Our Beliefs About Money & Why They Are Holding Us Back

Our beliefs about money change everything about the way we handle it.

Most of us have deeply ingrained beliefs about money whether we are consciously aware of it or not. We may have inherited these ideas from our family, the media, our religion or our culture. Because many people around us may share similar beliefs it may be extremely difficult to pull our beliefs about money apart from our societal conditioning about who we are in totality.

What are you even talking about, Amanda?

Depending on your background, you may identify with one of the following blockages. These examples are either from my own former beliefs about money, or from my friends’.

  1. Money is bad. Wealth will make me a bad person. “Rich” people are bad. If I earn, save, invest and spend money I will become bad. (We even have an idiom for this: “Money is the root of all evil.” This is actually a misquoted and misunderstood verse of the bible.)
  2. Money is the ultimate goal in life. I can’t be happy unless I earn $X. My life is difficult because I haven’t earned enough money yet.
  3. I can only make money through struggle and difficulty. It is impossible to enjoy a high paying job. I have to choose between my own happiness and earning money.  Rich or happy, choose one.
  4. When I have money saved, something bad will happen and I will need to pay for it. Therefore, it’s better to spend my money and enjoy it right away before I lose it.
  5. I am simply not good with money. It is too difficult to understand most financial concepts so I stay away from learning about finance altogether.

These might sound a little silly when you read them, but these sorts of ideas hidden inside of us can seriously impact our ability to handle paying off our debt and saving for travel or for the future.

SO…I have messed up ingrained beliefs about money. What can I do about it if I can’t even figure out what my beliefs are?

You NEED to identify these beliefs. I know, that’s easier said than done. There are a number of ways to uncover what we really think about money, but honestly, it might not be pretty. Chances are, it is going to take a lot of hard work and often times we need to be guided through the process by someone who has been through it or even by a professional. Some of our beliefs about money are tied to painful times in our lives and when we uncover them, we often are digging up shallow graves we’ve long tried to forget about.

A great first step is just getting into some quiet time for yourself. Get out a pen and paper and fill in the blanks. Write whatever comes to mind without holding yourself back.

  1. When I think about earning money, I feel ________________________.
  2.  When I think about the way my parents handled money, what comes to mind?
  3. Money is ______________________________.

These three questions can serve as a great starting point, but if you want to really delve into this, I suggest reading the book Rich Dad Poor Dad, checking out this workshop by To Be Magnetic if you want to get spiritual, or talking with a licensed therapist online or locally. Even writing about how you feel when you watch this video can be helpful.

Identifying blockages when it comes to your finances can set you free to pay off your debts, save money for emergencies and for the future, and travel the world more freely.

This blog post only contains a sliver of a glimpse inside the complexities of our beliefs about money. I’m not going to play psychologist here, but I am certain of one thing: when we identify our harmful beliefs about money and begin to work through them, we can find ourselves propelled into debt freedom so much sooner. Please don’t judge yourself during this process. You are not alone! Trust me. I could write a book on this subject.

Let me know in the comments if you found this helpful. If you feel comfortable, go ahead and share some of the yucky beliefs about money you found within yourself. You are totally welcome to use the comments section on my blog as the landfill for the beliefs about money you need to trash.

Sending love. May we all be FREE!

xo Amanda

How I Paid Off $23,000 Teaching English in South Korea

I paid off $23,000 in student loan debt teaching English in South Korea for two years. Not only that, but I put a nice chunk of money into an emergency fund and savings account too!  I’ll break it down for you here to see how easy it could be for you to do the same.

 

A palace you will see when teaching english in south korea

 

 

My Background

I graduated university with about $40,000 in student loan debt–some from a private lender and some from the US government. During the four years following my graduation I worked really hard in multiple jobs. I was trying to both pay my monthly bills and pay down a bit extra each month on my debt payments.

As an “Urban Studies” major who graduated at the age of 20 (side note: who lets 18 year olds take $40,000 in loans for a random liberal arts degree??), I really had no idea what to do next. I had always believed what I had been told–a college degree would make my life better and more financially stable. Now, I didn’t choose the most logical degree. Even though I loved what I studied and it really opened up my mind–there’s a lot of instrinsic value in that–I just couldn’t afford it. But, lenders told me I could, so I did. My degree was not a financially lucrative one, as anyone could’ve guessed. There was no specific career path for me to take, and so began my four year streak of “a little bit of everything.”

I worked as a caregiver, a nanny, an office cleaner, and a barista and a server in the Alaskan wilderness (more about that here!). I did office work, delivery driving and bartending. Most of the time, I was juggling two to three jobs at once. All of this work was an attempt to cover my bills and pay a little extra each month towards my student loans.

Something needed to change.

Teaching English in South Korea

A series of life events led me to decide to become TEFL certified and apply for EPIK, the government program for teaching English in South Korea. About a year after making that decision, I was on a plane!

After buying my ticket, I only had about $1,000 to my name and about $23,000 in student loan debt. Over the previous four years, I had worked hard enough to pay off $17,000. It had, though, been extremely stressful and I had overworked myself to an extreme degree. And, having a “net worth” of -$21,000 doesn’t exactly feel good.

But all of that changed in Korea. I won’t say the job itself was easy though, especially at first. Nothing could have prepared me for the culture shock, confusion at what my role in the schools I worked in exactly was, or the cockroaches in my government provided apartment (the landlord brought in pest control, but it was a bit horrifying for awhile!). But I am so thankful for my experiences and the financial freedom that teaching English abroad provided me with.

The Numbers

Now, for the fun stuff! At least, as a budgeting nerd, I find it fun!

How Much Can you Make in a Year Teaching English in South Korea?

Pay varies depending on what job you have and where you work. Most native English teachers will make about 2.2 million won per month. I will base the bonuses received on my own. Again, for reference, I worked for EPIK in a provincial office of education from 2016-2018.

  1. Paycheck – Deductions: 2.3 million won/month (approximately 27 million/year)
  2. Entry Allowance: 1.3 million won
  3. Settlement Allowance: .3 million won
  4. Severance Pay: 2.2 million won (equal to one month’s pay – extras)
  5. Exit Allowance OR Renewal Bonus: 1.3 million won (if you renew, you’ll get 1.3 mil at the end of your first contract and .7 at the end of your second)
  6. Pension Refund: 2.5 million won (Pension refund is only available for teachers from the USA, Canada or Australia I believe)

Yearly Total: About 34.5 million won  (~$30,615 USD)

Consider Your Expenses

You won’t be paying rent, vehicle expenses (unless you choose to buy one) or extremely high health care costs like you might be at home if you’re American. These numbers will vary from person to person based on your values. But if you are considering just the necessities along with a bit of fun, this will apply to you. Here are some expenses you can expect to pay while teaching English in South Korea.

  1. Utilities: This includes electricity, gas and maybe an apartment complex maintenance fee. It should be around 50,000 won.
  2. Cell phone: Again, depends on your plan. Plan on about 40,000 won for a month to month plan.
  3. Food: Groceries and eating out combined, I spent about 300,000 won per month on food. If needed, you can definitely go the “rice and beans” route and cut back on this!
  4. Transportation: Getting to work and back by bus costed me about 70,000/month. Add 30,000 won/month for traveling around Korea for a monthly total of 100,000 won.
  5. Fun/Stuff: This can include anything you like to do! Some people are into drinking the night away or going to clubs. Some are into shopping (though I would discourage doing this on a regular basis if you want to pay off debt or save–things seem cheap in Korea but add up SO quickly!), some people are into a hobby, and some people like me are into visiting every cute cafe in every city and drinking all of the coffee. Everyone should make the most of their time in Korea by exploring the country–it’s so easy to get around and there is so much to do! We’ll allot 200,000 won/month for this to be safe.

That brings us to a total of about 700,000 won per month (8.4 million/year), plus maybe an extra 1-2 million won per year for traveling or other expenses. Let’s say you’ll spend 10 million won/year.

Yearly Total: 10 million won (~$8,875 USD)

What’s Left?

The answer is–a lot! About 24.5 million won (or more) per year if you play your cards right. That’s about $21,740 USD! Even if you end up spending more than I’ve allotted for expenses, you should still be doing pretty well.

What can you do with that $20,000 USD? Anything you want! Pay off your debt, save money and travel the world. You can do it all as a result of diligently following your budget.

I worked in Korea for two years and paid off the last couple of thousand I had left with the pension lump sum I received after finishing up my contract. The rest of my savings have been invested, saved or are sitting in my emergency fund for peace of mind.

I can’t recommend teaching English in South Korea enough to any native English speaker with student loan (or other) debt to pay. If you love to travel the world and save money, give it a try! What do you have to lose except your debt?

Girl happy with teaching English in South Korea