How to Save Over 50% of Your Income Living in Japan

Many people are under the false impression that Japan is an expensive place to live, but it's NOT!  At least.  It doesn't have to be.  There are so many ways to save money while living in Japan.

And, actually, I am able to save much more money in Japan than I ever did in America. 

Ode to Japan 

The land of the rising sun, the place where ninjas come to life, where cherry blossoms bloom every spring, and where anime is the only kind of TV to watch.  

I moved to Japan almost 11 years ago and have been living in Japan off and on for the past 9 years.  Can you believe it? Time flies!

A lot has changed in Japan in that time but one thing has remained the same: Japan is not as expensive to live in as most people think.  

I have lived in the countryside as well as a big city and while it is wayyyy cheaper to live in the country side, you can still save a ton of money living in a big city.

In fact, even living in the city, I am still able to save over 50% of my $30k salary.  And today I'll let you in on the secret of how you can do it too.  Plus, I'll give you a sneak peek of my expenses below.

How to Save Money While Living in Japan

Limit the Number of Times You Eat Out

Eating out is expensive.  So one big way you can save money while living in Japan is to cut down on the outings. 

While it's nice to eat out, eating out too many times will put a big dent in your budget.  What may just be a few dollars here and there, adds up pretty quickly.

You can find some cheap places to eat out here in Japan, but that's no excuse to eat out every day (that includes grabbing something from the combini. Yup, Even the combini.).  

Those costs add up and they definitely cost more then you simply cooking at home.  So if you are looking to save some cash, limit the amount of times you eat out.  

Instead, make plans to Eat In.  It may be hard to establish a good cooking routine but once you do, it will become a habit.  And you will save yourself loads.

I tend to limit it to once a week but for the most part this turns into once a month if at all.  It does help that I am mostly vegan so that limits my eating out options anyway.

Limit Your "Free" Money

Another thing I do to save money while living in Japan is I limit the amount of "free" money or play money that I have each month.

To do this, you'll simply have to calculate your necessary expenses.  And no.  Amazon Prime doesn't count.  Your necessary expenses should include transportation, rent, and food (groceries only).

Once you have this amount, you'll know how much you actually need each month to survive.  Then just throw in an extra ichi man (10,000yen) or 2 for your play money and you're good to go.  The rest you can send off to be saved or invested.

Each month you should try to challenge yourself to live off of less and less play money.  When you do this, you can save over 50% of your salary easy.

Send Money Home Immediately

Sending your money home immediately or at least putting it in a hard to reach online savings account is key to maximizing your savings rate.

By sending your money home as soon as you get it, you can avoid the temptation to spend it.  If you look at your account and see thousands of dollars, you may think blowing $100 partying is no biggie.

But if you only had $100 in the bank, you'd think twice before spending your last dime on booze.  Furthermore, it will help you figure out what is truly important to you.  Clubbing may not be as necessary for life as you once thought it was.

So when you get your check, pay your bills then send the rest home immediately.  You will realize that most of the time, you don't even miss having all that extra cash lying around anyway.

Not to mention once you sign up with any of the major phone companies, you're locked in for at least a two year contract.  But will you actually be using your phone all that much?

I've found that I use my Japanese phone rarely.  Most of my communication with friends, coworkers, and even my employer takes place mostly through email, LINE, or facebook messenger.  (Which I use my American phone for.  I got a pocket wifi.  See Below)

Why pay for a phone bill, if you don't even use it?

What to Use Instead

Instead, you could simply get on old flip phone (could probably buy this used or get it for free from someone giving it away) and just add minutes to it each month.  Make sure your unused minutes roll over. 

Or get a sim for your phone and sign up for a monthly plan.  You can find data plans as low as 2,000 yen a month and voice and data plans starting around 3,000 yen.

Or, better yet, if you actually need a phone number for your job, you could just sign up for a Skype phone number which, I do believe, is less than 500 yen a month.

Any of the above would save you thousands on your phone bill.  And with all that extra money, you'll be saving like the pros in no time.

Skip the Regular Internet Service

Instead of getting the regular hookup for internet at home as well as paying for an expensive phone plan with internet, just get pocket wifi. 

You can find some with unlimited data, great speed, and that cost less than 4,000 yen a month.

That's what I do.  I just use my American smartphone and skip out on paying for an expensive new phone here in Japan.  Then I connect it to the pocket wifi and voila! I have everything I need to talk to my employers and friends.

What's more, my pocket wifi doubles for my home internet as well.  I can stream movies, attend zoom meetings, etc. without any problems at all.

This works well for me as I'm not in a three story house or anything. Although, even if I were, it is portable.  I mean.  It is a pocket wifi. lol  

If you're interested, I got mine at Yodobashi Camera.

Stop Shopping at Combinis

Another great way you can save money while living in Japan is to stop shopping at combinis.

Combinis, while convenient, has an exorbitant markup compared to buying the same thing in a super market.  An onigiri that would cost 60 yen in a super costs 120 yen at the combini.

So if you are serious about saving money while living in Japan, you'll want to say no to the combinis.  While you're at it, you may wanna skip the vending machines too.

Skip the Newly Built Housing

Newly built houses and apartment, while they come with all the latest technology and bling bling, are really expensive in Japan.  Especially, if you are looking to live in a very popular district.

Instead look for some old housing complexes and apartments.  The rent for the same amount of space or more will be much much cheaper.

Pro Tip: Find a really old housing complex that has been renovated inside.  Most people don't want to rent it because it's old but inside could actually be quite nice and spacious.

Ditch the AC, Buy This

Another thing I do to save money living in Japan is I refuse to use my AC. Yes, I know.  I may be a bit crazy.  Japan is really humid in the summer and with no insulation, quite cold in the winter.

I personally don't mind being hot as much as I hate being cold.  In the summers, I don't even use an electric fan.  I have my wee uchiwa (the hand held fans) that I use when necessary.

Then in the winter I use my kotatsu.  This is an absolutely godsend.  I don't think I could survive Japan without my kotatsu.  It saves my life.

If you don't know what a kotatsu is, it is a table with a heater attached underneath it and a blanket that goes over top to keep the heat in.  With the kotatsu, I am able to stay warm despite the freezing temperatures.

And bonus point good news, it doesn't cost me much!  My electricity bill is rarely more than 3,000 yen.

Combining Events

Another thing I like to do to save money is combine my events.   Instead of going out to eat by myself, I make it a rule to always go out to eat with friends.

In this way, I am killing two birds with one stone. 

Not only am I getting something to eat but I'm also getting in some good quality fun time with my friends.  It's a win-win.  

And if you want to save even more, you could eat before you go and then just order dessert or a drink.  Talk about being cheap!

How I Save Over 50% of My Income

Sneak Peek into My Expenses

Let's take a wee peek at my expenses and how exactly I save over 50% of my $30k salary (3,300,000 yen).

With my total expenses including entertainment being just around 116,850 yen and my monthly income after taxes averaging 250,000 yen, I am able to save 133,150 yen.  That's 53% of my income!

And sometimes I am able to save a lot more as my salary fluctuates for overtime and because I do a little side hustling.

Now, for those of you who know me or have been to any of my workshops, you know that I think everyone should be saving 70-80% of their income.

Hovering at just of 50% means I still have a ways to go.  But I'm happy to be saving so much when I make so little.  *giving myself a pat on the back

It's much harder to save 80% of your salary when you aren't making very much to begin with.  So every bit you can save is amazing!  And I know if I can do it, you can do it too!

All in All

Saving can be hard.  Especially when you are living on a low teacher's salary they tend to pay here in Japan.  But there are ways in which you can decrease your expenses and boost your savings rate.

Every little bit counts so don't dismiss any of the little tips and tricks you've picked up here or from your friends!  Added up these bits amount to amazing savings!

So give it a go!  And let me know how much you save in the comments below!