How to Live Frugally in Japan (or Anywhere): My Journey to Saving Money

Living frugally is a lifestyle choice that can benefit anyone, no matter where you are in the world. I’ve been living in Japan for a while now, and one of the biggest lessons I’ve learned is how to live well on a budget. Whether you're looking to save money in Japan or simply want to adopt more mindful financial habits, there are simple steps you can take to start living a more frugal life.

In this blog post, I'll share some of the methods that have helped me save money while living in Japan, along with a handy tool I developed to help you track your spending—my free Kakeibo template!

I made a video on my experiences of living on a tight budget in Japan:

1. The Importance of Budgeting

Before diving into the specifics, let’s talk about why budgeting is so important. No matter where you live, managing your money is key to achieving financial freedom and reducing stress. In Japan, for example, I’ve found that living on a budget has allowed me to enjoy my life here without feeling like I’m constantly struggling.

A traditional Japanese method for budgeting is Kakeibo, which is a simple yet effective way of tracking income, expenses, and savings. It has been a game-changer for me, and I’m excited to share this approach with you!

2. Embrace Simple Living

Living frugally isn’t about deprivation; it’s about finding contentment in simplicity. Japan, with its minimalist culture, has taught me the value of living with less. Whether it's embracing smaller living spaces, spending time in nature, or cutting down on material possessions, simplicity has helped me focus on what truly matters.

By simplifying your lifestyle, you can reduce unnecessary expenses and spend your money on what’s really important to you. For example, I spend less on eating out by cooking simple, healthy meals at home. It’s cheaper, and I can control what goes into my food.

3. Saving on Everyday Expenses

In Japan, there are so many small ways to save money, especially on everyday expenses like groceries, transportation, and utilities. Here are a few strategies I use to keep my costs down:

• Grocery Shopping Smart: I love exploring local supermarkets and farmers’ markets for fresh, seasonal produce at a fraction of the price. I also make sure to buy in bulk when possible, which helps reduce food costs in the long run.

• Riding a bike or walking: Trying to get exercise and improve my overall health, I have started walking or riding a bike instead of getting the car out. I am trying to walk or ride somewhere at least once a day. This not only saves on petrol, but also on expensive gym memberships. Walking is free and healthy. I always feel good after getting out for a walk.

• Energy Efficiency: I’ve made an effort to conserve energy by using energy-efficient appliances and being mindful of my electricity usage. In winter, I use simple Japanese methods to stay warm, like layering clothing and using space heaters efficiently.

4. Track Your Spending with Kakeibo

One of the most powerful tools I’ve used to stay on top of my finances is Kakeibo—a traditional Japanese budgeting system. It’s a simple and effective way to record your income, expenses, and savings. I’ve even created a free, downloadable Kakeibo template to help you get started!

This template will guide you in setting your financial goals, tracking your monthly spending, and finding areas where you can save. Click here to download my free Kakeibo template and start managing your money like a pro!

5. Find Joy in Free or Low-Cost Activities

Living frugally doesn’t mean you have to miss out on fun experiences. Japan, in particular, has so many free or low-cost activities to enjoy, from visiting beautiful temples and parks to exploring local festivals and markets.

When I first moved to Japan, I was amazed at how many experiences I could enjoy for free or at a very low cost. Take advantage of these opportunities—whether it’s hiking in the mountains, attending a local event, or just spending time with friends at a park. These activities not only save you money but also help you connect with your community and nature.

6. Mindful Shopping

Another tip for living frugally is to be mindful of your purchases. It’s easy to fall into the trap of buying things you don’t really need, especially when they’re on sale. I’ve learned to be more intentional with my purchases, focusing on items that add real value to my life.

One way I do this is by following the one-in, one-out rule—if I buy something new, I get rid of something old. This helps me keep my space organized and prevents unnecessary clutter.

7. Frugal Living Beyond Japan

Though I’ve been living in Japan, many of these tips apply anywhere in the world. Whether you're living in a big city or a small town, the principles of frugal living can help you save money and live a more fulfilling life.

The key is to find joy in simple things, be mindful of your expenses, and prioritize your financial goals. With a little effort, you can live frugally and still enjoy a rich and meaningful life.

Conclusion

Living frugally doesn’t mean sacrificing the things you love. It’s about making conscious choices that help you live within your means while still enjoying life to the fullest. By following some of the strategies I’ve shared here, including using the Kakeibo method, you can start saving money and creating a more intentional, fulfilling life.

Don’t forget to download my free Kakeibo template and start your journey toward financial freedom today!