Extreme Frugality: How a Japanese Man Saved $630,000 for Early Retirement

Japan's Average Income and Living Costs

According to Japan's National Tax Agency, the average annual income in Japan for 2021 was 4.43 million yen (approximately NT$990,000 or US$29,500), a 2.4% increase from the previous year. For those aged 25-29, the average yearly salary was 3.71 million yen (about NT$820,000 or US$24,400). It's worth noting that men in Japan generally earn more than women.

A Twitter account shared a screenshot from a Japanese TV program, breaking down the monthly expenses of a typical 53-year-old married man. After deductions for bonuses, pension insurance, and taxes, the average monthly take-home pay ranges from 220,000 to 250,000 yen (NT$47,000 to NT$53,000 or US$1,400 to US$1,600). However, after accounting for a mortgage payment of 80,000 yen, food expenses of 40,000 to 50,000 yen, and children's education costs of 50,000 yen, only about 30,000 yen (NT$6,400 or US$190) remains for discretionary spending.

The Frugal Bachelor's 20-Year Savings Plan

In contrast to the average Japanese household, a 45-year-old single man has taken an extreme approach to saving. With the goal of early retirement firmly in mind, he has lived an incredibly frugal lifestyle for the past two decades. His dinners typically consist of white rice with a single pickled plum and tamagoyaki (rolled omelet), or rice with simple seasonings. This strict budgeting has allowed him to amass savings of 94.7 million yen (approximately NT$21.2 million or US$630,000).

The Origins of His Frugal Journey

The man, who remains unnamed in media reports, began his extreme saving journey when he first entered the workforce over 20 years ago. He cites the difficult job market of 2002, known as the "employment ice age" in Japan, as a significant influence on his decision. Witnessing friends struggle to find work or suffer mental health issues after job losses, he resolved to secure his financial future through aggressive saving.

Sacrifices for Financial Freedom

To achieve his savings goal, the frugal bachelor has made significant sacrifices in his personal life. He ended a relationship to avoid the increased expenses that come with marriage and family life. His commitment to early retirement is so strong that he states he's "willing to be single forever" if it means achieving financial independence sooner.

Lifestyle and Investment Strategies

The man's approach to saving extends beyond his simple meals. He lives in a modest apartment with a monthly rent of 30,000 yen (about NT$6,728 or US$200). While he owns basic appliances like a washing machine, microwave, and refrigerator, he opts for the cheapest functional models to minimize expenses.

In addition to cutting costs, he has actively invested for 21 years, reading over 100 books on stock investing. Despite setbacks like the Lehman Brothers collapse, he has persevered in his investment strategy.

Health Considerations

Aware of the potential health risks of his limited diet, the frugal saver supplements his meals with vegetable juices and vitamins. He also undergoes regular health check-ups to ensure his extreme budgeting isn't negatively impacting his well-being.

Future Plans and Challenges

When asked about his post-retirement plans, the man expressed a desire for adventure and self-sufficiency. He dreams of rail journeys across Eurasia, camping trips throughout Japan, and exploring various forms of personal entertainment.

However, recent challenges such as the depreciation of the Japanese yen have impacted his savings, potentially affecting his retirement timeline. Despite this setback, his story has sparked discussions about work-life balance, financial planning, and the costs of living in modern Japan.

While this man's extreme approach to saving may not be for everyone, it highlights the increasing concerns many Japanese have about retirement and financial security in an era of economic uncertainty.