What to do with my extra money??

I accidentally published this today instead of Wednesday. Please ignore the random reference to a post which is not yet published.

In Monday’s post (that will only be published next Wednesday — oops!) I mentioned that I had an insane amount of disposable income lately. Being an English teacher in Korea means that my biggest expense (housing) is paid for by my employer. In addition to that, utilities and food are very, very inexpensive here and I am able to live comfortably on $700 per month. Couple low expenses with a relatively high salary (about $2700 CAD/month) and I have the type of disposable income that I did that semester I worked 60h a week (see, spontaneous trip to Europe)!

So what am I going to do with all this money? Squander it on beauty products? Get plastic surgery? Travel everywhere the wind takes me? Uh, no. I’m going to (mostly) save it! 😀 There are a few reasons for this:

1. I was recently promoted and am going to be doing overtime like crazy! Simply put, I just can’t a long weekend to skip around Asia.
2. I have little interest in traveling anywhere in Asia aside from Japan and China. I think I need to go to a major city for a Chinese visa and I frankly can’t be bothered to deal with it right now.
3. I’m going to Japan in January and on a ski trip in February!
4. I have some big plans after this trip and I need a lot of cash for them!
5. I’m too addicted to saving.

Like the nerd that I am, I opened my trusty spreadsheets and got a-calculating. Assuming that my investments grow at a conservative 3% a year, and that I don’t transfer anymore money to my RRSP/TFSA (ha!), never earn another freelance/advertising dollar and still go to Japan and on my ski holiday, I’ll leave Korea with…

$71 451.79

extra money

You’ll also notice that I include income from August. This is because my director has already asked if I would renew my contract. Since Le Monsieur is fine with Korea and we don’t have anything waiting for us at home, I told him that I would think about it. For the purposes of this exercise, I’m staying one month longer.

Now, some may claim that this is the ultimate “count your chickens before they hatch” but I’m not looking at it that way. For me, this is a way to track where my money is going and to hold myself accountable. In this scenario, my 13 months in Korea will leave me about $30 000 richer. If the stock market increases, good for me! If the CAD increases, sucks to be me — either way, I have a plan!

***
(note: Korean taxes have been deducted from these numbers and my RRSP contributions and tuition credits ensure that I won’t have a giant tax bill once I get back to Canada)

Related Posts