I Send 95% of My Paycheck Back to the US Every Month
Student loans suck ass, so I moved across the world to get them over with.
When I moved to China I had one goal in mind, to pay my mountain of student debt and have a fresh start as soon as possible. I previously wrote an article about why I left the United States for China where I detailed the process of my decision making to move abroad.
I wanted to pay my loan as fast as possible, and living in the US while doing so didn’t seem entirely realistic. Factoring in a car payment, phone bill, medical insurance, an apartment and everything else, I would more than likely still be in debt ten years later even with a baller job.
After doing some math I saw how much money I could save in China while still living well. Little did I know upon arrival that the saving opportunities were even better than I expected.
Disclaimer, it is incredibly hard to get into China as an expat at the moment. Along with this it takes a great stroke of luck to land a trusting and stable job. I plan to detail these aspects in future articles. However, in my current situation I’ve hit the jackpot, teaching homeroom in a wonderful international kindergarten who not only takes care of me but treats me incredibly well.
Rent
Rent prices within China vary largely on which city you reside in, and what part of that city you call home. An apartment in a tier one city like Beijing or Shanghai can get quite pricey. I’m currently living in the tier 2 city Qingdao, which has a population of around 9 million people. Due to it’s size, the prices for apartments are very favorable.
At the moment I’m living in the “heart” of downtown Qingdao in a 80 square foot loft apartment. I’m paying the equivalent of $550 a month to live there. Whenever I mention this to friends or families I can audibly hear their jaws drop.
However one thing we need to take into account is how payment is typically handled for housing within China. Instead of paying monthly, I am paying at 6 month intervals. This comes out to 19,900 Chinese RMB every 6 months, or about $3,116 at the time of writing. Although the monthly sum is much cheaper than in the US (or at least near Seattle where I lived before), taking $3k out of your account at one time does admittedly suck. But with a little financial planning it’s easy to handle.
Along with this, many expat’s employers will either provide them with a house completely or provide a stipend along with their monthly pay. This helps mitigate one of, if not the biggest expenses that expats face in China.
Transportation
The public transportation in China is one thing I will never shut the hell up about and for good reason. It’s absolutely amazing. High-speed trains connecting cities all across China, subways for the low price of 2 RMB a month ($0.31), and DiDi (Chinese Uber variation) that you can grab a 6 KM ride for around $3.
My first city in China didn’t have a Subway, so I spent a lot more time walking around or spending money on DiDi. However, in Qingdao I have completely mitigated my transportation expenses through using the city’s expansive subway system.
Without having to pay a car payment and auto insurance plan each month I’m able to save huge in this aspect. All this extra money I would be spending on getting from A to B is being directed straight into my student loan. Nice.
Groceries
Groceries play a smaller part of the financial breakdown compared to transportation and rent but is definitely still worth mentioning.
There are a few products that are in the same price range or even more expensive than the US. Two examples of this would be milk, where you could spend upwards of $4.00-$5.00 for a gallon jug. Along with this prices of meat have raised the past couple of years, especially pork.
However, as long as you’re comfortable with straying away from the Western brands you know so well there are big savings to be had with Chinese brand products. The prices and variety of deals range all the way from $2 shea butter shampoos to $3 gallons of cooking oil.
Although the price margin is smaller then renting an apartment, each month shopping for your groceries and necessities in markets or Taobao (Chinese variation of Amazon) definitely adds up over time. I personally cook at home every day and still don’t spend over $150 a month on groceries, and that includes the weekly steak or hamburger I make at home.
Phone & Utilities
Phone plans & utilities within China are one of the most underrated aspects of saving. I have a 30 GB phone plan with China Unicom and pay around $12 a month. This isn’t a set price, as they charge for use. The carrier I use is on the more expensive end, but their service is out of this world.
The best part about this phone plan is that it also serves as my internet provider. For $12 a month I’m getting a phone plan and 200 MB internet service. If you add this with the cost of water and electricity and the difference between the US is night and day.
I only have one light on in the house at one time but run my gaming computer and laptop nearly at all times. Even with this I pay around $9 for electricity each month. Water is a little more expensive, at about $15–20 a month.
Combining the prices of these services together leaves a large chunk of change that I wouldn’t have otherwise in the US that can be pushed straight into a transfer back home.
Eating Out & Leisure
Depending on what type of restaurant or bar you want to visit you will see a large disparity in price. If I decide to go out to a malatang (link) restaurant I may only spend around $4 for a full meal. I’m lucky that malatang is one of my favorite, and cheapest, foods.
On the other hand if you want a good pizza or shawarma it’ll charge you much more. Prices for quality western food typically range from $10–25 per night not including drinks. I personally put eating out once a week into my budget each month so I can go out with friends.
If I’m being honest with you, there’s one major threat to my financial plans, and it’s Waimai. A food delivery app similar to UberEats or DoorDash, the delivery prices will blow your mind. I’ve never paid more than $1 for delivery. You can order food from any restaurant, IPAs or Tsingtao(link) beer, and groceries from your favorite market.
There’s been a few months where I got a little overzealous with my Waimai spending, but when I compare the prices to anything back home it makes me feel a little better.
So I Came to China
With careful budgeting I’ve been able to put away 90–95% of my monthly paychecks directly into my student loan from China.
Even with sending away such a large amount of money I’m able to live a reasonably stable life financially. I can still go out for a drink with friends, go to a nice hotpot restaurant, and order a new hoodie off of Taobao. Sure I’m not going out and pounding drinks every night like some of my peers, but perhaps that’s for the better.
Whenever my expat friends or I mention that we live in China, many people ask us why. There’s the appeal of the rich history and culture, traveling the world, and having an experience all our own that highlights the reasons for a move. However, the financials are a large part as to why many expats land in China, and I hope this writing can give you some insight on the lucrativeness of being in the Middle Kingdom.
