28th Apr 2019
Top Financial Tips from United Advisers Marine
During our spotlight interviews with the Marine team, we asked them to share their best financial advice for yachties. We have collated that advice to help you better navigate the world of savings and investments.
Have a plan and enjoy life
Yachting offers an incredible opportunity to travel the world and can provide financial stability to pursue your dreams in the future. Spending time, with or without a financial planner, reviewing what you want to achieve in the future helps you focus. It doesn’t mean you need to commit to saving 80% of your income. It’s all about finding the right balance for you that helps you achieve your future goals.
Having a solid financial plan in place gives you peace of mind, allowing you to go out and enjoy all the opportunities a superyacht career has to offer. Should your goal be to move onshore, you can be confident that you have the funds to buy a property and live comfortably while you find your next role. A financial plan is merely a way to support your personal and financial ambitions.
Every little helps
Any UK yachties will be familiar with the Tesco slogan “every little helps,” and this is certainly true when it comes to saving. Consistency is key to building personal wealth, and the sooner you start, the easier it becomes. Having a plan helps you define your savings contributions while still having enough to enjoy the lifestyle you want. It is always better to save some than none.
Revisit your plan
We all know that even the best-laid plans change, and a financial plan is no different. You might decide to move onshore, start a family, or open a business. These things might not have been in your original plan when you opened your first Standard Bank Account.
Have clear priorities
As we mentioned earlier, it’s always better to save some, rather than none. If you have a clear financial goal, however, like starting your own business or purchasing property, you might decide to reprioritise. Those who are committed to achieving true financial independence sooner rather than later prioritise savings over their spending. Followers of the FIRE movement (Financial Independence Retire Early), for example, plan to save up to 70% of their income with the aim of retiring in their thirties and forties.
Future proof your wealth
Financial independence is often misunderstood. Many believe you have to earn large sums of money to achieve independence, but instead, we tend to increase our expenditure when our salary increases!
A financial plan helps you achieve sustainable financial independence. Your savings build cumulatively, and you can plan for the future, so your wealth prevails, even if your salary decreases.
Saving can have a bad rep, and many see it as a limiting factor in life but, when managed properly, the opposite is true.
Having a good savings plan can open up opportunities for education, career, and travel because you can be confident in your decision making, knowing exactly how much you can reduce your income by to live comfortably.