How to Economize and Save in Modern China

From "Rags" to "Riches"be put into a bank account and saved for graduate
What often comes as a shock to mostschool, traveling, a car, a house, a family, etc.
just-off-the-plane expats is the general, dirt-cheap costTaking into account that some foreigners will indulge in
of living that China offers. Prices are generally a fifth ofwestern temptations on occasion we can say that on
what they are back home, if not less. A $5 beer backthe average foreigner living a modest lifestyle spends
home, for example, is a meager 0.25 cents at youraround 1000 RMB a month. In this case, the average
local "BBQ" hangout, the average value meal atteacher can still save 3,500 RMB, or $400, a month.
McDonalds $1.88 and spacious, furnished one-bedroomLiving in China is an unheard of financial opportunity for
apartments can be found for around $125 a month.this reason: how much money would you have to
In addition to these low prices can be included the factsave, or how much economizing would you need to
that the average western English teacher is makingdo in the West to be able to save $460 a month?
300% or more than the city's locals. It's not hard toVery few people, for example, making $3,000 - $4,000
understand why many expats fall into the trap of livinga month in the West can save $400 - $500 a month.
an over-the-top lifestyle here in the "Middle Kingdom".However, in China this is quite easy to do. The trick: "ru
In the beginning, new teachers often arrive in Chinaxiang sui su".
with a little home currency. Someone who brings $500That is not to say that foreigners must sacrifice their
now recognizes that their once paltry sum of cash hasfamiliar comforts in order to save money. Instead,
changed from what used to be (on average) less thanlearning how to economize on a Chinese budget while
a month's rent back home to what many local Chinesestaying within your comfort zone is easy. Below are
make in three (or more) months. This can lead tosome ideas.
splurging.Economizing Tips
Paying for "Convenience"Don't frequent places that cater to foreigners. These
New English teachers often fall into the trap oftypes of restaurants, bars, clubs and hangouts often
establishing expensive habits. These include, but arecharge four times more than normal local
certainly not limited to, taking taxis instead of publicestablishments.
transportation, eating out every meal, consumingVisit local markets and restaurants in the area around
familiar western products from brands of snacks andyour home and take time to speak with the people
soda to fabric softener and clothing. It is often easy forwho work there. Making friends in the neighborhood
newcomers to convince themselves that these extrahas a number of benefits, from getting the opportunity
expenses are worthwhile.to practice your language skills to getting discounts on
For example, when considering the perceived hassleproduce and a heads up on what not to order off the
and uncomfortable process of traveling by publicmenu.
transit in China, newcomers feel that the extraJust because it is a western name brand does not
expenditure of taking a taxi versus bus or subway ismean it is of a better quality, it just means that it is
justified. Or, when noting that McDonald's or Subway ismore expensive. Many western products are
relatively cheap when considering their monthly income,produced in Asia anyway. Regardless, China produces
it is natural to think that the time it takes them tosome very high quality name brands of their own that
prepare their own food, or the initial discomfort ofare a fraction of the cost of their western
ordering a meal in a Chinese at the local restaurant, iscounterparts.
not worth the extra trouble.Time management pays in many ways. Get up half an
When in Rome...hour earlier every morning and take the bus or
The Chinese have a saying very similar to that of thesubway instead of a taxi. If you save 20 RMB
West's "When in Rome do as the Romans do.": "rueveryday on taxis you are saving 600 RMB a month,
xiang sui su", which is (roughly) translated to meanor 7200 RMB a year, which is equivalent to about
"When you enter another's village you should adhere$1000. You can save this type of money via time
to their customs".management in many other ways (e.g. preparing your
Most English teachers move abroad to study aown meals if your school does not already do this for
TESOL course and teach because they want to beyou).
immersed in a different culture. However, theThe last point that new English teachers should
pervasiveness of globalization does not always forceconsider is taking advantage of the benefits their
us to adhere to the ambitious goals we held beforeschool offers. Good schools offer a free private
we left home. It is easy for expats to be tempted byapartment, free meals on site, free work / residence
the convenience and familiarity that earning a highvisas, free Chinese language classes, and free
salary provides: fast food, dry cleaning, quicktransportation to and from classes. When researching
transportation, VIP treatment at restaurants and clubs,schools online ensure that your school offers this type
maid service, etc. However, it should be a priority toof package. Taking advantage of these types of
consider how living this type of western lifestylebenefits can save you thousands of RMB a month,
affects not only your experience in a China, but alsowhich can be put towards personal savings,
your financial future.investments and future trips abroad.
In most cities outside of the large metropolitan centersAside from your experience in China offering you a
such as Beijing, Shanghai, Guangzhou, etc., a foreignernumber of unforgettable memories and experiences, it
living a modest lifestyle would struggle to spend morecan also provide a solid financial foundation for future
than 20 RMB a day. Twenty RMB a day X 30 days intravels and endeavors. Establishing good habits,
a month = 600 RMB a month. Take 600 RMB andenrolling in a professional TESOL course and finding a
subtract it from one's monthly salary of 4,500 = 3,900good school are key to successfully founding a solid
RMB which is (approximately) $500 that could possiblyfinancial future.