My Take on average Joe.....

I met him in Quartsite AZ , He sat by the fire with me and others. He showed up in his old van with a big smile on his face,He had it his way and was enjoying every minute of it sitting with new and old friends talking about our journey's

I met him in Arundel Maine ,He pulled in to the lot toting a little 16' Travel trailer with his dog asked us if there was room for 1 more for the nite and if the flea market was profitable for the week.....he had his quirks but he made the week enjoyable

I met Them in St Augustine Fla. They pulled in in an older 5ver....there kids came over to pet the dog and play!..My nikki was happy to oblige they played ball for hours , there mom and dad came over and we had a pot luck BBQ it was a great nite!

I met them in Ossipee NH..I was sitting there when a Grand 40' DP pulled in , it set my imagination going on what it would be like to own one!.....then they pulled in next to me and the door opened and the slides came out , a little old man came out and set out the awning and the chairs. a few minutes later his wife followed. ......Barney & Harriette! The stories they had to tell that weekend and the lessons they taught will never be forgotten....(Out of all the people I've met...I miss them!)

Whether your out here on a budget created by the seat of your pants.....living day to day on your SSD/I check or Savings.....Making a great living on the road with your business....or your investments have paid off with large dividends.....

you made it out here!!....you were willing to see beyond your fears and formulate a plan to make it work,and it did!

I met a man out here that started out well....lost it all became homeless and ventured off with a backpack and a sleeping bag....while on the road he managed to work his way up to a very nice life , a coach that put a roof over his head and food for him and his dog , and the ability to travel about and enjoy his end years.......He's just an average Joe willing to take a chance and learn from others and live within his means no matter what that is!!!!


Signed your Average Joe & his Dog

Lucky Mike & Nikki !!!!!!!

This seems to a be common question in this forum.

What is average?  Averages are computed by using statistics. If you you use U.S. Census Bureau data you get one answer.  The RVIA would have a different answer.  One should be careful not to pigeonhole themselves by someone else's arbitrary evaluations.  Lucky Mike has shown time and again that you don't need much to do this, there are others who need much more but then their experience determines their need or want. 

I'd choose to be a statistical sample of one. That is all that should matter.  We are using Howard's moderate budget as a template for our future RV adventure.... tailored for us.  We'll do more of some things and less of others.  We have built in more of cushion than they are using because that is what we are comfortable with.  Could we do it on less, absolutely. Thinking about what matters to you is how you determine a budget.  Budgets have to fit with available income or reserves. 

Only you can decide what is "average" or who's measure you want to use but heed the words of Winston Churchill, who said "...there are lies, damn lies and then there statistics...."

Dream your own dream, go your own path and as Mike has aptly put it many times.... breath, relax.

Mike, that poem is a treasure.  Thanks for sharing it. 

We are off-topic again with this one.  The original poster's question was related to "what" it took to for an average person to go full-timing.  Unfortunately, the off-topic comments have led to one person "removing" themselves from the forums entirely and another (unbeknownst to themselves) to be "sort-of" on probation.  While many comments have been instructive and even inspirational, they are not necessarily related to the original poster's query.

Let's get back on topic.

Terry

Moderator (and I really hate having to put that word there; I'd rather just be part of the family.)

I've followed along on this thread from the beginning. I think it's a great discussion, and very thought-provoking. I do think that people (not here on this forum necessarily, but just in general) get too caught up in trying to define the word average, and feeling defensive if maybe someone doesn't think they measure up. I used to be a teacher, and saw parents fall into the same trap, wanting their child to be above a certain statistical number in every way. Average is just a term used for comparison - but too often I think people equate average with normal.

For me, for the question of what the "average joe" would need to go fulltiming....I spent the years before we actually hit the road doing a lot of research on budgets. I always appreciated that people were willing to share their numbers. I basically used those budgets to come up with categories that I felt applied to our lifestyle. From those budgets I was able to come up with sample numbers for the cost of insurance etc. But other numbers and budget lines I adapted. Maybe what this person spends in an average year on entertainment doesn't match up with what I would spend, or they don't have pets, so I have to add a line for that since we have two cats. I think coming up with a budget was one of the most important steps for us. We are blessed that we have some income from my husband's pension, but that number didn't match up with the budget line of income we needed, so we made the decision to work at Amazon for the fall seasons to supplement our income.

I've read enough threads on here to know that there are a lot of different budgets for full-timing. So I don't think it's really a number that "joe average" needs. I think it's knowledge. As far as numbers, everyone's bottom line will be different, and that's normal. :)

Jake62's comments are well thought out and easy to understand by any layperson.  I would add, that many of the "Joe Averages" out there(not pointing any fingers either) seem to be somewhat financially inept.(I've had my moments in the past, hopefully I've learned thing or two and can pass it along) Allow me to explain... 

Many people I talk to cringe at the very mention of the word "Budget".  When asked to explain their reaction they frequently use descriptions that include words evoking restraint or punishment etc.  Perhaps helping understand that budgets are liberating and enabling devices to achieve dreams is what is needed.  Do you think the wealthy don't use a budget? (I don't want to make this about money but the OP wanted to know about the requirements for when "life happens" and planning for it)  Budgets need not be difficult to understand or establish.  The problem is when one does not consider "life happens"as a budget category.(ask me how I know this)  Most will recognise this as a emergency fund.  Emergency funds are untouchable except for real emergencies. Some will need  more than others some will need less, some will have more than others, some will have less.  The beauty of it is you get to decide your personal comfort level for how much this important category should have in your budget.  There are many adages out there about planning for "winter" during the "summer" and I won't go into them here.  My point isn't that you should not worry about the what if's etc, but to recognise these things WILL happen to the very best of us and it's prudent to set aside funds for that eventuality.  Once you have set aside the amount you think is necessary, you really don't need to keep adding to it, although you should always re-examine your needs from time to time to make sure you have enough.  For example: Got a big medical thing coming up?  Maybe you should start salting more away to cover it.

How much should that be?  Many sage advisors in money management recommend 3-6 months of expenses.  If you are in good health, don't engage in risky lifestyle activities etc., you may be able to function well at the lower end of the cited range.  If, however, your health isn't so good, or other reason for possibly needing more then you should think about the upper end of the range cited.  In no case should you consider having no emergency fund, that would be unwise. The amount you have in an emergency fund is amount you need when something big comes up and you can say "It's okay, I've got it covered" and not "Oh my God, I'm ruined".  Insurance functions the same way.  You are removing the risk of something bad financial ruining you.  It may not be enough to cover everything, but having nothing set aside for such eventualities will surely ruin you at some point when you are least able to afford it. Even then all is not necessarily lost.(Ask me how I know this too.)

Another aspect of what it takes to go FT, is what you need to start off with.  Opinions vary on a dollar amount, I won't cover that.  Each person considering the FT RV lifestyle needs to evaluate their needs regarding the rig they'd like to have or can afford, lifestyle choices and habits etc.  Once you have that figured out more or less you can add up those one time and before you go purchases, add in your emergency fund, and operating capital(bank account) and you arrive at a basic number for what it takes to get out of the driveway.  Obviously the more you have left over after outfitting yourself, the more comfortable your financial picture will be. Now factor in income vs expenses.  If your income is stable(eg pension) then your expenses should fit your available income.( remember to pay yourself as a budget category) Less stable income requires additional planning and more funds set aside to cover the "lean times". The closer your expenses are to your income the more you will be flying by the seat of your pants.  The more income you left over the more comfortable your lifestyle will be.  Anything else could end in disaster and nobody on this forum or anybody I know would wish that on anyone.  If one finds they are in the zone of potential ruin then they will need to make changes to the choices they have made and/or educate themselves about better options in order to acheive their dream.  Is there another strategy to accomplish all of this?  Duh!!  There is no one way to do this except that one keeps that "what can go wrong thing" in the back of their mind and plans accordingly for it.

Sorry for the long post.

-- Edited by biggaRView on Tuesday 21st of January 2014 12:35:02 PM

Bill, I agree on both thoughts.  On the second, hopefully those on "fixed" incomes have planned for that situation so it won't become a hardship later.  The idea that the catfood was coming should be enough incentive to cut down the steak and wine.  Having the figurative "steak" less often will help one appreciate steak when one gets it.  Sadly, our consumer society has brainwashed us to have it all and have it now. Judging by how much stuff many are in the process of purging as they go FT, a lot of us(me included) drank that Kool-Aid. Fortunately the whole living with less stuff and living more life is gaining some traction in our culture. FTers are leading the way(OOOH RA) Lucky Mike's experiences and sound recommendations give hope to the huddled massed that anyone can function on a very small amount of money(relatively speaking) and there is no reason why those with more cannot gain a benefit by practicing some of the same ideas.

Good advice, BigaRView, as only a fool would go without an emergency fund. However sometimes even a large emergency fund is not enough. In the past my first wife (in her early 40's) was faced with a rather large medical expense that exceeded the 14 month's income I had in my emergency fund, requiring maxing out our credit cards and even taking out a loan to pay the hospital bill. Sure the insurance paid about 75%, but the other 25% was still about 2 years income. One can plan for an unexpected vehicle repair, but how can one plan for such a catastrophic medical expense? No insurance pays for everything, even those that claim to pay 100% it is only for "reasonable and customary charges." If you choose to go to a first class medical facility that charges 25% above what the insurance is willing to reimburse, as the medical condition demands the very best treatment to increase a slim chance of survival, then you're responsible for the balance. You really have little choice when the life of a loved one is at stake. We can only just pray it never happens to us, or never at least happens again.

Chip

It's likely that inflation will outstrip even the COLA of SSA.  However even a small nest egg combined with the abiltiy to keep your expenses to say 80% of your pension and investing the remainder in good mutual funds at least in the beginning when it will be easiest to do, will allow your funds to last for a good long time, barring a catastrophy.  Of course this will be harder to do for those with very small pensions unless their nest egg is larger.

Mark, your situation sounds similar to ours, save the the downsizing.  We're still in the S&B but have already begun the purge even though we are at least 5 years away from FT.  We got got hammered in the recession but we are recovering now and our equity in the house will buy the rig we want our other resources will provide the backstop and our pensions, when they come, will be more than enough to operate this dream.  Can't wait to leave Illinois in the proverbial dust.