We’re almost at the end of the season… Hurrah! Whilst some of you may have spent the last month dreaming of your own bed, I’m sure there are others with more extravagant ideas in mind. Whilst a flashy new watch or a weekend away in a penthouse apartment may be tempting, the real question you should be asking yourself is “how can I make my money work for me in the longer term?”.
Rather than a time at which you can flash the cash you find burning a hole in your pocket; the end of the season could be seen as an opportunity to take advantage of the unique position you find yourself in as a member of this industry. There are not many who will find themselves having had a summer of hard work and enjoyment, with little money spent and a healthy bank balance to show for it. For those of you who can muster the strength to resist a post summer splurge, in this article we will look at 5 ways in which you can make your money work as hard for you as you did to get it.
1.Pay your debts
Whilst this may not be the most exciting item on the list, credit card debts and loans which sit unpaid for periods of time are surely one of the biggest wastes of your money. The longer your debt sits, the more money it costs you. Although it might be painful and feel like you are paying something for nothing, failing to pay these only means you pay even more.
2.Plan for retirement
Whilst it may seem a long way away, I’m sure your Grandmother or Grandfather would be the first to tell you it comes around much quicker than you would think. If you have not done so already, seeking advice from an Independent Financial adviser and beginning to invest for your retirement would be widely touted as a great option.
3.Save for a big purchase
Whilst making an extravagant purchase can be considered frivolous in some cases, the value in any purchase is surely determined by the buyer. If a Rolex or a Bugatti (maybe not quite yet) have been your dream since 10 years old, then this could certainly be a worthwhile investment. Whilst other items on this list may be more beneficial to you in the long term, there’s certainly nothing wrong with saving for a few years for a special purchase.
4.Stocks & Shares
When stocks & shares are mentioned, many will imagine someone sitting behind 5 computer screens analysing data from graphs and predicting how their values will move, however with the right investment fund you can find the right person to do all that hard work for you. As this option certainly comes with risk and there would be instances where you can lose money, it would always be advisable to consult with a professional before making any investment.
5.The biggest purchase – A Mortgage
A common myth within the industry should be debunked here; investing in property will in most cases be the biggest single purchase anyone will make in their entire life, and there is a common misconception that this is not an option when you work in the yachting industry. Whilst it’s true that financial institutions will want to see proof of your income, following the introduction of the Common Reporting Standard, failing to disclose your income is really no longer an option anyway. With this move to full disclosure, a plethora of investment and lending options will open-up to you.
If you would like further advice on tax & mortgages we are here to help, click on the link below to get in touch:
Any advice in this publication is not intended or written by Marine Accounts to be used by a client or entity for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party matters herein. This article is intended only to be descriptive of the options available to you and should not be taken as advice on which investments are appropriate for any individual.