A Yachtie's Guide to Personal Finance
These banks all want your money!

Don’t be too quick to spend your tip!

Hello all. As you probably know by now, I’m not a bullshitter, I get straight to the point. So, with being said, lets dive in on 2 topics.

Be conscious with your money

This is very important. Very. Important. 

Now, this doesn’t just mean ‘being good’ with money or not spending a lot. Although, not spending a lot on bullshit is good. I’ve already been through this, check it out here.

Anyway, what I’m talking about is more focused on behind the scenes stuff. It’s imperative to understand the following things…

  • Bank account fees
  • Credit card fees
  • ATM withdrawal fees
  • Bank card fees
  • Currency exchange fees
  • Investment account fees

Because these MF’s add up real quick, 0-100 real quick (sorry). 

Small charges can seem like nothing but overtime seriously add up and end up putting a huge dent in your money.

Every time you swipe a card there is a possible fee, every time you swipe a card with a different holding currency, every time you withdraw cash, fee, fee, fee, feeeeeesss, everywhere. 

Each time you buy a drink at the soggy dollar or blue lady you’re probably being charged…

I know it might seem boring to check your fees and really get to the root of how your money is converted and which banks are cheapest but it can make a huge difference. 

You’re spending more than you have to each time you swipe a card, etc, when you pay in different currencies or don’t have the best bank/card on the market. 

Understand how your money moves between accounts and how you pay for things and think, is the best way to be doing it? How can I save more money here? How can I maximize efficiency here?

Quick earn = quick spend

First of all, this isn’t the case for everyone. It’s more to showcase a general consensus and attitude that needs changing. 

Research has shown the relationship between how quickly money is earned and how quickly it’s spent.

Basically, the faster someone earns money the faster they are likely to spend it.

Why, you might ask?

Well, it’s all psychological. Money made quickly (say a tip or a charter season) feels like less work and therefore inspires an attitude of ‘well, I can make it back again quickly’

Example…

Jamie lands 3 month seasonal job on a busy 75m med charter boat where he earns a ‘salary’ of USD$3000 a month plus tips. 

Immediately then, he sees 9 grand in his future, but what about tips?

Lets just say he earns 10k in tips.

His total after 3 months work = USD$19,000. Amazing. (Kiwis, that’s about NZD32,000).

Although he worked hard during those 3 months, in the grand scheme of things, it seemed easy.

He instantly forgets about the anchor watches and night duties.

And, because it was earned so quickly and so ‘easily’ he spends it all. Jamie doesn’t share the attachment to money that an office worker might, for example.

Generally, folks who spend a lot of time earning money (yearly salary) become more protective over it as they understand the sacrifice they paid in order to get it. 

Jamie, though, spent a few months working and walked away with cash money and will probably end up back again season after season.

This is not Jamie.

It’s not Jamie’s fault, he hasn’t been financially educated but you, you reader, can become financially educated and change the way you deal with money. 

I’m not saying you shouldn’t spend a dime I’m simply suggesting we become more aware of how we can balance our spending so we can enjoy right now and our future. 

Check this link out for some further motivation.

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