It's 1:30 am and you are still working! Is it really August; have we reached the halfway point yet for this season? You are already dreaming of the end - putting your feet up and spending some of those hard earned tips.
But then it hits you... Groundhog Day... you save and you spend. You save and you spend. The cycle never stops. You're a hamster on a treadmill - spinning away, yet standing still. Don't get me wrong, yachting is a lot of fun, and there are far worse treadmills to be on, but surely there must be more?
A thought sails through your mind... 'What if, instead of working for the boss I start thinking like the boss?'. They aren't going through an annual cycle of boom and bust. So what is it that separates us from them?
In a word: INVESTMENT. They take their money and put it to work.
Yachties find themselves in the unique position of being well paid, with few overheads and plenty of disposable income. The key is to take that cash and make it work for you while you work away. This is why property is a great proposition, it's a low maintenance investment that can provide rental income alongside appreciation of your asset(s).
You may still think seafarers can't get mortgages, or that at best it's bloody hard! That's not the case, but its essential that you save those tips, build that deposit, and get the right advice to help you navigate the tricky financial waters. And this includes getting your financials in good order.
If you want banks and financial organisations to take you seriously you need to be on top of it and if you want to obtain a mortgage you need to be able to demonstrate that you earn money. The only way you can do that is to address your tax situation.
Even this need not be a scary prospect and, if you seek professional advice, you may well find through the various tax exemptions available to seafarers, such as the Seafarers Earnings Deduction and the Foreign Earned Income Exclusion, that you owe little or no tax at all.
If you would like further advice please contact Patrick Maflin at Marine Accounts for a Tax & Mortgages consultation.