How can people afford expensive cruises?

[puppycanducruise]

It's a balancing act - like walking a tightrope.

Life is short so enjoy it now. I guess we all know people who scrimped and saved then died before they could enjoy it. I know lots of widows who wanted to travel but their husbands wouldn't, he had to work. So now, she has time and money, but no husband. Or maybe, an illness strikes and they are not healthy enough to travel.

But then, no one wants to end up in the cold and dark eating cat food because you can't afford anything else.

 

Spend, and save, and try to stay healthy.

[sail7seas]

Me too... We should leave Europe ! :eek:

 

In France, if you win more than 4000$/month ($, not €!), you are considered rich. 60% of French people win less than 2.000$/month. Only 1% (!) of French people win more than 7k€ (9.000$) /month ! :roll eyes:

 

And when you are retired, it's less than 1.000$/month... For me, 125k$/year it's huge, even for a couple !

 

 

Just comparing gross earnings is only a small part of the 'story'.

You have to consider how much is taxed. For some of us, in some states, we end up paying more than 50% and higher of our gross income in multiple taxes for federal, state, municipal, real estate, excise, personal property, sales tax etc That is not a constant figure for all, in all states.

 

But even as importantly, you need to compare what personal expenses you have. Do you receive a premium bill to pay for your health insurance? Do you have government provided child care? What does your government or employer provide you that you do not pay for and we may? What does a dozen eggs and a loaf of bread cost you? Are the food prices higher for those of us in states with higher earnings and very high costs of living?

 

What is the cost of your housing? What are square foot apartment rental costs? Of course, location matters no matter what city/town but are your houses priced lower than ours?

 

Your lower salaries may be buying a very commensurate level of comfort in everyday living......... or not?

 

You can't just look at that $125,000 number in a bubble.

 

 

Edited October 27, 2013 by sail7seas

[frenchrci]

Just comparing gross earnings is only a small part of the 'story'.

You have to consider how much is taxed. For some of us, in some states, we end up paying more than 50% and higher of our gross income in multiple taxes for federal, state, municipal, real estate, excise, personal property, sales tax etc That is not a constant figure for all, in all states.

 

But even as importantly, you need to compare what personal expenses you have. Do you receive a premium bill to pay for your health insurance? Do you have government provided child care? What does your government or employer provide you that you do not pay for and we may? What does a dozen eggs and a loaf of bread cost you? Are the food prices higher for those of us in states with higher earnings and very high costs of living?

 

What is the cost of your housing? What are square foot apartment rental costs? Of course, location matters no matter what city/town but are your houses priced lower than ours?

 

Your lower salaries may be buying a very commensurate level of comfort in everyday living......... or not?

 

You can't just look at that $125,000 number in a bubble.

 

 

 

Taxes are up to 75%, depending of the salary.

 

For an appartement of 215sq there, it's 900€ (1200$)/month... Not enough ?

 

What you have in $ is the same here... But in euros !

 

Oh, please... You don't know the chance you have, we have the worst president ever...

[lovetocruiserccl]

We work hard and pay it off over time like a bill. Sometimes we get a good deal sometimes not. Living in the Northeast the deals will never be like the South. But is mandatory ( Lol) that a cruise happens once a year twice if we are lucky. My husband and I need this to relax and enjoy easy other. You have to treat yourself. We have one in 56 days and I can't wait. :) We will celebrate Christmas in February;)

 

Love To Cruise RCCL

[Blk_Amish]

I know 125,000 sounds like a lot of money for a couple, but it really isn't---at least where I live. Especially when you own a 4 BR 2 BA home, with the taxes that go along with it. With that income, you could do one average cruise a year. I was a teacher and DH an electrician, putting away the same amount for retirement. Comparing our situations, you are where you should be. Sorry, but that is the honest truth.

 

I believe a lot of the "older" people we meet on luxury/European cruises are also taking the mandatory withdrawal from their retirement accounts. If they saved what they should have, that would easily pay for two luxury cruises a year!

 

With that you won't qualify for financial aid if you have a kid in college. So literally expected parent contribution can be a LOt like $20K per yr:eek:

 

With reasonable income and working the system we have done very well, over $7k in free travel this year alone. No balance on credit cards just choosing the right ones. Most of our usual expenditure goes on a card which allows us to stay at the Grand Hyatt Regency in Kauai at $600 for free, Maui Westin, $400 per night free, flight free with points. I currently have enough to kook my ticket to the UK, another $1,200. Unfortunately we are excursion junkie, so we see just about everything when we travel, out of pocket:D

Edited October 27, 2013 by Blk_Amish

[griffy116]

We don't live elaborately and don't always have all the money saved for the cruise, but we find a way to get the money together. We realized a few years ago when I was diagnosed with a serious health issue that life is short. No sense sitting and waiting and regretting what we did NOT do. We contribute to charity, we help others in our community and we cruise once a year. This year it is a Med cruise with family.

[LindaM]

FYI--Macy's isn't all that, and if you hit the sales they are dirt cheap.

 

 

Autocorrect responsible for most typos...

 

That is the truth!! Shopping at Macy's is another reason we can afford travel. I don't know how they can make money. Their markdowns are fabulous, besides $20 off of $50 or at least 20% off. We talk about that on the fashion boards!! They are better than TJMaxx much of the time!

[OCruisers]

Some people simply have more money to spend as they wish than others.

 

LuLu

~~~~

[jamessemaj]

I never earned close to 125k, which seems to be some benchmark here, but retired at 52 with a pension and later SS. I am generally frugal, pause to think about spending a difference of pennies for this or that, and have investments and savings I never touch because there is no need.

 

I go on cruises whenever they appeal to me and are offered at bargain prices. Usually repositions. In the past 3 1/2 yrs. I have been on 7 cruises, all over 14 days. All inside cabin except one balcony.

 

The main thing is that there is a big, big disparity between what people pay for a given cruise. I mean 2k to 20k or more. The public areas are mine as much as they are for the high spenders, and that is where I spend the day. I find the promenade deck to be more comfortable than the one balcony I had.

 

Like any expenditure, cruising can be a great value or a siphon of money. I don't need Suzy Ormand to tell me the difference.

[Jane2357]

Circumstances can change, fortunes can come and go - the key is to not compare or covet what someone else may have. I was born into a lower middle class family but we lived in an area of upper middle class - being judged on clothing, housing, cars, etc was my everyday life - kids can be cruel. It did make me a better person - I take pride in my belongings and have an excellent work ethic.

 

I married a successful man and also worked - we've saved and invested and the income was way above average - and then in an instant - gone. Jobs in this economy disappear, people are told at 59 that they "have no runway", life can change. So be the squirrel that saves for the rainy day - we did and while we never expected dh to retire at 59 - that is just what has happened. Is it the retirement we envisioned - no - downgraded a bit but it is still wonderful. I'm thankful for what we have - no we'll never be in the Penthouse - but I don't need that to be happy. There are many wealthy people but I also agree with the person that said many of those tossing about the extra large $ - are in debt up to their hind ends - appearances aren't everything. Be grateful and enjoy what you have!

[cheerldrmom]

I also live in the here and now.. I know too many people that saved and didn't do a lot of things to wait for retirement well when that time came they either had lost a spouse or had cancer and were too sick to go anywhere. Lost 2 very dear friends shortly after they retired, so I say do it while you can for tomorrow may never come..

[blackpool belle]

I also live in the here and now.. I know too many people that saved and didn't do a lot of things to wait for retirement well when that time came they either had lost a spouse or had cancer and were too sick to go anywhere. Lost 2 very dear friends shortly after they retired, so I say do it while you can for tomorrow may never come..

 

 

I totally agree... my Sister and her husband had all sorts of things planned for their retirement but sadly my dear BIL died at aged 64 before he ever reached retirement and my Sister was left a widow at only 58 years old. Naturally, she feels she has been cheated but luckily they had many lovely holidays together before he passed and has some beautiful memories to keep forever.

[sandancer]

My sister and I are both in our 50s, married to professionals, have incomes of about $125K per year and own 4BR/2BA suburban homes in affordable areas, drive "average" cars like a 2010 Toyota Camry, and don't have small children in our households. We put moderate amounts--between $2000 to $4000 a month--away towards retirement. We consider ourselves middle-class.

 

It sounds to me that you have a very comfortable, nice life style that many, many people would love to have. As the song says "don't worry, be happy". Enjoy the cruises you can afford, there are lots of people who can't.

Edited October 28, 2013 by sandancer

[jean s]

This is a really interesting thread. It certainly demonstrates how everyone has different priorities and how they fulfill them. My dh and I take one or two 7 day cruises each year. We also take two longer land vacations each year and a number of long weekends. We try to always get a good price and book mid priced vacations. We are also cautious on how we spend while on vacation. Our one child is grown and married and we finished paying for all of his college loans (yeah). Our house and all of its upgrades will be paid for in a few years but neither of us (ages 60 and 62) plan to retire for five years. I have a very good paying job but also work a second job which gives me a nice income for travel and any unexpected bills. I plan on keeping this job even after I retire from my full time job. I would love to book a suite some time but I know that is probably not in my future.

[sherilyn70]

I also live in the here and now.. I know too many people that saved and didn't do a lot of things to wait for retirement well when that time came they either had lost a spouse or had cancer and were too sick to go anywhere. Lost 2 very dear friends shortly after they retired, so I say do it while you can for tomorrow may never come..

 

This is where I stand right now. I'm 43, I won't get to retire of old age. I need to plan for the today and not tomorrow at this point. I don't know if I only have a year left or 10... but I won't take any of those for granted now. I am very thankful that my husband and I have taken the time and made some of our travel a priority at an earlier age because I won't have the opportunities in the future. We have a bucket list right now, Ireland and an Alaskan cruise are first on it. If we accomplish both of those then we'll add on more if my health still permits. I will be able to use my 401k once I stop working and go onto SSDI full time (I expect to need to do that in the next year) and I do plan on using some of that to enable our travel plans. If for some freak reason I do survive to my old age and my 401k is gone we will still have my husbands pension, 401k and both of our SS incomes to live off of.

[sapper1]

Of course, if they regularly meet others from this forum or known to people on this forum while aboard the ship, that theory has a slight hole in it. ;)

 

 

That is what I was going to say as well. I have been on CC for long enough now that there are always persons I have either cruised with before or interacted with on the HAL board on our cruise. It would be rather difficult to fake it and really, what would be the point?

[I Luv Crusin]

Questions for those cruisers who are "living the now" and not saving very much: How much do your financial planners advise you to save? What forecast are you given for your future needs, when you can no longer work? Do you future plans include living at the same level you are living now, with the same amount of travel, or are you going to reduce your traveling and lifestyle as you get older?

 

We wonder: what happens if suddenly one of us should have a severe and incapacitating illness, like a stroke, that lasts for years and years? How on earth are we going to pay for medical care, if we don't economize now?

 

For those people who spend, spend, spend today--how do they intend to take care of themselves in their old age? Who will pay for their nursing home or rehabilitation stay? Will they curtail their cruising once they hit retirement age and their finances dwindle?

 

Have you looked into Long Term Care Insurance? We will soon.

[I Luv Crusin]

Thank you all for your perspectives! My DH and I are in our mid-50's. We are terribly in debt and are now on a budget. We gained much of our debt by just not paying attention to where the money was going. We do not have new cars, live in a middle of the road home. I get so disgusted at myself because had we paid attention and didn't fritter away our income in the last 30 years we'd be luxury cruising now!

 

Over the years we didn't save for college for the kids, so besides their personal college loans-which we will not pay, we cash flowed (read put on credit card) the rest. We have cruised a lot. I'm Platinum on Carnival and DH is close. I took my DD on a European cruise in 2006 with 4 days in London and 2 in Rome after. DH and I went on an Alaska cruise last year. We own timeshare which we use for short getaways and I rent some to defer maintenance fees.

 

We have a cheap cruise booked for next March and then we will not cruise again until we get out of debt, hopefully by 2016. That will be just in time to save and plan for a Northern European cruise/vacation ins 2017 for our 35th anniversary. We will probably continue to use our timeshare during this time for those "needed" vacations.

 

We are FINALLY in the process of refinancing our home after being underwater since 2008. This will give us almost 600 a month to throw onto the debt. But unfortunately we also need to consider some home maintenance issues since we've been here 10 years. For the "fun" of it I got a quote for new counters in my kitchen. Not laminate, not the most expensive but still near 3K!:eek: We won't be doing them any time soon unless I find a much better deal.

 

I look at our retirement funds and wonder if it will be enough. We will also start bumping up on contributions in the next few years. I just started working FT 2 years ago and have an account at work. This I'm hoping will be our cruise/travel fund. Should I retire in 9 years I will earn ~700.00 a month from it.

 

So we have enjoyed travel and spendthrift ways and need to pay the price to be able to travel in the future. I work at a college and we are closed over the Christmas holiday and that is a built in vacation! I can only pray for continued good health!

 

Thanks again!

[Gunner22aa]

Rasied two wonderful girls who are both unniversity educated and married off to great guys. Didn't know what a new car was until about 10 years ago. Saved like mad, both of us had good jobs and now good pensions supplemented by our RRSPs. Made some very good and profitable investments along the way. Kids grew up camping and didn't have a clue what a hotel was except when the army moved us about.

 

Have no debts and a fair disposable income now so we indulge ourselves. As I once read, maybe on here

 

"Fly business class because if you don't your kids will"

 

That's kind of become our motto these days.

[oldschoolpinball]

It's always best to have a strong financial plan.usually planning for those types of trips can take a year or two or even more unless you have cash on hand

[pcur]

I know family and friends think that about my husband and I all the time, ESPECIALLY my MIL!!

 

We cruise every year, from 1 - 4 cruises. We are not wealthy by any means, but I keep very close track of our expenses, and have a spreadsheet that estimates several years in advance. This is one way that we can afford to cruise: the spreadsheet tells me the effect of spending extra money on our future bottom line. It's knowing what you have to spend that keeps you in the black.

 

I also research extensively to get the best price on all our travel expenses. We book cruises early, usually on board to get reduced deposits and onboard credits.

 

We also are debt-free except for our mortgage. We drive 8 and 14 year old cars, and hubby does all the maintenance himself.

 

We are not particularly frugal, but we spend very little on extras. No expensive clothes, jewelry, electronics, etc. I bought an iPad several months ago and I will use it until it dies, for instance. Our cell phone costs us $50 a month for both of us. We eat out a lot, and use coupons and senior discounts where available.

 

Cruising is our big expense, we get a balcony discount with RCCL, and we spend practically nothing on board the ship.

 

Another thing that many people don't realize (including my curious family and friends) is that when you are on a cruise you don't spend money on things you normally would at home: gasoline, food, electricity and a/c. These costs are just transferred to the cruise, so the amount you are actually out of pocket is lower than you think.

 

For long trips (we've cruised for 28 and 33 days before) we change our cable plan, turn off the thermostat, and change our cell phone plan.

 

It all helps with the bottom line.

[Talisker92]

It all comes down to priorities and arranging your lifestyle. I have a credit card that gives me miles, and I put everything on the card. BUT I pay it off every month. I get a companion ticket and fly from the US to Europe in Business Class for about $2,000 for both of us.

Our cars are from 1998 and 2003, and run fine. We have no mortgage and just have to pay property tax.

We are retired and living on social security and seem to be doing OK

[Havi2000]

What an interesting thread! My DH and I are 55 & 60 and are enjoying life as we can today! We own a very small PHVAC company, established in 1917, that we purchased from my MIL after my FIL died the day after his 62nd birthday...

We are so blessed to be able to travel due to credit card miles, earned by purchases made and paid off in full each month. We don't live frugally by any means, but have always lived within our means. We have no where near the retirement funds mentioned by many on here, but we have saved fairly well and have 2 investment properties that pay our mortgage and will be available to fall back on if necessary. Suzi Orman terrifys me every week with her projections of where our retirement fund should be......life is short, and unpredictable, we try to live in sensible balance, but our travel is just not negotiable. Other than family and friends its our greatest joy. And cruising is at the top of the list!

[Gloria Mundi]

Have you looked into Long Term Care Insurance? We will soon.

 

This is one of my concerns as I look at the sig lines with a dozen or two cruises. In general, how people get the money to take so many cruises is none of my business. I wonder, though, how many have good plans for long-term care other than "I won't have anything but SS at some point so I can get in a Medicaid nursing home". Then it IS my business because I'm a taxpayer (and so is my son, who's more likely to be picking up the tab).

 

While I don't have long-term care insurance, my projected income in retirement (and I'm 5 years away) will be more than enough to fund nursing home care if and when I need it. DH has a chronic condition (polycythemia) that means he's unlikely to live in a nursing home for decades (and he's 75 already), but I might. I'm not planning on sending the bills to the taxpayers. I hope no one else here is, either.

[calliopecruiser]

I wonder, though, how many have good plans for long-term care other than "I won't have anything but SS at some point so I can get in a Medicaid nursing home". Then it IS my business because I'm a taxpayer (and so is my son, who's more likely to be picking up the tab).

 

It's still not your business whether or not strangers save for their future. That's their business. If you don't like the way your government handles things (like care for the indigent elderly), you've got lots of options - protest, support different candidates, run for office yourself, move and live somewhere else - but making other people's personal choices your business is not one of them.

 

IMO. But that's a political discussion I probably shouldn't have started ;)