Retiring and enjoying life without the stress of an income-producing job is the goal of many Americans, as it has been for generations. Many people start saving for it when they start a family, some before. According to a 2016 GOBankingRates survey, 34% of Americans do not have any retirement savings at all. And when asked about what they financially regret the most from earlier in life, the number one response is not saving enough for retirement. As Tennessee Williams said, "You can be young without money but you can’t be old without it." Every once in a while, it's good to check on where you will be going later in life and making sure you have enough to prepare for it.
Retirees are increasingly being drawn to the RV lifestyle. The RV Industry Association (RVIA) estimates that between 100,000-200,000 folks currently live in their RV or spend a significant amount of the year in it. Some are drawn to it because it is thought to be cheaper than the traditional retirement routes. Some because they want the adventure and to really enjoy the life they couldn't experience when they were married to a job at a specific location. RV retirement has its benefits, its drawbacks, and some misconceptions - here are some facts to give you a clearer understanding.
RV living is not always cheaper than traditional retirement, in fact it can be significantly more. Jerry Minchey, author of several books on the RV lifestyle and someone who has lived in an RV for 6 years, speaks a bit about the cost of RVing. "The RVing lifestyle can be much cheaper than living the conventional lifestyle, but it can be more expensive too," he claims. Minchey says if you eat out a lot, go to a lot of different attractions throughout the country, and always camp in private campgrounds, the cost will be much more than staying in a regular house. However, "If you do a lot of boondocking and don't travel a lot, your living expenses can be a lot lower.” He says that usually RVers spend a lot more money their first year and then costs significantly lessen when getting into the groove of the lifestyle. Sounds perfectly understandable, knowing that the lure of a new and exciting destination is difficult to avoid. Then a balance must be struck.
“Jerry Minchey, author of 'Motorhome and RV Retirement Living: The Most Enjoyable and Least Expensive Way to Retire', out on an adventure.”
So how does one get started in RVing? Minchey has some tips. "By all means, don't buy a new RV," Minchey says. The depreciation on RVs is significant, so a used one is the way to go…My suggestion for the more frugal would be to spend $10,000 to $20,000 on a used motorhome. You can get a different one later. A lot of people have a different RV two years after the date they started, and most of them actually go with a smaller RV than the one they started with." He says that finding a good deal on an RV increases the chance of selling it later for a bit of profit or at least breaking even. It is a good way to ease into the lifestyle and learn what you need to live happily in an RV.
Another consideration with RV life is the importance of having an emergency fund. Minchey says, "Accept the fact that things will break and plans will go wrong. Be prepared to go with the flow and expect problems." As such, it is important to have some money set aside to deal with things that go wrong and, in that case, it won't be such an issue as it is expected and the means are there to deal with it.
Planning the RV life one can afford and wants goes a long way when actually doing it. There are many ways to live frugally in an RV, but that doesn't mean one has to sacrifice the reason why RVing is appealing in the first place. If an RVer wants to travel around the country and see all the destinations it has to offer, then understand that fuel and lodging will probably be more expensive, but there are ways to ease the costs. Joining clubs, such as Passport America, will help with lodging expenses, as well as planning routes and staying longer in one area will help cut down on those expenses. However this comes with thorough planning. Certain aspects of RV life have its advantages for the budget-friendly, too. For example, one cannot stock up on things and clothes because there just isn't enough room. Easy decision right? RVers can also easily choose a place to call home from one year to the next; so choosing a state that has no income tax like Texas, South Dakota, or Washington cut taxes paid.
"You will be leaving your family and friends," Minchey says, "Though, that's not as bad as it seems. I have a lot more friends now after six years of full-time RVing than I had before I started this lifestyle." He also says that some days an RVer will just feel down. It can get lonesome out there on the road and in the middle of nowhere. As mentioned, a lot can go wrong on an RV and there is always something that can be worked on. This is not such a bad thing as a retiree. The popular idea the retirement is good because it means there isn't any work to be done is wrong. People like to work and be active. Think of all the activities, volunteer opportunities, and work that every community has for retired folks. Living in an RV will provide some of this work as it is inherent in the lifestyle.
Minchey has a book that describes a lot of these ideas in greater detail, highlighting how to retire in the least expensive way and with the most enjoyment! One of the biggest pointers he gives to folks thinking of joining the great RV lifestyle is to just give it a shot. “I would suggest that you give it a year to find out if this is the right lifestyle for you. I don't think you can find out after a month or so,” he says. So what are you waiting for? Get saving and start planning!