BUDGETING FOR MOVING ABROAD
Are you thinking about moving abroad to teach English? Or, if you’re already teaching English abroad, are you looking for a new destination?
Budgeting is the most crucial step for being able to teach English abroad. When should you start your budget? Immediately. If you are still living at home, you will need to begin thinking about things like the cost of moving (including visas, transportation, and possible packing essentials), and a starter fund to get you through your expenses abroad before you get paid (rent, security deposit, groceries). It will likely be one month or more before you see your first paycheck.
PROGRAM BENEFITS
Some programs will offer to pay for your flight (Asia, the Middle East). Typically, this is offered as a flight reimbursement, so you will have to pay the money upfront.
Other programs, like mine, the North American Language and Culture Assistants in Spain, also known as Auxiliares de Conversacion, definitely do not offer such benefits, but there are still lots of ways to find a cheap flight. The point is, you need to be prepared to budget for it.
So, what do I recommend? Where you’re going and what incentives your program offer will greatly affect this amount. Spain will be more expensive than China. Saudi Arabia will offer lots of benefits that you won’t see elsewhere.
COST OF LIVING
Your first step in deciding on a moving abroad budget should be to check out cost of living calculators. I like this one, from Numbeo, because it lets you compare your destination to where you currently live. You can also use it to decide between two options if you have multiple offers.
A quick overview will show you that, in Vitoria-Gasteiz, Spain, rent prices are 24.97% lower than in Kalamazoo, Michigan. We have already seen an example of how changing locations has saved me approximately 25 hours of time per month. You will also see that restaurant prices are slightly higher in Vitoria than in Kalamazoo. An easy solution is to limit how often I eat out, and the price differences are mitigated. As an added bonus, grocery costs are 20.7% LOWER in Vitoria. If I’m eating out less, then I’m eating in more, and saving quite a bit in food expenses!
CALCULATING THE STARTER FUND
So how do you plan out how much money to bring with you? My regular income here is 700 Euros ($782) a month, and it is more than enough to get by. I recommend that you bring at least 3 months’ worth of expenses, which comes to about 2100 Euros ($2347) or 3000 Euros in Madrid ($3353). Unfurnished apartments will require significantly more money upfront, so I recommend that you filter your apartment searches to furnished apartments. Don’t shell out lots of money for furniture unless you are planning to stay in the same location long term.
If you are moving to a country other than Spain, you should find out what the average monthly income is there. You will likely be earning more than the average, so let’s use the 3000 Euros as a benchmark and adjust it for cost of living. In Seoul, South Korea, for example, you will see that the cost of living is slightly higher:
However, you should keep in mind that English teachers in South Korea usually have housing included in their contracts. Here’s a comparison between housing in Madrid and Seoul:
If you average the one bedroom apartments in the city center with those outside of the center, the price will be about 592 Euros ($662). You can subtract this amount X 3 months from your budget, leaving you with a goal of 1943 Euros ($2171).
Now let’s compare some of the other top teaching destinations. According to International TEFL academy, besides Spain and South Korea, which both make the list, here are some more great job markets for teaching English abroad, in order from the least expensive. Keep in mind that these figures are for 3 months’ expenses.
CHINA
In Beijing, you will need 1124 Euros ($1256) to have the same standard of living as 3000 Euros in Madrid, if housing is included in your contract. I subtracted 1415 Euros for 3 months average housing costs for a one bedroom apartment outside of the city center. If housing is not included, you will need 2539 Euros ($2837)
COLOMBIA
In Bogota, you would need about 1673 Euros ($1870) to have the same standard of living as 3000 Euros in Madrid
VIETNAM
In Ho Chi Minh City, you would need about 1904 Euros ($2128) to have the same standard of living as 3000 Euros in Madrid.
SOUTH KOREA
In Seoul, you would need about 1943 Euros ($2171) to have the same standard of living as 3000 Euros in Madrid. I subtracted 1776 Euros for three months average housing costs, which are typically included in the teacher’s contract.
POLAND
In Warsaw, you would need about 2038 Euros ($2278) to have the same standard of living as 3000 Euros in Madrid.
CZECH REPUBLIC
In Prague, you would need about 2190 Euros ($2447) to have the same standard of living as 3000 Euros in Madrid.
BRAZIL
In Brasilia, you would need 2220 Euros ($2481) to have the same standard of living as 3000 Euros in Madrid.
TAIWAN
In Taipei, you would need about 2826 Euros ($3158) to have the same standard of living as 3000 Euros in Madrid.
Obviously, the more money you save before moving abroad, the more security you’ll have. This is important, as some programs are notorious for paying late. If your program offers you free housing, your monthly expenses will be lower, and you can adjust accordingly.
Please note that this figure is an estimate of what you should bring WITH you. Your airfare and legal documents, such as visas, background checks, et cetera, should NOT come out of this amount. A student visa (which my program requires) costs about $160 at the Chicago consulate. Prices and procedures may vary by consulate, so make sure you are well informed of your specific process.
CREATING YOUR MOVING ABROAD BUDGET AT HOME
Once you have your goal, you need a plan for saving that money before moving abroad. To do that, you need to look closely at your income and expenses. What you are currently earning? Do you have anything in savings? What are you are spending? Are all of your expenses necessary?
I recommend the EveryDollar app for budgeting. It allows you to understand visually where your money is going. Some of your expenses, like rent, are fixed, meaning that you cannot change it without incurring penalties. Others, such as food, gas, and fun money vary by month. These are the items you can target to help find savings within your current budget.
Restaurants have proven to be my biggest vice. What are some of yours?