THE SURPRISING TRUTH ABOUT SAVING MONEY IN CHINA

From my observation, people generally move to China for two reasons: to save money and pay off debt, and to save enough money to travel the world. If we’re being honest, the former dominates the latter. China is well-known for its affordability. It’s possible to live a very comfortable life in China without breaking the bank, depending on your spending habits. Subjective, of course. It’s also what I know to be true. while we are on the topic of money, let’s dive into the wildly misconceived topic of saving money in China as an ESL teacher.

How soon can you start saving money in China?

I initially wanted to move to Saudi Arabia. ESL salaries are high in Saudi Arabia. While my heart was set on Saudi Arabia, I was also applying for ESL teaching jobs in China. Again, the motivation was money. I noticed that ESL teacher salaries were also high in China compared to other countries. I planned to teach ESL abroad for two years, save enough, and return home. Almost five years later, I’m still in China. Still not rich, might I add.

Here’s what derailed my plan to be a rich ESL teacher: LOL

Simply put, the odds were against me. Let me explain.

1. Loans to kick-start Life in China

My biggest setback was not having enough savings to kick-start a new life abroad. As such, I took two loans. From a bank, the other from a friend. My first six paychecks as an ESL teacher were then used to pay back my debts and cover my living expenses in China. I could barely save.

2. Getting settled in China is Super expensive

Getting an apartment is one thing that makes it super expensive to start a life in China. Generally, it would be best if you had three months’ rent in advance, plus a deposit. Sounds insane, huh? That’s because it is. If you’re lucky, your school will provide you with a place to stay for “free”. If that happens, moving to China will not be that expensive for you. I’m intentionally leaving out the minor expenses. I think you can handle those.

3. tickets and the authentication of documents process

Your school will ask you to cover your travel expenses to China. They reimburse you at the end of your contract. Awesome, but not if you have to scramble to make ends meet.

4. Black tax

In case you’re unfamiliar with the term, it refers to financially assisting one’s family. This is a norm in African black families. Those who have “made it” have to assist their families. As you can imagine, this takes a toll on the one who’s “made it”. I’m no exception. For the past four years and before my move to China, I’ve been helping at home. I was proud to help, but my investment account wasn’t.

5. City lifestyle

In a big city like Shanghai, making friends means meeting up for brunches and doing activities that usually require money. I can already hear you saying “But you can just stay at home. You’re not forced to”. True, but you get tired of staying at home doing nothing. You need an entertainment budget. Nothing hefty, just enough for socialising and meeting people. 

Money saving tips

I finally started saving in my second year of living and working in China. To save decent money, I’ve had to live below my means. Ironically, the pandemic also helped a lot. China was closed for 3 years, which meant no travelling, which meant no spending money. Which meant more savings for some of us. Keeping this in mind, these are my tips for saving money in China.

Remain true to yourself

It’s very easy to fall back on your original saving plan in bigger cities because of the flashiness one gets exposed to. You always have to remind yourself of your original plan and stick to it.

Only buy what you need

In my 20s, I used to unnecessarily buy a lot of clothes. Clothes I didn’t even need. When you live in China, everything is at your disposal. From gadgets to clothes and weekend trips, it’s all there. ESL teachers can often afford such a lifestyle, but when you choose to live this way, you’re more likely to not have enough to save up in the end.

Essentially, saving money in China is very possible after you’ve recovered from the costs of moving. Once you are settled, you see the light. It might not be instantly rewarding. Especially if you come from a disadvantaged background. Manage your expectations.