Revisiting: Comfortable Living in Japan (2017 Edition)

[TAG Manager]

We had a thread previously, here: https://tokyoadultguide.com/threads/comfortable-living-in-japan-how-much-per-month.3511/

I think it's a good time to revisit this topic now that we have a larger audience and we have had some changes in the economy.

So, for myself.... Here's my latest expense summary for what I consider a comfortable life in Tokyo...

(per month)
Housing: 180k (outside yamanote line)
Power: 20k
Gas: 5k
Internet/Phone/TV: ~8.5k
Cell phone: ~10k
Vehicle Insurance: 65.4k (actual: paid yearly, 2 vehicles)

So, hardline costs are about 230k/month and we have to toss in food, gas, ETC, non-work train expense and other entertainment (cash or credit card monthly balance payments). So, probably average expenditure per month hits about ~360k/month -- the rest goes to savings, etc.

The above, comes to about 4.3m yen/year required to support. So, a comfortable salary of net take home pay of 7-8m/yen/year would allow extra money for savings and emergencies...

More later.

(PS: Saw this article in The Guardian which sparked the idea to revisit this topic.. .)

 

[TheScientist]

(PS: Saw this article in The Guardian which sparked the idea to revisit this topic.. .)

Off topic but that rag infuriates me with their editorial bias on every subject

 

[TAG Manager]

Off topic but that rag infuriates me with their editorial bias on every subject

Sorry, Some of my friends are working for major tech companies in that region (thus the article was pretty relative). But they are a bit more financially responsible in their lifestyles.

 

[TheScientist]

Sorry, Some of my friends are working for major tech companies in that region (thus the article was pretty relative). But they are a bit more financially responsible in their lifestyles.

It's hardly your fault, many people still think that fish wrap is cromulent.

 

[meiji]

Yeah, I've had some feelers out on working in Tokyo full time, but I wouldn't do it for less than ¥7M considering where I am in my career. It makes no sense to live overseas if you don't have the money to actually enjoy and explore.

 

[justhavefun]

So, for myself.... Here's my latest expense summary for what I consider a comfortable life in Tokyo...

(per month)
Housing: 180k (outside yamanote line)
Power: 20k
Gas: 5k
Internet/Phone/TV: ~8.5k
Cell phone: ~10k
Vehicle Insurance: 5.4k (actual: paid yearly)

So, hardline costs are about 230k/month and we have to toss in food, gas, ETC, non-work train expense and other entertainment (cash or credit card monthly balance payments). So, probably average expenditure per month hits about ~360k/month -- the rest goes to savings, etc.

I thought I would bite.

Housing - Is this a house or an apartment?
Do you have a house phone line and a cell phone?
Is the vehicle insurance the compulsory or voluntary insurance you pay on top?
You did not include the annual cost of the Shaken?

Are these costs for yourself or a family?

I will explain our monthly costs for rural living once you have provided the answers.

 

[TAG Manager]

Housing - Is this a house or an apartment?
Do you have a house phone line and a cell phone?
Is the vehicle insurance the compulsory or voluntary insurance you pay on top?
You did not include the annual cost of the Shaken?

I don't include the Shaken and Compulsory insurance as it's not a yearly expense. The insurance I mention is the 'real' insurance policy that I purchase from insurance companies (yearly). (In this case, I use AXA and Sony Sonpo) -- As for Shaken expense, I perform the Shaken work myself. Total cost for two vehicles is about 65,000 yen (includes the compulsory insurance.) So, you can calculate that as 2.7k/month.

As mentioned above, I pay for a combo package from NTT for TV/Phone/Internet and a separate line from a cell phone company. My housing costs is for a mortgage for property I own. I don't think it matters if it's a 'mansion' or a house, but I am in one of the major Tokyo wards.

 

[AnotherTag]

How about the national health insurance and taxes! If oneconsider how much one has to spend plus taxes then how much does onehave left over for some savings and for P4P

 

[TAG Manager]

The above, comes to about 4.3m yen/year required to support. So, a comfortable salary of net take home pay of 7-8m/yen/year would allow extra money for savings and emergencies...

How about the national health insurance and taxes! If oneconsider how much one has to spend plus taxes then how much does onehave left over for some savings and for P4P

That's why I mentioned 'net take home pay' above... Taxes, Pension, Insurance are highly variable. I lose a significant chunk of money each month, but luckily I also file my own personal taxes in addition to what my company takes care of which nets me a nice return each year.

 

[justhavefun]

I don't include the Shaken and Compulsory insurance as it's not a yearly expense. The insurance I mention is the 'real' insurance policy that I purchase from insurance companies (yearly). (In this case, I use AXA and Sony Sonpo) -- As for Shaken expense, I perform the Shaken work myself. Total cost for two vehicles is about 65,000 yen (includes the compulsory insurance.) So, you can calculate that as 2.7k/month.

As mentioned above, I pay for a combo package from NTT for TV/Phone/Internet and a separate line from a cell phone company. My housing costs is for a mortgage for property I own. I don't think it matters if it's a 'mansion' or a house, but I am in one of the major Tokyo wards.

We also do our own Shaken, which this year was just under 40,000円 and includes compulsory insurance for two years and replacement of two tires.

Not sure how you manage to do two vehicles for 65,000円 as you have to pay weight tax and compulsory insurance for two years and pay for all repairs and or parts.

As for other costs:-

Housing: 34,000円　per year for 3LDK plus 50,000sqmeters of Land.
Power: Average of 8,000円 per month
Gas: We use gas canister's and disposable cooker, yearly cost 11,000円.
Internet :- 5,000円 includes IP phone. NTT + Asahinet.
TV :- Hulu + Netflix :- 2,033円 per month
Cell Phone:- 2 phones = 3,500円 per month, all calls free.

 

[TAG Manager]

Not sure how you manage to do two vehicles for 65,000円 as you have to pay weight tax and compulsory insurance for two years and pay for all repairs and or parts.

I have a car and a motorcycle, both were bought new... so at this stage, both pass inspection without any parts or changes. I'll probably need tires, but next Shaken doesn't cycle back until July 2018 for both.

 

[AnotherTag]

That's why I mentioned 'net take home pay' above... Taxes, Pension, Insurance are highly variable. I lose a significant chunk of money each month, but luckily I also file my own personal taxes in addition to what my company takes care of which nets me a nice return each year.

That's (still?) quite a lot for a net take home pay if you consider the taxes afterwards, which would put someone at the 33% tax rate bracket. Even if assuming progressive tax brackets, one would make at least 10 million YEN to be around that area.

Then again, that's still reasonable with effective tax rate and doable. I feel like getting robbed by California god damn it.

 

[TheScientist]

I don't think it matters if it's a 'mansion' or a house

In terms of equity it matters. One gives you land the other doesn't

 

[TAG Manager]

That's (still?) quite a lot for a net take home pay if you consider the taxes afterwards, which would put someone at the 33% tax rate bracket. Even if assuming progressive tax brackets, one would make at least 10 million YEN to be around that area.

Then again, that's still reasonable with effective tax rate and doable. I feel like getting robbed by California god damn it.

Personally, I believe ~10m/yen/year is a very ideal income to give anyone a very comfortable lifestyle. (unless you're just super rich anyway and have very worldly tastes... ) Of course, that 10m yen in Tokyo money goes a lot farther if you live in the countryside. If you want to have a pad in the central Tokyo hot spots, 10m/year won't get you very far. That quickly escalates to 15-20m/yen/year to maintain the same comfort level you may have had somewhere further out from the cit center.

 

[TAG Manager]

In terms of equity it matters. One gives you land the other doesn't

That's true. But I was aiming for those cost expenditures needed for monthly living.

 

[justhavefun]

Personally, I believe ~10m/yen/year is a very ideal income to give anyone a very comfortable lifestyle. (unless you're just super rich anyway and have very worldly tastes... ) Of course, that 10m yen in Tokyo money goes a lot farther if you live in the countryside. If you want to have a pad in the central Tokyo hot spots, 10m/year won't get you very far. That quickly escalates to 15-20m/yen/year to maintain the same comfort level you may have had somewhere further out from the cit center.

How do you figure on a comfortable life style in a concrete jungle?

Just as easy to live in the countryside and visit the hot spots, then you can truly enjoy the night life, as you do not have to work where you play.

 

[TAG Manager]

How do you figure on a comfortable life style in a concrete jungle?

Comfortable Life = Do what you want, go where you want, whenever you want to. -- Basically, having enough disposable income to not have to worry about finances.

I would much more prefer to be in the countryside, but due to my profession, that's really impossible. I tried the Shinkansen commuting, I just can't commit to commuting that far everyday. It was exhausting... I get out of Tokyo every chance I get! lol.

 

[justhavefun]

I would much more prefer to be in the countryside, but due to my profession, that's really impossible.

Looks like your profession stops you from having a more comfortable life style outside the city...

 

[TAG Manager]

Looks like your profession stops you from having a more comfortable life style outside the city...

Au contraire.... I love my profession. I just wish it could be done outside a big city!

Edit: What I need, is a helicopter. That'd be perfect. /dreaming

 

[TheScientist]

How do you figure on a comfortable life style in a concrete jungle

Some of us manage just fine. There's actually lots of green in Tokyo and non high rise life as well

 

[Kulbutor]

Au contraire.... I love my profession.

 

[e-smile]

We had a thread previously, here: https://tokyoadultguide.com/threads/comfortable-living-in-japan-how-much-per-month.3511/

I think it's a good time to revisit this topic now that we have a larger audience and we have had some changes in the economy.

So, for myself.... Here's my latest expense summary for what I consider a comfortable life in Tokyo...

(per month)
Housing: 180k (outside yamanote line)
Power: 20k
Gas: 5k
Internet/Phone/TV: ~8.5k
Cell phone: ~10k
Vehicle Insurance: 5.4k (actual: paid yearly)

So, hardline costs are about 230k/month and we have to toss in food, gas, ETC, non-work train expense and other entertainment (cash or credit card monthly balance payments). So, probably average expenditure per month hits about ~360k/month -- the rest goes to savings, etc.

The above, comes to about 4.3m yen/year required to support. So, a comfortable salary of net take home pay of 7-8m/yen/year would allow extra money for savings and emergencies...

More later.

(PS: Saw this article in The Guardian which sparked the idea to revisit this topic.. .)

so housing is almost 80% of your hardline cost half of your global expenditure.
it would be worth considering buying your own house wouldn't it ?

 

[TAG Manager]

so housing is almost 80% of your hardline cost half of your global expenditure.
it would be worth considering buying your own house wouldn't it ?

うん, for clarity, I own land/property. (Just didn't want to give too much detail in this post.)

 

[justhavefun]

うん, for clarity, I own land/property. (Just didn't want to give too much detail in this post.)

You still spend 180,000円 per month or 2,160,000円 per year on housing costs.

Au contraire.... I love my profession.

I hope that your profession is more than just being Operations Manager of this site, I can think of much better jobs.

 

[RandomTokyoGuy]

My housing costs is for a mortgage for property I own. I don't think it matters if it's a 'mansion' or a house, but I am in one of the major Tokyo wards.

You still spend 180,000円 per month or 2,160,000円 per year on housing costs.

A mortgage doesn't equal housing cost as it's also an investment. You could consider that at least partially as savings.