Can you become a millionaire ESL teacher?
How to become a millionaire ESL teacher
I bet you wouldn’t have imagined that you could create a 7 figure net worth just from teaching English in China. We at Go ESL China are here to show you how this is more than possible. And in much less time than you think.
First off, it should be mentioned that while it is generally a simple process we outline. It’s not necessarily an easy one. It will require evening and weekend work on top of your day job, and it will require a little sacrifice.
Will you just be working, sleeping and eating instant ramen? Absolutely not! This guideline provides for time off over the months of vacation time provided teaching TEFL in China and also allows you to explore and enjoy your new life in China.
The math we will be using to reach a million dollars teaching ESL in China
You will not reach a million dollars saving your RMBs under your mattress in China or even in a bank account in your home country. You will need to be investing in the stock market. This may be a new skill set that you are unfamiliar or uncomfortable with. I assure you it’s much simpler than you imagine. But it’s going to take some research and understanding. Here is a great resource for new people interested in understanding investing.
To give you a basic understanding, we will be using an investment in the S&P 500 ETF. The Standard and Doors 500 index is a fund that holds 500 of the best companies in the USA. The USA is the best performing stock market in the last 100 years. The average return of the S&P 500 was 11% year over year.
In this example We will be using a 7% return rate as that is the more average around the world across all funds. Its also more conservative.
The ESL salary that can make a million dollars.
Salaries range from around $2,500 USD (17,000RMB) to upwards of $5,000 USD (35,000) and even higher if you are a certified teacher. The average kindergarten pays about $3,200 USD (22,000RMB). Now for the remainder of the article we will talk in terms of RMB, but include some USD translations.
Those salaries are decent even by American standards. But they go much, much farther as the cost of living and taxes are much lower in China overall.
In a tier 1. city, you are able to rent a nice, rather new and western style apartment for 5,000 RMB or less. 5,000 RMB a month on food, alcohol, transportation and random purchases and all around living expenses can give you a nice life in even a tier 1 city. Think 3,500 RMB for both living expenses and rent each, respectively, in a tier 2 city.
Around 2,000 RMB will go to taxes, so the average person with even a little diligence should be able to save 10,000 RMB per month from their salary. That’s nearly $1,500 USD per month.
Based on the math we are using shown above. Investing $1,500 per month for 22 years would make you a millionaire starting from scratch.
You could retire at 50 if you started at 27.
Side work and private lessons in China for ESL teachers
Now that salary above at the kindergarten is great. But the real benefit to teaching ESL in China from a money perspective is the side work available. Parents will pay between $50-$100 per hour per student for private lessons. Even higher if you are able to teach niche lessons in exam prep or IELTS certification. You can also teach online through companies from the comfort of your home for between $18-30 per hour or class. I am including teaching online because its so convenient and it takes time to find private lesson students.
If you are willing to put in the time during evenings and weekends, you can easily save another 10,000-20,000 RMB per month.
The average private hour lesson at someones
home, or directly through a parent is 500 RMB ($70 USD)
The starting salary per hour teaching online is 100 RMB ($15 USD)
5 private lessons per week = 10,000 RMB / month
10 private lessons per week = 20,000 RMB / month
25 online lessons a week = 10,000 RMB / month
Between 10-30 extra hours a week could net you an extra $3,000 per month.
The millionaire ESL teacher
Let’s say the hypothetical kindergarten teacher above is able to generate an extra 10,000 RMB per month on top of the 10,000 they are already saving. Bringing their total savings to 20,000 RMB per month
Thats now $3,000 USD per month able to be invested. In under 16 years they are able to reach $1,000,000.
What about if they find a higher paying job, some more privates or increases their workload to save an extra 10,000 RMB a month for a total savings of 30,000 RMB per month.
That is now nearly $4,200 USD per month saved to invest. In just over 12 years starting from nothing, you can become a millionaire from teaching ESL in China
Could you become a millionaire ESL teacher?
These examples require quite a bit of evenings and weekend work. They don’t actually take into account taking time off for vacation. Many jobs pay for vacation time, but you won’t be paid for privates. But this example is a ‘shoot for the stars, land on the moon’ scenario. Take a bit of time off each year or once a month and you might push your million dollar mark off by a year or two.
Is that really so bad? Did you think you would ever become a millionaire? Not to mention within a 10-15 year window?
What are you waiting for! Message us today to get started on your million dollar ESL journey.