Owning and working on a ship while cruising various countries seems like a dream come true for some people. The pay is good, the expenses of your lodging is on the ship plus you get medical and health benefits. All of this provides a sense of security that seems absent in other career. However, the actual job of a seafarer is quite different and when it comes to financial situations, the reality of maritime finances may not be as secure as you think. There are some mistakes all seafarers commonly make regarding their finances that cost them a lot in the long run. If you are a seafarer or want to become one in the future, it is better to have knowledge of these mistakes so that you can avoid them.
They Don’t Get a Life and Medical Insurance
Most seafarers are under the impression that their job at the yacht provides them with adequate life insurance. This impression is totally wrong because even though the job does provide them with insurance, it does not cover their lives. All seafarers should get a life insurance for themselves separate from what the job offers.
They Don’t Have a Medical Insurance
Similarly, their job only provides them medical insurance for the duration of their work. If they get injured during working hours, the ship owner will cover the expense of the treatment however, if they get injured outside of working hours, the job will not cover their medical fees. It is important that seafarers get a medical insurance for themselves plus for their families as well.
Not Paying the Tax
Almost all seafarer are misinformed about the tax laws. They think because they spend most of the time offshore, they are not entitled to pay taxes. This common mistakes can costs them a lot in later years when they have retired and want to live in their home country. It is important to stay updated about the latest maritime tax and accounting laws in your respective countries so that you don’t suffer financially in your old age.
They don’t have a Savings Plan
For a seafarer, it is necessary to have a proper savings plan for the latter half of their lives. Most young seafarers are not serious about savings and live pay to pay or send their money back home. However, this attitude leaves them with no savings for their retirement. Also, if they decide to start a family in the future, it will be really difficult without adequate savings. Seafarers should have a proper savings plan early in their life so that they can support themselves and their families in the future.
Not Having a Sufficient Emergency Fund
As said earlier, seafarers and yacht crew members usually live from pay to pay. This makes them completely unprepared in case of accidents. A seafarer should deposit a considerable amount of money in a separate account for at least three months in order to have sufficient emergency funds.