How to save:
This is something we are asked about all the time. Superyacht crew can find saving very difficult. But why is this? We decided to ask some crew to find out. Here are some of the answers we got back.
- “If I have money in the bank I spend it”
- “I don’t know how to save”
- “There is always something going on so I join in”
- “There is too much temptation in the places we go”
- “I have financial commitments at home”
Too many excuses?
Yes, maybe. All the reasons above are fair points but only one of them is a valid excuse for not saving. The rest are simply to do with budgeting, planning and will power.
So, how do I save?
Once you get started it is easy. Making a start is the hard part so here are some tips on the best way to start saving.
- Set yourself a budget every month and put the rest of the money where you can’t get at it.
- Make a plan that suits your budget. Most people don’t go out 5 nights a week so maybe limit yourself to 2.
- Work out a savings goal. Work out a figure you want to save each year and divide by 12. Easy!
- Look at your will power. Maybe this needs a bit of attention.
Give me some ideas on How to save.
Here at Crew Family Office we are here to help. All our members get a free planning session each year and we are always here for advice as and when you need it. Please feel free to pick up the phone, email or message us and we can talk through some ideas that may help you save. For now, here are some ideas to get your savings on the right track.
- We recommend Superyacht Crew should be buying a BTL property every two years. This means that for a £150,000 house you need to save £37,500 every two years. As junior crew this can be quite a sacrifice but it gives you something to aim for. You might not manage £18,750 per year but £12,000 or £1000 per month could be a good start. Can you manage that?
- You don’t pay tax (you are doing your tax returns with us aren’t you?) and so at least 20% of your salary is free money. This should be the absolute minimum you are saving. 30% would be better..
- Do you earn tips? Some of you do really well here and a lot of you have a rule. Spend your tips and save your salary. This is great, as long as it corresponds to at least 30% of your salary per year. Better still would be to save all your tips plus 30% of your salary. THIS is how you get ahead.
Here is an example of the absolute minimum you should be saving relative to your salary. This table assumes you have no other outgoings and so please adjust accordingly.
Salaries are based loosely on 50-55m yacht salaries:
Position: Salary Savings per month
Captain €12,500 €5,000
1st Officer €6,500 €2,600
Ch Engineer €10,000 €4,000
Ch Stew €6,300 €2,520
Chef €6,700 €2,680
Bosun €3,800 €1,140
Stewardess/ deck (experienced) €3,200 €960
Deck/ Stewardess (junior) €2,500 €500
*please note. This is a basic calculation and is based on either 40%, 30% or 20% of salary based on earnings. Salary figures are an average (based on information found here) and should not be used as a reference point for salary expectations. It is just a tool to help you make a calculation.
That’s simple, start saving. Based on what we have said and the table above you should have a good idea of the absolute minimum you should be saving each month. Now, let’s make a start. If you have any questions or are finding it difficult to plan, make a start, or stick with it, get in touch and we will talk it through with you.