Is $400,000 yen a good salary in Tokyo?

¥400,000 a Month in Tokyo: Comfortable, But Not Luxurious

Tokyo, a vibrant metropolis brimming with culture and opportunity, also carries a reputation for its high cost of living. So, is a monthly salary of ¥400,000 enough to live comfortably in the Japanese capital? The answer, in short, is yes, but with some caveats. ¥400,000 allows for a decent standard of living, covering essential expenses and leaving room for personal pursuits, but it won’t unlock a life of luxury.

Let’s break down the typical expenses for someone earning this amount:

• Rent: A significant portion of your budget will go towards housing. While finding an apartment within Tokyo’s 23 wards for around ¥80,000-¥120,000 is possible, expect smaller spaces or locations further from the city center. Opting for share houses or living further out in the surrounding prefectures can significantly reduce this expense.
• Utilities (Electricity, Gas, Water): These typically range from ¥10,000-¥20,000 per month, depending on usage and apartment size.
• Food: Groceries and occasional dining out can be managed within ¥50,000-¥70,000 monthly. Cooking at home and utilizing local supermarkets will help keep costs down.
• Transportation: Tokyo boasts an excellent public transportation system. A monthly commuter pass can cost between ¥10,000-¥20,000, depending on the distance traveled. Walking or cycling can offer further savings.
• Health Insurance & Pension: These are mandatory deductions, and will vary based on income. Estimate around ¥30,000-¥40,000 collectively.

After accounting for these essential expenses, someone earning ¥400,000 will likely have between ¥100,000-¥150,000 remaining. This allows for a degree of flexibility, whether it be saving for the future, indulging in hobbies, traveling within Japan, or enjoying Tokyo’s vibrant nightlife.

However, it’s important to consider that ¥400,000 doesn’t equate to an extravagant lifestyle. Luxury apartments, frequent high-end dining, designer clothes, and international travel will likely require careful budgeting and trade-offs. Furthermore, starting a family on this salary in Tokyo would present significant financial challenges.

Ultimately, ¥400,000 per month offers a comfortable but not lavish existence in Tokyo. It allows for financial stability, covering basic necessities and leaving room for personal enjoyment. However, maintaining a realistic budget and prioritizing spending are key to maximizing this salary in one of the world’s most exciting, yet expensive cities. Your lifestyle choices will significantly impact how “comfortable” this salary feels.