Job Discussion Forums

GabeKessel · Joined: 27 Sep 2004 Posts: 150

If you get an English teaching job in a place like Thailand or Chile, and you get paid in local currency, please be prepared for one thing: when you get back to the "First World" and apply for loans or credit or other such financial products, you will often have to put on the form the amount of money you had been earning up to then. If you had been working in Thailand making 30,000-40,000 baht a month and living like a king, or working in Chile or Mexico making oodles of pesos, you will seem like a pauper when you put that you have only made USD$8,000-13,000 a year. The loan officers will not care that it was big money in the "Third World". You are below the official poverty line in your country, making less money than what a janitor would make there. That means that you may not qualify for credit, home loans and the such.

Please keep that in mind when you head for all those exotic countries where you will be living the life of Riley compared to the locals. You will be seen as a poverty-stricken street bum on the dole by credit agencies of your own country when you get back.

What is the solution? Make sure that you have enough credit built up before you go to such exotic destinations. If you will want to buy something on credit when you get back, you will need it for sizable downpayments as your earning history may not look that great to people granting you credit.

Jizzo T. Clown · Posted: Thu Dec 08, 2005 2:52 pm Post subject:

I know what you mean. I got my annual Social Security Report a few weeks ago. The government estimates that my yearly earnings from now on will be $2,300. I think my estimated benefits if I were disabled come to $200/month. I haven't had the brass to apply for a loan yet. Sad

GabeKessel · Joined: 27 Sep 2004 Posts: 150

I was living in up in Thailand, but I could not get any loans in the US when I came back. Forget about credit cards except secured ones. And my SS earnings will be $0. I will not get any as I lack two more years of working in the US before I qualify for something. I was amazed at how little money I'd made when I converted my baht into dollars. Living the illusion of riches in someone else's poorer land has that price. At least, if one works in the ME, one may not be contributing to social security but what one saves there may make up for it. Not if you gallivant around the Third World and enjoy your wealth in local currencies. There will be hell to pay when you go back home.

Promise me son, not to do the things I've done.

Hey, $200 a month can give you a good life in Burma and Bangladesh. Lucky you!

Mark Loyd · Joined: 13 Sep 2005 Posts: 517

Agreed but you can't tell most TEFLers.

Justin Trullinger · Posted: Thu Dec 08, 2005 5:05 pm Post subject:

If you want to spend a short time in a weaker economy, no problem. You'll be pretty much starting over, credit wise, but if it's only a few years, and you're young, no problem.

If you plan to spend a long time in one or various countries where earnings are low (by the standards of your country) you need to THINK.

I'm in Ecuador, with no plans to return "home" anytime soon. (Anytime at all, really, but you never know.) But I do think about the "what if." And there are ways, even in a third world economy, that you can invest in future possibilities.

One is training. Maybe it will take a year or two to establish a track record back home, but if you take advantage of your third world "affluence" and get an advanced degree (by distance learning, or from a respected, internationally known local university) you're increasing your earning power for when you get back, which will help.

Buying property where you are can also be a good investment. Many of us would have no problem buying a house on our local salaries, and if you buy smart, that property, ten years down the road, may make a nice big down payment on something back home.

But the biggest thing is, you have to think about what you want. If you're shooting for a comfortable investment portfolio and nice retirement income in your HOME COUNTRY, you really can't spend your life in much weaker economies. It just doesn't make economic sense. If you spend your earning life in a place where $600 a month is a good income, you can't expect to retire somewhere that you need $2000 a month to live.

Try the reverse- if you work hard and invest all your life in the UK, then retire to Trinidad, your retirement may be lifestyles of the rich and famous. The same switch of economies will work against you if your work all your life in Trinidad...

But by working and being smart in Ecuador, I could have a pretty comfortable retirement HERE. Not back home. But here, it could be fine. That may be okay with me. If you think it wouldn't be okay with you, you need to think about the consequences of your decisions. And the sooner the better.

Regards,
Justin

PS But a year or two, anywhere, can be put behind you faster than you think.

lady z · Joined: 28 Sep 2005 Posts: 39 Location: India

Justin, I thought that you're comments were quite well put and right on the mark.

Interesting antedote/reverse example: My uncle and aunt, who were retired school teachers from India, moved to the United States 5 years ago. All of us thought he was crazy to work two minimum wage jobs as a convient store clerk and a security guard, but for some reason he really enjoyed the experience. Now he is planning to go into second retirement, but this time with health insurance and pension from the U.S. so they can afford to live modestly here and much better quality of life when they are in India.

Mchristophermsw · Joined: 14 Apr 2005 Posts: 228

Hey Justin

Happy holidays my friend but let me a small correction regarding Trinidad.
One can have a very nice life/retirement in Trinidad if one is willing to live in the deep south area. The rest of Trinidad is highly expensive. For example, in Westmoorings town houses are going for over 800,000 USD.

Trinidad is the richest Caribbean Country and is very Westernized and continues to embrace Western Capitolism. My friends in TT are always telling me about how fast realestate prices are rising.

The biggest deal with Trinidad is home ownership. If you can buy a home free and clear and you have atleast 700 USD coming in you can live very well.

If anyone needs any advice about Trinidad PM me, as I own property there and also have lived in Worked in TT ( My wife is Trinidadian ).

Mchristophermsw · Joined: 14 Apr 2005 Posts: 228

Hey Justin

Happy holidays my friend but let me a small correction regarding Trinidad.
One can have a very nice life/retirement in Trinidad if one is willing to live in the deep south area. The rest of Trinidad is highly expensive. For example, in Westmoorings town houses are going for over 800,000 USD.

Trinidad is the richest Caribbean Country and is very Westernized and continues to embrace Western Capitolism. My friends in TT are always telling me about how fast realestate prices are rising.

The biggest deal with Trinidad is home ownership. If you can buy a home free and clear and you have atleast 700 USD coming in you can live very well.

If anyone needs any advice about Trinidad PM me, as I own property there and also have lived in Worked in TT ( My wife is Trinidadian ).

Gregor · Joined: 06 Jan 2005 Posts: 842 Location: Jakarta, Indonesia

I'm just guessing,
But I don't think Justin meant to SINGLE OUT Trinidad. I think it was just an example.
Anyway, yeah, you can worry about all this if you want to. My mother would certainly be delighted if I chose to do so. But let's look at another perspective. Just, you know, to show some balanced perspective for newbies who might be looking in.
I gave none of this sort of thing any thought at all. But now that I am doing so, just because of this particularly "scary" post, what's wrong with a secured credit card? Pay it off like a good boy (or girl), and that reflects positively. You can build up your credit in plenty of time. What's the rush?
In fact, it's just as well that you can't get a mortgage or bank or car loan as soon as you come back. You need time to settle back in. You need to find a job, a place to live, and that sort of thing. By the time you've managed these things, if you're also using a credit card and doing whatever you can in dribs and drabs to build up your credit rating, and then you're good to go.

AND, this is assuming that you want to go home to retire. Why do you need to do that? My wife and I are going back to the U.S. soon, to see if we can't make a go of things. We'll even buy a house there, if we can work it out. But the main thing is to build up a bit of a nest egg and maybe some sort of retirement plan in addition to the stuff we have in China.
In the mean time, we have real estate deals going on in Shenyang. These things go slowly because China takes a dim view of real estate speculation (at least until you're doing it in the millions of dollars - little private citizens are forbidden to do things like this to make money). But we do have some things in place, and the WORST CASE SCENARIO with these things is that we'll at LEAST have one decent home to return to whenever we want, which if all goes well won't be until we retire. But then we should have TONS of money, for living in China.
The point is, yes, the OP is right, so far as his point goes. It just doesn't demonstrate much creativity, otimism or hope, or much of a sense of adventure.
I strongly believe that if you jump into something with both feet and don't give yourself options out, then things can and will work out in your favor.
On the other hand, if you let things like the OP freak you out, you simply will not have as much fun, or as good a life, as I do.

guangho · Joined: 16 Oct 2004 Posts: 476 Location: in transit

I got a letter from Social Security saying that if I retired or became disabled, I will get a grand sum of 280 dollars per month. The thing is, with baby boomers abou to retire, I'm not all that sure that social security (a relatively recent invention) will still be around.
It's best not to put all your eggs in somebody else's basket anyway.

thelmadatter · Posted: Fri Dec 09, 2005 3:07 pm Post subject: 2 cents

Im not sure about the OP's point. Many people start and start over late in life. If your idea of an OK retirement is traveling the world, playing golf everyday while Uncle Sam (or your country's equivalent) pays for your necessities ... well, I got a bridge to sell you.

Im 41... and Im assuming there will be no Social Security or anything from the government for me if/when I get old. So I save money (what a concept!).

As for what I need for retirement... Im lucky that Im a simple person. I figure that if I got a roof over my head, food in my mouth, clothes on my back and access to a doctor once in a while... then Im all set.... everything else is gravy.

I was a SAHM until 2.5 years ago when I came to Mexico...

Now, Im lucky that i have a job that pays more than average in Mexico but I still have my US credit cards (with balances at 0). Once in a while I charge something on one and immediately pay it off to keep my credit rating. So no worries there. All I would need if I went back tomorrow is a job.

I think posters who nay-say to this extreme (we are doomed!) have very high expectations of what "normal" or "average" is. Many people do not live in 5-bedroom homes, have one or more cars for everyone in the family and take cruises every year... and many are perfectly happy.

OK Im being a little extremist in the opposite direction but my point is that if you plan to be at this TEFL gig for a long time... do some planning, but dont get scared out of it if you really want to do it.

Justin Trullinger · Posted: Fri Dec 09, 2005 3:21 pm Post subject:

Ooops. Never use random examples to make a point. I have never been to Tinidad. Haven't even read anything about Trinidad written in the last 15 years. Shouldn't have used that one. Embarassed

In my previous post, please insert "Guatemala" for "Trinidad." And I don't mean the touristy bits of Guatemala either...

Justin

Chris_Crossley

Justin Trullinger · Posted: Fri Dec 09, 2005 4:31 pm Post subject:

I don't know WHO can afford to buy in London right now. Nearly ten years ago I had a lease with an option to buy on a flat just off Brick Lane. Mortgage payments looked to scary, so I got out after a year. I, erm, think about that from time to time. A couple of years ago, I happened to hear, from an old friend, that my little shoe box flat has changed hands...for a multiple of what I would have been struggling to pay. If I'd hung in there for a few years, my retirement would look both sooner and more comfortable.

Justin

hesterprynne · Joined: 16 Sep 2003 Posts: 386

If you feel you must have a child before a certain age, a country with a differently-paced lifestyle may offer you options you don't have at home- domestic help, cheaper goods and a lighter work schedule. The dilemma of what to do later on in the kid's life is yet to be solved.