Do you want to know how you can make an easy £50K as yacht crew?
Before we start, we promise this isn’t one of those “make easy money” promises we all get bombarded with on social media. Crew Family Office helps Superyacht Crew with their money on a daily basis and today, we are going to help you find an extra £50,000. Yes, you heard that right, £50K!
How do I get my hands on this £50k?
The funny thing is, it’s already yours. What we are here to help you do is keep it rather than let it slip through your fingers.
Where does this money come from?
Simply put, it’s your salary. This £50k is the money often wasted over a 10-year career (plus interest) if you don’t make the right financial decisions. We don’t mean investments here, this is just the simple stuff to avoid throwing your money away.
So, how do you waste your money every month?
Using the wrong bank
- You get paid into the wrong bank account. For example, your bank account is £ but your salary is €. As a result, you lose money every month. This could be up to 5% of your salary.
- Offshore banks cost money. You may not realise this but banking offshore is no longer the best option for most crew. Have a look at some of the reasons here. Because of this, you will suffer for many reasons.
- You have to keep a minimum balance of approximately €2500. This is money that could be earning you something. If you put this money into a pension at the beginning of your career it could be worth €100,000’s by retirement age!
- There is no interest earned in offshore accounts. Even 0.5% is better than nothing.
- Several UK high street banks, as well as some online-only banks now offer multi-currency accounts. Getting paid this way could save you 5% of your salary.
- If you avoid offshore and bank in the UK you are much more likely to earn some (maybe not much but something) interest.
- Credit rating. Banking in the UK improves your credit rating. A better credit rating is helpful when it comes to mortgages etc.
Using the wrong cards
- Do not use your UK debit or credit card to spend overseas. This can cost you £1.50 plus another 5% on the exchange rate for each transaction.
- There are plenty of companies out there that offer multi-currency cards. Centtrip, Revolut, and Transferwise to name a few. Remember, these companies are great for their cards. They are not banks but their cards will save you another 5%.
- No matter what offers you see from UK card providers, they are still expensive.
- “No foreign transaction fees” doesn’t mean the card is free to use. There will still be exchange rate fees.
- “No ATM fees” doesn’t mean the card is free either. You will still lose on the exchange.
What should you do now?
- Ditch your offshore bank for a UK-based bank with a currency account. You should use this to get paid into and save having €2500 tied up for no reason. Remember, it could earn you a lot over the next 30 years.
- Avoid getting paid into an account that is a different currency from your salary. Exchange fees add up over time and can cost you a lot.
- DO NOT use your UK debit or credit cards overseas. That’s another 5% right there.
After all of that, where is my £50k?
We knew you would ask that and have saved the best to last. So, let’s have a look, shall we?
- Getting paid into a bank in the wrong currency can cost you 5%. Over a year that can be anything from €1500 (if you earn €2500 per month) t0 €9000 (if you earn €15000 per month). If you invested €1500 per year for 10 years at a moderate return it would be worth €24,000
- Leave €2500 sitting in an offshore bank account for 10 years and it does nothing. Put this in a pension for 10 years with an average return and you have €11,000. *Obviously this is not a guarantee but an illustration of what your money could do.
- Using the wrong card throughout your career can also cost you 5%. Throughout your career this is approximately €10,000 but more likely a lot more. If you invested €1000 per year for 10 years at a moderate return it would be worth €14,800
Bear this in mind:
This is not a huge amount of money in the grand scheme of things. However, the point here is that it is YOURS so hang on to it. Don’t waste your money for no reason. Don’t give it away because you don’t know the best way to save it. Add this €50k to your other savings and investments and it adds up to a better and easier life for you after yachting.
Crewfo was set up to make this kind of thing easy for Superyacht Crew. Yes, we do Taxes, Mortgages, and lots of other things too but you have to start with waste. If you don’t waste it you will find it easier to make it!
For more money-saving tips, check out our 5 ways you can be smarter with your money.