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plan b
Joined: 29 Jan 2013
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 Posted: Thu Feb 07, 2013 4:24 pm Post subject: Is the money in Korea laughable? How do you guys do it? |
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I just signed my contract to start teaching at Public school in March. It will be my first time in Korea, and I am going for a change of pace, and for personal growth. I am not going to Korea to get rich or make a lot of money.
Having said that...how do guys in Korea survive on 2 million Won a month?..Since I'm Canadian I did the Canadian conversion, and it worked out to 22,000 dollars a year. Yeah, I know you can put severance pay, and a return flight on top of that, as well as a small apartment but that is works out to...we'll not much. Since I'm Canadian I am also taxed on worldwide income, unlike other nationalities.
For years I've been hearing about the oodles of money people make in Korea teaching English...maybe there are just fables, or people working against terms of their contract..
How do you guys survive and save the thousands I hear people boasting on this forum?
I'm glad I'm only going for a year...I'm sure I'll enjoy Korea, but I can't afford to work there.
Any thoughts? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Feb 07, 2013 4:32 pm Post subject: Re: Is the money in Korea laughable? How do you guys do it? |
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| plan b wrote: |
I just signed my contract to start teaching at Public school in March. It will be my first time in Korea, and I am going for a change of pace, and for personal growth. I am not going to Korea to get rich or make a lot of money.
Having said that...how do guys in Korea survive on 2 million Won a month?..Since I'm Canadian I did the Canadian conversion, and it worked out to 22,000 dollars a year. Yeah, I know you can put severance pay, and a return flight on top of that, as well as a small apartment but that is works out to...we'll not much. Since I'm Canadian I am also taxed on worldwide income, unlike other nationalities.
For years I've been hearing about the oodles of money people make in Korea teaching English...maybe there are just fables, or people working against terms of their contract..
How do you guys survive and save the thousands I hear people boasting on this forum?
I'm glad I'm only going for a year...I'm sure I'll enjoy Korea, but I can't afford to work there.
Any thoughts? |
EXPAT... non resident. Korean income is NOT taxable in Canada under a bilateral tax treaty (unless of course you left and are supporting a wife and kids at home, have a house or apartment in your name, healthcare remains valid and you still have your car).
It might only covert to CAD $22k per anum but your actual living expenses boil down to internet, electric and food. Your biggest bill (30% of your income at home) housing is taken care of for you.
Unless you are a spendthrift / profligate and living it large in Seoul it is hard not to SAVE in excess of $12k per year (you won't be doing that at home with any job fresh out of uni).
Gotta luv newbies... like new puppies...
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Otherside
Joined: 06 Sep 2007
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| Posted: Thu Feb 07, 2013 4:33 pm Post subject: |
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Yup, on paper it looks pretty bleak
With the free flight and free apartment, expenses aren't much. A lot of things are pretty cheap in Korea, especially compared to back home. The general rule of thumb, is that teachers can live off about 1mill a month (a target I make most months of the year). You do hear stories of guys living off 300k a month, but that's just crazy.
In the 5 years I've been here, I've managed to save over $10,000 every year. 3 of those years were in public schools, and I've never worked illegally.
However, it definitely is getting worse every year. The salaries have remained the same, and each year inflation is taking a bite. (Moving up the pay-scale can help mitigate this to a degree).
At the end of the day, if I was really in it for the money, I wouldn't be teaching. |
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plan b
Joined: 29 Jan 2013
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| Posted: Thu Feb 07, 2013 4:49 pm Post subject: Re: Is the money in Korea laughable? How do you guys do it? |
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| ttompatz wrote: |
| plan b wrote: |
I just signed my contract to start teaching at Public school in March. It will be my first time in Korea, and I am going for a change of pace, and for personal growth. I am not going to Korea to get rich or make a lot of money.
Having said that...how do guys in Korea survive on 2 million Won a month?..Since I'm Canadian I did the Canadian conversion, and it worked out to 22,000 dollars a year. Yeah, I know you can put severance pay, and a return flight on top of that, as well as a small apartment but that is works out to...we'll not much. Since I'm Canadian I am also taxed on worldwide income, unlike other nationalities.
For years I've been hearing about the oodles of money people make in Korea teaching English...maybe there are just fables, or people working against terms of their contract..
How do you guys survive and save the thousands I hear people boasting on this forum?
I'm glad I'm only going for a year...I'm sure I'll enjoy Korea, but I can't afford to work there.
Any thoughts? |
EXPAT... non resident. Korean income is NOT taxable in Canada under a bilateral tax treaty (unless of course you left and are supporting a wife and kids at home, have a house or apartment in your name, healthcare remains valid and you still have your car).
It might only covert to CAD $22k per anum but your actual living expenses boil down to internet, electric and food. Your biggest bill (30% of your income at home) housing is taken care of for you.
Unless you are a spendthrift / profligate and living it large in Seoul it is hard not to SAVE in excess of $12k per year (you won't be doing that at home with any job fresh out of uni).
Gotta luv newbies... like new puppies...
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I find 12k hard to believe..you must have to live like a monk to save that much. You forgot other expenses like a cell phone plan, gym membership, etc.
It seems to me that Korea might only be for the new graduate...22-27, but for others who have made decent money in the job market before...we'll its a bit of a reality check.
Even Japan Eikaiwas are paying more! |
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plan b
Joined: 29 Jan 2013
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| Posted: Thu Feb 07, 2013 4:52 pm Post subject: |
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| Otherside wrote: |
Yup, on paper it looks pretty bleak
With the free flight and free apartment, expenses aren't much. A lot of things are pretty cheap in Korea, especially compared to back home. The general rule of thumb, is that teachers can live off about 1mill a month (a target I make most months of the year). You do hear stories of guys living off 300k a month, but that's just crazy.
In the 5 years I've been here, I've managed to save over $10,000 every year. 3 of those years were in public schools, and I've never worked illegally.
However, it definitely is getting worse every year. The salaries have remained the same, and each year inflation is taking a bite. (Moving up the pay-scale can help mitigate this to a degree).
At the end of the day, if I was really in it for the money, I wouldn't be teaching. |
Yeah, I'm not in it for the money either...but we shouldn't have to live like first year dorm room students in order to do something we enjoy. |
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YTMND
Joined: 16 Jan 2012
Location: You're the man now dog!!
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| Posted: Thu Feb 07, 2013 5:11 pm Post subject: |
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| 22,000 dollars a year |
That is also with free housing most of the time.
Put half each month in the bank and don't touch it. Budget yourself and don't buy a lot of stuff. Invest as you go along. |
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nautilus
Joined: 26 Nov 2005
Location: Je jump, Tu jump, oui jump!
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| Posted: Thu Feb 07, 2013 5:13 pm Post subject: Re: Is the money in Korea laughable? How do you guys do it? |
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| plan b wrote: |
How do you guys survive and save the thousands I hear people boasting on this forum? |
There's a massive amount of lies and exagerration spouted on here. |
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wishfullthinkng
Joined: 05 Mar 2010
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| Posted: Thu Feb 07, 2013 5:29 pm Post subject: |
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no rent. subtract 500-1000 a month.
no car payment. subtract 300-500 a month.
no car insurance. subtract 100-300 a month.
no gas for your car. subtract 50-100 a month.
that is 960-1900 you are saving a month compared to life in most western countries which for the average person is very significant. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Feb 07, 2013 5:43 pm Post subject: Re: Is the money in Korea laughable? How do you guys do it? |
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| plan b wrote: |
I find 12k hard to believe..you must have to live like a monk to save that much. You forgot other expenses like a cell phone plan, gym membership, etc.
It seems to me that Korea might only be for the new graduate...22-27, but for others who have made decent money in the job market before...we'll its a bit of a reality check.
Even Japan Eikaiwas are paying more! |
It is not about the base pay.
It is about quality of life and NET SAVINGS.
$12k is not hard on an entry level salary and you don't need to live like a monk or a student in a dorm.
Cell phone services are CHEAP compared to Canada - even if you include the cost of the phone.
We paid $35/month for gym membership for my wife.
Internet / cable TV packages from $15. 100mbps broadband for $35
Electric (with A/C) and heat in the winter ($100-150/m).
Cooking gas $5-10 and we cook in most meals.
Unlike Japan, housing is included rent free as part of your remuneration package.
Unless you spend all your evenings looking at the bottom of a beer glass; $12k is not hard to do even at today's wages and cost of living.
Make that 10k after you add in vacations to SE Asia 2 or 3 times per year.
Even with a wife and new baby we managed, on one salary from a PS position, to bank $10k/year. (we have since moved up the food chain).
After all that has been said, even a 2.1 salary at a PS is really better than it sounds. Add 500k for an after-school program if you are so inclined (still within your 8:30-4:30 day).
Outside camp work (legal if you do the paperwork) in your holidays (2-4 weeks in the winter) can add another 2+ million if you want to work them.
That pension refund (9% of salary) in addition to your severance (2.1m) adds another 2 million per year. Makes a going away handshake of 6 million won at the end of your year (final pay, severance and pension refund) pretty sweet in addition to anything else you have saved throughout the year.
End of the day... for a newbie with some wherewithal at a public school, on a base salary of 2.1 the gross over the year:
25.2m wages
6m extra classes
2.1m severance
1.2 pension contribution from employer
Looks pretty close to 34 million krw ($32k CAD) in before tax cash to me and there was no rent to worry about (add another CAD$6k. in value). And it is also nice to note that you will be paying taxes in the 1.7% tax bracket so even that bite is pretty small.
It AIN'T like home.
If you have something more than a generic BA/BS and TEFL cert then even better paying options are out there after you get a year or two under your belt and figure out which way is up.
My after tax remuneration packages as a consultant and school administrator last year came to just a hair over CAD$100k.
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jvalmer
Joined: 06 Jun 2003
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| Posted: Thu Feb 07, 2013 6:41 pm Post subject: |
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| You are right, it's awful here. Don't come. |
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Daelim
Joined: 18 Jun 2011
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| Posted: Thu Feb 07, 2013 7:15 pm Post subject: |
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If you are trying to yet can't save $12k a year in Korea you are doing something wrong. Heck, even if you aren't trying you should still be saving at least $10k seeing as you get handed $6k on your way out!
My wife and I are public school teachers and Korea has been excellent for us. We'll be able to buy a house outright on return home if we stay for another 2 years (5 in total, 4 years saving) whilst getting married, buying a car and having a baby in Korea.
If you are turned on and willing, you can bank a serious amount of cash here but you can just as quickly spend it all. |
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Reset
Joined: 06 Jul 2011
Location: Seoul
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| Posted: Thu Feb 07, 2013 7:31 pm Post subject: |
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reset
Last edited by Reset on Tue Mar 04, 2014 3:04 am; edited 1 time in total |
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newb
Joined: 27 Aug 2012
Location: Korea
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| Posted: Thu Feb 07, 2013 9:18 pm Post subject: |
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| Daelim is right. If you don't come here to party and put in an extra effort, you can do well here. Having said that most of young kids come here to party every chance they get and return home empty handed. Several of these kids asked to borrow money from me after returning from SE Asian adventure over winter vacation and finding out that their PS jobs will be cut and won't be renewed. |
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Cacille
Joined: 05 Oct 2011
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| Posted: Fri Feb 08, 2013 1:37 am Post subject: |
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Just a personal story of finance for the OP:
I make 2.2 mil. I pay nothing for the apartment save for a tiny, TINY fee for water yearly - about 100,000. (I refuse to pay the TV fee cause I don't watch it, and they are OK with that). Taxes take out 150,000 max so I'm left with 2.05 mil.
I have a phone that costs me 73,000 a month.
Internet is something like 26,000 a month.
Electricity is generally never over 50,000 a month and that is winter. Almost all other months, it is 30,000 or so.
I budget food at 250,000 a month and usually have quite a bit left over cause I eat like a bird.
Gas costs is the most expensive, costing me 300,000 for 5 months (summer, spring/fall), and about 100,000 a month for the coldest winter months. Divided up equally, that's about 80,000 a month. And I spend more than most there because I have birds so the temp has to stay above a certain temperature for them.
So, I spend about 480,000 a month, max. So I have a little more than 1.5 mil that I can send back to the states each month. I do not go to the cities often at all (four times total this year) but I do opt for nice big vacations during the winter/summer months. Most of my free time is spent on the computer.
Doing this plan of mine, I'll pay off $70,000 worth of bills and loans in 4 years. That is how I survive on this salary...and it's almost twice what I made in the states with half the costs  |
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cincynate
Joined: 07 Jul 2009
Location: Jeju-do, South Korea
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| Posted: Fri Feb 08, 2013 1:49 am Post subject: |
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| Quote: |
| If you don't come here to party |
I party all the time and still save almost a million a month. Everything is cheaper here by half (as long as you don't eat western food).
I had a job in the US making 89,000$ a year, and I live better here on my 26,000 a year, and save more. |
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