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Working in Tokyo - living expenses, taxes and others
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02-25-2007, 07:45 AM
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"A recruiter has just called to discuss opportunities in Tokyo. It sounds very tempting, especially with the ability to live and train in Japan."
First, make sure you are realistic in how much training you can fit in. Depending on the hours of your work and how much you will be expected to participate in after work social drinking, you may not fit in as much training as you might think. Granted, there are dojo all over the place with different schedules, but I am sure you know that life tends to get in the way of kendo. Work being one of those things. Be diligent though and you can squeeze in lots of practice.
"In addition, I am also interested in finding out what the typical living costs are like in Tokyo. Could anybody help me to get an idea of how much it typically costs to, for a given month:
rent
the likely living costs, such as food, utilities etc (excluding entertainment/drinking, of course)
any other "hidden costs" that may not be readily apparent to a person that have not lived in Japan before.
the tax situation.
the possibility to opt-out of the national health insurance (if you have private insurance) and pension contributions? "
And now for some budget information:
If you have a choice and don't mind a half an hour commute, you might want to consider living outside of Tokyo. Yes its nice to be right there if you want to be a big city dweller, but there are many nice suburbs around there that will significantly cut your costs. Here's a rough figure, SMALL Tokyo apartment rent will be around 110,000 yen. Live about 30 minutes from Tokyo by express train, your rent can be as low as 50,000 to 60,000 yen. Add in an 10,000 yen train pass and you've saved a ton of money. Learn to sleep on the train and wake up at your needed stop and the commute is just part of your daily sleep.
Food is cheap, SUPER cheap, if you live like a japanese person. Don't be stubborn and buy food to live like you do now. Foreign, imported food is pricey. Also, don't shop from expensive grocery stores at the depato. Find local small grocery stores. Also, shop for different food at different stores. Getting some food from the depato groceries is fine, but definitely not produce. Even the big depato will have separate little produce shops that sell produce at half the price. Little grocery stores here and there do the same. Learn to shop at multiple stores and you save a ton.
Utilities are expensive unless you use the right ones. Electricity is mega expensive. Learn to get a cross wind in your apartment in summer. Run the AC for a few minutes to cool things off, and then shut it off. Heating through the electric AC unit is mega expensive. Get a touyu heater. Electricity heating is like 15,000 a month. Touyu (kerosene) is like 3000 yen a month.
Drinking can be cheap if you find nomihodai (all you can drink, within a certain time frame, usually like 2 hours or something like that). Otherwise you will drink your salary away because liquor is expensive.
Tax is based on your previous years income, so your tax will be cheap for the first year since your Japanese income is 0. Depending on your country of origin, you may still have to pay tax on your foreign earned income in your home country. Some have minimum salaries where this kicks in, and some just make you do taxes no matter what. Not fair to steal money you earned elsewhere, but this ain't gonna change.
Depending on if your company in Japan forces you, you can opt out of National Insurance by not signing up. Once you sign up, you cannot opt out. However, private insurance will be hit or miss as to who accepts it. Different private insurances work differently too so do your homework. Also, I loved national Japanese insurance. Medical care in Japan was cheap and everyone takes it so it makes life easier. It may just be worth doing it. It is in my opinion but our situations are different.
In summary, live like the japanese and you will live cheap. There are many tricks to learn and you can save a small fortune. The idea that living in Japan is expensive is a myth. It comes from people who drink their salaries away or try to maintain their old lifestyles instead of adapting to a new set of rules and living style.
Goodluck! Go for it because it is awesome there. Lots of it sucks too, but most of it is awesome. Sounds funny, but you will see what I mean over time if you go. I miss it.
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