Financial Freedom for Seafarers

The sea is full of life, adventure, and endless explorations. A seafarer holds more at heart, with duties that very few understand in entirety. Everything eventually takes as much as it gives. Nevertheless, after a voyage with money in the bank, there is something else to think about—a seafarer’s financial planning.

What do you do with your money? Consider all factors, including but not limited to your effort, time out at sea, and family. Remember that back home, you will be getting no more good news in your bank account without a sort of financial security. Investment is one of the most trusted financial securities of all time.

Why an investment? Besides financial security, consider the cost of upkeep maintenance every day you spend with your family, or even alone on a couch, consuming food, using water, and requiring an internet connection, clothing, and perhaps a change in scenery every once in a while.

All these expenses may require a little more of what you earn if you are to remain with anything by the time you head back out to sea.

So, what are some of the best investments for seafarers?

An idea of what you could do with your earning could put you at a better place of remaining financially afloat wherever you will be. Your financial stability means well to your family and anyone you care about, yourself included.

Below are some of the best investments you can consider:

1. Stock Market

You may have heard enough about stocks but not gotten a good idea of what it is all about. Stocks/shares grant you ownership of a piece of a company. Can’t help but wonder how? Your purchase of or subscription to a company’s shares earns you part holding of the company.

You can also consider stocks as a form of company ownership security or as a claim on a company’s assets/earnings.

A seafarer can invest in the stock market by subscribing to or purchasing a company’s shares, thus becoming a shareholder. Whether you head out to sea or are home for a while, earnings will stream into your bank account with the company’s appreciation of the purchased stock’s value.

Some companies send dividends to their shareholders or reward them with more shares. An increase in shares means more extensive ownership of a company or a higher claim on its assets/earnings.

for investing in the stock market you need Demat Account

2. Mutual Fund

One other among seafarer investments is a mutual fund. You can consider a mutual fund to be an investment company. Thanks to its nature, the company invites many investors for long-term returns, thus discouraging frequent trades.

If you are hoping for investment with limited risks of losses, this could make a worthwhile consideration.

The company invests in various assets and relieves the pressure of seeking out options. Mutual funds diversify in bonds, stocks, real estate, commodities, index, and balanced funds, among other assets.

A seafarer’s money could go into purchasing a desired mutual fund’s shares. Profits acquired from the assets over time come as rewards wherever you will be. What is more, you may find a mutual fund’s shares easy to purchase and redeem.

If you are planning to invest in a Mutual Fund you need a Demat Account

3. Cryptocurrency

Cryptocurrency is often the talk of our digital business world. What does it involve, and what could it mean to a seafarer’s financial success?

Crypto is a Greek derivation of Kryptós, which best translates to “hidden.” We can also consider it “secret.” As the name suggests, cryptocurrency is unlike any other digital currency—coding keeps its financial records heavily secured in the interest of safe and successful trading of goods and services.

Perhaps the most renowned cryptocurrency would be Bitcoin. Like many others, it gains and loses value on a varying basis, meaning profits or losses (not easily predictable) to its investors.

As of August 7, 2021, CoinMarketCap’s data and analysis on Bitcoin’s market capitalization were $813.4 Billion.

Other cryptocurrencies with their market caps as per CoinMarketCap (and as of August 7, 2021) include Ethereum at $355.6 Billion, Tether at $62.1 Billion, Binance Coin at $58.5 Billion, Cardano at $45.8 Billion, XRP at $36.6 Billion, Dogecoin at $31.5 Billion, USD Coin at $27.6 Billion, Polkadot at $19.8 Billion, and Uniswap at $16.0 Billion, among others.

A seafarer can convert earnings in the relevant currency into Bitcoin or any other desired cryptocurrency—online wallets have made this possible. You can create the wallet in a cryptocurrency exchanges app, which you may find easy to install and run.

If you invest at right time in the right coin, it will make you a millionaire very fast. many peoples have become millionaires by investing in just peanuts.

There are so many exchanges to invest in the crypto market but you can join to invest in cryptocurrency by these exchanges which are simple and user-friendly interfaces.

a) Wazirx

b) Binance

c) Bitmart

4. Franchising 

There are more hassle-free ways to overcome a seafarer’s financial problems—consider franchising.

One of the things you may love about franchising is the ability to work with your family. If you intend to do so, you will have to establish a franchise, which is a business license. It allows franchisees to take over business owners’ day-to-day.

A franchise requires a franchisor (the business owner) to share all the significant knowledge and information about the business’s operations with a prospective franchisee. The franchisee then acquires a franchise (license) to take over the business dealings.

Working with your family has its perks. As the business owner, you can train your family members on business dealings through apprenticeship, easing pressure throughout the process. It is also easier and safer to trust your family with a franchise and thus entrust everything.

Should you choose to work with anyone else, the prospective franchisee should pay annual licensing and initial start-up fees. After that, they can acquire the franchise.

5. Fixed Deposits

Among the oldest investments that provide financial freedom for seafarers at low risk is bank Fixed Deposits. Many first-time investors opt for Fixed Deposits thanks to their return guarantee. It is thus a sure deal.

They are also risk-free (safe) and offer higher interest rates over those of savings or balances. While Government Bonds and Treasury Bills, too, offer enticing risk-free plans, none beats the interest rates of fixed deposits.

The offered flexibility in tenure also means that you can begin your journey at any point within at least a week to a decade, allowing you sufficient time.

Thanks to their liquidity, you can break your Fixed Deposits, in part or whole, with ease, should you desire to at any point.

Some investors may point in the direction of Derivative instruments or Equity shares, with claims of higher interest—they are worthwhile investments, considering their returns. But their risks will as well be higher.

A seafarer can invest in Fixed Deposits when home and return to the sea feeling safe and guaranteed some fixed earning.

Financial Freedom for Seafarers