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Last Updated on January 7, 2025 by Paul Clayton
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Does Living In An RV Save Money?
Does living in an RV save money? The cost-effectiveness of residing in an RV can vary greatly depending on several factors. While it’s true that living in an RV can eliminate certain expenses like property taxes, it’s also essential to consider the costs that come with this lifestyle.
- Lower Housing Costs: RVs offer affordable initial purchase and maintenance.
- No Utility Bills: Campground fees often cover electricity and water costs.
- Travel Savings: No need for hotel accommodations or dining out.
- Flexibility with Location: Remote work allows for cost-effective location changes.
- Maintenance and Repairs: RVs require regular maintenance and occasional costly repairs.
- Fuel Costs: RVs are not the most fuel-efficient vehicles, increasing expenses.
As the days go by, it appears that more individuals are considering quitting their typical lifestyle in favor of living in an RV to save money. This seems like a great idea, given that doing so will free you from high rent or having to pay a mortgage.
All you need to do is sell the things you do not need and get on the open road. The money you can save by merely living on the road can be put towards retirement savings or to help pay off debt.
Not only does this help create an improved financial life for you, but it also enables you to do so while traveling across the nation and waking up to beautiful sceneries such as mountains or beaches.
Nevertheless, there is one thing you have to bear in mind: living in an RV will incur living expenses just like living anywhere else; however, it can be as expensive or as cheap as you make it.
For one, luxury RVs cost hundreds of thousands and look like what a celebrity actor would live in while on location. These RVs have massive flatscreen TVs, fireplaces, marble floors, and sound systems.
Conversely, some folks take the backseats from an old family van, lay a mattress down, and get on the road. It is easy to spot which of these RV setups are bound to have cheaper living expenses, helping you pay off any debt you have.
The average individual interested in living in an RV to save money will likely search for an RV in the middle of our spectrum. If you read this article, you are most likely interested in living in an RV to save money.
This article aims to provide context factors to consider and break down the costs associated with living in an RV to help you determine if it is cheaper than a typical living situation. Let’s begin!
1. Cost of the RV
This item will carry most of your expenses when you begin your plans. There are numerous options to select from, with the cheapest being $10,000 and the most expensive costing more than $300,000. They are:
- Travel Trailer: This attaches to your vehicle via a tow hitch; however, you will require a truck that can handle the additional weight of the travel trailer.
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Camper: This is typically the most minor choice and is usually made by dedicated travel campers or converted vans
- Fifth Wheel Trailer: This trailer has a U-shaped hitch that enables it to be attached to a vehicle, such as a pickup truck, to be towed.
- RV or Motorhome: This is a complete home with wheels. You can seamlessly operate them; the larger ones enable you to tow a vehicle behind.
For those interested in sufficient space, fifth-wheel trailers and motorhomes offer the most space.
This will be a significant consideration when selecting your RV type. If you are traveling with others or perhaps have kids or pets, it would be necessary to get a bigger vehicle.
A travel trailer or camper will be a better choice for those traveling alone. This is because they are smaller and to drive around in.
That being said, if you are interested in getting the most prominent option and choosing an RV, you should know that spending more than $100,000 on a brand-new RV is possible.
If you require something that does not cost as much, a preowned travel trailer can cost anything from $10,000 to $20,000. Brand-new fifth-wheel trailers cost about $35,000.
With these costs in mind, there are a few questions you will need to ask yourself. How would you be able to pay for the RV of your choice?
If you intend to sell off your home to fund your RV purchase, is your home fully paid off, or is there enough equity in the house to help cover the cost of the mortgage and the RV?
You should also ask yourself if you have sufficient cash to purchase one of the cheaper options. Do you intend to take out a loan to cover the cost of your RV?
2. Fuel Costs
While living in an RV enables you to travel around the country, it does not necessarily mean you have to do so. Realistically, finding a spot to park the RV and live right in that spot for weeks is possible.
If you intend on going from place to place, as most people who purchase an RV do, however, there will be quite a significant expense to note down. That expense is fuel, and the amount you spend largely depends on the size of your RV.
If your reason for living in an RV is to help save money, you can reduce fuel expenses by traveling slowly or staying put for a while.
3. Insurance
Typically, there are two differing forms of insurance that you will have to bear in mind when calculating the costs associated with living in an RV. They are health insurance and RV insurance.
RV Insurance:
If you intend to drive your RV on the road, it requires insurance and can cost anything from $1000 to $2000 a year.
You might think a way to get around this is not owning the RV outright, but that makes no difference as you still have to insure it.
Health Insurance:
It isn’t easy to find traditional health insurance, given that most plans do not work outside the state of their issuance. To help counter this issue, most RVers who travel full-time use healthcare-sharing ministries.
Healthcare-sharing ministries are US organizations that help to share the cost of healthcare amongst members who share a particular religious or ethical belief.
It does not act as a traditional healthcare insurance policy provider or accept risk. It is just a way for RVers to have healthcare coverage while on the road.
4. Repairs
In this regard, choosing to live in an RV is the same as living in a home. There will be repairs as things break and must be fixed. If you buy your RV brand new, it is possible to have a few of the breakables covered under warranty. However, you are paying more upfront simply because it is unique.
For example, if you purchase a large RV with only a smattering of service centers able to handle its repairs, it can be a bit of a burden to fix your RV if it develops an issue while traveling.
Whichever option you go with, having a bit of money set aside to cover repairs is a necessity if you are going to live in an RV.
5. Your Job
When deciding to live in an RV to save money, you must consider your job, mainly if you aim to travel.
The best and most feasible scenario would be to work remotely; however, if you cannot, do you have something you can do to earn money? This has to be considered before you make a decision.
6. Parking Locations
Most people living in an RV pay for a spot to park their RV in. Below are a couple of places where your RV can be parked and the amount you might have to pay for the privilege:
Driveway Surfing or Mooch Docking
Driveway surfing doesn’t cost a dime; it involves parking your RV in a family member or friend’s driveway.
Considering that you will need to get rid of your waste and refill your water, it might be courteous to pay for parking now and then.
Boondocking
This is free, as you park your RV in inaccessible areas such as Grocery Store lots, Bureau of Land Management sites, and other regions. Typically, these options do not have amenities and lack hookups. You will also have to be security conscious of your parking location.
Public Campgrounds
Public campgrounds tend to cost around $20 per night. A few examples of these venues are national and state parks, some of which have amenities like showers.
Specific public campgrounds have hookups. However, this is not the norm across the board.
Privately Owned Campgrounds and RV Parks
These venues can cost anything from $25 to $80 per night. Monthly rates are also available, which are usually cheaper than day rates.
Private campgrounds and RV parks are available with electric and water hookups and a place to dump your waste. More expensive parks might have rec rooms, a pool, a golf course, and more amenities.
7. How Do You Receive Your Mail?
While paying the bulk of your bills over the internet is possible today, a few things will still have to be delivered via mail.
You must sign up for a mail forwarding service to ensure your mail gets to you no matter where you are. This would typically cost anything from $85 to $130 per year.
8. Internet and Phone Connectivity
It does not matter if you live in an RV or a traditional house; you will require internet and cell service. The majority of private campgrounds and RV parks will have Wi-Fi capability.
However, combining remote working and full-time travel will require you to fork out more for internet and cell service, especially one with a more extensive coverage map. You might also need to purchase extras such as a hotspot or a signal booster.
9. Heading Back Home
Living in an RV doesn’t mean you must go far away from everyone you know and love. However, if you are traveling a considerable distance, you will likely take some time to head back home for a visit.
There are numerous reasons why you might want to visit back home; for one, emergencies might arise, and special unmissable events such as anniversaries or birthdays might pop up. Going home during such a time might be unexpected, and with that comes an expense.
Most people do not consider it, but switching from a regular, immovable home to a trailer or an RV means you will have to downsize, regardless of whether you get the largest RV. This means you must find a place to put all your stuff.
You could choose to sell everything that could earn you additional income to help with any inevitable repairs, fuel costs, or even living expenses.
The second option would be to store your stuff. There are two ways to do this: keep your things with generous family members who do not mind your things taking up their entire basement.
The other way would be to lease a storage unit. Leases on a storage unit typically cost anything from $60 to $180 per month for a basic unit. A climate-controlled unit ranges from $75 to $225 monthly.
10. Miscellaneous Costs
These small yet integral costs come with living in an RV to save money.
Food: if you are traveling from place to place, your food budget might be high if you love to try out the local cuisine.
Laundry: Some fifth wheels and RVs might have sufficient space for a dryer/washer combo, which can help reduce your laundry costs; however, if your RV doesn’t have to pay to have your laundry done,
Where is the Best Place to Live Full-time in an RV?
Deciding where to live full-time in an RV can be challenging, with factors like climate, cost of living, and access to amenities to consider.
However, Florida, South Dakota, and Texas have emerged as the most popular domicile states for full-time RVers. These states offer low-income taxes and favorable laws for RV residents.
In addition, they provide a range of recreational and cultural opportunities that enhance the RV lifestyle. Thus, if you’re bourgeoning where the best place to live full-time in an RV is, these three states should undoubtedly be on your shortlist.
Summary
RV living can lead to lower housing costs due to affordable initial purchase and maintenance compared to traditional homes. The absence of utility bills also adds to the cost benefits, as campground fees often include electricity and water costs.
On the flip side, the cost-effectiveness of RV living depends mainly on lifestyle choices, particularly for those who travel frequently. While you save on hotel accommodations and dining out expenses, you might experience a surge in fuel costs since RVs are not the most fuel-efficient vehicles.
Moreover, remote work has added a new dimension to this lifestyle, offering flexibility with location and potentially saving on rent in high-cost cities.
However, it’s essential to factor in maintenance and repairs, which are inevitable in RV living and can sometimes be costly.
Living in an RV can save money when considering housing and utility costs. However, travel frequency, maintenance and repairs, and fuel costs can significantly impact the overall cost savings.
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