6 Financial Planning Tips For Teachers

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A teacher’s responsibilities can be a handful. Aside from juggling the tasks of designing lessons, facilitating discussions, and conducting student assessments, there are also moments that you might need to extend beyond your duties to help a student in need. Add these up to the responsibilities you have at home and you have one teacher who’s so overwhelmed with their work, they’ve forgotten themselves already.

While you’re busy being the hero of your students and the community, you need to think about yourself, too. Are you financially independent by the time you retire? Or when someone tells you, “Show me the money”, how much can you provide? By having your finances in order, you can secure a good future for yourself and better manage your life’s daily demands.

If you want to know how this can be done, read the tips below to get you started.

1) Assess Your Current Financial Situation

Many teachers are aware of the importance of conducting an honest self-evaluation in learning and teaching. This concept is helpful when planning for your finances, too. To start, you can look at what makes up your income, your existing debts, and current investments, if you have any. From there, you can plan the appropriate and succeeding steps.

2) Identify Your Debts And Pay Them Off Accordingly

If, after evaluating your situation, you’ve learned that you have debts, the next best thing to do is assess if they’re good or bad debts. Bad debts are those whose end goal is acquisition. A good example of this is using a credit card to buy that really expensive watch that you don’t need. Because it accrues interest, it’s better to have these debts paid off immediately.

On the other hand, good debts are those types of debts that can make you money. Experts would call it owing money to make money. A good example is getting a real estate mortgage that you’re planning to lease off in a couple of years. Though it’s technically a form of debt, it’s considered a good debt because it can be a source of income in the future.

3) Start Saving

Though your school or district might have given health insurance as part of your benefits, there are still unplanned situations where you might need a large amount of money. Therefore, saving a part of your salary is beneficial to help you during those moments. Many believe that you can start this habit by saving 20% of your monthly compensation.

4) Spend Within Your Budget

After saving a part of your salary, the next step is to spend whatever has remained wisely. This amount can go to your necessities like food, rent, electricity, and transportation fees. As a teacher, you also know that a small part of your budget goes to those gifts that you give out as prizes to motivate your students.

5) Maximize Teacher Freebies And Discounts

Aside from getting the opportunity to inspire young people, another great thing about being a teacher are discounts and freebies! Communities and local establishments are always keen to give out small ways of showing their appreciation for teachers through these little things.

Continuous education is important for teachers, and there are many ways that you can widen your knowledge without spending too much. One way is to avail teacher discounts when visiting a museum. Many online libraries also give out discounted rates if you’re a member of the academe.

6) Make Use Of Your Skills

As teachers, there are many other possible sources of income from using your existing skills. If you have time after classes, offering tutorial services can be one way to earn additional income. If you’re an art or music teacher, you can always consider offering art and music lessons on the side. There are even many teachers who go into freelancing writing jobs and commit to speaking gigs once in a while. Use the skills you use for teaching to find ways to add more income once in a while.

Conclusion

Keeping your finances under control is one way to practice self-care as a teacher. Start by assessing your financial situation to pay off your debts and start saving for yourself. By maximizing discounts and sticking to a budget, you can also continue to build a financial plan for yourself. Lastly, make use of your skills to tap into other areas for gaining more income. You’ll be surprised to find yourself happier and renewed so you can keep on touching the lives of others.

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