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How to Save 150,000 Pounds Sterling in 5 Years ESL English Teaching Goal

what's up everybody it's been here

www.dgtnyc.com so today I want to talk a

little bit about an email that I

received so recurring theme on this

channel is haters some people who are

going to tell you you can't do stuff or

that your goal is insurmountable you'll

never be able to do that nobody you can

ever do that but you got to change it

mind saying you got to think like Arnold

Schwarzenegger

you got a conquer okay that's the key to

success so got an email from the

gentleman yesterday he has a goal

I like goals so his goal is he wants to

he wants to get a hundred and fifty

thousand pound sterling over the course

of five years and he wants to know if

this goal is just totally unrealistic or

if this is something that he could

attain of course it's realistic

of course it's realistic so the big

mistake that most people make is they

look at the end goal they look at the

the picture down the road and they get

scared away by it because it seems like

an insurmountable task but what you need

to do is break this one goal down into

many smaller goals and you need to

celebrate those milestones celebrate

those victories along the way so 150,000

pounds sterling I'm gonna show you a

tutorial I finally figured out on my old

school I finally figured out how to

record video

doing stuff on my computer so today's

gonna be the first time that that I kind

of show you some things so we're gonna

take this gentleman's goal and we're

gonna break it down into small

bite-sized chunks and I'm gonna show you

how you can absolutely over the course

of five years I won't say really really

really easily but fairly easily you can

hit this goal okay now I have to say it

requires work okay this is not winning

the lottery this is not just you know if

you will it will happen yes but you have

to take action okay you have to take

action so let's talk about his goal and

show you how we do it

stay tuned here we go all right so

please ignore all of my many many icons

here but we're just gonna start this out

so our goal is 150,000 pounds sterling

okay so I come in here and how much do

we need for this 150,000 pounds sterling

we need two hundred and twelve thousand

US dollars two hundred and twelve

thousand US dollars okay so over the

course of five years he needs forty two

thousand four hundred dollars okay now

let's look at this in another way if we

were able to break that down over the

course of months okay so each month he

would need roughly 35,000 or sorry three

thousand five hundred and thirty-three

dollars now what most people don't

account for is they think that they're

just gonna put their money in the bank

and then you know that's it well we need

to find an interest-bearing account

somewhere okay and this is going to vary

to pace

your individual tolerance for risk but

let's say that this gentleman is working

somewhere in one of the Gulf states and

he knows that the currencies in the Gulf

states are all roughly pegged to each

other and then I'll pick to the US

dollar now if he sees the US dollar as a

strong viable currency that he thinks

will maintain its current exchange rate

roughly with the US dollar he might feel

comfortable and investing in these

currency savings programs so here we can

look you know historically over the last

five years

it is varied somewhat between Oh about

one point six to one and it balances a

little bit but it's been a pretty good

trade over the years roughly speaking

okay now you don't exactly have to sell

or or buy at a certain time and because

we will be averaging the cost over this

five-year period you can see if I bought

here and I bought here and I bought here

and I bought here and about here it's

all gonna basically average out in the

end okay now I could be wrong I could be

off a couple percent but that could be

to the high side of the low side okay so

next we need to find a place to put our

money so here we have the national bond

program of the UAE this has been

historically a pretty good one I know a

lot of people that have had success with

this program so on the high side four

percent but if you look here requires

about fifty thousand dirhams and above

now our friend who inquired yesterday

you maybe will not be

now fifty thousand dirhams right away

but let's go you know somewhere around

the middle of middle-of-the-road 2.94

percent okay now what I've done here is

I've gone to money chimp and I am using

the compound interest calculator

okay so current principal this is the

amount of money that you're starting

with let's say that he has zero okay

the annual edition well we said here

that he needed 35 33 a month in order to

hit his goal of a hundred fifty thousand

pounds sterling based on today's

exchange rate so we said our yearly

figure was forty two thousand four

hundred okay so let's do this let's say

annual edition it's forty two thousand

four hundred okay

now the years to grow it he has five

years he has a five year timeline now

because this gentleman is British

I would advise him to get with his

accountant or a financial professional

this is not financial or legal advice

okay but this is just an idea so please

take it as such if you put money

offshore depending on your residency or

citizenship many times that can be

tax-free so because the UAE participates

in or runs their runs their banks on the

Islamic system there is no tax so let's

say that he puts his money into this

regular savers bonds at two point eighty

two percent okay so interest rate two

point eighty two percent compound

interest how often is he gonna

his money in the bank will say every

month okay so we're gonna compound the

interest 12 times annually okay and

we're gonna make additions at the end of

each compounding period because he will

not have his first month's payment on

the first of his first month he has to

make the money first right okay so if he

puts in this forty two thousand over is

my calculator if he puts in this forty

two thousand four hundred and he grows

it for five years at two point eight two

percent and the interest is compounded

twelve times annually or every month and

he makes additions at the end of each

compound period the future value will be

two hundred and twenty seven thousand

three hundred and eighty seven dollars

so look what happened we overshot it by

fifteen thousand bucks that's great

right it's always better to to outdo

your goal than to not reach it okay so

let's do this let's play with the

numbers a little bit the inputs and the

outputs what if I only put in forty

thousand a year what would i what would

I have I would still beat my goal of two

hundred and twelve thousand okay I have

two hundred and fourteen thousand five

hundred and sixteen so let's say that I

put in thirty nine thousand five hundred

all right I'm almost right at my goal

right which was two hundred and twelve

I'm in like two hundred eleven 835 so

gotta reach that goal let's make it

thirty nine thousand seven hundred boom

okay we've overshot it now let's go back

into our calculator thirty-nine thousand

seven hundred okay divided by twelve

I need a net positive cash flow each

month of thirty three hundred bucks in

order to reach my goal now I'm not

thinking about the hundred and fifty

thousand pounds

what I'm going to do is I'm going to

stay on my own ass and make sure that I

come up with 3,300 dollars a month

no matter what I'm not gonna make

excuses okay so let's do this let's say

we'll just use an example China okay

let's say that I go to China and I get a

university job that's ideal and you know

I'm making 15 on our bucks off that

let's say that it includes my housing

and it includes my food my cost of

living is going to be very very low but

let's say that I still go out and I have

a lot of fun

okay and each month from my job I always

save a thousand bucks

that's it that's a fair assumption I

believe okay so each month I'm gonna

save a thousand bucks that puts me at

2308 that I have to get from other

sources okay now of course I'm gonna do

this legally and I'm gonna check

everything and I'm gonna make sure that

I'm staying within the confines of my

contract but let's say that I just want

to get a bunch of hours at forty bucks

an hour which is a very very realistic

goal these days so if I divide this by

four point two weeks in the average

month I need to come up with five

hundred and forty nine bucks a week now

if I'm getting 40 bucks to class which

again is not hard I need to work in

extra thirteen point seven five hours a

week not hours class hours okay class

hour is generally forty to fifty minutes

so it's actually somewhere around ten

actual working hours a week does that

sound feasible I think so

matter of fact if my university job I'm

willing working twelve to sixteen hours

a week and then I'm doing an extra you

know fourteen classes on top of that I'm

you know a lot of people are signing

hagwon or

language training center contracts all

over the place for 30 plus hours a week

and I can guarantee you that they don't

have a hundred and fifty thousand pound

sterling at the end of a five-year deal

okay now this is on the minimum side and

you can play with these numbers like

okay let's say for example that I have

my university contract I'm gonna save my

thousand a month off the top and I'm

working 12 hours a week now everybody is

gonna find out that their pain threshold

is it a different point okay for me

personally it's like 40 classes in a

week is when I start to go oh man um you

know I'm hurtin unless a lot of those

are like conversation no prep kind of

classes so let's say that I do my 12

University and then I'm gonna add you

know we'll say 25 we'll call it 37 hours

a week and keep in mind most people in

most countries I mean that's still on

the low side for your average hours so

with my extra 25 hours a week forty

bucks an hour okay this is even on the

low side I mean there are a lot of

opportunities if you look for them to

make more than that so you're looking at

another thousand dollars a week alright

so if I can do that every week that's an

extra 4200 I group that with my thousand

dollars that I saved for my regular job

okay so my annual addition here would be

sixty two thousand four hundred okay now

what if you feel like okay I'm in China

and RMB is a good currency for me

because historically it has gained so

much against the dollar and it just

keeps getting stronger stronger stronger

well I had RMB accounts back in the day

where I was getting between five and six

percent okay now let's look at this and

say

i gosh let's let's just do it if I can

do it fast enough Bank of China savings

interest rate for RMB accounts let's see

so deposit rates RMB deposit rates for

2015 I don't know how much that they've

changed from from that time until now

but looking at 2015 for the deposit

rates you know not very good

let's see small deposit for lump sum

withdraw term deposit I mean you could

put it in here on a 1.75 really I don't

think that anybody would want to lock up

their money for sixty months but if you

had a good you know time horizon you

might consider it so let's let's go with

China let's say we're gonna lock these

up in 12 months CDs at 1.75 percent and

now my annual call contribution is sixty

two thousand four hundred I'm gonna go

each month to Bank of China and I'm

gonna throw in money towards new

certificates of deposit at the end of

each compounding period okay and that's

my annual Edition look at that I've got

three hundred and twenty five thousand

dollars at the end of a five-year period

I hope this video helps you I hope it

maybe changes the way that you think or

brings you a new idea that you haven't

considered before as always thanks for

tuning in