Literally on the Road to Financial Freedom

This post will discuss all of the financial aspects related to RVing full time, including initial costs, static bills, cost of gas, lodging costs, and the amount we’ve been able to save over the past year. This is an account of our personal financial experiences with regards to full-time travel — other people’s experiences may vary. There is A LOT to cover, but first…

A Little Background Info

Different people choose the full-time RV lifestyle for different reasons. There was not an ‘aha moment’ for us that made us decide to trade our life of living in a rented condo in La Jolla, California for life on the road in an Airstream. We had recently sold our home in San Marcos, which is in San Diego’s North County. We had no need to or set plan; it was just a really good time to sell as we were able to make a healthy profit from when we purchased three and a half years earlier. We moved to La Jolla, enjoyed ocean sunsets from our balcony, and took advantage of living in the walkable Village of La Jolla.

We had talked about full-time RVing at different times during the previous years, but there was always a reason not to. We owned a house. We had a dog with a lot of health issues that needed regular access to his vet. We had finally established a good friend group after years of living in the San Diego area with only knowing a handful of people. Travis has to travel fairly often for work and we didn’t know how easy it would be to fit that in. But all of a sudden, those reasons fell away. We sold the house. Our sweet golden doodle had passed away. We’d be able to visit our friends whenever we wanted and they could meet us somewhere on the road as well. And planning business trips would just have to be part of the route planning process, making sure we were near airports at certain times.

When the option of full timing started to creep into our conversations again, we decided to look at what RV options are available and what they cost. We visited a place in San Diego that sells Airstreams as well as every other type of RV — fifth wheels, travel trailers, motorhomes, etc. Travis had always been stuck on an Airstream, but I wanted to make sure we explored all options. Of course, we ended up deciding on an Airstream. This particular dealership didn’t have the exact layout we were interested in, so we scoured the interwebs for both used and new in the length and layout we wanted. After looking at a used Flying Cloud, we decided we definitely wanted to buy new and we definitely wanted an International. We found what we were looking for at Airstream Orange County. To read more about the buying process, check out our post Buying an Airstream.

How We Make Money on the Road

Before I get into specifics about what we paid and what our monthly expenses are, I should explain what we do for work. We own an ERP consulting business. I won’t get too detailed about what that is exactly, but the basic gist is that we install, upgrade, and customize a particular software that manufacturing companies utilize. We owned the business for six years before hitting the road full time. We typically work remote from home, but depending on what projects we’re currently working on, Travis might travel to visit a customer on site once or twice a month. As far as work was concerned, we were already living a lifestyle that made transitioning to full-time travel easy. If you’re interested in more information about our business, check out our website here: Bird Rock Solutions

Initial Expenses

There are two major expenses when choosing to travel full time — the Airstream and the truck to pull it. As stated above, we purchased our Airstream brand new from the dealership. This is definitely NOT necessary. Used, almost new Airstreams can be found if you have enough patience. Some people sell their trailers after only using them a handful of times. Now that we know what to look for, we would feel confident buying used. While Airstreams do hold their value pretty well, it’s definitely cheaper to buy used. Many people buy vintage Airstreams and renovate them, which is definitely a cost saver, but you need the right skills, a lot of time, and a good work space — three things we did not have. We ended up purchasing a 2017 27fb International Signature. We had the dealership install solar panels, Maxxair vent covers, and a Blue Ox weight distributing and sway control hitch. The total cost for the trailer with the add-ons and tax was $87,612.11.

Next, we had to buy a truck that could tow the trailer. We knew NOTHING about towing or trucks, so we did a lot of research. We ended up purchasing a 2017 Ford F-150 XLT 4×4 Supercrew with a 3.5L V6 EcoBoost engine with complete tow package. It was a demo vehicle with 249 miles, so it was considered ‘used’ which helped with the price. There was a rebate if we financed, so of course we did that, but we paid off the loan when the first payment came due. The total price for the truck with tax, which we absolutely love and has every feature we need, was $47,138.56. To read more about the truck buying process as well as it’s features, read our post Choosing a Truck.

All in, we paid $134,750.67. That’s a big number. Huge. Thanks to the proceeds from the sale of our house, both vehicles are paid off, so we own our ‘home’ outright. Again, this aspect of the full-time lifestyle can be done for much cheaper. We bought both vehicles brand new — many people buy used. We bought an Airstream — many people by SOB (some other brand) because they’re less expensive. We had decided that because we planned to full time for quite a while, we wanted to start out with two vehicles that we would know the entire history of. We would know the maintenance. We would know about any damage or malfunctions. Everything would be clean and we would be the first to use it, sit in it, sleep in it, shower in it, and use the bathroom in it.

Static Monthly Expenses

Just like anyone in a bricks and sticks house, we have monthly bills. Our static monthly bills consist of the following:

RV Insurance ————$112.20

Truck Insurance ———-$92.40

Life Insurance ———–$219.58

Disability Insurance —–$76.92

Health Insurance ——-$480.46

Storage Unit —————-$59.00

TOTAL:                     $1040.56

You’ll notice that phone and internet are not included in our monthly bills. Those items are paid for by the business, so I don’t include them in personal expenses.

Cost of Gas

This is going to greatly depend on how much you travel, your vehicles gas mileage, how much weight you’re pulling, and what speed you drive. When they first start out, many full timers spend a lot of time moving from one place to the next. We did. It’s exciting to be out there, exploring, being able to go anywhere you’d like. But it’s also expensive. And time consuming. And exhausting. We hit the road January 15, 2018 and as of November 24, 2018, have spent about $3,040.00 on gas while towing. That’s just while towing — gas used while exploring or living our everyday life is not included. We also put on over 7500 miles. Again, those are just towing miles. While towing, we generally drive 60mph and we get about 14mpg.

Lodging Costs

For lack of a better term, lodging costs include the cost of the actual site where we park the Airstream, but also reservation fees, taxes, pet fees, electricity, and park entrance fees. We’ve paid anywhere from $0/night to $75/night. There are so many options when choosing where to stay. We’ve stayed at private RV parks, KOAs, city parks, county parks, state parks, national parks, casinos, Army Corps of Engineers (ACOE) campgrounds, and on a family friend’s farm.

Private RV parks usually offer nightly, weekly, and monthly rates. Staying somewhere for a month is a good way to save on monthly costs; however, where the park is located is very important. We’ve paid $340 for a month in Pahrump, NV, but have also paid as much as $1900 for a month in Escondido, CA (San Diego County). While city, county, state and national parks don’t offer different rates correlating with your length of stay, they also don’t raise prices for weekends and holidays like private parks and KOAs do. For example, we’re paying $85/night for the Thanksgiving weekend at a casino RV resort, when it would usually cost $50 for the Thursday night and $60 for the Friday and Saturday nights. In contrast to that is our four-night stay in Death Valley National Park over the New Year’s holiday. The campground in Death Valley is always $36/night, regardless of day of the week or if it’s a holiday.

In addition to the nightly, weekly, or monthly rate, you may find yourself also paying for:

  • Reservation Fees – Expect to pay a reservation fee at state or ACOE parks. The reservation fee is the same price whether you stay one night or ten, so this is something that can add up if you move around too much.
  • Electricity – Electricity is generally always included unless you are staying a month or longer somewhere. When you stay a month, expect electricity to be an additional charge.
  • Pet Fees – Some places charge them; some places don’t. Since January 15 until today, we’ve paid $32.00 in dog fees, so it’s not a very common thing.
  • Taxes – This is another one that can sneak up on you. Some states don’t have taxes. Some places include the tax in the rate. But some places tack on the tax at the end and you end up paying quite a bit more than you thought you were going to.
  • Park Entrance Fees – Another thing to consider when making a reservation is if your site is within an area that requires a daily entrance fee. National parks, national recreation areas, and state parks are definitely places that have daily entrance fees. Sometimes it makes sense to just pay the daily fee; sometimes it makes sense to pay for an annual pass.

From January 15, 2018 through November 24, 2108, we paid a total of $13,236.46 for all lodging costs. That’s an average of $42.29/day or $1268.67/month. That’s definitely higher than we would like and we’re going to work on lowering that number next year. We have about 5 and a half months worth of reservations booked next year already and we’ve been able to lower the number to $33.63/day or $1008.90/month.

There are a number of memberships that will help lower your lodging costs; these are the ones we use:

  • AAA – Many RV parks give a 10% discount. Member rates vary.
  • Good Sam – Many RV parks give a 10% discount. $27/year. I can’t even calculate the amount of money we’ve saved with our Good Sam membership; hundreds, probably.
  • KOA Value Kard Rewards – 10% off at all KOAs. Earn points that can be used as discounts on stays. $30/year. We’ve saved almost $100 this year with our membership. Additionally, we’ve earned enough points to get $25 off our next stay.
  • Harvest Hosts – A network of wineries, breweries, farms, museums and similar locations that allow RVs to park one night overnight on their property for free. Currently $49/year; increasing to $79/year 1/1/19.
  • Passport America – Save 50% at over 1800 campgrounds/RV parks across the country. $44/year. We’ve saved $410 this year with Passport America alone.
  • America the Beautiful National Parks and Federal Recreational Lands Pass (aka Interagency Annual Pass) – Free entrance into federally operated national recreation sites (such as national parks). Free entrance for up to four individuals at National Park Service sites where per person entrance fees are charged. If you are camping in a national park, you will need to purchase either a weekly pass or annual pass specific to that park. Prices vary from park to park. The other option is to purchase an Interagency Annual Pass for $80. Because entrance was free our Interagency Pass, we’ve visited a number of national monuments we wouldn’t have otherwise visited.

Our Current Financial Situation

Our average monthly cost to date for lodging and gas is $1560.04. This amount includes water and electricity. Pre-Airstream life, we were paying $3400/month for rent for our 2-bedroom condo in La Jolla, not including utilities. Obviously, our basic living expenses have decreased dramatically. Thanks to our lower monthly expenses and the fact that we’ve had our busiest year to date business-wise, we’ve been able to concentrate on building our savings, investments, and retirement accounts. Our business is set up as an S-Corp, allowing us to have a SEP IRA to which we can contribute up to 25% of our gross salary, which we were able to do this year. We’ve also been able to save about 16.5% and invest about 15% of our gross income. We don’t have any loans and we don’t carry a credit card balance. We are truly in the best financial state we have ever been in and the only reason we’re able to save and invest so much is because we live in our Airstream full time. While some people live the full time life in order to lower their expenses so they can work less, we plan to work the same amount for the foreseeable future in order to continue to contribute to our financial future and set ourselves up for true financial independence.

Besides the financial benefit, full-time Airstream life has allowed us to see places in our country that we would have otherwise not seen. There have been amazing places, there have been some not-so-amazing places. Every person we’ve met, every city we’ve traveled through — everything has helped us understand and have more compassion for our neighbors. Except maybe our current neighbors who allow their dogs to poop in our site and don’t clean it up.