How to Retire Young with Only 50k in Your Savings

Bear with me here. It’s not a full proof plan but I think you’ll see where I’m going with this pretty quick.

It’s not exactly retiring. More accurately, I’m just explaining how to live on any continent by only working part time for the rest of your life with one skill that takes less than 1 year to learn.

The skill?

A new language.

The reason I’m using this skill as an example is because it’s not too hard to learn, is extremely useful for a lot of different reasons all around the world, and it can have a decent payout for the average person. By using the methods I’ll explain below, learning a new language will go hand in hand teaching English and writing, which will be the bases for earning the extra income you’ll need.

How much will you earn?

As a teacher: Let’s say a median of 10-20 USD an hour. Sometimes more.

As a translator: Let’s say a median of $10-20 an hour as well.

Let’s say you work online and after a year in the field you find a way to make $15 an hour. That’s reasonable and realistic. Do a little bit of research and you’ll know.

That’s $300 a month part time.

That sucks right? Well, not if you front load your time and effort into an investment plan that makes you $175 a month. If you can find a place to rent that cheap, you’ll pay off your rent without doing shit. So, now your $300 all goes towards your other monthly expenses such as food and entertainment.

So, what are we really doing here?

You’re going to make 175USD a month in passive income and you’re going to live in a country that only costs $475 a month for living. So, find a place that’s only $175 a month to rent or a hostel that’s $5.80 a night.

With that other $300, that’s $10 a day on food and entertainment.

Sound crazy? It’s not.

Here’s that plan:

Work to save a lot, then live in a place that’s cheap as hell:

Here’s some places you can live that cheap:

Cambodia, Republic of the Philippines, Laos, Sri Lanka, Jamaica, China, Fiji, Eastern Europe, Nicaragua, Thailand, Bali, and Vietnam.

I’ve been to the Philippines and Thailand multiple times. I know you can live on less than $10 a day and never feel like you’re cutting corners or being cheap.

The catch(es):

1) You can’t have dependents (kids).
2) For the first 5 years, you’ll have to front load your work so you can save 50k. For this example, I’m going to use the specific amount of $48,400 dollars.

How do you save/make x dollars a month?

Over the course of 5 years you’d need to save $10,000 a year. That’s $28 a day or $192 a week. Let’s say you need to save $767 a month. That’s not as simple as it sounds. If you work minimum wage that’s like trying to earn an extra paycheck every week.

However, it can be done, and it’s done all the time by average people. All you need is the ability to read, speak, and write. Here’s two tried and true methods of what I’m talking about:

Once you get into the groove of doing these two things. It’s not inconceivable to make $200+ a week teaching English for two hours after work or writing articles on your weekends.

What do you do with the 48,400 you saved?

Invest in P2P Lending. With websites like LendingClub and Prosper, it’s not unreasonable to expect an 8-12% return on with a lot of notes. For example, LendingClub says 90% of its investors with over 100 notes at $25 each make between 5-10% on returns.

For this example, I’m going to go high, and use 10 percent as an expectation.

You’ll have $40,000 invested, so you can’t spend any of that on any expenses.
So, for living you’ll use the $8,400 you saved for food, etc. at an expense of $11.50 a day for 2 years (not including rent).

If you make 10% a year on that 40k:

40,000 becomes 44,000 after one year
then 48,400 after two
53,240 after three
58,564 after four and so on.

Over the course of 5 years, you just made $18,654.

After 2 years, you’ll have made your $8,400 back.

So, there you go, after two years you just had your living expenses (excluding rent) paid for.

Here’s some more details on cheap places to live where you can do this:

Southeast Asia

Cost of living in Thailand is 42.54% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Thailand is 62.31% lower than in United States (average data for all cities).

Cost of living in Taiwan is 18.31% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Taiwan is 61.76% lower than in United States (average data for all cities).

Cost of living in Cambodia is 38.63% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Cambodia is 62.83% lower than inUnited States (average data for all cities).

Cost of living in Malaysia is 43.54% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Malaysia is 70.63% lower than in United States (average data for all cities).

Cost of living in Laos is 25.92% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Laos is 64.62% lower than in United States (average data for all cities).

South America

Cost of living in Brazil is 29.76% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Brazil is 61.12% lower than in United States (average data for all cities).

Cost of living in Argentina is 25.76% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Argentina is 63.39% lower than in United States (average data for all cities).

Cost of living in Ecuador is 38.86% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Ecuador is 68.81% lower than in United States (average data for all cities).

Cost of living in Chile is 34.37% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Chile is 61.96% lower than in United States (average data for all cities).

Central America:

Cost of living in Honduras is 35.85% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Honduras is 72.38% lower than in United States (average data for all cities).

Cost of living in Jamaica is 26.02% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Jamaica is 69.41% lower than in United States (average data for all cities).

Africa:

Cost of living in South Africa is 45.19% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in South Africa is 61.15% lower than in United States (average data for all cities).

Cost of living in Morocco is 52.02% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Morocco is 74.48% lower than in United States (average data for all cities).

Cost of living in Nigeria is 59.39% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Nigeria is 62.38% lower than in United States (average data for all cities).

Cost of living in Zimbabwe is 31.98% lower than in United States (aggregate data for all cities, rent is not taken into account). Rent in Zimbabwe is 67.74% lower than in United States (average data for all cities).

So, with your lending account taking care of living expenses, all you really have to come up with is rent money. This can be easily done by learning a second language and either teaching or translating with that skill part time. Private English lessons are in high demand in a lot of these low cost of living places. If you were to know any second language, then you’re almost guaranteed to find part time work from home as a private tutor, or using the online platforms mentioned before. If you find a way to do this, making your rent with only a few hours of work a week is not an outrageous expectation.

Conclusion:

I understand it’s not this cut and dry. Investing in P2P lending can’t guarantee a 10% return and there’s other expenses to consider such as expat and other taxes. But on a general level, all I’m really suggesting here is living in a place where the cost of living is extremely low, using lending as a form of passive income and using a second language as a skill to make extra income on your own time.

What am I missing here? Should somebody beat my ass right now?

Advertisements

How to Legitimately Teach English Overseas With or Without a College Degree

First of all, and I know this is obvious, BUT, it’s much easier to do this if you have a bachelor degree in anything especially education or English. Secondly, although you can do this anywhere in the world, even in English speaking countries, it’s much easier to do in Asia. If you have a bachelor degree, and English is you’re native language, finding a job teaching or tutoring English should be about as easy as getting an entry level job in the US. So, what I’m going to explain is how to teach English as a second language in Asia with/without a college degree.

If you go to job boards you’ll see a lot of ads and job qualifications requiring or wanting you to have an ESL or TEFL/TESL or CELTA. Although they are important when it comes to actually landing a good job they are secondary to a college degree. A four year degree seems to be an international basic. Associate degrees don’t mean jack sh*t overseas (for the most part). Tutoring is different from teaching. Tutoring can be done without any degrees or certifications. You can always teach under the table (illegally) but if you’re really serious about teaching legally with consist pay and benefits, go get a bachelor degree in something universal.

If you don’t want to do that then ignore all the ads for online TEFLs etc, and go through a job program such as ECC (http://www.eccthai.com). Although there are legit online ESL degrees out there, most companies don’t care about them unless you’ve already gone through a hands on course. Instead, for around 1500 US dollars, and about a month long training course you’ll get legitimate TEFL/TESL certification and a job at the end of it. I know people who’ve done this and they’re very happy with this method. The only catch is that the job at the end of the program has to be with the company you went through to get certified and you have to sign a year-long contract with them. This would be amazing but you’ll also discover that your company probably doesn’t pay as highly as others and you’ll want to make more an hour since it’s available. All in all though, this isn’t a bad deal because you’ll get your money back almost immediately and you can save all the money you would have spent on a university. After a year, you’ll have everything necessary to go work somewhere else without much hassle.

If you don’t want to go through a program, or get a college degree, you can get a CELTA. http://www.cambridgeenglish.org/teaching-english/teaching-qualifications/celta/

CELTA is accepted by almost every legit company as the “best” English teaching certificate. It’s achieved through Cambridge University. If you don’t have any other degree, you’re going to want this. It’s around 2,000 US dollars to get but it’s the best training and internationally recognized program. You have to take a pre-test in order to take the classes, but it’s not hard if you can read and write at a college level. The course can be be taken online but not completely. You have to spend at least two weeks doing hands on training with actual students before you can finish the program and you have to do that at one of their campuses and they don’t have too many. So, you’ll want to mentally add a plane ticket to the expense list of this method.

Lastly, I want to add that none of this is really necessary but strongly suggested. If English your native tongue that could be all you need. I gave myself a month to try the method of simply going to Asia and asking around. I did this in China, Taiwan, Thailand, and South Korea and was offered a job more than once to teach English to college students and I don’t have a college degree (I know that’s obvious, right?). That’s how I figured a lot of this stuff out.

I did find out that the cheap $500 or less fully online certifications aren’t complete garbage either. They’re extremely helpful and most of them have solid information and are internationally recognized. However, it’s more important that you get first hand training, than it is to have this certification. If you do have any teaching or tutoring experience, even if it’s not in English, then having this certification will be a big boost because you’ll be both certified and have first hand experience as a teacher, which are the two main requirements.

So, it’s time to either go to Asia or get on a job board. Figure out what companies are looking for. If you like adventure then buy the cheapest ticket to Southeast Asia and go. It’s much easier to land a job if you’re there in the flesh. If that seems sketch or you want a guarantee before taking the risk of buying a one-way ticket to a foreign land, then get on a job board.

Here’s two of the best:

http://www.eslcafe.com

http://www.ajarn.com

If you want to know how to teach English on-line, just wait, I’ll write a post for that. Also, if you want to know the details of how much you can expect to make as an English teacher and how much work it really is, I’ll write a post for that too.