The average single person's salary in Japan is 4.58 million yen.

Around 2.7% of us are foreigners who live and work in Japan.

The top 5 most common industries that we foreigners work for are manufacturing, retail, IT, service and education.

Let's say I'm an average English teacher here in Japan.

My monthly wage is 280,000 yen per month.

Let's see how much I'm left with after we minus out the average cost of living.

Here's a general breakdown of the expenses.

Breaking down taxes can always be confusing.

In Japan, expect an income tax and a residence tax to come out of your paycheck every month.

There will also be an amount taken to cover employees' health insurance, pension, employment insurance, which includes unemployment coverage too.

The amount of tax taken from your pay will vary depending on where you live, how much you currently make and how much you made in the previous year.

The health insurance deduction will depend on which one you're on.

Luckily, if you're a full-time employee, the company you're working for will sort this all out for you.

So, to keep it simple, expect to see around 15% to 25% of your paycheck deducted to cover these taxes and insurances.

So, as an average English teacher making 280,000 yen a month, I should expect to be left with around 224,000 yen after all the tax and insurance deductions.

Hold on.

Hi.

Did you know that if you apply for Fursato Noza, you will receive locally sourced goods, anything from mentaiko to strawberry and even steaks?

It's a system where you can pay taxes to a local government that is different from your own.

Ah!

Rent is usually going to cost anywhere between 50,000 to 70,000 yen for a one-bedroom.

This rate varies per city, depending on how new the building is.

And how close it is to the station.

Apartment hunting?

Keep these things in mind.

Avoid spending more than 30% of your gross income on rent.

If you are unprepared to commit to an apartment with all the moving fees, consider living in a share house.

Utilities are typically included in the price and the house is typically furnished.

Also, living outside of the heart of big cities will considerably be cheaper.

So, if you work in Tokyo, check out apartments in Chiba or Saitama.

Utilities, including electricity, gas and water, cost around 13,000 yen per month, but can fluctuate with the season.

Here are some of the things you can do to lessen your monthly utilities.

Change your lights to LEDs.

Try to use your AC at no lower than 27 degrees.

In the winter, invest in a kotatsu as it eats less energy.

And use a water filter.

For example, your shower, to save water.

That's the living arrangement covered.

So, with that, let's go shopping.

I just got all my groceries for the week.

The average single household spends around 10,250 yen a week on food and drink.

So, I should expect to spend around 41,000 yen on food and drink a month.

To break it down, expect to spend around 2,600 yen for cereals such as rice, bread and noodles, 4,300 yen for meat and fish, 5,100 yen for fresh fruit and vegetables, 4,700 yen for drinks and liquor, 9,900 yen for eating out, and other household ingredients like dairies and oils.

Snacks and pre-prepared foods can add up to around 14,000 yen a month.

Hi, I'm back again.

Did you know that shopping at your yaoya, your local vegetable or fruit stand, will get you discounted produce?

Think of this place as an outlet that sells ugly produce that the supermarket don't accept anymore.

Also, learn to look around.

Not all supermarkets are created equal.

Some offer cheaper meat and dog buying options, while others sell imported products, which are more upscale.

Transport and communication services are estimated to cost around 23,000 yen a month.

Oh, use point cards whenever you can.

They are available in supermarkets, pharmacies, bookstores, and public transportation.

For example, JR East has a point system that gives you points whenever you take the train.

And if you get a job in Japan, most companies here will cover your commute.

When you subscribe to a phone plan, take advantage of any campaigns that give you cash back or points at your electronic store.

You can buy more furniture or appliances at a discounted price by using those points.

That about covers all of your basic living expenses.

Whatever's left can be put towards your savings, travelling more of Japan, or the more fun things in life.

Whatever that may be for you.

We hope this video has given you a glimpse of what it's like to earn and spend yen in Japan.

Keep in mind that the actual cost will depend on variable other factors.

For more information, don't forget to check out our Gaijin Pop blog post, which provide a complete breakdown of the average wages and cost of living in Japan.

If you like these types of videos, find our other videos about life in Japan on our channel.

See you next time.