Cover Photo by Damir Spanic on Unsplash
We discuss key money management tips from yachtie, Jamila Garcia to help you stop wasting your money.
Money management as a yachtie can be hard. Temptation is everywhere. Yet, the thoughts of saving enough for life on land loom. If you can relate then worry no more! Jamila Garcia, AKA the Superyacht Chief Stew is here to help.
Here are her top money management tips:
It’s all about the small steps
Locking yourself onboard 24/7 because you decided to purchase a property, does not work. This will only make you hate your cabin and the crew mess (especially the snacks cupboard) after a couple of weeks of it! Instead of being so strict with yourself, set a fixed amount of money you want to save every week.
Small short-term objectives seem more achievable than big long-term ones.
Write things down on paper, old school style. Write all types of goals down, as they come to your head. When on a saving spree, also try to track ALL of your expenses. Again, on paper. When you see how much money you throw down the drain on silly little things on a daily basis, you’ll be astonished! For example, those daily Starbucks coffee runs become a pretty expensive habit!
Here are some planner recommendations to help:
Increase your wealth and keep a fixed amount aside every month
Like it never existed. Let’s say you earn 2,500 euros. Convince yourself that you earn 2,000, and budget around that amount. Transfer those 500 euros “extra” to a savings account. And forget about it, literally.
Take care of your personal finances by reducing your outings
If you are used to going out with the crew every Friday, Saturday, and Sunday, try to “only” go out twice a week. We all know how it is… A crew day out won’t mean less than a couple of hundred euros. If you go out three times a week, that’s 600 euros GONE, just like that!
The key to money management is Rethinking those impulse purchases
Going on a shopping spree after a month of slaving away is very tempting. But, when you see 10 beautiful bikinis at that lovely little shop in Porto Cervo:
- Leave the shop
- Go for a coffee
- Think about it
- And then decide if you need all 10 of them. Or, see if you could survive just fine buying “only” 5…
Diversify your income
Working on a superyacht provides you with a generous income. All expenses paid for. You feel secure and confident. No need to think about any other ways of generating extra income, because you don’t need to. But, you will probably wish to leave one day, and you don’t want to be left with no options. Nowadays, there are so many ways of making extra money, you only have to find your niche, and go for it! Try to aim for something you enjoy. Anything.
Business and financial experts always say things like:
“Find your passion. If you do not have passion, your business won’t work”
However, this is not necessarily the case. You do not have to be an expert/have passion/ and all of those things…You just need to want to make money and find something that does just that. Obviously, if you do have a passion, it will be so much easier and more rewarding. But, if you do not, or don’t know yet, just find something that can make you money. As small as that income is, it is money, at the end of the day. 500 euros in the “yachtie vocabulary” is peanuts. But, 500 euros “in the real world”, will pay a pretty good mortgage for a month.
We all have extra skills, ALL OF US.
- Are you fluent in a few languages?
You wouldn’t believe the huge amount of people out there that need things translated!
- Can you sew?
- Are you a photographer?
Anything really! There are many yachties who work full time and run pretty amazing small businesses. Money management is just about having a bit of initiative. Something that starts super small, just a bit of pocket money, can potentially become a stable source of income in the near future. In its origins back in 2016, Starfish Crew didn’t make as much as it does now. But was it still something to be proud of? Yes! It’s just a matter of perspective. And just that, perspective, is something that yachties tend to lose after a few years working on yachts, unfortunately…
Start investing in your personal finance as soon as possible
Investing is not just for people that have a lot of extra money, and are finance experts. Even if you can only afford to invest 100 euros a month, that’s better than nothing. If you do not feel comfortable doing it yourself you can hire someone to do it for you. Quilter International is a tried and tested good example. You just pay them a fix amount every month and they invest it in whatever they see fit. Capital is also a good for stocks. Remember that your money in the bank does absolutely nothing for you, in fact, absolutely the opposite, due to deflation, and so on.
We hope you find these money management tips from the Superyacht Chief Stew useful!
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