What shall I do next?

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Life after yachting. Is it really that tough?

This is a question we get asked a lot because we’ve been in your shoes. We did the training, got the experience, worked hard, did the long hours, earned good money and left the industry. Is it hard to leave? Yes it is, very.

crewFO-FP4“How can you live on such a small amount of money?” is the question most ask.

The answer is it takes some getting used to but as I am sure you might have guessed, it is far from impossible. Before you make the leap here are a few things for you to think about first;

1. Getting out of yachting is a lot harder than getting into it. Make a plan, work out what you want to do and where. Follow this with some serious research and networking in this area.

2. Never leave yachting before you have at least a few options or an actual job to go to. Money goes fast when you are used to a Yachtie lifestyle and have no income or a yacht to live on!

3. Use your experience. Don’t limit your time in yachting to gaining purely yacht focused qualifications or experience. Remember, transferable skills are the key to your future.

4. There are only a limited number of jobs in Yacht management, charter or brokerage and most of these have specific requirements. Therefore, to borrow a phrase from one of the larger companies in this area “think outside the box”

5. Be prepared for your exit from yachting to take some time. You will not find your perfect shore based job in a hurry and so do not expect to. Give yourself some time and plan so that you are not in a hurry. Those who leave yachting without a clear plan end up back on yachts after 6 months.

6. With number 5 in mind remember this. Most people leave yachting twice. The first time is a mistake and they either rushed it or thought they were ready, panicked and went back to yachts. The second time you know what to expect and have planned your exit properly.

There are also, apart from finding a job a fair few other things to think about before moving ashore. A lot of British crew will fortunately not have had this problem but tax plays a major part in your life after yachting. It is important to bear this in mind along with overheads and budgeting as you will no longer be in the fortunate position of not having to worry about bills. Here are some of the things to make sure you have a grasp of before you move ashore;

1. Tax

2. Rent or mortgage

3. Food

4. Overheads such as car, travel, insurance, clothes, toiletries all add up to a considerable amount of money per month.

Take all of the above into account before planning your move as the total cost may come as a shock to you if you have been on yachts for a while.

In reality, when it comes to all of the points above Yachting does unfortunately loosen your grip on reality considerably. Add up the fact that you get paid well, do not pay tax, have no overheads and don’t even have to pay for deodorant and it is easy to see how moving back home can come as a shock that causes many people to change their minds after a few months. Life, after all is expensive and the hard truth is that there are very few jobs out there that, without taking a huge risk and setting up your own business (as many have) will pay you anywhere close to your yachting salary.

Is there another option?

I knew someone would ask that and yes, of course there is. Look at all the plus points of the job you have now which I touched on in the last paragraph. You have somewhere close to 100% disposable income in yachting, something which none of your peers have. Also, pretty much every year from the beginning of your career your salary will increase in line with experience and training. Add into this no tax etc and you are way ahead already. So, shall we do something with this in the short term which will make your long term exit strategy much simpler?

I thought you might say that. Think about this;

Avoid wasting your money:

  • Make sure your bank account is the same currency as you get paid in
  • Use a card that works in the same currency as the country you are in.
  • Think about how you move money from one bank account to another.

All of the above, if you don’t pay attention will cost you up to 1 months salary per year. Yes that is a lot of money and the sad thing is that because you only loose a few Euros or Pounds here and there you don’t miss it. What if I told you that over a 10 year career this could easily add up to €45,000 if not more in wasted money? Then think about the fact that if you had invested this money instead of wasted it you could have over €150,000 by doing close to nothing? Frightening isn’t it? And that is just the money that you are losing down the back of the sofa!

Make an investment plan:

Now you have got over the shock of what you could do with the money you are wasting, let’s look at doing something with the rest.

  • Think about what you want/ need financially when you leave yachting.
    • Property with rental income? If so, how much?
    • Investments which will pay a lump sum or annuity? How much do you need?
    • Your own home without a mortgage or very little owing?
    • Pensions?
    • Insurance?
    • Bonds?

All it takes is to make a plan and stick to it. Now this may sound a lot simpler than it actually is for many as the first question will undoubtedly be “where do I start?” purely because most yacht crew do not understand the world of investments, banking, tax and finance. And this is where the next step for you is key. The only sensible way to do this is to use a professional. The reason I am saying this is not just to sell our services but more to do with the

Published on 23rd February 2016 in by