Effective Tips To Cut Off Expenses In Japan
In this guide, we explore how to make average living cost in Japan lower. We will explain the living costs and give you useful tips to help you better control your budget. Let’s delve into the specifics of how you can save money across various aspects of daily life in Japan.
The average living cost in Japan for a single person moving to Japan cost is 130,023 yen nationwide. In major metropolitan areas, including Tokyo, it is 136,984 yen. Consequently, this information comes from a survey conducted by the Ministry of Internal Affairs and Communications in 2022. This indicates that single-person households need around 130,000 to 140,000 yen per month for living expenses, excluding rent.
Next, let’s consider the monthly average rent. The National Association of Rental Property Managers conducted the National Rent Trend Survey in February 2023. Additionally, the survey revealed that the average monthly rent for a small apartment in Tokyo is approximately 68,000 yen. To live comfortably in Tokyo, a single person should aim for a monthly net income of around 200,000 yen.
However, these figures represent average living cost in Japan for a single person. In Tokyo, rent prices can differ a lot depending on the neighborhood. While, in some locations the monthly rent can be as affordable as 50,000 yen. By choosing such areas and reducing living costs, one can live in Japan more affordably.
Breakdown of Average Living Cost in Japan for a Single Person
The Ministry of Internal Affairs and Communications’ 2022 Household Survey breaks down single-person living expenses.
- Food: Approximately 39,000 yen
- Utilities: Approximately 13,000 yen
- Furniture and household goods: Approximately 5,500 yen
- Clothing and footwear: Approximately 5,000 yen
- Health care: Approximately 7,500 yen
- Transportation and communication: Approximately 19,000 yen
- Education and entertainment: Approximately 18,000 yen
- Other expenses: Approximately 31,000 yen
Effective Ways to Save on Living Expenses
You can divide living expenses into fixed costs and variable costs. Overall, you can save money by reducing your monthly fixed expenses. Here are some major fixed costs and tips for saving on them:
Utilities:
- Utilities include electricity, water, and gas. Switching utility companies or plans can save on monthly bills. For electricity, since the easing of the market in 2014, different companies offer various rate plans. Consider reducing the contracted amperage to lower the basic fee if you do not use many appliances simultaneously.
- Gas is either city gas or propane (LP gas), with city gas generally being cheaper. Ensure to verify the kind of gas when searching for a residence.
- Daily usage habits also affect utility bills, simple actions can save money. Turning off water, reusing bathwater, unplugging unused appliances, using energy-efficient devices, and switching to LED bulbs.
Communication Costs:
- Communication costs include mobile phone and internet charges. The average communication cost is around 7,000 yen out of the total transportation and communication expenses of 19,000 yen. Switching to cheaper mobile plans
or companies, such as using budget SIM cards, can result in significant savings. For fixed-line internet, bundling services with your mobile plan or even with electricity can also reduce costs.
Car Maintenance Costs:
- Car maintenance costs include parking fees, insurance, and gasoline. The average monthly cost of car maintenance is approximately 8,500 yen. In Tokyo, public transportation is highly developed, so consider whether owning a car is necessary.
- If you decide to keep your car, review your insurance policies to eliminate any unnecessary coverage. Consider looking for affordable parking options and using public transportation as an alternative.
Insurance Costs:
- Insurance costs include health and life insurance premiums, with the average monthly cost being around 3,859 yen. For singles, life insurance may not be necessary if you do not have dependents. Evaluate the coverage offered by public health insurance and determine if additional private insurance is necessary.
Controlling Variable Costs
Managing fixed costs is essential, but it is also important to monitor variable costs like daily necessities and entertainment.
Food:
- Save on food costs by buying groceries from convenience stores, cooking at home, and bringing packed lunches. While recent price increases might make it harder to save, making small adjustments can help.
Clothing:
- Save on clothing costs by setting a budget. Purchase classic, high-quality items at second-hand stores or flea markets for great deals.
Entertainment:
- Reduce entertainment costs by borrowing books from libraries, watching discounted movies, and purchasing tickets at discount shops.
Additional Considerations for Living in Tokyo
Commute:
- Tokyo’s rush hour trains, notorious for overcrowding, have seen a decrease in congestion. The Ministry of Land, Infrastructure, Transport, and Tourism reports a congestion rate of 108% in Tokyo. Although rush hours are busy, they are manageable.
- To improve your commute, always check rail pass route congestion levels. Also consider living near the first station on the line to secure a seat easily.
Dining Out:
- Tokyo has a reputation for expensive dining, but it also offers a wide range of affordable restaurants and chains. Consider the availability of budget-friendly dining options when choosing a neighborhood.
Car Necessity:
- With excellent public transportation, owning a car in Tokyo is often unnecessary. Weigh the benefits and costs of car ownership against public transportation.
Average Rent by Area in Tokyo
23 Wards:
- Chiyoda: 114,000 yen
- Chuo: 110,000 yen
- Minato: 122,000 yen
- Shinjuku: 88,000 yen
- Bunkyo: 89,000 yen
- Taito: 89,000 yen
- Sumida: 84,000 yen
- Koto: 90,000 yen
- Shinagawa: 89,000 yen
- Meguro: 93,000 yen
- Ota: 73,000 yen
- Setagaya: 74,000 yen
- Shibuya: 104,000 yen
- Nakano: 104,000 yen
- Suginami: 67,000 yen
- Toshima: 77,000 yen
- Kita: 72,000 yen
- Arakawa: 72,000 yen
- Itabashi: 66,000 yen
- Nerima: 63,000 yen
- Adachi: 63,000 yen
- Katsushika: 60,000 yen
- Edogawa: 62,000 yen
Outside 23 Wards:
- Hachioji: 44,000 yen
- Tachikawa: 55,000 yen
- Musashino: 68,000 yen
- Mitaka: 61,000 yen
- Ome: 36,000 yen
- Fuchu: 53,000 yen
- Akishima: 52,000 yen
- Chofu: 60,000 yen
- Machida: 49,000 yen
- Koganei: 53,000 yen
- Kodaira: 45,000 yen
- Hino: 47,000 yen
- Higashimurayama: 40,000 yen
- Kokubunji: 53,000 yen
- Kunitachi: 53,000 yen
- Komae: 59,000 yen
- Higashiyamato: 52,000 yen
- Kiyose: 48,000 yen
- Tama: 44,000 yen
- Hamura: 49,000 yen
- Nishitokyo: 54,000 yen
Renting Tips
Consider moving to areas with lower rent, such as those outside the 23 wards, where average living cost in Japan rents are around 40,000 yen. Specifically, even within the 23 wards, areas like Katsushika and Edogawa offer rents in the 60,000 yen range.
Look for properties near stations with express or rapid services to balance convenience and cost. Moreover, consider older properties, which can be more affordable. Some owners renovated older properties and maintain them well.
Initial Costs for Moving
When starting a new life in Tokyo, consider the initial costs besides rent and living expenses:
- Security Deposit and Key Money: Typically one month’s rent each, with security deposits refundable upon moving out.
- Agency Fees: Generally equivalent to 0.5 to 1 month’s rent.
- Advance Rent: Typically one month’s rent, prorated if moving in mid-month.
- Guarantor Fees: Required if you cannot provide a guarantor, usually 0.5 to 1 month’s rent.
- Fire Insurance: Typically 5,000 to 15,000 yen.
- Key Replacement Fee: Approximately 10,000 yen, but higher for special locks.
- Moving Costs: Typically range from 50,000 to 100,000 yen, varying by distance and timing.
Maximize Your Stay By Saving More
In April 2024, Japan launched the Nomad Visa, which will let foreigners go to Japan including six months stay. However, renting an average living cost in Japan apartment with these visas remains challenging. Our company offers support for obtaining visas and finding housing in Japan.
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