A yachting career offers an attractive salary, all expenses paid and a possibility of tax-free income. But it does not offer unemployment benefit or a pension plan, leaving the yacht crew to take responsibility for that.
Setting goals as early as possible and making sound decisions, can set you on more solid footing in the future.
Tip 1. Be clear on your financial goals. Set a goal of how much you want to put away and stick to the plan.
Tip 2. Know what you are spending on. Track where your money is going and see if you can improve it. Make use of money management apps, they can help you categorise and see what you are spending on most and perhaps see if you can optimise your spending.
Tip 3. Create a realistic budget and follow it. Set a budget for bills and entertainment. Your living expenses are all paid for, therefore you can easily create a budget you can follow.
Tip 4. Put money in different accounts. Have a separate account for savings and an account from where you pay your bills, entertainment and daily expenses.
Tip 5. Prep for retirement. The more you wait, the more money you lose towards ensuring you have a good retirement income for when you stop working. Financial perks yacht crew receive, allows you to start your savings plan earlier. The best way to save for retirement is to invest in low-risk funds such as the S&P 500 Index as Warren Buffet suggests, or fixed income plans/products, where you earn a fixed interest per year, such as the 12-months Firewood Fixed income plan. Click here to read more about the plan.