Teaching English online can be both a rewarding and flexible career choice. Not only do you get to save time and money on commuting but you also have more freedom to choose where you’d like to work from – be that a coworking space or your home office.
However, before diving in, you should consider some financial aspects to ensure you’re as prepared as possible. Let’s take a closer look at what you need to remember to ensure a bright future in online English teaching.
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Start-up costs
Top-notch technology is crucial to make it as an online English teacher, so you’ll need to invest in the right equipment to ensure you always deliver high-quality lessons.
The basics that you’ll need include a reliable computer or laptop as well as a headset with a microphone. You’ll also need a webcam and a stable internet connection.
Alternatively, you could rent a fully equipped office or co-working space. So long as you have a quiet working environment and technology that gets the job done, you’re good to go. Read more about why technology is vital for your business at scoopbyte.com.
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Platform fees
If you’re just starting in the online English teaching world, and don’t have your own clientele, you may opt to work with platforms. Working on these sites has numerous benefits, including teaching resources and easy access to a pool of potential students.
The catch, however, is that some platforms may charge a commission on your earnings. This is something to take into consideration, therefore, when setting your rates, if that’s applicable. Remember, no two platforms are the same, so if you’d like to avoid fees, research and decide what works best for you financially.
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Taxes and legal obligations
One of the most important financial aspects to consider before teaching English online is understanding your tax obligations – especially if you’re self-employed.
Some things you should read up on include what the laws are in your country, as well as tax due dates. Failing to meet fiscal deadlines can result in hefty fines, so being informed is a must.
Keeping track of your expenses can also go a long way when it comes to managing your tax obligations. You can do this by documenting your income as soon as you receive it and keeping all your receipts in an organized folder.
If this sounds like a lot of work, you could consider hiring an accountant and factor that in as an additional expense.
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Marketing and advertising
If you’d like to strike out on your own and build your own online English teaching business, you’ll need to consider the costs of marketing and advertising your services.
These could include the price of website domains and subscriptions to website-building sites, as well as running social media ads.
You may also want to invest in promotional materials like business cards, pens, and even stickers to get your name out there. Ultimately, marketing costs will be tied to the audience you’re aiming at.
If money is not an object, and you’d rather focus on teaching, this is something a communications specialist could help you with.
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Professional development
As an online English teacher, continual training and professional development is a great way to help you stand out from the competition.
Setting a budget aside for that then, is integral. Look into the types of courses you think would be the most useful in the future and how much they cost, and decide on a yearly budget based on that.
Don’t forget, courses and even conferences are also great networking opportunities that could help you expand your business’ reach. Moreover, if you want students to invest in your skills, you can lead by example by first investing in yourself.
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Savings and emergency fund
If you’re a freelance online English teacher, it’s always a good idea to plan for unexpected expenses that may crop up or periods of low income by setting aside some of your income into savings or an emergency fund. This can be money you dip into to cover your living costs during quieter work periods.
One way to ensure you are always prepared financially for downturns is by planning ahead and putting money aside in advance.
Holidays like Christmas and Easter, as well as seasons, can play a big part in how much online English teachers teach. Summer, for example, is likely to be less busy than autumn as people are more likely to travel.
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Income stability and predictability
Irrespective of holidays and seasons, your income as an online English teacher is likely to fluctuate, especially if you’re a freelancer.
You’ll need to consider how to manage this financial aspect and whether you’d feel more at ease having the security of an additional source of income to supplement your earnings from teaching.
You can make this decision by tracking your spending and identifying exactly what amount you need each month to live comfortably. If you find that your income falls short, then you could opt to apply for contracted online English teaching positions that would offer more financial protection.
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Retirement planning and benefits
Self-employed online English teachers will be responsible for their retirement planning and benefits, which means that a portion of your income should also be going towards your future.
There are a variety of retirement plans to choose from, so explore your options and even consider working with a financial advisor who can guide you.
Before you start planning for retirement, however, remember it’s a good idea to have a plan for the immediate future. That means focusing on having around 6 months of living expenses and 3 months of business expenses put aside before you start saving for your post-work years.
Ultimately, there’s more than meets the eye, financially speaking, if you want to become an online English teacher. Nonetheless, if you prioritize informing yourself and getting a clearer picture of your financial needs, there’s no reason why it can’t be a successful career move.
Check out TEFL.Org’s introduction to teaching English online and how to get started for more information.