I usually see the 30% rule as the suggested amount to spend on rent.
But I wonder what people with similar lifestyle than mine who live in Tokyo actually pay.
Is everyone keeping it under 30%? Does it make sense to go up to 40% due to my priorities and lifestyle? Does that make me a complete idiot? My coworkers think I am an idiot.
Downtown apartments put me on a 10min ride/25min walk to my office, and most importantly, I won’t have to worry about last trains any more. Going from 30% to 40% of net salary then gives me the minimum amount of space (40\~60m2) I need since I also like to telework and work/study at home.
I have been living in the outskirts for years now, and I have missed so many plans because I just couldn’t make it or it was too late for my last train. I love going for drinks on weekdays. I like going downtown after work (either meeting people in cafes, going to a library/cafe, parks…). Location has also affected the logistics of my previous relationships around here, because we were always too far to be able to just meet downtown any given day.
I hope you can provide some comments with your experience/wisdom, specially if you have a similar lifestyle or spend above the 30% rule of net salary on rent.
Thank you
20 comments
It’s your life,do it if you’re happy with it.
do whatever you want. its worth to spend money to save time.
And you care what others say why? Your money, your life dude. Live it to the best you can.
Does that 10% difference cover the cost of trains/travel? Or, alternately, if you could pay 10% more every month right now to instantly be able to take the train into town or whatever, would you? It’s a lot of money, sure, but it might be worth it to you. Maybe time to ask for a 10% raise, or to pick up an extra shift somewhere to help cover it. (Maybe you can just work later since you’ll be able to commute so much more easily.) If you’re otherwise not hurting for the money (and let’s remember you’ll be spending more than 10% if you end up going out more and spending money drinking/eating/etc.) then I say go for it. It’s not like you can’t just do it for a year and then move back to the outskirts.
There are many dimensions when it comes to renting an apartment, not just location vs. rent.
Also, there are plenty of affordable areas which are a quick train ride to downtown locations which are considerably more affordable than living in the downtown areas themselves.
You certainly don’t have to spent 40% of your salary to live in a convenient location.
It’s just a rule of thumb, as people are consumer whores and spend most of their money every month.
Just ask yourself the basic financial questions: Do you know how to budget? Do you manage to save for your future goals? Will going to 40% break the bank or will you be fine?
I would never spend that much of even my gross on rent, let alone net. With just my salary, I’m 20something percent of net and my wife pays half of rent dropping it to the high teens. We have a fairly new house with parking spot and can be at Shinjuku within an hour.
You also sound like you want to increase your activities and thus spending, so that’s even less. Do you have any savings? If your job ended tomorrow, would you be OK?
The 30% rule is less about how you plan your own budget and more about how guarantor companies evaluate your application. But if you have several years of experience renting in Greater Tokyo and enough Japanese language ability to communicate with a landlord, it should be fine.
Nope. Usually I’m trying to take it in the other direction. But then also I’m an American so my student loans are a giant millstone hanging on every financial decision I make.
If you can afford to do it and aren’t in a position where you have to start immediately saving for retirement, why not?
I always thought the “rule” was 30% of gross not net. So if you chose to live your life by rather arbitrary rules than I think you are within the threshold
Do whatever makes you happy
Y’all crazy living in Tokyo. Come to the country side of Japan, way better here
30% rule? Sounds like you don’t have a long term goal and are just living in the moment. I think this’ll be a hard lesson for you!
I am bit in your situation, I am at a 35% mark.
I love to go out, to not have to care about time and that if you need to spend 2000-3000yen for a cab you just do it.
Just don’t forget that you’ll go out even more meaning your cost of living can be highly impacted.
Izakaya for 4000, date for 2man, bar for 1 man and without even mentioning clubbing.
It is up to you, if you believe this is a good way to spend your money please do.
30% is a rule of thumb for guidance not a iron clad law. if it makes sense to you only you can evaluate your own marginal utility.
I moved centrally and tbh it was the best thing I did. Commute was much easier/faster and I probably saved the difference not getting taxis home when I inevitably missed the last train once or twice a week.
I don’t think spending 40% is that crazy… depends what you need to do with the other 60%.
The easier commute is a huge lifestyle bonus and I think just mentally it was a boost that improved my life, professional & personal.
You might not be accepted by some places if the rent is a lot over 30% of your salary so best to check that early whenever you find a place (especially if they force you to use their guarantor). For what it’s worth when I first came to Japan and was a Junior and only earning 5m I spent about 40% of my salary on rent just so I didn’t have to live in a shithole. It was worth it to me but it basically left me the choice with the rest of it to either have fun on weekends and have no money left or sit in the house and have savings – there wasn’t much left to do both. And I chose to spend it – so looking back if something happened like I got an illness or lost my job I would’ve been fucked. But you only live once and it worked out in the end so knowing the risks (or how much you can control your spending and save) that’s your decision to make. It is much more difficult to avoid temptations like you said of going out, meeting people etc when it’s much more convenient to do so, and it feels so much worse to resist when it’s right there, so there’s that cycle of your costs going up too.
Do what’s right for you
For me personally it depends on how much I want to save monthly. If let’s say my goal is 200k//month and increasing my rent would decrease my savings, then I would try to reduce my other expenses first. But in case the math doesn’t work even after reducing my expenses then I’ll forego moving to a new place.
How much are 2 ldk now in Azabu?