two and get your answer.

Remember that the rate charged by RV parks for electric power varies widely. Escapee parks do not add any profit margin to the bill that they pay, but many parks do this. I have seen rates in the past year that ranged from a low of $0.09 to as much as $0.21 per kilowatt hour. Keep in mind that these numbers are for the portable electric heaters that we use in our RVs or for electric baseboard heat that some owners have added.

This is in no way applicable to a heat pump because that is not electric heat, but simply a device that collects heat energy from the outside are and sends it inside. It is impossible to give an efficiency for an RV heat pump because there are several manufacturers and they will vary. In addition, the efficency of a heat pump ranges very widely from warm temperatures where it can supply a great deal of heat with little power, while as the temperature falls below 35 degrees or so, the heat pump becomes very inefficient.

This information also would not apply to the heat strips found in some RV air conditioners, because the fan motor for it is outside of the RV and so heat lost from it is not supplied to the interior, and so that kind of electric heat is less than 100% efficient, probably more like 90% or a bit less, but I am only guessing on that one.

Some facts to compare propane and electricity:

One kW hour of electricity is 3,412 Btu's.

One gallon of propane is 91,502 Btu's.

One pound of propane is 21,548 Btu's.

Comparing cost of propane to cost of electricity:

Multiply the propane price per gallon by 0.037 to give the equivalent price per kilowatt hour of electricity, ignoring the efficiency factors.

Multiply the electricity price per kWh by 27.0 to give the equivalent price per gallon of propane ignoring efficiency.

For those who pay for propane by the pound/bottle:

The typical 20# tank holds 4.7 Gallons of propane.

A 30# holds 7 Gallons of propane.

Fuel efficiencies for each:


For heating applications we can consider electricity as 100% efficient. For each Kwh you get 3412 Btu's of energy exchanged to the surrounding medium:

The air in your RV if you use an electric heater, ceramic or other

The water in your hot water heater

The heat tube in your refrigerator

Propane fired appliances of the typical RV variety IMO have very low efficiency. The hot air furnace is the worst, with, in many cases perhaps as little as 50% efficiency. Never assume any more than 70%.

Modern water heaters are a bit higher, but I doubt if any will be better than 70% efficiency and would consider that to be generous.

The refrigerator is probably the highest, approaching 80-90% due to the enclosed space in the chimney.

In my mixed usage, I would allow an overall efficiency a 70%, no more. This means, that a gallon of propane instead of 91,502 Btu's only delivers a usable 64,051 Btu's due to the losses in the appliances.

In other terms, the 20# bottle you just had filled only gives you 14# of usable Btu's or the motorhome bottle that took 15 gallons will actually supply 10.5 gallons of usable energy. A better way to look at this when comparing the cost of each is to consider each at it's usable energy level.

Effective energy comparisons:

One kW hour of electricity is 3,412 Btu's.

One gallon of propane is 91,502 X 70% efficiency equals 64,051 Btu's.

One pound of propane is 21,548 X 70% efficiency equals 15,083 Btu's.

Volume comparisons allowing for efficiency:

One gallon of propane is equal in useful energy to 18.8 KWh of electricity.

One pound of propane is equal in useful energy to 4.4 KWh of electricity.

Multiply the propane price per gallon by 0.0259 to give the equivalent price per kilowatt hour of electricity, considering the efficiency factors.

Multiply the electricity price per kWh by 18.8 to give the equivalent price per gallon of propane, considering efficiency.

Multiply propane cost per pound by .226 to determine equivalent price  per kilowatt hour.

Multiply the cost per kilowatt hour by  4.4 to determine equivalent price per pound of propane.

(updated in February 2008)

Finding a location:

There are many ways in which to find possible positions that might be of interest to you. We believe that the best source of information for the new work-camper is the magazine, Workamper News. One of the biggest advantages to this magazine is the fact that they will have advertising for many unique positions that most would not even think of without it. Two examples for us are the stay at a grass airfield and one working at a state forestry tree farm. both of these were great experiences that we probably would never have thought of had it not been for that magazine.

Another source of positions is to contact the state parks where you wish to go. If you have Internet access, you will find that most states have a web page located at www.state.XX.us, where the XX is the two-letter abbreviation for the state sought. Two examples of this are Oregon, http://egov.oregon.gov/OPRD/VOL/index.shtml and Texas http://www.tpwd.state.tx.us/involved/volunteer/spdest/ . Do not hesitate to contact the park authorities as they have always been helpful and looking for people to help. If you don't locate them, go to your search engine and type in the name of the desired state, followed by "state parks."

There are many federal agencies that use volunteers and many actively seek people with RVs to life on site and to help with their operations. Most people know about and have heard of campground host positions, but there are many other types of position available. While public contact positions tend to be the most visible there are many locations that seek maintenance help, clerical workers and assorted other skills. the fact that you may not like the idea of being a campground host is not reason to ignore the volunteer positions. Our favorite, and probably the most diversified in job positions is the US Fish & Wildlife Service. If you check our our list of positions worked you will find that we have done many unique and interesting things while volunteering with them. We have now volunteered twice with the National Park Service as well and have had good experiences both times.

We have recently accepted a position with the Army Corps of Engineers for next spring. Last fall we did spend a few days as volunteers for them as visitors to friends who were day-use park hosts at a Corps park and it was such a good experience that we have chosen to try that agency next. We look forward to a new experience.

Some other agencies that use resident volunteers are the Bureau of Land Management, the National Forest Service, and the Bureau of Reclamation. Many counties also have parks that use volunteers. As you travel, stop in the office of any park you believe you may want to spend some time in and ask about volunteer positions.

What will we be asked to do?

Before you start your search there are several questions that you need to consider. Give some thought as to what type of work you would be willing to do, as well as where. Cleaning is often a part of the job of a volunteer. Cleaning of restrooms is sometimes one of the duties but not usually. Litter pick-up is frequently a part of any park position. General maintenance and construction is often part or even all of the duties for some positions with some agencies. Enforcement of the park rules is rarely a part of the volunteer's duties. Collecting of park or camping fees sometimes is. The key here is to be sure that you understand exactly what you will be expected to do, and if there is something which you are unwilling to do, let the park ranger know it. We have found that there is a great variation in how well organized parks are when it comes to volunteers. Some have everything written down and organized. Others are very hit or miss and if they have not used volunteers for long, they may not be quite sure what you will be doing. Most of the rangers and staff are very appreciative of the volunteers and their services I would suggest that you make a list of questions which you always want answered prior to accepting a position as well as a list of what you are not willing to do. This should be done before you make contact with the volunteer coordinator at the park to insure that you cover everything. While some positions are very specific about what they want the volunteer to do, there are many that just need help and who are happy to try and find things which need done that the volunteer enjoys doing. Most volunteer coordinators understand that to keep volunteers the work needs to be both enjoyable and rewarding and make a genuine effort to have it be that way for everyone.

While cleaning and general maintenance are the most common types of work for volunteers in parks, there are many other things available if you look far enough. Some other positions to be found are manning an information booth, nature walks, interpretive positions at a historic site, and construction and repair of facilities. If you have previous experience in operation of tractors and equipment, that will also open many doors for the volunteer. It is also quite common for agencies to need clerical help or helpers with good computer skills. The more flexible you are the easier it will be to find a position in the area you want.

How many hours are required? How long must we stay?

The parks themselves are as varied as the positions available. We have held positions that asked for as little as twenty hours per week total and we have held others which asked for thirty two hours per week, each. Typically, state parks tend to ask for fewest hours and the shortest stays. I would think that the average volunteer position will ask for between twenty and twenty four hours per week for each person. Some ask a couple for something like twenty hours each and a single for 32 hours, since the cost of the site is the same for either. Still others do not differ in hours asked between the single person and a couple for each and still others only ask for one person to work and so do not care if you are single or a couple. Most agencies do accept either singles or couples. The state parks usually ask for a stay of one month minimum but there are a few that ask for the entire season. Most federal agencies ask for at least three months stay. Even within the same agency you will find that requirements for work hours and length of stay vary so be sure that you understand what the one you are considering asks you for. Also, keep in mind that these are volunteer positions and not barter for your work so do not be surprised that you put in more time for the value received than you would if working at a commercial location. At the same time, volunteers are seldom asked to do the more unpleasant jobs while the barter folks can expect that to be the mainstay of what the are expected to do. These are very different kinds of position. I strongly suggest that you choose your position based upon things that you will enjoy doing and agencies that you wish to support.

What do I get in return?

Keep in mind that this is a volunteer position and not a barter one. You should not choose this life if you expect to be rewarded based upon the hours worked or the value of your services. Since these positions in parks are volunteer as such they do not get paid. Some do have small a expense allowance associated with the position and a few have a small stipend. Any paid time is will be below minimum wage. While paid positions nearly always ask for you to stay the entire season, only a few volunteer ones do. In return for your services you will usually be provided with a full hook-up campsite. Frequently, laundry equipment is available for your use. Telephones are sometimes available, but generally the volunteer must pay the phone bill if it is in his RV. There are also some positions that will supply propane to volunteers. Some type of uniform is usually provided. Internet access is becoming more common. You may also receive a pass to other parks in the system that you are a part of. Other perks will depend upon where you are. Most parks give first priority for positions in the future to those who are returning for another stay. But the best rewards for volunteers service are the new experiences that we have, the new things that we learn and the feeling of personal satisfaction and accomplishment that we get. And do not undervalue the appreciation of the staff where you happen to volunteer. In addition you will find that you make many new friends both from the staff and among your fellow volunteers.

 

To us, the very best benefit that comes from our volunteer positions is the unique locations where we live. After nearly eight years of this lifestyle we have come to realize that we would have long ago tired of living in the tightly confined quarters of the commercial RV parks. In fact, we find that we tire of that life after only a month or two and today we think of returning to a volunteer position as "going home." The largest RV park area that we have yet stayed in as volunteers was one with eight sites, other than San Antonio where we were housed in a commercial RV resort. We are fairly solitary people and we have enjoyed many locations where we were the only RV on the site and others where there might be several volunteers but scattered across the facility for security and privacy reasons. We have watched deer graze or nurse their fawns from our windows many times. We have been where coyotes and bobcats were frequent visitors. We have even seen a bear stroll past in his search for an evening snack. The greatest of rewards that come from the volunteer lifestyle are things that you could never experience in any other way!

What paper-work is required?

Volunteers can expect to go through an application process, similar to, but less stringent than, the one for employment. If your position includes driving agency vehicles, it is normal to ask for a copy of your driver's record. Some parks also want a picture of you and your RV. Frequently you will be part of the employer's insurance during the hours that you work, so associated paper work can be expected. There will also be rules of conduct and work rules, as well as the usual job safety requirements. Many positions do require an interview, usually done by phone. It is a good idea to apply for the position you want as early as possible, since the more desirable areas fill their positions first. If your position has public contact, particularly with children, you may well be required to pass a background check. Such checks have become the norm for most park and visitor center positions. We have never incurred any expense associated with these requirements.

Negatives?

There are a few negative factors to consider. First of all, we find that we do not get around the country as rapidly as we had expected. We see the locations we visit much more in depth, but we don't get as many places. Also, this life does mean that you will have to plan your travels more than some fulltimers wish to do. You generally need to work six months to a year ahead in order to find locations where you want to go. That does mean somewhat of a schedule. We usually allow at least a month between stops as we travel very slowly between locations and move by whim to off-set the scheduling that must be done. But the #1 negative that we have found is the fact that you make such good friends where you volunteer that you are constantly leaving friends behind to move on to a new location. If you go back to the places you enjoy it will not be long before you find yourself only spending time in two or three locations, over and over. It is usually not easy to head on down the road but the anticipation of the next experience is what keeps us moving on to new and different places!

This can be a fun and rewarding experience, as well as a financially rewarding one. You will be amazed by just how low your living expenses go if you should choose to try this lifestyle.

This article was written by Kirk and has been published in Escapees Magazine, in 2005 and again in the Jan./Feb., 2010 issue.  For information on Escapees RV Club, visit their site.

Extended Warranties are the subject of heated debate in any gathering of RVers. Most have an opinion, but few understand them. Before you make the decision of what is best for you, it is important to understand what they are and what they do.

An extended warranty is not a warranty at all, nor is it a service contract. A warranty is a guarantee of performance by the manufacturer, but even extended warranties sold by the RV dealers are not from the manufacturer. A service contract takes care of day to day maintenance, but extended warranties don’t. They are really health insurance plans for RVs. They are backed by an insurance underwriter. Most plans are run by a company that contracts to administer extended warranties for a fee and if you call, seldom do you speak to an employee of the company who sold the plan or one who works for the underwriter.

Extended warranties work like health plans in most respects. Frequently there are two underwriters involved, one to pay small claims and another who pays only for catastrophic illness, or in our case catastrophic failures. Let’s look at how health insurance works.

Each member of the plan or policy holder pays into the plan a fixed amount which goes into a big pool. (Keep in mind that some of us have health insurance that is paid mostly by our employer and what we pay is between 10% & 50% of the actual cost of coverage.) From this money all claims are paid and all operating costs and profits must come. Obviously for the company to survive, the average customer must pay significantly more than the amount paid out to him. Why is this ever a good deal? For a healthy person it isn’t, if you only consider cost versus return. We pay for protection against the possibility of a major medical expense. Insurance underwriters call this “spreading risk.” They know that one person in every “X” number of policy holders will have claims that exceed their premiums. Using that average, adding cost of administration and profits, premiums are determined.

With an RV we have exactly the same situation. The underwriter knows from studies, the average cost of repairs for each year of life of any RV, adjusted by age (the same as health plans). They calculate what will be paid out per year on average, adjusting for administration expenses and profit margin, to determine price. That price is for a prepaid health policy on the RV. When you look at each RV individually, it will usually cost more for coverage than to pay out of pocket. Prices vary based upon the deductible and by levels of coverage, just as health insurance does. Like health plans, some extended warranties have limits of payment built into their contracts. Health plans with no payment limit cost significantly more, as do extended warranties. Cheap health plans do not pay much of a patient’s needs, and cheap extended warranties limit their risk by increasing the deductible and limiting things paid for. It is a business, nothing more. Many RV buyers, who would never consider getting the cheapest health insurance coverage, buy the cheapest extended warranty and are unhappy when a claim is rejected!

It is important to read, and understand the contracts of extended warranties. Recently there have come from the underwriters, contracts that list what is not paid for, called exclusionary policies, and stating that they will pay for all other repairs. The other choice is called inclusionary and lists what will be covered. Understanding is vital. Always insist upon taking a blank contract home to read and study before buying. Don’t sign if you can't study it first. When you shop, compare prices and coverage, and like health plans, consider what the deductible is and what you must do to get repairs covered. As you would with a health plan, learn how they pay for covered repairs. Last, check the company with both the Better Business Bureau and with AM Best or one of the financial rating companies. There are very few plans that are really a scam, but cheap plans must show a profit and to do that they limit payment. Since cost of administration is about the same for all plans, the value per dollar paid tends to be best toward the higher end of the market. It is important to note that they are sold by commissioned sales persons and the ethical standards of the seller are just as important as with a car or an RV. Most non-dealer agents are actually brokers.

Better plans cost more and price rises quickly with age of the RV. That is because plans do not pay for repairs covered by manufacturer’s warranty and major repairs become more common with age. Just as insurance companies charge more for older customers, an extended warranty will cost more for an older RV. At some point, most companies will not renew coverage on older RVs. Like any insurance, you can get a lower price with higher deductibles. Deductibles can range from as little as $25 to $1000, or more. Like health plans, some limit where customers can go for service and some have a maximum that they pay in the life of the contract. These are legitimate ways of limiting exposure and lowering cost. It is my observation that most happy customers of extended warranties bought the higher priced contracts, while the majority of unhappy customers have the lower priced ones. There are crooks in the extended warranty business, but most are not. It is true that the companies do pay large commissions to the F&I person at the dealerships, but few would be sold if they didn’t. It is also true that dealers find extended warranties to be very profitable since little expense is involved so return is high. Remember that in order for a company to be around to pay your claim if disaster strikes, they must be healthy and profitable.

Should you buy an extended warranty? The answer should be the same for any insurance question. The way businesses determine whether or not to insure assets is to ask, “If we do not insure and the worst happens can our finances survive the cost?” If that answer is yes, they do not buy insurance. This is the way to evaluate an extended warranty. Statistically, you will probably not recover the cost of coverage. Like insurance policies, the purpose is not to save money, but to protect you from financial disaster. For some, the need to replace an engine or transmission would mean that we could no longer afford to travel. If so, you should purchase a quality contract to protect your future.

Once you have concluded that you wish to buy an extended warranty on your RV, you need to evaluate the choices and choose which is best for your budget. As you shop, consider the costs associated with your RV. Clearly the financial risk is much higher for motor homes than it is for trailers of any kind, but with a trailer you need to apply that same principle to the tow truck. It may be that the sound choice is to cover only the tow truck, or to keep a larger deductible on one than on the other. A higher deductible has much the same effect as it does on house or car insurance so consider how much cash you keep on hand, making the deductible as high as your budget comfortably allows.

For us, we were buying the RV to go on the road fulltime and were retiring early without access to our IRA's or 401K. Replacement of the refrigerator or a transmission would have been a major disaster. We chose to buy a plan covering as much as possible because we had the money at the time of purchase with both still working. Down the road five years was financial speculation so we chose to pay as much as we could up front. For us, an extended warranty from one of the higher priced companies was the answer, allowing us to hit the road knowing that we would not have repairs to worry about. While all repairs were happily paid, we only collected about ½ of the original purchase price in its seven year term. Even so, we feel that we made the correct choice because we slept well knowing that major repairs would have been covered.

When our contract expired, we did renew it but with a much higher deductible because our financial future was no longer unknown. Today, we don’t have an extended warranty. Our RV is now 11 years old so the cost to renew would be much higher. We now have cash or accessible resources enough that we could pay for a new engine if need be. We have been on the road long enough that we know what our expenses are and that we have more than enough income to meet our needs. It is no longer a good business decision.

When we purchased our previous motor home, we did not buy an extended warranty for it. Since it was three years old the price was much higher, though it had low mileage and little use. When we bought it we were both working and it was not our home. If it broke I could take time getting it repaired and probably do most repairs myself. Even in the worst case, we would not be deprived of our home or our lifestyle.

To say that extended warranties are always a bad choice is as foolish as saying that they are always a good one. How many people do you know who have ever saved money by purchasing collision insurance for automobiles? If you add up premiums paid, then deduct your claims, you would probably be shocked to see what a poor return on investment insurance really is. For most people that is true of all insurance. We buy it for protection. The same should be true for an extended warranty.

This is not an attempt to write a book on how to manage your personal affairs as a full-timer. There have already been quite a few of those written that cover the subject quite well. This is only an attempt to answer the questions as to how we have chosen to do things. We hope that this will be helpful to some of you as an example of some of the possible solutions. Feel free to drop us an This email address is being protected from spambots. You need JavaScript enabled to view it. you wish to ask for more information.

Banking

The need for access to your money as we travel is one of the problems that all full-time Rvers must find a solution to. For us, the answer is found with a brokerage account with Wells Fargo Advisors. Since the deregulation of the banking industry, brokerage firms are allowed to perform certain banking functions. Our account has our cash it and draws interest based upon the rate charged for margin loans in the firm. This one account also holds our IRAs and the bond fund that the funds from the sale of our house are invested in. The advantage of this is that we can check on any of it via the Internet, we can manage all of our assets with one e-mail or toll free call. It is also just a matter of one call to change the investments, move money from one place to another, or to withdraw funds from our account. Additionally, we have a debit card that is issued by the bank that our firm goes through which works just like any other debit card. For cash, we just use "cash back" when making a purchase with our debit card. Most major stores now offer this service. All Wal-Marts do this, as does Home Depot, Lowe's, major grocery stores, and many more. This way we do not have ATM charges for getting cash. It has been about five years since we last had use for an ATM. It is important to select a debit card that has a different number for each user, as that allows you to block one person's care if you have a problem, yet continue to use the card of the other person.

Credit Cards

We do carry two credit cards. We use a Master Card (our debit card is from Visa) and also an American Express card. We prefer the AmEx card as it gives us a 1% rebate on all things that we purchase, each year at the anniversary of our card. The Master Card is from Citi Bank and it is one that also has an annual rebate, but that one varies. At times they have things which are on special for a 5% rebate and also most fuel purchases have that rebate. With the present cost of fuel, 5% can often be as much as 15-20 cents per gallon. American Express is accepted at nearly all food and entertainment businesses but may not be at other types of business. In addition, by keeping two different cards, in the event that we should have any problems, we can block that and use the other. We track all credit card purchases on the computer just was we do our checking/debit card purchases and consider the money gone when the purchase is made. By doing this, we get the benefit of our money staying in our account for an extra month as well as the rebates, but pay no extra costs because we pay the listed balance at every billing date. We use only card with no annual fees and we also select only cards that have a different number for each user. This allows us to track who made all purchases and if a card should be lost, we are able to block it without blocking that care which is carried by the other person.

Paying Bills

We have gone to paying nearly all of our bills via the internet. Be sure that you use only secure sites but nearly all financial sites now have the extra security of site to user encryption. This is very important as it prevents hacking by anyone, including the host Wifi, if you are in an RV park. I do not use any Wifi that is totally without password protection for this type of service because it would be more possible for a hacker to violate it and get your information. We even pay our utilities for the home-base that we purchased Jan. 2011 by the internet. We have all of our insurance and things which are the same amount each month on auto-pay and those which vary we have on electronic statements and we control the payment. With our credit cards, we can go on-line as soon as the bill arrives and set the payment up to happen on the date due. I normally set ours up for the business day just prior to the due day. We still carry a checkbook and use that occasionally. I think that RV parks are the most common place that we now use checks and we typically use fewer than 15 checks per year.

Medicines

For us, this is a vital issue as Pam has asthma and need medication for that and several other issues on a daily basis. We have solved this by having all prescriptions sent to a mail order pharmacy. For one-time prescriptions, we get those at a local pharmacy just as you would if you were living in a site built house. We are now using Medicare, Part D for Pam's prescription coverage and I receive my medications through the VA with a cost of $9/month, for each medication. If you are using Medicare, be very sure that you understand the "donut hole" issue if you have many expensive medications as it can catch you by surprise!

Health Care

We carry a current copy of our medical histories with us in a fireproof box as we travel. There is a summary document with the results of our most recent physicals and tests. We do not carry the entire history any longer as in our first eight years on the road, never once has any doctor that we have seen shown even the slightest interest in it, beyond that most recent part. You do need enough history so that you or your spouse can fill in a detailed medical history when seeing an emergency physician or in an emergency. The detailed records just don't get used. Should the doctor you visit have need for such information, his office will contact your doctor, directly. When we need to see a doctor, we have found the emergency medical services to be excellent to fill our medical needs. We also each carry a list of all medications and dosages which each of us take. We keep each one on our person when out and about with each list having the patient's name at the top so that anyone looking would see which meds are for each of us.

On the occasions that we have sought medical help, the service has been excellent, and we then add the page of medical history that they give to us, to our histories that we carry. We return to Wylie, TX each year for our annual physicals and at that time we give a copy of the new items to our doctor there. For dental care, we have annual checks when in Ft. Worth, and then go to a local dentist for cleanings as we travel. Prior to starting our travels, we took time to make an appointment with our doctor and explained to him what we were going to do. Now that he understands our lifestyle he is very cooperative in prescribing by phone when minor medications are needed. When we had a family emergency and were not able to return to Ft. Worth for our annual physicals when due, he worked with our son's family doctor to get the needed blood work and check-up in order to extend Pam's prescriptions for another six months.

Since going on the road we have changed doctors because we don't often have reason to go to Ft. Worth but we do have children/grandchildren on the far side of the city. We chose doctors who involve the patients in their own care and health decisions. As we are now both on Medicare and are ten years older,  we do have more medical needs. Like most who are now looking back at 65, we have had some additional medical needs so we shopped for doctors who would understand our lifestyle and still be interested in us. We also have chosen to stay with the standard Medicare coverage because it has no limits on services or payments when traveling, like some private plans do.

Since the advent of the new federal health bill our company Medicare supplement has been forced out due to what was called "excess coverage" so we are now on a Medigap plan that is federally approved, but fortunately my employer has underwrtten the cost of it. Medicare has a very helpful internet site that you should investigate. I was also fortunate enough to have been approved for my primary medical coverage and drugs by the VA so now get all medications from them. Although I do have a deductible from VA, it is only $15 for a doctor visit and $9/month for each prescription.

Mail service

For our mailing address, as well as our legal address for purposes of residency, we use the Escapees RV Club. The cost of mail forwarding is $85, $105, and $125 dollars, depending upon the level of service required. We chose the middle level, which meets our needs very well. It allows us to have our mail sent out to us once each week, or as needed. If we are traveling, we just call on a toll free line, or send an e-mail to let them know when we want our mail sent out and where to send it. When traveling we usually have it sent to general delivery to a postal office where we will be in a few days. If we are hosting at a park for a period, they will send it out automatically each week to our location, for however long that we wish. They will also accept packages from the delivery services as well as the postal service. If we are looking for a particular important item of mail, we can call and if it is there, we can choose to either have it sent immediately or they will open and read it to us if we wish. The service over the past 10 years has been outstanding!

Since we purchased our home-base in Jan. 2011, we now have a fixed address for some things. We use it for our voter registration and motor vehicle registrations and insurance. When we travel we put a postal forwarding order on our mail address to the Escapees address for the duration of the time that we will be gone. If you have a home base with an addres, such an order is only good for six months and must then be renewed.

Communication

We stay in touch primarily via the Internet and cell phones. In June of 2009 we dropped our portable internet dish from Starband and went with cellular data services from Verizon. This service is also available from AT&T and Sprint. We maintain e-mail addresses via this web site so that, if we change ISP services, we will keep the same e-mail address. We also carry a laptop computer (actually we each have one) which can access internet when wifi is available. We also have two cell phones, to make and receive calls. We have a "One Rate" plan from with no roaming or long distance charges, and roll over of unused minutes. After taxes the actual cost is about $70/month. At some Host Sites we also have a "land line" phone. We have our cellular modem connected to a wireless router so that we can now both be on the internet at the same time. That also allows us to provide service to our neighbor if they have a wireless ready computer, just by supplying them the pass code for our router. We us an "air card" from Verizon for internet.

To improve our communication when in remote areas where cellular signals are weak, we also have an outside antenna installed on the motorhome, a Wilson Repeater/Amplifier, and a flat panel antenna on the inside of the RV. There have been very few locations where this did not allow us cellular service, but it does happen.

Parking

We spend more than half of our time stopped at one location or another, volunteering in a public park, wildlife refuge or historic site in return for our site and utilities. It is very easy to find new places to spend some time as a park volunteer in nearly any location. And as you get experience it becomes even easier to do. Most sites provide a level pad with full hook-ups. Occasionally there is a telephone line to the site, but you usually have to pay the bill. Occasionally, propane is provided. In some parks there is a small stipend for such service, or there may be some extra work available for a small additional pay. We have found that the best source of leads for new locations to be the magazine, "Workamper News." For us, these volunteer positions not only provide a cost free place to stay, but they also fulfill the need to have a place to belong, a feeling of contributing, and we gain an instant social contact with the local community as soon as we arrive. Because of this we find that there is no need to belong to any of the camping associations like "Coast to Coast." We typically spend an occasional night in a parking lot; others parked at the home of friends or at the free locations that are provided by other members of the Escapees RV Club. When we do pay for a site, we first check Passport America (a half price group), the Escapees list of discount parks since they offer a 15%. We have discontinued membership in Good Sam because we rarely use their parks and the cost has continued to rise.  We typically pay for a campsite less than 90 nights per year.

 

How much does it take?

This morning, Sept. 21, 2008 marked the passing of Gaylord Maxwell. It is with great sadness that I add this note to remember one of the greatest writers and supporters of the RV lifestyle of all time. Gaylord was 82 years old. He went from school teacher, to RV Dealer, to RV Magazine Editor and finally to Columnist. He was founder and lead the "Life on Wheels Conference" program.

The following article written by Gaylord Maxwell orginally appeared in Motorhome magazine June 2001 issue. It is reproduced here with permission from the author.

How much income do you need to be a full-timer? Undoubtedly, that is the question I am most frequently asked regarding living on the road. Younger people, particularly, are concerned about what kind of economic goals they should set to prepare for their future. Folks who are around retirement age are concerned about whether or not the fixed income that they have will be sufficient to maintain an acceptable standard of living. Obviously, these are legitimate concerns that must be addressed by every person who is considering taking to the road full-time.

So, how much does full-timing cost? My glib answer is: Whatever you've got. There is no specific amount that can be pinpointed as the right amount for full-timing or, for that matter, any mode of living. It's just fact of life that people live pretty much according to what their incomes will permit in terms of houses, vehicles and leisure-time activities..

People will do very much the same in the RV lifestyle as they did in "normal" life. The wealthier will have more expensive motorhomes, stay in fancier parks and indulge themselves in the way they live, while the poorer will have smaller, cheaper rigs, stay in less expensive parks and pinch pennies. Obviously, people who had high incomes during their working years will require more retirement income then people whose earnings were more modest. Both, however, will probably do well as full-timers because they will make what they do, where they go and what they spend fit their pocketbooks.

And it is a fact that, regardless of income, much of what people enjoy most about the full-time lifestyle does not depend on how much money you have. The reality is that the sun shines at exactly the same temperature on a poor fellow as it does on a rich fellow. Yellowstone National Park's famous views cannot be enjoyed any more by a rich man than they can by a poor man. The feeling of freedon that is enjoyed by most full-timers is no more intense for wealthy people than it is for those with less money. In short, full-timing is not a lifestyle that requires a definite amount of income for all participants. However, each individual who is preparing for it should have some definite ideas about how he expects to live and what the costs would be to support that plan.

Let's look at some economic realities that pertain to everyone who expects to be a full-timer. Above all, we should be aware of changing economic realities. About a dozen years ago, I did a study of full-timers' incomes to prepare for a seminar on full-timing. My figures showed that at that time the median income of those I surveyed was about $1500 a month. Many of today's retirees or near-retirees have incomes exceeding $5000 per month. I haven't seen any professional studies on this, but I would be willing to bet that the median income for recent full-timers has moved up to almost double what it was 12 years ago.

Whether or not those figures correspond favorable with those of the average retiree in all lifestyles, I don't know. But I'm sure that the recent influx of "boomers" has pushed the retirement-income median upward, and it quite likely will continue to go up. My point is that many of today's retirees have greater expectations for their retirement years than many of us in the previous generation, so they will need more income to live successfully as full-timers.

Add to the greater expectations factor the reality of increases in many costs associated with RVing. Motorhome prices, for example, have increased primarily because of two factors: diesel engines and more bells and whistles. Then there's the price of fuel, which has gone off the wall, and heaven knows where it will be next year. Campground fees are higher, partly due to the demand for more amenities and partly due to the higher operating costs that are being passed on to customers. Rising utility prices will undoubtedly drive prices up even further. (Utility costs affect homeowners even more.)

I suspect that a study of full-timers' incomes today would show that the median monthly income is in the $2,000-$2,500 range. I also suspect that in five years it will be $500 higher. That isn't to say that your income goal should by $3,000 per month for full-timing as of 2006, but that's quite likely where the median figure will by. However, even if it is that high, remember that one-half of all the folks on the road full-time will be making less - many much less - then that, and they will be all getting by just fine.

Despite the higher incomes of today's full-timers and the rising costs of some of the expenses associated with RVing, my original response to the question of how much full-timing will cost is still essentially the same: whatever you have.

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