5th Mar 2020
Get in great financial shape this season
As Superyacht crew, you know just how busy the upcoming summer season is going to be, especially if you’re working onboard a charter yacht. Regardless of your position onboard, you’ll be busy preparing the yacht, getting ready to welcome guests and working overtime to ensure everything is running smoothly.
But while you’re working 20-hour days during the season, what’s happening to your finances? Have you got your savings in order or made decisions on things like investments to meet your financial goals? What are your 2020 financial objectives? Do you have a documented financial plan?
Make your money work harder
We know how hectic yacht crew get during a charter season. You’re 100% focused on keeping yacht owners and guests happy, and rightly so; after all, that’s what you get paid to do.
But when you’re working so hard to make your money, have you thought about how you can make that money work even harder in the long-term? Looking to the future, have you considered what you will do with your unspent salary while on charter or, better yet, your large end-of-season bonus?
Get the right bank account
We’ve met a number of crew who unfortunately had their hard-earned cash sitting in bank accounts or under their mattress making 0% because they didn’t take the time to look at their personal finances before their yacht lifted anchor. They thought everything was fine.
Unfortunately, those same crew received quite the shock when, at the end of the season, they realised they’d missed a valuable opportunity to make their savings work harder. Imagine how much happier they would have been coming back to shore and being faced with greater savings just because they made a simple switch of bank accounts.
And sometimes it’s not even a case of switching accounts but keeping an eye on your account balance to make sure you’re not negatively affected. Did you know that if you have more than €100,000 (does not apply to GBP or USD accounts) in your Standard Bank Seafarer Account you will be charged a negative interest rate of -0.6% per annum on that balance? This negative rate is charged to the total figure, not just the amount over €100,000.
The Seafarer Account is still an excellent day-to-day account option for Superyacht crew, and accounts holding less than €100,000 are not affected by a negative interest rate. However, note that your Standard Bank account achieves 0% interest per annum, so your money isn’t working as hard as it could.
Get your savings season in order
Working in this industry, with high wages and reduced living costs – especially while onboard – gives you the perfect opportunity to save. The quieter shipyard period ahead of the summer cruising season is the perfect opportunity to get your finances in order before you’re busy with guests and meeting their demands.
Your charter season will no doubt be stressful enough without having to worry about savings accounts, interest rates and returns on investment. That’s why now is the best time to get your savings season in order. You have the time and headspace to think carefully about how you want your money to work hard to achieve all your financial goals. Good, solid, financial planning can help.
Follow the three-pillar approach to managing your finances
Once you have your bank accounts and tax obligations sorted, you should really look at your overall savings strategy.
We’ve developed a three-pillared approach to help professional yacht crew navigate their financial journey. The three pillars are banking, tax, and savings and investments. When you get the right structure in place, and have all elements working together, these pillars will create for you the foundation you need to create your financial future.
The best place to start this charter season
If you’re interested in kick-starting your savings season, start by downloading our free Yachties Guide to Saving.
Then contact us to start work on your documented financial plan, which will help you determine exactly how much you can afford to save. A documented plan will provide you with a manageable savings schedule to ensure you reach your savings goals.
Get in touch now – we look forward to hearing from you!
