Five Steps to Financial Success
Like money? Me too. Everybody does and I am sure we would all like more of it to get a new gadget, travel the world, help others or go back to school. Except as English teachers, we do not make a lot of it. Sure, we can live comfortably but it is no “get rich quickly”scheme. However, we can use our time in Korea to set ourselves up for financial success by following these five simple steps.
Step 1: Make Good Decisions About Jobs
When you are deciding which job to take in Korea, there are many things to consider including salary, airfare, housing, teaching hours and vacation.
One Example:
Job A has a salary of 3.0 million won, but you could have 30-plus teaching hours, which will leave you exhausted and likely hating your life. Result? Spending way too much money to compensate for your unhappiness.
Job B has a salary of 2.0 million won, but comes with low teaching hours and lots of vacation. If there are legal overtime opportunities, it could be a better deal than the previous job.
Job C has a salary of 2.3 million won and 30 teaching hours, but it’s a company in which there are opportunities for promotions, so it might make a better choice.
It is a big decision! Do not take it lightly.
Step 2: Build a Small Emergency Fund
An emergency fund is a necessity. I am sure we have all seen those stories floating around the Internet of someone who gets sick and has a bill of a couple thousand dollars they cannot afford to pay so they are forced to beg from total strangers. If those people had some money in the bank they could have just paid the bill and not had all that stress. Ideally, you would have some money saved up before you went abroad but if not, it is time to get started. I recommend $2,000 USD because that should cover most emergency situations that you would face here in Korea. Later, once you pay off your debts, you should build this up even more so that you have around six months of living expenses stacked away.
Step 3: Pay Off Your Debts
Once you have built your small emergency fund, it is time to turn all your attention towards paying off debt. The key to having a bright financial future is to pay off these debts as quickly as possible. You want to have your money working for you (earning interest) and not against you (paying interest).
Step 4: Build a Pool of Money and Research Investment Options
Once you have paid off your debts and have an emergency fund, it is time to get started with investing. It pays to do your research and you should trust nobody but yourself when it comes to making any final decisions about your money. Here are three resources to get you started:
Investopedia (www.investopedia.com). Easy to understand definitions of common financial terms as well as educational articles.
Andrew Hallam – “The Global Expatriate’s Guide to Investing.” Required reading for any expat who works abroad. I wish I had found it sooner than I did!
Jackie Bolen – “The Wealthy English Teacher.” The only personal finance book specifically for English teachers, written with the total beginner in mind. Also, check out the Wealthy English Teacher’s website.(http://wealthyenglishteacher.com/)
Step 5: Invest Now and Be Rewarded Later!
After you have done your research it is time to finally invest. You do this by opening up a brokerage account—“The Wealthy English Teacher” and “The Global Expatriate’s Guide to Investing” both have recommendations for ones that you can use while living abroad. Keep researching, investing and of course, pat yourself on the back for your financial good sense and making an investment in your long-term success.
About Jackie Bolen
Jackie Bolen has been working in South Korean universities for the past ten years and is the author of The Wealthy English Teacher, which is available on Amazon (http://amzn.to/1O4WFaH). You can find her other books about teaching English and life in Korea at www.jackiebolen.com.