How I’m Living Just Fine on $700/Month

Honestly, I used to be a real cheapskate.

I cut my own hair in high school (God knows how it looked at the back.)

My first year working out of university, I saved over 70% of my income!

Yes, I lived with my parents and spent my weekends riding the city bus to the central library (between meals, of course) to spend just $1 on a coffee from the vending machine.

Not long after buying my first car the following year, I drove around with dangerously faulty brakes for almost 6 months — just hoping the problem would somehow disappear so I could avoid the costly mechanic.

And I had no car insurance either.

These days, I’m a little wiser. I realize the value of living. And I know my money is there to be spent and enjoyed for the right reasons.

So, you’re probably thinking I’m insane to be living on only $700 a month.

How is this possible in 2022?

How‘s Life?

Did I mention that I’m also currently living in Japan?

My partner and I decided to take the plunge and move here at the start of 2020, right before the madness of the global pandemic started to truly unfold.

With an urge to shake life up a little, I decided to leave behind a steady job in finance and move to the “Land of the Rising Sun.” After dealing with the natural bumps of settling in to a foreign country, slowly, my new lifestyle started to take shape.

Now, I work as a full-time teacher, earning my living by singing old-school hits like Wheels on the Bus and If You’re Happy to classrooms of sleepy kids!

I earn around $2100 USD per month, before tax.

And how am I living?

The truth is, I’m living just fine.

I live in a two-bedroom place with only my partner (no one is stealing my cheese from the fridge!)

I eat clean and healthy meals.

I enjoy going out to eat on weekends.

My lifestyle is reasonably simple, comfortable, and cheap.

So you’re probably curious by now to see what my expenses look like…

How can I possibly maintain such a wide savings margin?

The Low Down

Below is a complete list of my monthly costs*

(Note: these are either individual costs or are split two ways with my partner.)

- Rent = 37,500 ¥ ($341 USD) per month: Fully-furnished unit, including all power, gas, and water costs.

How?

Because of the current pandemic and its major impact on tourism, many short-term rentals have remained vacant. Owners are therefore willing to negotiate cheap rates for longer stays. This has given us fully-inclusive accommodation at a very affordable price.

With air conditioning, a big TV, four beds, sofas and tables, kitchenware etc.…everything we need comes included.

And what about the rest of my monthly expenses?

- Pocket WIFI = $27 USD

- Personal transport = $27 USD

- Clothing = $27 USD (I prefer used clothing stores)

- Haircut = $14 USD (No more bathroom barber!)

- Groceries = $145 USD

- Dining out = $73 USD

- Other expenses — $45 USD (I sometimes need Amazon!)

= $699 USD in total (77,000 Japanese ¥ per month)

(Plus, an additional cost of $15 per month for my website: RealMoneyGuru.com)

And that’s it!

Now, you may be asking yourself, “but what about…”

Netflix? — zero (thanks, Mom!)

Phone Plan? — zero (I use pocket WIFI)

Transport to work? — zero

Health Insurance? — zero

Unemployment Insurance? — zero

(all three are covered by my employer.)

Gym? — zero (No need, as I’m always running around train stations!)

Consumer debt? — zero (I don’t even have a credit card.)

As you can clearly see, I live a simple life with few loose ends in my spending.

I’m not a drinker or a smoker.

I’m not much of a shopper.

I don’t have any expensive hobbies.

And I’m not hooked on Pachinko.

However, at times I will spend money outside of my regular routine.

Of course, I would be crazy not to get out and explore Japan once in a while. Every three months or so, my partner and I will travel away for a few nights. And with many chain hotels being very cheap during this time (I refuse to sleep in hostels), these irregular trips usually cost us around $180 USD each — or roughly $60 USD per month.

In addition, my student loan requires a minimum repayment of around $2000 USD per year (let’s just ignore the interest for now!)

Aside from these odd extras, my regular routine allows me to save over 60% of my monthly income.

What Are You Eating?

According to a 2018 Survey by the Bureau of Labor, food is the third biggest expense after housing and transportation.

Knowing the true value (and quite often, the future cost-saving) of good health, my diet is where I refuse to cut corners.

However, by shopping sensibly and avoiding packaged products, I can still manage to minimize my food costs.

In fact, I spend far less on food than many of my Japanese friends who choose to live out of the convenience store.

Myself and my partner both eat the same meals each day — homemade, clean and balanced.

For lunches, we always pack a meal from home.

For dinners, we choose to cook a main dish in bulk on the weekends. Usually, we make enough for one week, which we can then freeze off and also eat during the week (along with other dishes from previous weeks).

And what do we make?

Something we can eat with plain rice or potatoes.

Something we can throw into a stir-fry.

Something that can be tossed through a bowl of noodles.

In the evening, we can simply turn on the Japanese rice cooker, heat up the meal, pan-fry a few vegetables, and dinner’s ready!

It’s a quick, simple routine that saves us a ton of time, energy, and money each week.

And of course, it’s healthy.

How Low Can You Go?

The truth is, we could certainly be living on a tighter budget than this — if saving money and living miserably was our sole objective in life.

We could eat plain rice and Cup Noodles every night, spend our free time stuck inside watching crazy Japanese game shows, and even choose to run the 5 miles to work.

We could live rough, look rough, and feel rough for the sake of saving more money. But being cheap is far from the main objective.

Money has one purpose: to add value to our lives.

True financial wisdom is about aiming to maximize the overall value money gives you throughout the course of your life.

The question is, what do you value most?

My partner and I know the value of eating clean, healthy food and we value getting out of the house on the weekends, enjoying our free time in Japan, and discovering local eats.

We are out to enjoy a simple life in balance. We know what gives us the most “bang for our buck,” and we appreciate that most enjoyment doesn’t need to come at a cost.

We don’t care about over-priced sneakers and designer gear.

We have little interest in hanging around the Apple store.

We try to live peacefully and handle our money with patience.

And we enjoy what we already have.

How Do You Keep It Up…or Down?

The truth is, I have never budgeted, forced myself not to spend, or even worried about money. I believe in being money positive, simply trusting in myself, and having smart money habits that are easy to follow and sustain.

It all comes down to your natural perspective on money.

So, when it comes to you handling your money, are you out to do what’s right or avoid doing what’s wrong?

Whether you are stressed and consumed over your spending or fighting to be more frugal, either way, this is not a positive state of mind. And it certainly won’t allow any positive money habits to form in your life.

Sooner or later, there will be push-back against this discomfort, and your financial hopes and progress will eventually derail.

Instead, simply ask yourself, “what do I value most in life? And does the way I handle my money reflect these higher values?”

All money has potential, life-long value. Therefore, positive money habits start with being more mindful of the future, and hence, learning to slow down and respect your money over time.

The reason I’m not spending more money is simply because I don’t need to spend more. I’m content and satisfied with what I have right now, and there is no need to be grasping for more.

Across the vast sprawl of life, I know there will always come a time when I will need this extra money — or at least, find it to be far more valuable than whatever happens to be on sale this week!

Smooth Sailing

In this world, change is the only constant.

Life swings. Sometimes your money will run smoothly, and your savings will ramp up. Other times, your finances will be clunky and awkward.

That’s the nature of money and life.

So handle your money with respect and patience for the inevitable bumps that await you in the future.

Whether I’m experiencing a time like now — where my savings margin is crazy wide — or a time when my finances are much tighter — the way I handle my money each day remains exactly the same.

And I know I will be thanking myself for this later!

Remember, how you treat money reflects how it treats you.

Having positive money habits is not about fighting against some rigid budget. It’s not even about knowing how much you are going to save this month.

Rather, it’s simply about your natural perspective on money, the patience and respect you show it, and what affect this continues to have on your financial progress across life’s natural ups and downs.

This is the key to real financial success!

*This article was based on the current exchange rate at the time of writing: $1 USD = 110 JPY

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