Living in Tokyo can be expensive, but it doesn’t have to be
Living in a different country can be financially tough but it definitely has its benefits as well. When you live abroad you can have many new experiences and you can learn a lot of new things such as culture, food, and people. According to Multinational consulting firm Mercer’s 2020 Cost of Living Survey Tokyo comes in third for the most expensive city to live in as an expat (the most expensive city is Hong Kong, and the second expensive city is Ashgabat, Turkmenistan.) The ranking factors were the average costs of housing, food, alcohol and tobacco, utilities, transportation, recreation and entertainment, clothing and other everyday expenses
According to the survey posits that living in Tokyo is more expensive than in New York or London, but the truth is Tokyo doesn’t have to be as expensive as you might think. I’m a college student in Tokyo and have been using the following hacks to save money for the past 4 years. I managed to travel to a lot of places in the world with the money I saved. Why don’t you read this post and try them if you’re new to living in Tokyo and want to save some money.
1) Facebook group
Buy-sell-trade Facebook groups are popular in Japan and if you join one run in English, most of the members will be expats or foreign students. This is great because many of these people are trying to sell or give away their stuff before moving away from Japan. Some things like appliances and furniture are hard to get rid of because they’re heavy or it costs money to move from their house, so they often offer them for free if you’re able to pick them up yourself. It’s very simple and easy!
It’s also environmentally conscious to give away things away to others rather than throw them away. You can save a lot of money if you can get home appliances or furniture for free. Please note that each group has different rules. As long as you follow them you should have no trouble interacting and negotiating with people! Here are two of the most famous groups among foreign residents living in the greater Tokyo area.
2) 100 yen shop
A 100 yen shop is a great place to buy everyday items. You can find anything here! From convenient kitchen goods, cleaning and storage items, to various interior design items, and even cosmetics or food. I usually go here to grab some stationary for college such as pencils and paper. I highly recommend checking out the 100 yen shops near your house if you move to Tokyo. It’s definitely worth it and you might be surprised at what you can buy for just 100 yen. (Tax is not included, so you have to pay 100 yen plus tax at the store.)
3) Grocery shopping in the evening
You might think groceries are a bit expensive in Japan compared to other countries. Fruits here, for example, are pretty expensive. However, there’s a way that you can buy food with discount prices at any grocery store. Simply shop in the evening a few hours before closing. Almost every store discounts items before closing because food will be wasted if no one buys them. Some grocery stores have a 50% discount on lunch boxes, which is a good deal. You can save a lot of money using this method. On the weekend, my family occasionally goes to the grocery store in the evening and buys discounted sushi. It is one of our favorite things to do!
4) Wholesale
Costco, a membership warehouse club, is one of the most famous wholesale retailers in Japan. It is originally from the US and has hundreds of retail stores in eight countries. In order to shop at Costco, you need to have a membership which costs 4,400 yen annually. Not only can you buy groceries and everyday goods, but also electronics, furniture, and toys are available at discounted prices. It’s definitely worth becoming a member. If you are only interested in purchasing groceries, you should go to a wholesale grocery store like Gyomu Super. They offer large quantities of foods at affordable prices and no membership is required.
5) Commuter pass for students and employees
If you’re a student in Japan, you can get a commuter pass between your school and home station. The commuter pass is also available if you’re an employee. You pay a monthly fee, however there are discounts if you pay for several months at a time. For example, I’m a student and I renew my pass every 6 months because it’s cheaper than paying a monthly fee once a month. This pass allows you to get on and off wherever for free between your house and your school or office.
6) Tote bag for shopping
The Japanese government changed the law in 2020 regarding plastic bags. Now, businesses cannot offer complementary plastic bags with purchases, they must charge a fee. In order to avoid this extra cost (and reduce your plastic use!) you always want to carry around your tote bag when shopping. This recommendation applies even in countries where plastic bags are free, it’s better for everyone!
BAGGU is a great option if you’re looking for a reusable bag. Inspired by japanese-style “to-to baggu,” these stylish bags come in many cute colors and patterns.
7) Cashless payment
Using cashless payment methods, either a credit card or apps such as LINE pay and PayPay, is always a great way to save money for a couple of reasons. First, the Japanese government has been promoting digitalization for a while. Therefore, if you pay with cashless payment, most of the time, you may be eligible for partial reimbursement as a result of governmental promotions. For example, PayPay has a campaign which says that they’ll reimburse eligible participants for 25% of their purchases made through the app. Second, compared to a few years ago in Japan, many more stores are now accepting these cashless payment methods, which is great because you don’t need to struggle to find coins in your wallet. You should definitely consider installing and signing up for these apps.
8) Thrift stores
The popularity of thrifting is booming in Japan. In Tokyo many thrift stores have opened in the past few years most of which are aimed at the younger generation. Second-hand clothing isn’t only an often fashionable and affordable option, but it’s also good to use a product that is already in circulation rather than increasing the demand for the production of new items.
Thrifting differs from shopping at more traditional stores in that you never know what you might find. I recommend looking through everything. This takes a lot of time, but it can really pay off. Most of my wardrobe is from the thrift store. Beyond clothing, I’ve also scored on dishes, craft supplies, decor, linens, books, and the occasional film camera. ALWAYS wash and disinfect what you purchase as a safety/hygiene precaution.
9) New Year’s sales
New Year’s day is the day to go shopping because a lot of stores have huge discount sales. If you go you should consider looking for a fukubukuro– which is the Japanese word for a mystery grab-bag. These bags are sold at the first sale of the New Year in many stores. By not revealing what is inside, people can try their luck. Also, since the bags often contain items that are more expensive than their purchase price, you can anticipate to get something at a lower price than usual. Definitely get a fukubukuro if you feel lucky at the end of this year!
Fukubukuro, as it is called in Japan, originally refers to the large sack held by Daikokuten, the famous god of good fortune, along with a hammer and rice bales. This bag does not contain money or rice, but rather good luck and happiness. It is said that when Daikoku-sama comes, he will share the good fortune from the bag.
10) Outlet malls
There are some outlet malls in the greater area of Tokyo. As everybody knows, outlet malls offer items that are several seasons old, excess inventory, and B-grade items with color fading, fraying, etc at discounted prices. The deals and stores vary in each outlet mall. Take the time to visit a few and find your favorite outlet. Here is a list of outlet malls close to Tokyo. Some places are kind of far from the train station. I recommend taking a car if possible.
- Venus OUTLET (Odaiba, Tokyo)
- Mitsui Outlet Park Tama Minami Osawa (Minami Osawa, Tokyo)
- Mitsui Outlet Park Makuhari (Makuhari, Chiba)
- Mitsui Outlet Park Kisarazu (Kisarazu, Chiba)
- Mitsui Outlet Park Iruma (Iruma, Saitama)
- Mitsui Outlet Park Yokohama Bayside (Yokohama, Kanagawa)
Using these tips can definitely help save money, but over all making a budget and tracking expenses is what will really help. I encourage you to cut your expenses as much as you can and save some money to enjoy exploring one of the biggest cities in the world, Tokyo! There are so many things to do there! If you want to know how to travel for cheap in Japan and all over the world, you should definitely check this post about traveling for cheap by volunteering around the world. You can use this method in Tokyo and other places in Japan to have fun with traveling on a budget.
Thank you for reading until the end. I hope you have a great day!