Is it easier to save money in a shared house?
It's often said that "living in a share house makes it easier to save money," but what is the reason for this? We'll explain in detail the financial benefits of living in a share house, comparing it to living alone.
Shared houses have cheaper rent than living alone
Comparison of average rent prices with living alone
One of the biggest advantages of a share house is the low rent. Although it depends on the area, the rent for a share house is generally 30-50% cheaper than a one-room apartment in the same area.
For example, comparing average rent prices within Tokyo's 23 wards:
- Living alone (one-room apartment/1K): 60,000 to 100,000 yen
- Shared house (private room): 30,000 to 70,000 yen
In this way, a shared house can significantly reduce rent even in the same location, allowing you to put that money towards savings.
Factors that affect rent (location, facilities, common area charges, etc.)
The rent for a share house varies depending on the following factors:
- Location: The closer to the city center, the higher the rent will be, while rent in the suburbs tends to be cheaper.
- Facilities: Price varies depending on the completeness of the shared spaces (cleanliness of the kitchen, living room, bathroom, etc.).
- Common area fees included: Many properties include water, electricity, gas and internet fees in the rent, so the total amount can be cheaper than living alone.
When choosing a shared house, it is important to consider not only low rent but also the balance of total costs.
Reduce your utility and internet bills
How shared space utility costs are split
In a shared house, utility bills for electricity, gas, and water are split among all residents, making it much cheaper than living alone.
- Utility bills for single person (monthly): around 10,000 yen
- Share house utility costs (monthly): under 5,000 yen (in many cases included in the rent)
The benefit is that it is less of a financial burden than paying individually, especially during times when air conditioning use increases, such as winter and summer.
Services included in the share house
Depending on the share house, the following services may be included in the rent and common area fees.
- Wi-Fi available (free)
- Furnished and equipped with appliances
- Provision of shared consumables (toilet paper, detergent, etc.)
- Cleaning and Management Services
By choosing a property that offers these services, you can further reduce your living costs and put the money you save into savings.
Low initial costs and low relocation costs
Many properties do not require a deposit or key money
With a typical rental property, you are required to pay a deposit, key money, and brokerage fees when signing a contract, but in a shared house these fees are often not required.
[Comparison of initial costs]
| Expense items | Living alone (one room) | Share House |
| Deposit and key money | 1-2 months' rent (total 100,000-200,000 yen) | 0 yen to several tens of thousands of yen |
| Brokerage fee | One month's rent (50,000-100,000 yen) | 0 yen |
| Furniture and appliance purchase costs | 100,000 to 300,000 yen | 0 yen (equipped) |
| total | 300,000 to 600,000 yen | 50,000 to 100,000 yen |
As you can see, choosing a shared house can significantly reduce the initial costs of moving, so it is also recommended for those who don't have a large amount of savings but would like to secure a place to live immediately.
Many properties come with furniture and appliances, so you can save money on purchasing
In most share houses, the necessities of life such as a bed, desk, refrigerator, washing machine, and microwave are provided, so there is no need to purchase any additional items.
When you start living alone, it will cost at least 100,000 yen to purchase these furniture and appliances, but in a shared house, this cost is zero. The appeal is that you can save more money instead.
Tips for saving money in a share house
A shared house is one of the best places to live for saving money because it is easier to keep living costs down than living alone. However, simply living there will not help you save money. We will introduce you to some money-saving tips that will help you make the most of the benefits of a shared house and save money efficiently while cutting down on unnecessary expenses.
1. Review your fixed expenses and minimize your living costs
Reducing fixed expenses is the first step to increasing your savings. Let's take a look at some cost-cutting tips that are unique to living in a share house.
Keep rent as low as possible
- Choose your area wisely: Share houses in the city center are very convenient, but you can keep rent even lower by choosing a property in the suburbs.
- Choose a property that includes common charges: You can reduce additional expenses by choosing a property where utilities and Wi-Fi are included in the rent.
- Take advantage of promotions: Some share houses offer free initial fees or discount campaigns, so be sure to check before signing a contract.
Save on utility and communication costs
- Make active use of shared spaces: By sharing the air conditioning and lighting in the living room, you can save on electricity bills in your own room.
- Choose a share house with free Wi-Fi: Since you don't need to sign up for a separate internet line, you can reduce your communication costs to zero.
2. Find ways to cut food costs
Food costs are a large part of daily life expenses. Take advantage of the money-saving methods that are unique to share houses to cut down on food costs without straining yourself.
Cook your own meals as much as possible
Eating out or buying food from convenience stores is convenient, but it can be costly. By making use of the shared house kitchen and getting into the habit of cooking for yourself, you can make big savings.
- Buy in bulk and prepare in advance: Buy ingredients in bulk on the weekend and prepare meals for several days to reduce waste.
- Buy together with your roommates: You can share the costs by buying rice, seasonings, frozen foods, etc. in bulk.
Share a meal with your roommate
- Save money by sharing ingredients: By sharing ingredients that one person cannot use up, you can reduce waste.
- Cook together: Cooking together can reduce cooking time and costs.
3. Share necessities to cut down on unnecessary spending
In a shared house, most of the furniture and appliances are provided, so you can get everything you need for daily life at minimal cost.
Use what you can share
- Consumables such as detergent and toilet paper: Purchasing them together can be cheaper than living alone.
- Share appliances: This can save you a lot of money by eliminating the need to buy separate vacuum cleaners, microwaves, washing machines, etc.
Tips to prevent impulse buying
Since storage space is limited in a shared house, you need to be creative and not accumulate too many things.
- Before purchasing, consider whether you really need it
- Review your belongings regularly
- Use a flea market app to sell unwanted items
4. Develop habits to boost your savings
In addition to saving money, you can also make it easier to save by adopting lifestyle habits that encourage savings.
Separate accounts by purpose
- Separate your living expenses and savings accounts: This will help you avoid wasteful spending and allow you to save money in a planned manner.
- Save a fixed amount every month: When you receive your paycheck, immediately transfer a set amount to your savings account. This is called "pre-savings."
Use an automatic savings app
- Use a savings app: Using savings apps such as "Tsumitate NISA" or "fixed term deposits," which allow you to save small amounts little by little, makes it easier to build up long-term assets.
5. Increase your income by working a side job or improving your skills
In order to increase your savings, it is important not only to reduce your expenses but also to increase your income.
Utilize work from home and side jobs
Some share houses have an environment that makes it easy to work remotely. Take up a side job that you can do from home and increase your income.
- Online side hustles like writing and translation
- Selling unwanted items on resale and flea market apps
- Freelance work that utilizes skills
Aiming for career advancement
Trying to increase your future annual income by changing jobs or obtaining qualifications is also an effective strategy for increasing your savings.
Success stories of people who actually saved money by living in a share house
Shared houses offer an environment that makes it easy to save money, as rent and living expenses can be kept low. However, many people are probably wondering how much money they can actually save. Here we will introduce some specific cases where people have succeeded in saving money in a shared house, as well as some cases where they have failed. Let's learn some smart ways to save money in a shared house from these examples.
Even if your take-home pay is 180,000 yen, you can save 20,000 yen a month.
If you live alone with a monthly salary of 180,000 yen, the burden of rent and living expenses will be large, making it difficult to save money. However, by choosing a share house, you will be able to easily save more than 20,000 yen per month.
In this case, the rent was 40,000 yen, and the fixed expenses were reduced by living in a property where utilities and Wi-Fi were included in the common area fee. As for food expenses, the person basically cooked their own meals and purchased ingredients together with their roommates, which further reduced the cost of living.
Furthermore, he created a system that would allow him to save money reliably by putting 20,000 yen of his salary into a savings account first when he received it. While being conscious of saving, he was able to continue saving without stress by setting aside money to spend on eating out once a week and on hobbies.
A case of successfully saving 10 million yen in 5 years
Some people have saved 10 million yen in five years by living in a shared house. In this case, they were able to save a lot of money not only by keeping their rent down, but also by combining it with side income and asset management.
The biggest saving I made was living in a shared house with a rent of 40,000 yen for five years. Compared to living alone, this saved me about 800,000 yen a year, which amounts to 4 million yen over five years. I also planned to keep my living expenses to under 100,000 yen a month, so that I could save more than 1 million yen a year.
In addition, he also puts effort into his side job, writing online and selling secondhand goods, which allows him to secure a side income of over 1 million yen per year. He puts part of his income into Tsumitate NISA and stock investments, and by making efforts to increase his assets rather than just saving, he was able to achieve 10 million yen.
This way, not only can you save money on rent, but you can also control your living expenses and increase your income, allowing you to save more quickly.
Things to keep in mind when saving money in a share house
Shared houses offer an environment that makes it easy to save money, as rent and living expenses are kept low. However, simply living in a shared house does not automatically increase your savings. If you are not creative with how you live, unexpected expenses may pile up and you may fail to save money. Here we will explain the points you should be careful of when saving money in a shared house.
1. Manage your entertainment expenses so they don't increase too much
There is a risk that expenses will increase as you interact with your roommates more
In shared houses, residents often have active interactions with each other, and there is a tendency for there to be more opportunities for drinking parties, eating out, events, etc. This can lead to unconsciously high social expenses, which can ultimately make it difficult to save money.
<Tips for reducing entertainment expenses>
- Decide on a monthly budget for entertainment expenses (e.g., entertainment expenses up to 10,000 yen per month)
- Set rules for yourself, such as eating out once a week
- Meals with housemates should be "potluck parties"
- Prioritize free or low-cost events
2. Beware of hidden living costs
Check the details of common area fees and utility fees in advance
While rent for a shared house is cheap, common area fees and utility fees may occur separately. If you do not check the fee structure carefully before signing the contract, you may end up spending more than you expected.
<Points to check regarding utility fees and common area charges>
- Are maintenance fees fixed or variable? (Fixed fees are easier to budget for)
- Are utility bills and Wi-Fi fees included in the rent?
- Is there a possibility that fees will increase depending on how my sharemates use the space?
- Are there any cleaning fees when I move out?
Also, if consumable items (toilet paper, detergent, etc.) are shared, finding out how the costs will be shared can help you avoid unnecessary spending.
3. Beware of share houses that are too cheap
Cheap rent doesn't necessarily mean good value
A share house that is too cheap may have old facilities or a bad living environment. Even if you can keep your initial costs down, you may end up not being able to live comfortably and having to move frequently, which can end up costing you money.
＜Tips for choosing a share house that is comfortable and low-cost＞
- Check the cleanliness of the bathroom and shared spaces when viewing the property
- Check the residents' attributes (age group and lifestyle)
- Research the reputation of the management company and see if they are responsive.
- Are the minimum facilities (kitchen, shower, heating and cooling, etc.) provided?
When choosing a cheap property, it is important to base your decision on whether you can live there for a long time.
4. You won’t save if you don’t establish a savings habit.
Living in a share house alone won't help you save money
Even if you think, "I'm living in a share house, so I should be able to save money naturally," if you don't make a habit of saving money, you won't end up saving any money. It's important to create a system that allows you to save a set amount every month, rather than just saving whatever money you have left over.
＜Tips for successful savings＞
- When you get your paycheck, immediately transfer a certain amount to your savings account (pre-savings)
- Separate accounts for living expenses and savings
- Use a savings app (Money Forward, finbee, etc.)
- Use Tsumitate NISA or fixed-term deposits to force yourself to save money
5. Consider increasing your income
Saving money is not just about "reducing expenses" but also about "increasing income"
In order to increase your savings, it is important to save on living expenses, but increasing your income is also an effective way. Share houses often have an environment that makes it easy to telework or have a side job, so you can accelerate your savings while earning extra income.
<What you can do to increase your income>
- Online side jobs (writing, translation, data entry, etc.)
- Selling unwanted items on a flea market app
- Improve your skills, change jobs and increase your income
- Utilize delivery jobs (UberEats, Wolt, etc.)
By not only reducing your expenses but also increasing your income, you will be able to achieve your savings in a shorter period of time.
6. Consider moving-out costs
Unexpected moving costs
Although the initial costs for a share house are cheaper than regular rental property, there may be costs incurred when you move out. In particular, if you do not check in advance the cleaning costs when you move out and the conditions for returning the deposit, you may end up with unexpected expenses.
＜Tips for reducing costs when moving out＞
- When signing the contract, confirm the "costs upon moving out"
- Understand the "scope of restoration" in advance
- Sell unnecessary furniture and appliances when you move out to cover moving expenses
summary
A shared house is a great place to live to save money, as it's easy to keep rent and living expenses down. By cutting down on fixed expenses, sharing food and daily necessities, and saving in advance, you can save efficiently. There are cases where people have actually saved 20,000 yen a month and 10 million yen in five years. However, you should be careful about increasing entertainment expenses and not checking the details of contracts properly. Take advantage of the benefits of a shared house and aim to reach your savings goal by planning your savings!
