By Bill Tuttle, National Interstate Insurance
Whether you live in an apartment, a house or an RV, the greatest impacts on your ability to save money are the choices you make every day in your chosen lifestyle. So should you be a full-time RVer to save money?
It depends. There are many things to consider. Are you cooking your meals at home or eating at restaurants? Going to local events or enjoying a night in with Netflix? Are you hunting down the best fuel prices along the way or just filling up whenever your tank is low? These examples represent a few of the choices that make a big difference in your monthly budget, regardless of your address.
Cost comparison
For a true comparison between living in a residential property and living in an RV, start with a cost-comparison table. Make a table with three columns. The first column is for the name of the expense. The second column is for current costs associated with a typical residence. The third column represents costs incurred living in an RV full-time. It may take some time to fill in each cell of the table, but once you do, you should have an accurate snapshot of the difference living in an RV full-time would make. Keep in mind that some items will be relevant to an RV but not a residence, and vice versa.
Confined space
Besides expense difference, consider the other factors associated with full-time RV living. With limited space, some people may feel uncomfortable, especially when it’s their only home. Will you be living alone, with a companion, children or a pet? Interactions between people can become quickly strained in close quarters. It might be wise to try a trial period in the RV before making a final decision to go full-time.
RV parks can save you money
One of the most important decisions you’ll need to make is where to park your RV and for how long. Here are a few tips for minimizing your parking expenses:
• Available services — Not every RV park has a full range of services. Electricity, water, sewage/dumping, cable, and Wi-Fi may be available but, as a rule, the more provided services, the higher the cost.
• Volunteer or part-time work — You may be able to eliminate your parking expense altogether if you help out. Assisting with reservations, repairs or grounds maintenance can often significantly reduce your expenses. Another thing to consider is a formal work camping position.
• Access — If you intend to travel far and wide, you’ll likely lose cell phone coverage or Wi-Fi access at some point. If your livelihood depends on connectivity, arrange for internet access that is not dependent upon your physical location.
• Length of stay — Many RV parks limit the amount of time that you can stay. Some parks include utility costs in their monthly fee but only if it falls within a certain number of nights. If the stay extends beyond their preset limit, utilities may be billed separately.
• Gratis — There are free RV parking sites available. Doing a little research to locate them will definitely help reduce costs.
Overall, many full-time RVers say their only regret is that they didn’t full-time sooner. If you’re budget-conscious and willing to consistently choose options that result in cost savings, then living in an RV full-time may be a good way for you to save money. But, if you haven’t had RV experience, you may find close quarters to be challenging at first. Be sure that you closely evaluate your current and projected expenses, including your insurance needs and your lifestyle preferences. If you can, take a month or two to try it out. Then decide if you can be a full-time RVer to save money.
Here are a couple of books on the topic of full-time RVing:
• A Practical Guide to Full-Time RV Living: Motorhome & RV Retirement Startup
• Secrets of RVing on Social Security: How to Enjoy the Motorhome and RV Lifestyle While Living on Your Social Security Income
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If you live in a low rent trailer park and seldom/never move your RV, it can be cheaper but if you use your RV as an actual RV, it’s not even close.
Agreed. RV maintenance (for a moving RV) costs way more than maintenance of a house.
Another very important point: the equity in your house can help to cover the cost of end-of-life care. If you sell your house, DON’T use the money to buy a rapidly-depreciating asset like an RV. Keep it for the time when you need assisted living.
We found owning property to park your RV on saves $$. Prior to going full time for last four years, we bought 5 acres in the White Mountains of AZ. We still travel, but what a difference when we return that benefits our budget.
You should also budget for an exit strategy if you are traveling.
As a way of life for those with limited means a used RV located in an inexpensive area with no plans for extended travel could be a low cost way of life and a means to save up for a improved life style. Actual RVing, moving from place to place and touring and seeing the sites, ups the cost significantly. Three expenses rise, fuel, ground rent and entrance fees will rise as will maintenance of the power train. This may be less expensive than the same activities using a car and motels.
Thank you, Bill! Very helpful and methodical approach to evaluating how suitable full-timing might be. We have great confidence that it makes no sense for DW and me to full-time. Whether it could save us money relative to having a house is immaterial. It is an unappealing lifestyle, given our situation and preferences. Happy new year and safe travels!