Did My Money Actually Increase? The Reason My "Hourly Wage" Skyrocketed After Side FIRE - A Confession from a Former Teacher Dad
In my previous article, I shared that the "true purpose" behind my goal of achieving Side FIRE was, above all else, to reclaim "time freedom."
Time with family, time for myself, time with the people who matter most... I wanted to reclaim that irreplaceable time I was on the verge of losing during my teaching days. With that single-minded focus, I took action.
I am sure many of you can relate to this. At the same time, you must have also had this question.
"It's fine to take time for yourself, but what about money?" "Won't life become difficult if you reduce your working hours?"
That is a perfectly natural question. When I decided to aim for Side FIRE, this issue of "money" was what I felt would be the biggest hurdle.
However... once I actually achieved Side FIRE, something unexpected happened. Even though my working hours were significantly reduced, my financial worries decreased, and in fact, I actually had more financial breathing room than before.
"What? There's no way such a good deal exists!" You're thinking that, right? But this is an undeniable fact.
This time, I would like to talk in detail about why this seemingly contradictory situation arose, including my own experiences. The keywords are "hourly wage conversion" and "choice of work style."
The Illusion Called "Stability"? The Trap of Teacher Salaries and "Hourly Wages"
First, as a premise, I must talk about the "salary" of regular teachers. Generally, there is an image that teachers, who are public servants, have "stable" annual incomes and employment. It is true that a fixed amount is deposited every month, and there is almost no fear of being laid off.
However, behind that word "stability," how much "time" are we paying as the price? Here, I would like you to try looking at it from the perspective of "hourly wage conversion."
In the world of teaching, there is a somewhat special law called the "Law on Special Measures Concerning Salaries, etc. of Educational Personnel in Public Compulsory Education Schools" (Kyotokuho). Simply put, it is a law that says teachers are not paid for overtime work. Instead, a mere 4% of the base salary is added as a "teaching adjustment allowance." (*It is planned to be gradually increased from fiscal year 2026, eventually reaching 10%, but...)
What does this mean? No matter how enthusiastically you research teaching materials for the children, no matter how late you prepare for class, or no matter how carefully you deal with parents, overtime pay is, in principle, not paid. (*Excluding very limited specific tasks ordered by the principal)
In other words, a state close to "unlimited work" is effectively permitted by law. I suspect many teachers in the field feel that this increase in the teaching adjustment allowance is just a drop in the bucket unless it is accompanied by a fundamental review of the workload and an increase in personnel.
Now, let's actually calculate the hourly wage here. Referring to the Ministry of Health, Labour and Welfare's "Basic Survey on Wage Structure," roughly speaking, the average monthly income (including various allowances, before tax) of a junior high school teacher around 40 years old is said to be about 400,000 yen.
Suppose, for the sake of argument, that you work exactly on time every day (38 hours and 45 minutes per week) and your monthly working hours are about 155 hours. 400,000 yen ÷ 155 hours ≈ 2,580 yen
An hourly wage of about 2,580 yen. Some of you might feel, "Hmm? That's not as bad as I thought."
However, this is only a calculation "if you were able to go home on time every day." As I wrote in the previous article, unfortunately, teachers who can work like that are in the minority.
So, what happens when you add "unpaid overtime" hours to this? Let's assume there is an average of 2 hours of overtime every day (about 40 hours per month). This is by no means a rare case. Rather, there are probably many people who have even more.
Monthly working hours are 155 hours + 40 hours = 195 hours. The hourly wage is 400,000 yen ÷ 195 hours ≈ 2,051 yen
Furthermore, if you work 3 hours of overtime every day (60 hours per month)... your monthly working hours are 155 hours + 60 hours = 215 hours, and your hourly wage is 400,000 yen ÷ 215 hours ≈ 1,860 yen.
That's right. The more overtime you work, the more the value of your precious time continues to drop. And not only your money (hourly wage), but also the time you spend with your family and the time for yourself are being endlessly stolen away...
This harsh reality hidden behind the word 'stability.' When I realized this, I felt strongly that 'I cannot go on like this.'
Don't give up on time or money! The light I found was 'real estate'
I want to prioritize having time to spare. But to raise my young children, I absolutely need the means to do so, which is 'money.' This was a reality that couldn't be settled with idealistic talk. Instead of choosing between time and money, was there any way to 'achieve both'...
Thoroughly cut costs? Of course I did. But there are limits. Change jobs? It wasn't easy to find a job outside of teaching that offered satisfying conditions for both time and salary. Start a side job? Teachers have strict regulations on side jobs, and I didn't have the time or physical energy.
It was truly a dead end. In the midst of that, the one ray of light I found was 'real estate investment.'
'Wait, real estate? Is that okay?' Many of you might think that. That feeling is very correct. You hear about failure stories in the news, and there is also anxiety about taking out large loans. If you jump in lightly without knowledge, there is a significant risk of ending up with a huge deficit. Before starting, it is absolutely necessary to study thoroughly and understand the risks.
However, conversely, if you study diligently and proceed based on reliable sources of information with solid criteria, real estate investment can become a very powerful partner that creates room for both 'time' and 'money'.
This is because real estate investment has the potential to generate 'cash flow' in the form of rental income, creating an economic foundation. And once you pass a certain stage, it begins to bring in income in a way that is different from 'labor.'
Using the 'creditworthiness' of a teacher as a weapon to reach 200,000 yen in monthly cash flow
'Alright, I'll solve the time and money problem with real estate investment!' Having decided that, I started by studying thoroughly. I read books, attended seminars (making sure to stay away from shady ones!), and listened to the stories of reliable experts and experienced people.
And finally, it was time for practice. The weapon I used here was, unexpectedly, the 'social credit' that comes with the title of 'regular teacher.' The credit of being a stable public servant works very much in your favor when receiving loans from financial institutions.
My first step was to make the most of this creditworthiness to get a loan from a bank and purchase an entire used apartment building. Of course, I was careful in choosing the property. I thoroughly investigated the yield, location, condition of the building, future potential, and more, and while referring to the opinions of experts, I chose a property I was confident in, thinking, 'This will be fine.'
Fortunately, this first apartment building brought in stable rental income and began to generate a monthly cash flow of 100,000 yen. This is the money that remains in hand after deducting taxes, loan repayments, management fees, etc.
By the way, I also properly checked the regulations regarding side jobs for public servants. Generally, it is considered that you can do it without permission if it is 'within 5 buildings and 10 rooms' or 'within 5 million yen in annual rental income.' (*Since regulations may differ depending on the local government, please be sure to check the regulations of your own local government.) In my case, I cleared these criteria.
A monthly cash flow of 100,000 yen. This is not a large amount compared to my monthly salary, but the peace of mind was significantly different. The fact that 'there is an income source other than my salary' led to a great sense of security.
And based on this successful experience, I took out further loans and purchased two used detached houses. This was also based on careful property selection and planning, just like the apartment building.
As a result, combined with the apartment and the detached houses, the monthly cash flow reached 200,000 yen.
200,000 yen in monthly passive income. When this was realized, a new option clearly emerged in my mind.
“With this much, maybe, just maybe, I could live without continuing as a full-time teacher...?”
Of course, I didn't decide to quit immediately. However, having established a financial foundation gave me the mental freedom of knowing I could quit at any time. To me, this was worth more than the money itself.
On to Side FIRE! Did my income actually increase after changing how I work!?
And so, with a financial foundation of 200,000 yen per month in cash flow and a strong desire to reclaim my time, I resigned from my full-time teaching position and took the step toward Side FIRE.
During the first year after quitting, I didn't stop working entirely. The work style I chose was a combination of 'real estate investment (management)' and 'part-time teaching'.
As a part-time teacher, I worked 26 hours a week. Compared to my days as a full-time teacher, my working hours were less than half.
Let me talk a bit more about the benefits of working as a part-time teacher. From the perspective of a full-time teacher, you might have the image that the status is unstable and the pay is low, but for me, the benefits were greater.
First, being a part-time teacher is a very straightforward contract where you work for an hourly wage. You work the set hours, and you are properly paid for the time you worked. It was a world free from the endless unpaid overtime and take-home work of my full-time teaching days. When the time is up, you just leave. The simple fact of 'finishing on time' eased my mental burden so much. It is truly a transparent way of working.
On top of that, bonuses (end-of-term allowances) are also paid. Of course, they don't reach the level of a full-time teacher, but they are still not a small amount when viewed annually, and they contributed to the stability of my income.
Furthermore, if you exceed a certain number of working hours, you can join social insurance (health insurance and employees' pension). This can be said to be a major benefit unique to part-time teaching that freelancers and sole proprietors do not have. It also led to a sense of security for the future.
In this way, working as a part-time teacher was a very rational choice for me, not only in terms of significantly reducing working hours but also in terms of a clear salary structure, bonuses, and social insurance. I was able to gain overwhelming time flexibility and mental stability while keeping the fulfillment of being involved in children's education.
Now, what you're probably curious about is the 'income.' Since I quit being a full-time teacher and became a part-time teacher, you'd naturally think my income decreased... right?
However, surprisingly, when you combine the cash flow from real estate (200,000 yen per month) and my salary as a part-time teacher (including bonuses), it became more than my monthly income during my full-time teaching days!
I was a little surprised by this myself. Even though my working hours were cut in half, my income increased. And above all, being freed from the stress of being chased by time and gaining mental breathing room was huge.
Furthermore, there was a pleasant surprise. By switching from a full-time teacher to a part-time teacher, the regulations on side jobs were significantly relaxed. This allowed me to further expand my real estate investments. (Of course, without overextending and while thoroughly managing risks.)
Hourly wage skyrocketed! The real reason why financial breathing room was created
Now, we finally reach the core. Why did I have more financial breathing room even though I reduced my working hours?
To supplement the real estate investment I practiced, the management of the properties I purchased (tenant recruitment, rent collection, handling complaints, arranging repairs, etc.) is outsourced to a reliable management company. Of course, there is a management fee, but because of that, the labor time I spend on property management is almost zero. I make the final management decisions and plans for large-scale repairs myself, but I leave the daily operations to the pros.
Let's recalculate my 'hourly wage' once more.
My income after Side FIRE (Real Estate CF + Part-time Teacher Salary) ÷ My actual working hours (Part-time teaching hours + the small amount of time spent on real estate management)
Even without calculating, it was clear that my hourly wage significantly exceeded what I earned as a full-time teacher. In fact, it is no exaggeration to say it 'skyrocketed.' And, I repeat, my working hours have decreased significantly compared to my time as a full-time teacher.
This is the biggest reason why I have gained more financial breathing room. By moving away from the full-time teaching style, where long hours often led to a low hourly wage, I chose to work as a part-time lecturer where the hourly rate is clear and there is no unpaid overtime. Furthermore, I combined this with income from real estate, which requires almost zero working hours. Through this 'choice of work style' and 'combination of income sources,' my hourly rate has improved dramatically.
Looking ahead
Currently, while making this real estate business a pillar of my income, I am also involved in other work within a reasonable scope, and I continue to build long-term assets by utilizing tools like the new NISA. Everything is done to enrich time with my family, my own time, and time with loved ones, and to optimize the balance of 'Time x Money x People x Happiness'.
I touched on real estate investment this time, but it is a very deep world. How to choose properties, how to secure financing, how to choose management companies, risk management, taxes... There is still so much to talk about.
I would like to share these specific know-hows, including my own failures, with you all in future articles, little by little and in an easy-to-understand way.
Talking about money can sometimes feel raw and difficult. However, I believe that facing money seriously is an unavoidable path to reclaiming the time and freedom of your own life.
Once again, thank you very much for reading until the end. I hope this will be of some help in making your life richer.
Written by Saku