Barry and Margaret Williamson
April 2012

In our A to Z of Long-term Motorhoming, first written many years ago and twice revised for publication by the UK's Motorhome Motorcaravan Monthly (MMM) magazine, we wrote about this subject under 'M' for 'Money' and 'C' for 'Cost of Living'.

After some 17 years on the road, 3 of those engaged in round-the-world journeys, we still keep accurate records of income and expenditure. The data is collected daily on pre-prepared forms of three kinds:

1. Daily Spending - Here we have six headings:

Food
Accommodation
Laundry, Local Fares, Road Tolls, Sundries
Phone, Internet, Post
Meals, Coffee, etc (eating out)
Fuel (diesel, petrol, LPG)

2. Equipment -This sheet records any expenditure which does not occur regularly or under one of the above headings. It includes non-consumables such as ferry fares, insurance, repairs and maintenance costs, clothing, books, etc. The general idea is to control daily expenditure in order to build up surpluses to cover equipment costs, as and when they arise.

3. Banking - All withdrawals from the bank are recorded under three headings: Visa, Master Card and Debit Card (Current Account). This record is regularly checked against the bank's online statements.

We record all the above transactions in the local currency and convert into UK pounds when the data is transferred into a computer-based spreadsheet. Income is also added into the spreadsheet and balanced against spending – the key move in this whole process! The computer does all the sums on a daily basis, calculating totals, averages, trends and balances.

All the above seems elaborate when described in this way, and it is time consuming to set up in the first place. Once running, however, it just requires the entry of data as and when the opportunity arises. The ideal is to have a day or longer when there is no expenditure and therefore no entries are required!

The net effect of recording and analysing detailed expenditure and income is complete control. We know when we are generating a surplus (eg during a winter hibernation in Greece) and when we have the means to plan major expenditure (eg to buy a new tent or to visit Norway). This process also controls expenditure: we are always aware that every penny is being counted and accounted for!

The three main daily costs are food, camping fees and fuel for the vehicle.

Food is the essential luxury for the traveller. Having a motorhome with storage space, a fridge and a freezer means that we can stock up at inexpensive street- and super-markets. We make our own bread, cook our own meals and our overall food average is still under £5 per day for three good meals for two of us. We do eat out, though not very often and only in places that are very good value for money. For example, in Greece a large taverna meal (with salad and wine) can cost less than €10 each.

Camping can vary from nothing ('free' camping) to £20 or £30 a night! When we winter in Greece, we negotiate a long-stay price which can be as little as €7 (£6) a night. That includes electricity (so we don't use any gas), hot water, WiFi, our own hot shower, etc – all on the beach. Therefore our only extra cost is for food.

Many motorhomers mix free camping with occasional nights on a campsite for a good shower, to empty waste and fill water tanks, do the laundry, charge the batteries, wash the van, recharge things that need mains electricity, use the internet, etc. We free camp only when we have to, while on the road.

Fuel costs obviously depend on average mileage, the fuel consumption of the vehicle (ours is heavy), driving style, need for speed and the nature of the roads and the terrain. Needless to say, we aim to use no fuel during a winter hibernation (the motorhome sometimes hasn't moved for 2 or 3 months), getting around on our bicycles. In general, we minimise fuel consumption for the rest of the year. We use the motorhome to get to places and not for shopping or local touring. For local travel, we get on our bicycles or occasionally public transport. If we have a surplus income (eg the tenants have paid the rent), we may hire a car for a while.

Other major equipment costs are insurance, ferries (depending on your route – last year we used 35 of them!) and any maintenance and repairs. All these can be minimised – shop around for insurance since it varies a lot; look for the cheapest Channel crossing when you are starting out – we have sailed with an 8-metre motorhome for £19 from Dover to Dunkirk – and do as much repairing and maintaining yourself.

One should also add to these calculations the initial cost of the motorhome/camper van, which can range from £5,000 to £100,000. Thanks to Motorhome Medics, we bought a good second-hand American vehicle for its robustness, its reliability and for the fact that it is actually designed and built to be lived in. Buying second-hand often brings with it some fitted accessories, the initial problems are sorted out and there is a reduced rate of depreciation (which can be horrific on a new motorhome). If you do need regular servicing/repairs, find a good garage!

Another factor is the extent of any financial liabilities you have left behind in the UK. These can be turned into assets. For example, if you have a house, you can rent it out. Some people even rent out their motorhome for part of the year!

So costs are variable – but controllable. Work out your budget – what you can afford over the period of your travels and keep within that. Work it out on a daily basis and keep a close eye on any surpluses or otherwise. Here in Greece, in winter, we build up a surplus for the travels and costs to come.

Keeping a detailed record of income and expenditure not only controls spending, it also gives a long-term historical record. It answers questions such as: How much was this campsite last year? When did we buy that kettle? Did they take the Direct Debit when they claim they didn't? Was it more expensive to live in Bulgaria for a while compared with Romania? What's happened to the cost of living in Greece? How much is the ferry to Denmark likely to be this year? Etc.

On the balance sheet of life, money can be put on one side but this should be balanced by a full and rewarding lifestyle: one of adventure, challenge, fulfilment, friendship, companionship, uncertainty and surprises. All these and much more can come from travelling in a motorhome with a closed wallet and an open mind!