This is one topic, I guarantee the media hasn’t covered so far. Gain insight into the high skill visa worker’s life and how well they live on less than $10,000 per year and save a fortune. Every year, thousands of highly skilled and executive visa holders (H and L classes) travel to the US. Thousands leave as well. Some of them stay back, apply for residency and eventually citizenship but the majority go back with saved money.
Typically, these visa workers spend 2-3 years in the US working for a multinational corporation. Legally, they can spend up to 6 years in the US before renewing their visa. With the average American household income around $50,000 these visa holders earn a minimum wage of $60,000 per year. Often their spouses also work, doubling the income. No employer can hire an H or L category visa worker with a salary lower than this limit set by the federal government.
If he/she has enough experience and is a manager or a team leader, salary often reaches 6 figures. Naturally, they are way richer than the average American. Mostly, they travel without their spouses or children to keep the cost of intercontinental flights and cost of living in check. The two largest contributors to the flow of skilled immigrants are India and China, two countries with large family tradition. Extended family takes care of the visa worker’s immediate family during their foreign assignment.
These guys are the cream of the crop in their countries – they are highly educated, intelligent and hard working. Average IQ of H or L category visa holders is well above the average human IQ level. They mainly work in the science and technology sectors.
Their extreme frugality is not a full representation of the entire population, but a majority of it. If you happen to be a visa worker and you don’t agree, you are an exception – this practice is quite rampant and pretty consistent.
When you see them from the outside, these guys look like poorest of population, driving 15 year old car, wearing age old dresses. You can easily distinguish them in a crowd. They buy the cheapest of everything, from soap to salt. They don’t care what other people in US think about them.
Ladies and gentlemen, welcome to the world of extremely short term frugality by US immigrant visa workers. With just couple of years of living in the US, they go back to their home country and live life happily with a home and car paid for in full.
They always stay in groups, with 3 to 4 people sharing a 2-bedroom apartment, the roommates share a rental car. Or, they buy a merely running car for just commuting to work and shopping trips. They manage the household budget and expenses like a pro financial expert, pinching every penny.
If you check their shopping bags once they return from a weekend shopping trip, you’ll find barely minimal things, just enough to survive until the next weekend. On the contrary, if you check their bags when they return to their home country, you’ll find all sorts of electronic gadgets, brand name clothes, and shoes. Mostly they buy raw meat and vegetables and cook their own meals. Very seldom they go out for eating.
I know many such visa workers who came from India and went back. To give you some numbers to prove my point. I knew 4 of them who used to share a $1200 per month apartment and a $500 per month rental car from Hertz.
Including $100 per month toward gas, the per-person cost for housing and transportation combined was only $450. They had a food cost of $200 per month per person, as they cooked most meals at home. If you add another $150 toward entertainment and utilities, they lived with only $800 spending per month. They never bought furniture. They collected nice furniture from their neighbors and through craigslist listings.
This is living below $10,000 a year.
Every purchase they make involves bargain hunting, from Craigslist to various coupon and deal sites. They tend to spend hours in front of the Craigslist freebie section waiting for new listings. They never buy a costly items. The ones they buy are for carrying to their home country.
They sleep on couches and on mattresses made out of a few comforters on the floor. They buy only very basic cookware and personal care items. For them, it’s a passing phase of life where they only accumulate wealth in both hands.
With the money saved, they live a life of abundance and luxury once they return to their home country. If I calculate the saving.
These skilled visa workers command a high pay due to their superior human capital. Let’s consider a salary of $6,000 per month (annual Salary $72,000). After taxes and insurance, the net salary comes down to $4,000 a month. With a saving of $3,200 per month (with $800 towards expenses we saw earlier). The yearly savings is $40,000. At this rate within 2 and 1/2 years, they have a fortune of $100,000!
Back in India (and even in China), $100,000 is enough money to buy a large house and a car without borrowing anything from a bank. With a longer stay in the US their retirement gets secured as well. In countries like India and China, purchasing power of the currency is much stronger than in the US, things are much cheaper there.
Now before I give the impression that these guys don’t live a life, they in fact do. They enjoy all types of frugal fun. In just a few years, they cover pretty much all the tourist attractions in this country, securing the lowest air fare and stay possible through deals and offers. They create lasting memories of their stay here in US. They pick the priciest gifts for their loved ones back home. Yet, they do not visit the cheapest of the restaurants. They buys cars that barely run.
I am not at all against these immigrant visa workers and their lifestyle. Until very recently, I was one of them. Though I am living with my wife and not sharing room or car with others, my rate of saving is much lesser compared to them.
Before marriage, I stayed in US for two months before going back to India. In those two months I saved enough to fund my marriage along with the engagement ring. It was a great relief to my retired parents who otherwise had to fund our marriage, as per the ritual we have back home.
These visa workers are the biggest contributors to the growth of the overall IT industry. On any day, as a group, they are sharper than any other group in the world. They know what they are doing and what’s best for their overall and lifelong well being.
The reason behind this article is to encourage self-imposed and short-term hardship. Delay gratification and living below means for a couple of years can make a major difference in your financial life. Whether to become debt-free or to build wealth, all you need to do is control your spending and exercise discipline like these visa workers do. Few things that can be learned from their way of their living
Have a Goal : They set a goal to save as much as possible for a home, a car, etc.
Discipline : No matter what these people never splurge or go beyond budget. They simply don’t.
Motivation: They are constantly motivated. Each day of hardship cuts the remaining days of hardship by one. When the end is near, it’s easy to keep motivated towards saving.
Reward: Saving is no fun without a reward. These people go out and see places. They buy the latest and best electronics and take them home to own for a lifetime.
They spend on self-improvement : I know many of them learning Spanish, Salsa, Zumba, Karate etc. They try to take maximum advantage of their stay here in the US.
Watch out for pitfalls
Personally I feel that being in America and going all out in to extreme frugality is not a very good idea for long-term perspective. Constant couponing and deal seeking, when becomes a habit can tax on your personal time. It may cause household tensions between parents and children. Do make having fun a constant routine and reward saving money attitude.
The temporary visa workers can neglect small health related issues while they are in this country. They get their annual leave to go back to home countries for vacation. It provides a good opportunity access health care at a much lesser cost. You being permanently in US do not have this flexibility. Do not let health issue un attended. If you do you may run in to a bigger cost towards treatment later on.
By sowing frugality we reap liberty, a golden harvest. ~ Agesilaus
Readers, what do you think about this class of people? I am sure you have come across a few visa workers. How was your experience with them?
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I’ve never personally known a visa worker, but I think living like this is fascinating. This is the extreme example of deferred gratification. Could you imagine what would happen if the average American did this?
Heh, well first the economy would tank since no one was spending any money. But, it would practically eliminate consumer debt, drastically reduce foreclosures and savings would be through the roof.
For sure you can’t continue like this. But when you think you should be thinking towards your situation only, I can’t imagine a whole country suddenly going for delay gratification.
I’ve not run into a Visa worker, but I agree with Jeremy, that is fascinating.
thanks for your comment Robert
I know a few of these guys. They save a lot and will use the money to buy land and build a house. It’s tough for a few years, but they will be much better off once they go home.
Many lower skill workers also do the same thing in the Middle East right?
Right on the money Joe. Do this retire by 30
quickest way to retirement i guess.
I think this is an example of people who are driven. They live the other side of life and know that they have an opportunity to make a better life for themselves.
Motivated and driven. Two years of struggle and sacrifice for a life full of comfort.
I’ve not known a visa worker personally but when I worked for a broker-dealer we used to get several come in to open brokerage accounts with their visa. I can be pretty nosy and when I would see them come in to deposit a check, I would put the check in the account and be so shocked to see that they were killing the markets! Dividend stocks, great purchases, dollar cost averaging, they were doing it all. So to add to your point SB, I think they are also taking the time to invest while they are here, which is possible to do on certain visa types.
Yes they do. When I was on Visa I did open all sorts of financial accounts, saving, stocks, options.. CDs et all.
At my company, we used to have an Indian employee who lived with 3 other friends in a 2-bedroom apartment. His monthly living expense was less than $400 every month, including groceries and utilities.
That’s freaking less than $5000 a year!
There is much to be learned from these individuals. While their way of thinking is very different than mine as an American, that’s an opportunity for someone like myself to learn.
These folks are generally highly intelligent, hardworking, cream of the crop people. I’ve encountered such people in graduate school. I remember a few whose undergrad in India was named IIT (if I recall correctly). Most of us here had no idea, but that school is the MIT of India, if not better.
Anyway, their mindset is different, and they can do some things lifestyle-wise that most people wouldn’t even consider. This fresh thinking, plus high intelligence, driving ambition, street smarts, and discipline, allows them to succeed. Some years of living low profile, and delaying gratification, can pay big rewards later.
Very good post.
You correct, IIT (Indian Institute of Technologies) is a group of colleges with the highest quality of education. In various measure certain things are even better than the standards of MIT. You have to beat 5 million other aspirants to get in to one of the 10000 available seats needlessly to say its considered to be the toughest examination in the world. I am pretty much excited as we are talking about my alma mater here
So far IIT have produced more than 50 CEOs and presidents at non Indian multinational. PEPSI, CA, SUN, Vodafone, United airlines.. just to names which are coming to my mind.
Looks like many of the fellow bloggers are used to these visa workers. I wonder why this story is un mentioned on media so far.
I haven’t met anyone like this personally but I have definitely seen the good example they set. There is definitely something we can learn from their work ethic and their focus on their goals. They are very motivated and determined to do what they need to do and they don’t give up even when they are tired or face difficulty. They get down and dirty and do what they need to do. They are great teachers to many of us.
Well, you know me!
I’ve known quite a few visa workers, both in the US and abroad. Self-sacrifice is a way of life. Living apart from the family for sometimes years on end, saving up for a nest egg or to buy a home, or for their kids’ education. We in the profligate West could learn much from that example.
And you don’t have to be that frugal. You don’t have to live under 10,000, you are not in US for short term, for ever you will be in America. But. don’t spend your pay check every month.
I have known many visa workers or even international students that live a similar lifestyle. Knowing these people has opened my eyes to new habits that I have implemented into my own life and have reaped many rewards due to this.
Great article SB.
[...] 3) Have you met any skilled visa workers that live on less than $10 a year? SB at One Cent at a Time has and he tells their story in his latest article – Living Well on Less Than $10,000 a Year: Skilled Visa Workers. [...]
[...] Cent at a Time published a post about Living Well on Less than $10,000 a Year. It is about how skilled visa workers in the US live on next to nothing to save for their families [...]
I work for a multinational company and we trade employees all the time. We are a little different in that the company pays for their housing! Most of them leave their families at home but some come with their families. The thing is that if their wives come they usually do not work because they are not authorized for work, their husbands are. Also there tends to be a lanugage barrier or they are the main caregivers for the children.
These are the certain facts that go against them. English is being pursued as a main language in schools out there. I can find the only problem with the spoken accent.
I haven’t knowingly met a visa worker, but the idea of deferred gratification is pretty awesome. Our media makes it harder for us to take this route, showing us all the things we “need” and trick us into buying it. But if I could somehow adopt these principles, our family would be set!
Penny you put out so many articles on making bucks out of no where. I am sure you are doing great on your personal finance.
[...] SB presents Living Well on Less Than $10,000 a Year: Habits of Skilled Visa Workers posted at One Cent at a Time. I’m going to give you his synopsis here. “Ever heard of [...]
[...] 100% fascinating.Hey you. Yes, you: fat and lazy North American reading this. Check our what SB at One Cent At A Time has to say about skilled Indian and Chinese visa workers who come to our shores temporarily, [...]
Haha, you just described my entire family!!
I’m from Nepal, the country that’s sandwiched between China and India. Spending my childhood watching my family’s spending habits probably shaped my PF skills.
I had this doubt after seeing your Plutus award vote seeking video. Our upbringing definitely is helping us. Are you born in Nepal or by origin, a Nepali?
[...] 8. SB @ onecentatatime presents Living Well on Less Than 10,000 a Year: Habits of Skilled Visa Workers [...]
Visa workers from countries like India & China also come from areas where the sense of family & friends is really strong. While it may seem odd to Americans to live w/ 4 other people that are not family, Visa workers who don’t do that tend to feel lonely and isolated. They’re generally coming from places that are very densely populated, extended family sharing the same roof.. Privacy, solitary living is not the norm, nor is it comfortable for them.
You have brought an excellent point. Thanks for mentioning it. Yes a sense of being surrounded by people works here. They are not used to wider spaces.
Sound like me when I was in college.
[...] Living Well on Less than ,000 a Year: Habits of Skilled Visa Workers— By sharing a car and an apartment with a few other people, it is possible to significantly reduce your living expenses. [One Cent At A Time] [...]
I personally don’t know any visa workers, well at least not at the status you are talking about. I know some “illegal” immigrants that pretty much do the same thing. I think we can definitely learn from this group of people. I am on am mission to pay off debt and this has definitely given me some food for thought.
The difference between illegal visa workers and skilled visa workers are on their salary. Those illegal people have no other choice to go frugal where as this group of skilled people live frugally by choice.
[...] Living Well on Less than $10,000 a Year: Habits of Skilled Visa Workers— By sharing a car and an apartment with a few other people, it is possible to significantly reduce your living expenses. [One Cent At A Time] [...]
Hi SB,
I am not surprised that workers on Visa’s are able to live on 10k a year and do it easily. Most people don’t want to be inconvenienced or sacrifice now so they can have more in the future. It takes a shift in beliefs and attitude to be able to do this effectively.
Most Americans will soon be living on $10,000 gross per year. They just don’t know it yet. My goal is just that going forward. No debt, little to no expenses, grow my own food, etc. It can be done. It’s just main stream BS, says it can’t (the 1% doesn’t want you to live off the land, and to be happy, otherwise they’d be out of business), and that you can’t be happy. I say BS to all of that. Peak oil will soon enlighten most in American, and elsewhere.
For some reason I can’t be that pessimistic. The idea of this article was to make people aware of delayed gratification.
[...] Living Well on Less Than $10,000 a Year: Habits of Skilled Visa Workers (from One Cent At A Time) [...]
That is amazing if someone really can live that way, earn that much, and save $100,000 in just 2.5 years! In fact, that is inspirational!
My Indian friends all seem very frugal eg 60-70% savings rate after tax.
I think I just got a little more inspiration to save big bucks and move!
Thx,
Sam
I do try to keep it within 50 – 60 saving rate. Good thing is for us its not hard. When we grew up frugality was not one of the options it was the only option.
I used to be that visa worker, and lived exactly like that, although on a much smaller salary (academic bio-medical science, entry level). And yes, having a goal and living frugally is not difficult by any stretch of imagination for me. I still practice a lot of ways from those times.
[...] Living Well on Less Than $10,000 a Year: Habits of Skilled Visa Workers (Skilled) – This is an unusual tale of living under $10,000 a year. The high skilled visa workers while staying in US live extreme frugal life to save money for future, a future they’ll live in their home countries. The article talks about this community and their practices, to motivate you towards saving. [...]
I know some of those workers. They come, work and make money and leave, and they pay taxes also on their earnings. This is similar to some immigrants workers that come from Centro America, Mexico and South America. We come to do the labor jobs and get minimum pay. We share rooms; we cook at home, and pay taxes also. Some of us come here to make money and send it back home yes after we pay the taxes. Then we stay and make our lives in the USA trying to reach the “American Dream”