Let’s delve into the world of high-skilled visa workers and understand their ability to live a frugal life in the United States on an annual income of less than $15,000, while also amassing significant savings. Such a lifestyle in America might surprise many of us!
Each year, the United States hosts multiple thousands of high-skilled temporary visa holders, notably from the H and L classes. While a number of them opt to stay and apply for residency and eventually citizenship, many return to their home countries, packing their savings accumulated during their stay in the U.S.
Basically, these individuals spend around 2 to 3 years serving multinational corporations in the country, largely in the technology sector. They can legally reside in the U.S. for a maximum of 6 years before having to renew their visas. These workforce members, with a medium household income of around $67,000, usually earn much higher. When their spouses also work, they effectively double their family income.
For those with significant experience, or those occupying managerial or team lead positions, salaries can exceed $150,000. They tend to earn significantly more than the average American. Many come here without their spouses or children to minimize living and travel expenses, particularly when their stay is short-term.
Country-wise, India and China are the biggest contributors to this migration trend, backed by their deep familial traditions. Extended family members support immediate family left behind during these temporary overseas work assignments.
These workers are the best among their peers in their home country, boasting high-level education, intelligence and a strong work ethic, often with an average IQ higher than the global average. Their service sectors predominantly include IT and Science and Technology (STEM).
While not all skilled visa workers lead lives of extreme frugality, it’s noteworthy that many do. You might notice them driving old cars or dressed in weather worn attire. However, they are unfazed by the perception of others and prioritize saving even on minimal necessities like soap.
Let’s welcome this characteristic example of intense short-term frugality among temporary visa workers. Following just a few years of residence in the U.S, they return to their homeland with substantial savings, enabling them to live comfortably and pay off loans for homes or cars.
Accommodation often involves sharing a two-bedroom apartment among 3 to 4 individuals along with a shared rental car. They often buy a used vehicle purely for commuting and weekly shopping needs. They manage their finances expertly, diligently tracking every expenditure.
Their weekly purchases are minimal, covering the necessary requirements to survive until the following weekend. However, upon their return to their homeland, they take back an array of expensive technology, well-known clothing brands, perfumes, shoes and accessories for their loved ones.
Homemade meals are their preference, and they rarely eat out. Most of their kitchen and household items are hand-me-downs from someone about to return home, resulting in free procurement and disposal of items.
Use my colleagues, several temporary visa workers, as an example. Four of them shared an apartment costing $1,800 per month and a rental car for $1,000. With individual contributions for gas, housing, and transportation came to $750. Add to this a monthly food expense of $300 and a $150 budget for entertainment and utilities, bringing the total monthly expenses to $1,100, that’s living on under $15,000 annually.
Whether shopping for second-hand items or using coupons, they were always on the lookout for deals. They seldom bought expensive items unless it was to carry back to their home country.
For most visa workers, life includes basics like sleeping on couches, futons or on the floor. Their purchases are restricted to basic kitchen items and personal care products if they need to purchase at all. Garage sales and yard sales are their go-to shopping locations. For them, this phase of life is about wealth accumulation.
Upon returning home with their hefty savings, they enjoy a comfortable and luxurious lifestyle. With their high earnings from work in the U.S., they are able to earn, after necessary deductions, around $7,000 per month. Following expense deductions, they save around $5,900 per month, or about $66,000 annually. In just three short years, they can save up to $200,000!
Enough to buy a spacious house and car outright in their home countries of India or China. With a longer stay in the U.S., their retirements are also secured due to the higher purchasing power of their native currency compared to the U.S. dollar.
But don’t mistake their frugal lifestyle for one devoid of fun. They enjoy their stay and visit tourist attractions, always on the lookout for the best prices. They create lasting memories of their time here and pick the most expensive gifts for loved ones. Yet, they refrain from dining out, prefer minimal-functioning vehicles and thrift their clothes.
In no way am I discouraging this lifestyle. I too experienced it during a two-month business visa stay in the US. In that short period, I saved enough money to fund my wedding and engagement ring, offering significant relief to my retired parents as per Indian traditions.
These temporary visa workers significantly contribute to worldwide IT industry growth. Their lifestyle philosophy is delayed gratification, endure hardship now for future comfort. The underlying aim of this article is to inspire self-imposed short-term sacrifices. Controlling your spending and exercising self-discipline, exhibiting traits like these visa workers, can visibly improve your financial situation.
Reduction of debt or wealth building requires such discipline and control of spending. A few lessons gleaned from their lifestyle include goal setting, discipline, motivation, rewarding themselves and investing in self-improvement. However, extreme frugality, if not balanced with happy living, could strain your happiness and relationships. Regular fun and personal enjoyment should be part of a well-rounded lifestyle. Avoid neglecting health issues that can lead to potential larger expenses later.