How to Manage your Money when Taking a Career Break

14 March 2012

Teaching English abroad is a fantastic opportunity, and one that many people are opting for as a career break. There is no age limit to teach English abroad or to take a TEFL course, which means it is something you can pursue at nearly any stage in your life.

The prospect of trading in your 9-to-5 and hopping on a plane somewhere exotic is exciting and the thought of budgeting next to this can appear to be a very boring subject. However it is absolutely fundamental that you start planning how you are going to manage your money before you take your career break and start teaching English abroad.

Research, research, research.

Think about where it is you are travelling. The cost of living will typically be a lot lower in South East Asia, Africa and South America than say, Germany or Japan. America for example, may be expensive to reach but cheap once you get there.

Think about how long you are going for and what type of lifestyle you will want to be leading, this should give you an idea of how much money you need to budget.

If you have secured a TEFL job make sure you check out what is included. Some TEFL jobs may offer to pay for your flights and accommodation, whereas others may offer some financial assistance in helping you find somewhere to live.

You will also need to take into account the cost of obtaining the correct working visa for teaching English abroad. The best way to do this is to get in contact with the embassy of the country you are interested in travelling to. It may also be worth bearing in mind that as a member of the EU you can live in work in any other EU country for up to three months without having to secure a work permit.

Mortgages and Tax

When you are away teaching English abroad you may choose to rent out your house which would mean your tenants are responsible for mortgage – but bear in mind this will be counted as taxable income. Before you set off on your trip you will need to get in touch with your mortgage provider, even if your house is left empty they still need to know.

Depending on how long you are going away for and whether you are employed or self-employed, tax may not be an issue. If you are teaching English abroad and not earning any money in the UK you may be eligible for a tax rebate. Get in touch with a financial advisor if you think this might apply to you.

Teaching English abroad will be an experience of a life time, and with some careful planning there is nothing to hold you back!

Start your journey teaching English abroad with TEFL Org. Not qualified yet? Take one of our accredited TEFL courses.

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