A Frugal Past

In my youth, I was quite the penny-pincher. Back in high school, I took to cutting my own hair (the back was a mystery to me). During my first year after college, I managed to save over 70% of my earnings! Living with my parents, I spent weekends riding the city bus to the library, treating myself to a $1 coffee from the vending machine in between meals.

After purchasing my first car, I drove with faulty brakes for nearly half a year, hoping the issue would resolve itself to avoid the mechanic's bill. I also had no car insurance back then.

Today, I've gained some wisdom. I’ve learned the importance of enjoying life, realizing that my money is meant to be spent meaningfully.

You might be wondering how I can survive on just $700 a month.

Current Life Situation

Did I mention that I now reside in Japan? My partner and I made the big move at the start of 2020, just before the global pandemic truly hit. Seeking a change, I left my stable finance job to embrace life in the "Land of the Rising Sun." After navigating the challenges of relocating to a new country, my new lifestyle gradually took shape.

Now, I work full-time as a teacher, making a living by singing classic children’s songs like Wheels on the Bus to a classroom of sleepy kids. My monthly income is around $2100 before taxes.

How’s Life Treating Me?

Honestly, I’m doing just fine. My partner and I share a two-bedroom apartment (no one is stealing my snacks!). I enjoy nutritious meals and dine out occasionally on weekends. My lifestyle is simple, comfortable, and budget-friendly.

You’re likely curious about my expenses and how I manage to save so much.

Monthly Expense Breakdown

Here’s a detailed list of my monthly costs* (Note: these are either individual expenses or shared with my partner):

• Rent = 37,500 ¥ ($341 USD) per month: A fully-furnished unit that covers all utilities.

Why such a low rent? Due to the pandemic's impact on tourism, many short-term rentals are vacant, leading property owners to offer lower rates for extended stays. Our accommodation is fully equipped with everything we need, including air conditioning and kitchenware.

Now, for the rest of my monthly expenses:

• Pocket WIFI = $27 USD
• Personal transport = $27 USD
• Clothing = $27 USD (I prefer thrift stores)
• Haircut = $14 USD (No more DIY cuts!)
• Groceries = $145 USD
• Dining out = $73 USD
• Miscellaneous expenses = $45 USD (sometimes I need to order from Amazon)

Totaling $699 USD (77,000 Japanese ¥ per month). Plus, I have a website cost of $15 monthly for RealMoneyGuru.com.

Addressing Common Queries

You may wonder about certain expenses:

• Netflix? — zero (thanks to family!)
• Phone Plan? — zero (I use pocket WIFI)
• Transport to work? — zero
• Health Insurance? — zero
• Unemployment Insurance? — zero (all covered by my employer)
• Gym? — zero (I stay active running around train stations)
• Consumer debt? — zero (I don’t even have a credit card)

As you can see, my spending is quite straightforward. I don’t drink or smoke, shop excessively, or engage in costly hobbies.

However, I do occasionally venture beyond my regular expenses. My partner and I enjoy exploring Japan every few months, usually taking trips that cost about $180 USD each (or roughly $60 USD monthly). Additionally, I have a student loan requiring around $2000 USD in annual payments (ignoring interest for now).

Despite these occasional costs, my regular spending habits allow me to save over 60% of my monthly income.

Nourishing Choices

According to a 2018 survey by the Bureau of Labor, food ranks as the third largest expense after housing and transportation. I prioritize my health and refuse to compromise on my diet. By shopping wisely and avoiding processed foods, I keep my food expenses low.

My partner and I eat the same homemade meals daily. We pack lunches and prepare large dinners on weekends, often making enough to freeze for the week. Our meals are versatile, able to be served with rice, noodles, or stir-fried with vegetables. This routine saves us time, energy, and money while ensuring we eat healthily.

How Low Can We Go?

We could certainly tighten our budget further if our goal was to save money at all costs. We could subsist on plain rice and instant noodles, but that’s not our aim.

Money's True Purpose

Money should enrich our lives. True financial wisdom lies in maximizing the value it brings to our existence. My partner and I cherish our health, time spent outdoors, and discovering local cuisine. We appreciate that enjoyment doesn't have to come at a high price.

We don't crave expensive brands or gadgets; instead, we aim for a peaceful life, managing our finances with care and appreciation for what we already possess.

Maintaining Financial Balance

I’ve never been one to budget strictly or stress about spending. My philosophy is to cultivate a positive relationship with money and develop sustainable habits.

Your perspective on money matters. Are you seeking what’s right or simply trying to avoid mistakes? Stressing over spending or striving for frugality won't foster positive money habits. Sooner or later, this mindset can derail your financial progress.

Instead, reflect on your core values. Does your financial behavior align with what matters most to you?

Value Beyond Currency

All money has potential value throughout your life. Positive money habits stem from mindfulness about the future, necessitating a slow, respectful approach to your finances.

I don’t spend more because I don’t need to. I’m satisfied with my current situation and recognize the future value of saving rather than chasing fleeting desires.

Navigating Change

Change is the only constant in life. Finances can fluctuate, sometimes flowing smoothly, while other times feeling strained.

Regardless of whether my savings are high or low, I maintain a consistent approach to managing my money. I know that by treating money with respect, I’ll reap the benefits later.

Positive money habits aren’t about adhering to rigid budgets or knowing precisely how much to save each month. They revolve around your attitude towards money and the respect you show it, influencing your financial journey amidst life’s ups and downs.

This is the key to true financial success!

This article is based on the current exchange rate at the time of writing: $1 USD = 110 JPY.

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