I received an offer at ¥6.7M for an automotive program manager job. (6yrs experience, $130k current US salary)
From what I’ve gathered, this is definitely *survivable* for a 29yo single guy but I’m struggling to understand what kind of life this would actually afford me in Tokyo. Ideally, I’d like to have the financial flexibility to explore, eat out, attend events on the weekends and travel to other cities once every month or so while still putting around ¥2M/year in the bank.
I am budgeting around ¥140k/month on rent which would hopefully cover a modern 1LDK+ in one of the central or southern wards. Because of the remote work situation, having a place I can be trapped in for 10hrs at a time while retaining my sanity is critical.
After taxes, rent, savings, this might leave me with about ¥120k/month which seems….low.
Any input or insight would be greatly appreciated!
14 comments
no matter how different the col is, chances are you will come to resent having to take a 60%+ pay cut (while possibly work more hours in a more difficult environment
This is really low, especially compared to your current salary. I would keep interviewing around.
Seconding what the others have said about this being a MASSIVE pay cut, even when considering the cheaper overall cost of living.
I wanted to also point out that assuming your figure is pre-tax, your take-home would only be around 5.1m~ (5.5m~ first year), and your budget putting yearly rent in the range of 1.7m. When also considering your savings goal, you’d only have around 1.4m/year (currently approx. $10k) for living and other expenses. A 120,000 yen monthly budget is lower than many international & language school students that I know.
Could you survive off it? Absolutely. It’s just not a choice I would personally make when coming off of a 130k salary.
6.7 million yen per year will leave you with around 430,000 yen per month after tax, and you will usually receive benefits and bonuses as well, so you could expect something close to 9 million yen by the end of the year, which works out to 540,000 yen per month after tax.
However, without taking into account bonuses, make a simple calculation with 430,000 yen per month.
Rather of renting a small 1dk within Tokyo’s 23 wards, rent in Saitama, Chiba, or Kanagawa for less might be a better option.
For example:
[This newly built 1LDK in Kanagawa is less than 100,000 yen a month](https://www.homes.co.jp/chintai/room/6168462bc5b221839f9fecbcd745b43a2c1f8664/), yet it’s only 20 minutes by train to major commercial hubs like Shinjuku; it’s no different from living in Tokyo 23 wards since you can access all central Tokyo locations within 30 minutes.
Dining out in Japan is cheap, 60,000 yen per month will suffice for a single person (Assume you dinning out 60% of the time and make quick meal at home 40% of the time),
Shopping for all other necessities might cost you 20,000 yen per month.
Utilities and other bills are typically 15,000~20,000 yen per month.
Most companies will pay for transport, but if you don’t have that, add extra 15,000~20,000 yen per month for transport,
A night out typically costs 10,000 yen per person, while a day trip to another city in Japan may cost between 20,000 and 30,000 yen.
​
After tax income 430,000 yen per month,
– Rent 100,000 yen
– Food 60,000 yen
– Grocery shopping 20,000 yen
– Utilities 18,000 yen
– Transport 18,000 yen
– 3 nights out per month 30,000 yen
– once a month trip to another city 25,000 yen
You end up with 159,000 yen left monthly, meaning 1.9 million yen per year, which is very close to your targeted 2 million yen per year saving target.
Now, if you earn bonuses as well, you can easily save 2 million yen per year and live comfortably in Tokyo.
It depends on what you normally spend on things in general. Are you ok with getting a bento from a konbini for ¥500, or will you go to a sit down restaurant every day and spend ¥1500? Are you going to take public transportation, or are you going to take a taxi, or buy a car? Does “going out” mean going to a bar and buying 2 or 3 drinks, or going to somewhere with bottle service?
IMO if you have good money management and live relatively frugally, you can easily save decent money while still having some leftover to enjoy life with.
You also mentioned remote work, so I’d assume that’s why you want a nice apartment. If it’s remote work, though, why do you actually need to live in the city? You could live close by and save a good amount of money if that’s not a problem with your work.
Would you be able to? Yes.
Is it worth taking a 60% pay cut? No.
>Ideally, I’d like to have the financial flexibility to explore, eat out, attend events on the weekends and travel to other cities once every month or so while still putting around ¥2M/year in the bank.
You probably won’t be able to do all that and put 2M in the bank.
You’d have to pay tax, and then you have the 140k for rent (btw a but too low for a modern 1LDK in a central Tokyo ward, either it will be more expensive, older, or a bit further out, like in Kanagawa), then you have probably around 100k for food and utilities etc. This will bring you to be able to save around 2M a year, but if you want to add all the eating out, traveling and entertainment, you’d break the budget. It’s more realistic to aim to save 1-1.5M a year.
¥140k/month, modern 1LDK, central — pick one.
A modern 40-ish sqm 1LDK in a central or southern location can easily set you back well over ¥180-200k/month. Modern 1LDKs on the outskirts of Tokyo go over 160k.
I think it’d be tough if not impossible to maintain the lifestyle you have presently dialed in AND the savings target and you’d come to detest it.
In my opinion, I would move to Japan without hesitation. Depends on your situation, but for me, the extra money in my current location can’t buy anything near the experience of being in Japan.
You can always increase your salary overtime but you will only be 29y/o once.
From an economic perspective, work in US for 3-5 years, save 300-400k then 35y/o move Japan.
6.7M
I know someone that makes around 6.1M and after taxes hes only left with 4.5M.
Then you gotta deduct rent, bills and other stuff and you’re left with very little.
On a surface level it’s more than survivable and would you could live a comfortable life in Japan, but when you explain the details of what you want it becomes a little more challenging. As others others have said, you’d probably have to make some concessions (be it not saving as much, spending less on going out or making compromises on where you live).
Costs for going out can vary widely, but it’s possible to eat/drink more cheaply than in the US. However if you want foreign foods(which is limited in Japan), craft beer, craft cocktails or higher end Japanese food it will cost you. If you go to any bar that has service (cabaret club, hostess/host bar, etc) then the costs will go up even more. If you’re new to Japan you might be spending money at events or places in order to meet others and wanting to see the things you haven’t been able to see on vacation.
For housing, there are a ton of affordable tiny 1 room apartments in central Tokyo, but as soon as you want an 1LDK the prices begin to climb. So you can choose to live further out from central Tokyo, live further from the station or find an older place. You can look around online, but if you’re a foreigner and especially if you don’t speak Japanese your housing options will be limited. Also a portion of the listings online are fake or are taken by time they are listed online.
I think the bigger deal is what is the COL where you are living? If you’re making $130k, but living in NYC or the Bay Area then the costs change might be more comparable (although I still think it would be a pay cut). If you’re living anywhere else then you’re taking a huge paycut and might be better off just vacationing in Japan whenever they open up. Personally I wouldn’t make that move unless you really need a change and will spend the rest of your life regretting it. On the one side you have people who are passionate about Japan who range from more accepting to flat our ignoring the flaws and on the other side you have those whose passions towards Japan is completed killed off by moving to Japan. If you have a passion towards Japan and think you might regret it, then look more into what it’s like to live in Japan. There are plenty of threads in this group that should give you a better idea.
You can enjoy it for sure, but throwing away 60% of your salary isn’t the smartest move, you are still young and while you might want to enjoy your life and experience Tokyo at your age, waiting for a better deal is the smarter move imo, Tokyo isn’t going anywhere, keep saving from your current salary, and keep looking for a better option. You seem qualified to secure a better offer eventually. Just my personal take though, and there is more to life than a salary.
For 6 years experience, this is a little low. ¥8m or more would be a more acceptable range.
But to take this much of a paycut? If you’re not moving here to follow a Japanese spouse and thus HAVE to take a job in Japan, it’s not worth it. You might end up having less cash per month than in the US. People have explained how your calculations are off for rent. ¥180,000 – 200,000 for anything nice, new and central is more reasonable.
If you can find a job willing to hire you for ¥8-9m, you’d have a bit more of a pro/con list to work with.
Don’t do it. Definitely stay in USA. Cheers.