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's the reason behind that? This article will explain the unique economic benefits of living in a share house, comparing it to living alone.
Share houses have lower rent than living alone.
Comparison of average rent and living alone
One of the biggest advantages of living in a shared house is the low rent. Depending on the area, the rent for a shared house is generally 30 to 50 percent cheaper than renting a studio apartment in the same area.
For example, comparing average rent prices within Tokyo's 23 wards:
- Living alone (studio apartment/1K): 60,000 to 100,000 yen
- Shared house (private room): 30,000 to 70,000 yen
In this way, living in a shared house allows you to significantly reduce rent even in the same location, which means you can put that money into savings.
Factors affecting rent (location, facilities, inclusion of common area fees, etc.)
The rent for a shared house varies depending on the following factors:
- Location: Rents tend to be higher closer to the city center and lower in the suburbs.
- Amenities: The price varies depending on the quality of the shared spaces (cleanliness of the kitchen, living room, bathroom, etc.).
- Included utilities: Many properties include water, electricity, and internet fees in the rent, which can make the total cost cheaper than living alone.
When choosing a shared house, it's important to consider not only the low rent but also the overall cost balance.
Utility bills and internet costs can be reduced.
System for splitting utility costs for shared spaces
In a shared house, utility costs such as electricity, gas, and water are shared among all residents, making it significantly cheaper than living alone.
- Monthly utility costs for a single person: around 10,000 yen
- Utilities (monthly) in a shared house: less than 5,000 yen (often included in the rent)
One of the advantages is that it's more economical than paying for individual air conditioners, especially during periods when air conditioner use increases, such as in winter and summer.
Services included in a shared house
Depending on the share house, the following services may be included in the rent or utilities fee:
- Free Wi-Fi available.
- Furnished with furniture and appliances
- Provision of shared consumables (toilet paper, detergent, etc.)
- Cleaning and maintenance services
By choosing a property that offers these services, you can further reduce your living costs and put the extra money into savings.
Low initial costs and low moving costs.
Many properties do not require a security deposit or key money.
In typical rental properties, you are required to pay a security deposit, key money, and brokerage fees when signing a contract, but in many cases, these fees are not required in share houses.
[Comparison of initial costs]
| expense item | Living alone (one-room apartment) | Share house |
| Security deposit and key money | One to two months' rent (totaling 100,000 to 200,000 yen) | 0 yen to tens of thousands of yen |
| Brokerage fee | One month's rent (50,000 to 100,000 yen) | 0 yen |
| Furniture and appliance purchase costs | 100,000 to 300,000 yen | 0 yen (provided) |
| total | 300,000 to 600,000 yen | 50,000 to 100,000 yen |
Choosing a shared house can significantly reduce initial moving costs, making it a great option for those who don't have a large savings but need to secure housing quickly.
Many properties come furnished with furniture and appliances, saving you money on purchase costs.
Many shared houses come furnished with essential items such as beds, desks, refrigerators, washing machines, and microwaves, so you don't need to buy them separately.
When you start living alone, you'll need to spend at least 100,000 yen on furniture and appliances, but with a share house, this cost is zero. That means you'll have more money to put into savings, which is a big advantage.
Saving money while living in a shared house
Living in a shared house makes it easier to keep living costs down compared to living alone, making it a suitable option for saving money. However, simply living in one won't increase your savings. This article introduces money-saving techniques to maximize the benefits of shared housing and save efficiently while minimizing unnecessary expenses.
1. Review fixed expenses and minimize living costs.
Reducing fixed expenses is the first step to increasing your savings. Let's look at some cost-cutting tips specific to shared housing.
Keep rent as low as possible
- Careful consideration of area selection: While shared housing in the city center offers great convenience, choosing a property in the suburbs can further reduce rent.
- Choose a property with common area fees included: By choosing a property where utilities such as water, electricity, and Wi-Fi are included in the rent, you can reduce additional costs.
- 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 bills and communication costs.
- Actively utilize shared spaces: By sharing the living room's air conditioning and lighting, you can save on your own room's electricity bill.
- Choose a shared house with free Wi-Fi: You can eliminate communication costs because you don't need to contract for an individual internet connection.
2. Find ways to reduce food expenses.
Food expenses make up a large portion of our daily living costs. Let's cut down on food expenses without difficulty by taking advantage of the money-saving methods available in a shared house.
Cook your own meals as much as possible.
Eating out or buying convenience store food is convenient, but it can be expensive. By utilizing the kitchen in a shared house and making home cooking a habit, you can save a significant amount of money.
- Bulk buying and meal prepping: Buying groceries in bulk on the weekend and preparing several days' worth of meals in advance reduces waste.
- Buying together with housemates: You can share the cost by buying rice, seasonings, frozen foods, etc., in bulk.
Share meals with roommates
- Save money by sharing ingredients: By sharing ingredients that you can't use up on your own, you can reduce waste.
- Cooking together: Cooking together can reduce cooking time and costs.
3. Share essential goods to reduce unnecessary expenses.
In a shared house, most furniture and appliances are provided, so you can acquire the necessities of life at minimal cost.
Make use of what can be shared
- Consumable items such as detergent and toilet paper: Buying them together can make them cheaper than if you lived alone.
- Sharing home appliances: This can lead to significant savings because you don't need to buy appliances like vacuum cleaners, microwaves, and washing machines individually.
Strategies to prevent impulse buying
In a shared house, storage space is limited, so it's important to be mindful of not accumulating too many belongings.
- Think about whether you really need it before you buy it.
- Review your belongings regularly.
- Sell unwanted items using flea market apps
4. Develop habits to increase your savings.
In addition to saving money, developing a lifestyle that is mindful of saving will make it even easier to accumulate wealth.
Separate accounts by purpose
- Separate your living expenses account from your savings account: This will help prevent wasteful spending and allow you to save money systematically.
- Save a fixed amount every month: Practice "saving first" by transferring a predetermined amount to your savings account as soon as you receive your salary.
Use an automatic savings app
- Use a savings app: Utilizing options like "Tsumitate NISA" (a type of tax-advantaged investment account) and "time deposits," which allow you to save small amounts consistently, makes long-term wealth building easier.
5. Increase your income through side jobs or skill development.
To increase your savings, it's important not only to reduce expenses but also to increase your income.
Utilizing teleworking and side jobs
Share houses sometimes offer an environment conducive to teleworking. Consider taking on a side hustle that can be done from home to increase your income.
- Online side jobs such as writing and translation
- Selling unwanted items on reselling and flea market apps
- Freelance work utilizing your skills
Aiming for career advancement
Making efforts to increase your annual income in the future through changing jobs or acquiring qualifications is also an effective strategy for increasing your savings.
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Success stories of people who actually saved money while living in a shared house
Share houses offer an environment conducive to saving money because rent and living expenses are lower. However, many people are probably wondering how much they can actually save. Here, we will introduce specific examples of people who succeeded in saving money while living in a share house, as well as cases where they failed. Let's learn smart saving techniques while living in a share house from these real-life examples.
Even with a net income of 180,000 yen, it's possible to save 20,000 yen per month.
Living alone on a net income of 180,000 yen means that rent and living expenses are a heavy burden, making it difficult to save money. However, by choosing to live in a shared house, you can comfortably save more than 20,000 yen each month.
In this case, the person chose a shared house with a monthly rent of 40,000 yen and reduced fixed costs by living in a property where utilities and Wi-Fi were included in the common area fees. They further saved on food expenses by primarily cooking their own meals and jointly purchasing groceries with their housemates.
Furthermore, I implemented a "first-come, first-served saving" system, where I transfer 20,000 yen to my savings account as soon as I receive my salary, creating a reliable savings mechanism. The key to my success was being able to continue saving without accumulating stress by consciously saving money while still allocating funds for eating out once a week and for my hobbies.
A case of successfully saving 10 million yen in 5 years
Some people have managed to save 10 million yen in five years by utilizing shared housing. In this case, they achieved significant savings not only by keeping rent low, but also by combining it with supplementary income and asset management.
The biggest saving I made was living in a shared house with a monthly rent of 40,000 yen for five years. Compared to living alone, this resulted in savings of approximately 800,000 yen per year, or 4 million yen over five years. I also planned to keep my living expenses under 100,000 yen per month, aiming to save over 1 million yen per year.
Furthermore, by focusing on side hustles, including online writing and reselling, I secured an additional income of over 1 million yen per year. By allocating a portion of this income to NISA (Nippon Individual Savings Account) and stock investments, I made efforts to increase my assets in addition to saving, which led to achieving my goal of 10 million yen.
In this way, by not only reducing rent but also managing living expenses and increasing income, it becomes possible to save money in a shorter period of time.
Points to keep in mind when saving money while living in a shared house
Share houses offer an environment conducive to saving money because rent and living expenses are lower. However, simply living in a share house doesn't automatically increase your savings. If you don't plan your living situation carefully, unexpected expenses can pile up, and you might fail to save money. Here, we'll explain the points to keep in mind when saving money while living in a share house.
1. Manage your entertainment expenses to prevent them from becoming excessive.
Increased interaction with roommates may lead to increased expenses.
In shared housing, residents often interact frequently, leading to an increase in opportunities for socializing, dining out, and attending events. This can result in increased social expenses without residents realizing it, ultimately making it difficult to save money.
<Tips for reducing entertainment expenses>
- Set a monthly budget for entertainment expenses (e.g., entertainment expenses should be limited to 10,000 yen per month).
- Set your own rules, such as allowing yourself to eat out once a week.
- We'll have a potluck dinner with our housemates.
- Prioritize events that are free or low-cost to enjoy.
2. Pay attention to hidden costs in your living expenses.
Please check the details of common area fees and utility charges in advance.
While shared housing offers lower rent, it often includes separate charges for utilities and common area fees. If you don't carefully check the fee structure before signing a contract, you might end up spending more than you expected.
<Points to check regarding utility bills and common area maintenance fees>
- Are the common area maintenance fees fixed or variable? (Fixed fees make budgeting easier.)
- Are utilities and Wi-Fi fees included in the rent?
- Is it possible that the cost could increase depending on how the roommates use the facilities?
- Will there be any cleaning fees or other charges when I move out?
Additionally, if consumables (such as toilet paper and detergent) are shared, checking how the costs will be shared can help prevent unnecessary expenses.
3. Be wary of share houses that are too cheap.
"Cheap rent doesn't necessarily mean a good deal."
Extremely cheap shared housing may have outdated facilities or poor living conditions. While it may save you money on initial costs, you might end up not being able to live comfortably and having to move frequently, ultimately costing you more in the long run.
<Key points for choosing a share house where you can live comfortably on a low budget>
- Check the cleanliness of the bathrooms, kitchen, and common areas during the viewing.
- Check the attributes of the residents (age group and lifestyle).
- Research the reputation of the property management company to see if they provide good service.
- Are basic facilities (kitchen, shower, air conditioning/heating, etc.) available?
When choosing an inexpensive property, it's important to base your decision on whether you can live there long-term.
4. You won't save money unless you establish a saving habit.
Living in a shared house won't increase your savings.
Even if you think, "I live in a shared house, so I should be able to save money naturally," you won't end up saving money unless you establish a solid saving habit. It's important to create a system where you reliably save a fixed amount every month, rather than just saving whatever money is left over.
<Tips for successfully saving money>
- As soon as I get my paycheck, I immediately transfer a fixed amount to my savings account (saving first).
- Separate accounts for living expenses and savings.
- Use savings apps (such as Money Forward and finbee).
- Use NISA (Nippon Individual Savings Account) or fixed deposits to force yourself to save.
5. Consider increasing your income.
Saving money isn't just about "reducing expenses," but also about "increasing income."
To increase your savings, it's important to cut down on living expenses, but increasing your income is also an effective method. Share houses often provide an environment that makes it easy to work remotely or take on side jobs, so you can accelerate your savings while earning extra income.
<Things you can do to increase your income>
- Online side jobs (writing, translation, data entry, etc.)
- Sell unwanted items on a flea market app
- Improve your skills, change jobs, and increase your annual income.
- Utilize delivery jobs (Uber Eats, Wolt, etc.)
By not only reducing expenses but also increasing income, it becomes possible to achieve savings in a shorter period of time.
6. Consider the costs incurred when moving out.
The cost of moving can be surprisingly high.
While shared housing generally has lower initial costs than regular rentals, there may be additional fees upon moving out. In particular, failing to check the cleaning fees and security deposit refund conditions beforehand can lead to unexpected expenses.
<Tips for reducing costs when moving out>
- Confirm the "costs upon moving out" when signing the contract.
- Understand the scope of "restoration to original condition" in advance.
- Sell unwanted furniture and appliances when moving out to cover moving expenses.
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summary
Share houses offer a convenient living environment for saving money, as rent and living expenses are often lower. By reducing fixed costs, sharing food and daily necessities, and setting aside money for savings beforehand, you can save efficiently. There are even examples of people saving 20,000 yen per month and 10 million yen in five years. However, it's important to be careful about increased social expenses and failing to carefully review the contract details. Take advantage of the benefits of share houses and aim to achieve your savings goal by saving systematically!
