11/02/2020
Three Financial Mistakes Seafarers are not Tired of Doing
We all know that seafarers are one of the top paid professionals there is. However, seafarers are also one of the top in-debt professionals! Sadly this is true since a vast majority of seafarers are financially struggling. What is even more surprising is that the majority of them are management ranking seafarers such chief engineer and captains who are earning half a million per month but are spending a million per month. A cycle of embarkation-pay bill-sign off-“make utang”-embarkation again has become a habit of today’s seafarer. In order to break down what is the root cause leading to this tiring and toxic lifestyle, here are the three financial mistakes seafarers have never get tired of doing:
1. Treating houses, properties, and cars as assets
The very culprit of financial struggles experienced by most seafarers can be traced back to the confusion on what asset really means. For the purpose of enlightenment, an asset is any property or material that puts money in your pocket. On the other hand, liability is anything that takes away money from your pocket. Now let’s do some evaluation, is your personal home putting money in your pocket? NO! Because it takes away money in the form of electric bills, water bills and property taxes. Is your personal car an asset? Unless you are using it on your business, NO! because it takes away money in the form of insurance, maintenance, fuel and etc. Is your idle land an asset? Unless you have developed it four your business or is being leased, NO! It also takes away money in the form of maintenance, development, and taxes. Start putting your money on real assets such as business, stock market, mutual funds, bonds, and insurance.
2. Wanting to have a return on investment fat and fast
One underlying culture of Filipinos when it comes to money is that we want it fast, fat and easy. That is why we are so addicted to the lottery, pusta, jueteng, last 3, etc. That is also the main reason why more and more Filipinos fall into the trap of scammers. Whenever they see an investment opportunity guaranteeing a 100 percent return in a span of 1 year with a little capital, they immediately give in! Remember when something is so good to be true, then it is a scam (A return of more than 20 percent is questionable). An investment that guarantees is a scam (heck, even the stock market fluctuates!). There is no free lunch. Every investment needs time and it’s not going to be a walk in the park.
3. The habit of negative cash flow.
We understand since most seafarers are breadwinners in their families that sometimes we tend to give more than what we can. We want to help all the people we cared for as much as possible. This is a noble thing but just don’t forget that in the process you have also to set aside for yourself. Since during times of trouble, there is nothing you can really rely on other than yourself. If you are single, understand that there will come a time when you will settle with the one you love and decide to start a family. There will always dark days ahead of us. Refrain from releasing an amount of money out of your pocket far greater from those coming in. Don’t give in to the society’s toxic thinking that since you’re a seafarer everything has to be grand. You’ve got to have the coolest gadgets, the most expensive car, the biggest house, the grandest party, and the fanciest clothes.
Let’s try to break that cycle of embark-pay-disembark-debt-embark again! The only person that can help you do that is yourself. Don’t let yourself become a prisoner of the seas for the rest of your life. Kudos!
Credit to Millenial Seafarers
