Working on a cruise ship can be a great way to save money while you’re traveling the world. Very few jobs we’ll pay you to travel and when they do it’s usually for a few days to a place that is not as exotic as cruise ships can take you. The beauty of working on a cruise ship is that your home is moving away with you. You sleep in one city and wake up in another. Your commute can be as short as a couple of minutes from your cabin to your workplace.
When working on a cruise ship one of the biggest perks is that you don’t have any fixed bills like you would have if you lived on land. On a cruise ship, you don’t have to pay for food, accommodation, laundry, electricity, heating, or medical insurance since it’s all taken care of.
We will discuss some aspects you should take into consideration before deciding that a cruise ship salary might be too low for you.
The Illusion of Low Pay: Don’t Let It Fool You
When comparing cruise ship salaries, you will notice that the salary might be low when taking into consideration a comparable job on land, and that can discourage you even before you start researching more about life at sea. Cruise ships pay in US dollars, and when taking currency conversion into consideration, many people outside the USA might end up making way more working on a cruise ship than they can make working in their home country. For example, someone from Brazil, where the minimum wage is BRL 1,300.00 (Approx $272 US dollars), working as a waiter onboard can expect to make onboard upwards of $2500 dollars, as much as ten times the minimum wage in their home country.
A lot of people will dismiss an opportunity at sea before researching more and comparing numbers. Let’s check and see if working on a cruise ship makes sense from a financial point of view:
Check Your Expenses
If you think of a typical job on land where you have your gross salary, the money you get paid before all expenses are taken into consideration. Even before you get to see your money, taxes are taken out of your paycheck and other fees; then come certain fixed bills that most of us have to pay, like:
- Rent
- Water
- Gas
- Electricity
- Car payment
- Insurance
- Phone
- Internet
Once you pay all your fixed bills, depending on your salary and circumstances, you might have some money left. That money, let’s call net income, is the money that’s yours to spend any way you like it; be it at the movies, drinks, parties, travel, etc. That money, your true net income, is the money that you should compare against the salary offered to you by the cruise line.
There are some costs associated before you start working onboard but once you start working, the only expense you will have will be taxes you have to pay. If you are a US citizen working for an American company, they will take federal taxes out of your paycheck. Some companies might take taxes from your paycheck depending on your nationality and the company’s country of origin. Everything else is your true net income. Now what you decide to do with that money is up to you. Save it all, spend it all, or a combination of both. I suggest enjoying your time on ships but using your money wisely.
You Can Choose to Save a Lot or Not
There are some people that can save a lot of money during their contract onboard. I have heard of stories about crew members opening businesses back in their home country; using the money to buy property; some people made good money that they didn’t have to come back to ships. While some people decide to go for the savings route, others decide to go work on ships for the experience. They do not save a lot of money but they do spend their money in a way that makes them happy, fulfilled for most of the time. if you were working an itinerary in Europe and making your salary in US dollars, you can expect to spend the majority of your money outside the ship like eating pizza around Naples, having coffee, or even splurging on a shore excursion.
Saving Money While Not Sacrificing Fun
If you take advantage of the onboard activities offered for the crew they’ll be little to no money involved on your part. There are a lot of activities catered just for the crew onboard like crew barbecues, crew parties with free alcohol most of the time, and special themed dinners like Thanksgiving, Halloween, and Christmas are among many other fun activities provided at little to no additional cost for the crew.
When you are in a Port of call you can be tempted to go blow all your money outside. Most likely at the beginning of a contract, you will want to go to explore and see as many things as you can, and saving money won’t be on your mind. Just remember that the places that the cruise ship goes to are well-known tourist places with inflated tourist prices.
You Will Not Get Paid While on Vacation
One of the great perks of working on a cruise ship is a long vacation that you get to enjoy. As a rule of thumb, for every month worked you get one week of vacation. When working on a cruise ship you are essentially a contractor for the cruise line, you’re not an employee. That means that when your contract ends, so does your pay. You will not get paid until you sign a new contract with the cruise line and only after the first 30 days of your new contract. Most cruise lines will provide you with the date of your next assignment before you leave your current ship, so you will know when you’ll be returning and to what ship you will be returning to.
You won’t get paid while on vacation so make sure that you save your money to last your vacation and at least for the first month of your new contract because again, you’re not going to get paid until the end of your first month onboard. For example, if you have a two-month vacation, you will need to make sure you save enough money to cover your vacation plus enough money to cover your first month back onboard. Based on this scenario, you need to save money to last at least three months. It is a horrible feeling when you run out of money during your vacation because that means you’ll be stuck at home with no money to enjoy, and during your next contract onboard, you won’t be able to spend any money because you won’t get paid until the end of the month. Trust me that happened to me before and it was not a good experience.
How does the Crew Get Paid?
Cruise lines will often pay once a month, on the first business day of the month. You have the option to request a cash advance of up to 50% of your salary to be paid on the 15th of every month. You will receive your full salary plus tips and commission, if you are on a tip or commission salary, at the end of every month.
When I started working on cruise ships, we got paid in cash, which was not an ideal scenario. Walking around the ship with a stash of money made me feel richer but vulnerable at the same time. Going to deposit that money later in the bank was a scary event. Walking around downtown Miami with an envelope full of cash was scary, to say the least.
Nowadays cruise lines partnered with companies that provide the crewmembers a prepaid debit card, where the salary is deposited on their account. Depending on the company, the crew gets one free ATM withdrawal a month and there’s a fee for subsequent withdrawals. You could also transfer money from your prepaid card to a bank account but depending on the country you’re from, you might have to pay transfer fees. If you have a US bank account, at least with Brightwell (formerly OcenPay), it was free to transfer from your prepaid card to your bank account as long as the account was based in the USA.
Going on Vacation with Cash? Make Sure you Declare that Money!
If you are traveling from the USA to your home country, and if you are carrying over $10,000 in cash, make sure that you declare the money to CBP Customs at the airport before departing. If you were caught with that amount of money without being declared ahead of time, you run the risk of having the money seized from you. You don’t want your hard-earned money confiscated from you because of a simple mistake. You can either transfer your money to your bank account before you travel or should make sure to carry less than $10,000 in cash with you at all times.
“Failure to declare monetary instruments in amounts valued more than $10,000 can result in its seizure.”
CBP.GOV
Final Words
Working on a cruise ship can be a great way for you to save money while traveling the world. You can save a bigger chunk of money while working on a cruise ship than you could otherwise save if you were working on land. You can also see this opportunity to sustain your travel addiction as I did. The money saved onboard was enough for me to pay my bills and travel on my vacation, adding more destinations to my travel bucket list.
What will you do with your money is up to you. Use it the way you feel will bring the most satisfaction to you.
“The art is not making money but keeping it”
Proverb
