Starting budgeting for your Build

Armed with the perfect van layout, it is time to start budgeting for the build. This is where you will assign resources (time, money, and skills) towards achieving your dream van. 

You can even scale down the conversion costs to suit your budget. 
There is no need to get everything all at once, in fact we don't recommend it.

You can start out with the most essential features and scale up with time.

For those of you who are looking to hire a professional van builder, it's worth noting that you may also decide to do some of the work yourself to save money. 

Then you can only outsource the conversion services you think should be handled by professionals, such as plumbing, solar power, and AC installation. 

Creating a Van Conversion Budget

Make a list of all the items and services you will need for the conversion and assign a rough figure beside it. It is important to take into consideration the desired quality of the appliances and supplies; don’t always go for the cheapest item available.

• List the items and services you need
• Research suppliers who provide the quality you need
• Shop around and compare prices 
• Pick the suppliers who match your budget
• If needed, prioritize the costs of the features you need in phases
• Refine your budget accordingly
• Track your expenditures

When making your list, be sure to include all the fixtures, fittings, utilities and services you will need. Remember to have some cash in the budget for any unexpected items or bumps in the road. 

As you continue going through this course you will get a better idea of what exactly is needed and/or recommended. It's a good idea to start compiling a list. 

Using our "Budget Tracker"

To make this process easier for you we designed a Budget Tracker Template on Microsoft Excel.

This provides you with an organized excel sheet to quickly budget all expenses.
Feel free to add and remove from any columns or rows based on your needs/wants.

We have two different options available below: 

1. Get the Budget Tracker for Microsoft Excel - requires Microsoft excel 
2. Get the Budget Tracker for Google Sheets - Requires a Google Account 
   • When accessing, make sure you are logged into a google account. 
   • Then click File (on the top left) > Make a copy > save to your drive > begin editing 

Both give you the EXACT same template. Just on different platforms. We make both options available for those who do not have access to one or the other. 

OR

How the "Budget Tracker" works

Our budget tracker has been created based on the experience of many vanlifers and is designed to help you plan the finances of your van build.

When you open the budget tracker, the first thing you see is the “Overview” sheet. Here you can enter your budget for each category.

The budget tracker automatically calculates your remaining budget. Furthermore your costs to date and remaining costs will be displayed here.

As soon as you start entering your costs into the "cost tracker" sheet, they will be automatically displayed in the "Overview" sheet.

To open the “Cost Tracker” sheet, you have to click on the corresponding sheet in the budget tracker on the bottom left.

In this sheet we already listed all standard expenses sorted by category. Feel free to add and remove from any columns or rows based on your needs/wants.

In the column "Status" you can indicate whether you already purchased the item or are planning to purchase it.

Depending on what you select here, the costs are displayed in the "Overview" sheet either in the column "cost to date" or "cost remaining".

This way you always have an overview of how much you have already spent and how much money you still need.

Managing Budgeting and Expenses on the Road

How much money you need to start your great van life adventure varies, depending on how you envision your lifestyle. While some people want to try it out for a short while, others want a more permanent arrangement. Some people want to dine out often and pay for specialty adventures while others are content to cook for themselves and hike or explore on their own. Which category do you fall under? The amount needed for van life depends on the choices you make, especially on how long you hope to live as a van lifer. However, there are some initial universal costs. We’ll look at a quick summary of the expenses you are likely to incur when starting out in van life.

• Purchasing a van (exact amount depends on the make, and whether it is new or used)
• Insulation – depending on the season
• Furniture and furnishings - bed/couch, countertops, storage spaces
• Ceiling, walls and flooring
• Solar and electrical works
• Kitchen and plumbing
• Professional fees
• Administration and van registration
• Miscellaneous expenses

True, living in a van – even for a short time – can help you cut down on loads of expenses like rent and utilities. But that doesn’t mean that van life is totally free. You will still have to budget for usual expenses. What does your budget look like once you hit the road? We’ll look at the most vital expenses, along with an emergency kitty. A lot can happen on the road, and you have to be prepared for anything -- mentally, physically and financially.

For starters, it is important to note that your budget depends on loads of variables, like the number of people living in the van. For the purposes of showing you how to budget, and what to budget for, we’ll take a couple as an example. We’ll divide the budget into fixed and variable expenses to make it easier for you to adjust accordingly.

Fixed Expenses

Some expenses are fixed, which means that the amount you need when you are on the road does not change from month to month. Some of these fixed expenses are dependent on the number of people living in the van. Here is a quick list of fixed expenses.

These expenses are generally fixed. However, this fixed amount depends on your specific situation and the service providers. You can shop around for providers with the best terms for your budget.

Variable Expenses

Variable expenses are dependent on your consumption. These items are likely to take up the biggest chunk of your money on a daily basis. We’ll categories the expenses from the highest to the lowest. Please note that this list is dependent on personal preferences, but can act as a general guide.

For a typical couple, the budget for all these expenses can be about $2,800 to $3,500 a month depending on the lifestyle and service providers they choose. Over time when on the road, you’ll realize that eating out is expensive compared to cooking. You will also notice that if you frequent the bars for a drink, your expenses will go up. Take advantage of offers such as two-for-one gym showers, free campsites, and free activities to keep expenses low, especially when starting out. 

Emergency Kitty

This is so important that it warrants a special mention. You probably already know that anything can happen on the road, including minor or major mechanical issues. It is therefore essential to have an emergency kitty for such expenses. Hopefully you will never use the money, but it is important to have it just in case. You can evaluate how much you’d need to replace the tires, or how much you use for minor mechanical repairs and keep that set aside for emergencies. 

On some occasions, depending on the terms of your health insurance, you may need a quick check up or some over the counter meds such as painkillers. Be sure to have some money kept aside for this as well.