How NOT to Save Money

How NOT to save money when working as an international school teacher #3: Send money home every month (Mortgage, College Debt, etc.)

May 25, 2014


We all hear about the big possibility of saving money while working at international schools, but the reality is that many of us don’t save much of any money.  So, why aren’t these international school teachers saving money?

How NOT to save money when working as an international school teacher #3 – Send money home every month to pay your mortgage, college debt, etc.)

DSC_9710Not all teachers decide to move abroad because they have a sense for adventure. It is because they need to save some money to pay off their debts; which we all know is something hard to accomplish as a teacher back in your home country!

Do you have a similar story?  You just finish getting your Bachelor’s degree and teaching license at a good university (working part-time as well of course). Then you take out one loan (a big one at that) to do your 15-month Master’s degree programme (while continuing to work part-time!).  Finally you receive your license and luckily get a teaching job straight away. You just start getting into the world of the working adult while just starting to pay off your student loans. The payment is so small each month, you hardly see any of your loan amount going down. Then you hear about a programme that states if you work continuously in a school of high poverty for five years, that your government will take some money off of your total loan amount. Finally after working six years and getting a part of your loan paid off by the government, you find it is the right time to finally teach abroad like your friends are doing.  Unfortunately, you DSC_4746still have some of your student loan left to be paid (even after you receive the help from the government).  Also during this time, you bought a house and now have a mortgage payment as well.  Deciding it might be a good idea to rent out your house while you teach abroad, you continue to own it while you set off to your first placement.  To make a long story short, you have two monthly payments that are not going to stop anytime soon.

So the big question is, do you work abroad to save money to pay off your loans or do you work abroad to enjoy the wonderful expat life of traveling and exploring the world?  Can you do both?  Many of us try!

Your original goal of paying off your debt with all this extra money you are making teaching abroad might not happen as quickly as you had originally hoped.  I mean there is always another break coming up and a trip to be planned! And I don’t need to remind you that you might also find your travel money dwindling away as you continue to make those student loan and house payments.  Thus the cycle continues; whatever savings you start to have to help you pay off your loans just gets sucked away into whatever you need to pay for at the time.  There are always things that come up here and there that you need to put your savings towards: deposit for your new apartment, helping a family member in need, etc.

Of course, the easy answer to finally pay off your loans is to just simply stop traveling and going out to eat all the time, but of course that is easier said than IMG_0061done.  Maybe you can earn some extra money by tutoring some kids at your school, but then that takes away from that wonderful expat life as well…causing you to stay late at your school.  I guess there needs to be some give and take somewhere to help you achieve your goal. Where are those international schools again where you can have it all (paying off debts while continue to live the wonderfully exciting life of an expat)?  I’m not for sure they exist.

But there is a light at the end of the tunnel.  Maybe after 8-10 years of working abroad you finally have your financial situation under control. You find that you have enough extra savings to make a one-time payment to pay off the rest of your student loan.  Yes, you’d rather use that money to take a trip to the Seychelles, but you know it is something you must do and the time is finally right to do it.

The goal of finally being debt free is a good goal to have. Can you just imagine the life of an expat international school teacher who is debt free?  Now at last you will be saving thousands each month!  {If only it were that easy!}

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10250675_670889319613030_1138008231_nTo save you some money, we do have a comment topic on our website related to this theme.  It is in the benefits section of the comments and information tab on the school profile pages. It is called: Average amount of money that is left to be saved.

‘Depending on lifestyle and housing expenses you could save around $10,000US a year.’ – Green School Bali (Denpasar, Indonesia) – 44 Comments

‘The amount that can be saved depends entirely on how teachers choose to spend their money. It’s entirely possible to eat at nice restaurants daily and stay in accommodations that cost 50,000 baht per month or more. However, it’s also possible to stay in a decent condo or apartment for 20,000 – 30,000 baht per month, and spend much less on food and other necessities.’ – NIST International School (Bangkok, Thailand) – 29 Comments

‘You can save about 1000 USD a month once you are settled and are able to budget yourself. Of course, the less you do, the more you save.’ – Canadian International School Bangalore (Bangalore, India) – 18 Comments

‘A single person, if they choose to live modestly, could easily save $1000-$2,000 a month. The EPF program also is an automatic savings (retirement) which is an additional savings of $1,000 a month through school and self contribution. That money also earns interest while you live in the country.’ – Mont’Kiara International School (Kuala Lumpur, Malaysia) – 27 Comments