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Apr 2, 2014

[Expensive?/Cheap?] Average Monthly Salary and Cost of Living Rankings by Prefecture


Today I would like to focus on the cost of living in relation to each region of Japan.


When you start living in Japan and plan to stay for a significant amount of time, the cost of living will definitely affect your way of life. There was a time when I was considering moving abroad, when I felt like I wanted to live abroad. But I didn't know how much it would cost, if I would find any work, or if I could find an affordable place to live near my potential workplace or school.


I think, because I've seen the statistics of various data while building this post, I should share my findings with you.




Top 5 Prefectures With a High Income


  1. 1. Kanagawa Prefecture

Monthly Income: ¥539,542

Monthly Expenses: ¥439,542

Proportion of spending as a percentage of income: 85%


2. Toyama Prefecture

Monthly Income: ¥532,778

Monthly Expenses: ¥453,957

Proportion of spending as a percentage of income: 85%


3. Fukui Prefecture

Monthly Income: ¥525,269

Monthly Expenses: ¥423,336

Proportion of spending as a percentage of income: 81%


4. Tochigi Prefecture

Monthly Income: ¥524,816

Monthly Expenses: ¥434,374

Proportion of spending as a percentage of income: 83%


5. Tokyo

Monthly Income: ¥516,794

Monthly Expenses: ¥420,304

Proportion of spending as a percentage of income: 81%



I was really surprised with this result! I thought Tokyo would be the highest, but in fact Kanagawa Prefecture seems to be the highest, with Tokyo ranked in the 5th place!


The households from which the data was taken are paying either rent or mortgage and are targeted toward those who are in their 40s. Results can vary though, because this is an average value. A more specific number could be found by performing research to refine a specific layer. With that being said, I think this is helpful information as the mean value in each region.


Also, I tried to calculate the “percentage of spending as a percentage of revenue,” but all regions results were between 80%-85%. You can see that even with a high income, monthly spending on expenses stays in the same range. So it seems it’s true that for most people: The more you make, the more you spend.


Now let’s take a look at the lowest ranking prefectures.


Top 5 Prefectures With a Low Income


1. Okinawa Prefecture

Monthly Income: ¥324,891

Monthly Expenses: ¥279,661

Proportion of spending as a percentage of income: 86%


2. Kumamoto Prefecture

Monthly income:¥ 403,905

Monthly Expenses: ¥353,321

Proportion of spending as a percentage of income: 87%


3. Kagoshima Prefecture

Monthly income: ¥407,492

Monthly Expenses: ¥349,403

Proportion of spending as a percentage of income: 86%


4. Iwate Prefecture

Monthly income: ¥408,926

Monthly Expenses: ¥354,082

Proportion of spending as a percentage of income: 87%


5. Ehime Prefecture

Monthly income: ¥412,523

Monthly Expenses: ¥346,459

Proportion of spending as a percentage of income: 84%


Of course these are generalized figures including many factors, so naturally things will be different from region to region and person to person, but you can see with a lower revenue, the proportion of expenditures rises to roughly 85%.


Proportion of spending as a percentage of its revenues is higher in the areas with low income, but it can be said that the amount you will spend on living costs may not change significantly.


Also, I wonder if residents with higher incomes turn their extra money into savings, or if they are spending even more after their monthly expenses.


What do you think? If you have more information about your particular area and the cost of living, or have some tips to share about saving money on monthly expenses


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Yuju

Yuju

Hi guys ;) I like to do training. wanna share information about training and my daily life in Japan.


2 Comments

  • Haniya

    on Jun 4

    I wonder if residents with higher incomes turn their extra money into savings, or if they are spending even more after their monthly expenses.? http://kquotes.com/

  • helloalissa

    on Apr 26

    Wow. It's so high. Is this data based on all households? Families with two working adults? And is spending based on monthly costs of rent, utilities, food, transportation...? Including entertainment and other costs? This might be average, but it is possible to save a lot more. For example, our household's total spending (no kids) is about 30% of (one earner's low) income, and the rest is invested.