It’s my 5th and final year on the JET Program and one of my biggest regrets was not saving more money. Actually, this year will be the only year I have actually saved money. But I have been paying off loans and credit cards the entire time, so it’s not like the money has gone to waste.
Saving money on the JET Program is easily possible as long as you are willing to sacrifice a few things. With the current exchange rate (Feb 2012) my monthly paycheck is a little over $3,200. So that comes to about $40,000 a year. If you have a lot of loans and other obligations like I do then it can be a little tricky, but it can be done. Also, I think it can be a little difficult if you are only staying one year. The problem with staying only one year is that there are startup and leaving costs. On top of that, since it is most people’s first year in Japan they tend to spend a lot of money traveling and going out with friends. If you are willing to give up traveling and partying then year one can end with savings, but again, it’s a sacrifice.
Since this was my last year I decided I had to make a change and be strict with my budget. I did something really simple but effective. Before payday I spend a little time checking my budget – seeing how much I have, how much I need to send home, any possible future costs, etc. When payday roles around I go to the ATM, send home the money to pay student loans, take out the money for bills, and take out living expenses for the month. I DO NOT go back to the ATM within the month. If I have a big night out and blow all my money then I just have to eat ramen all month.
It’s pretty simple but it’s effective. I’m not very good at keeping track of everyday expenditures, so this way I don’t really have to. I know ahead of time exactly how much I have sent home and exactly how much I have taken out, and as long as I know this information I can save money. It basically allows me to be as hands off as possible and think very little about where my money is going. This probably won’t work for everybody but it has worked pretty well for me.
The other part of this is setting a budget and figuring out how much money needs to be sent home, how much you can spend, and how much you can save. This is not as easy as it sounds because most people aren’t very realistic about how much things cost or how much they spend. Also you have to deal with fluctuating costs, emergency funds, etc. It took me about two months of adjusting my budget to find a realistic amount of possible savings. If you do set up a budget expect the first few months to be trial and error. Also, don’t expect to be able to keep a budget your first few months on the program. When you are new it takes awhile for all the bills to kick in. It’s not at all unusual for people to go a few months and not realize they haven’t been paying a bill. Then, of course, you get stuck with a massive bill that covers a few months. Don’t get discouraged if you go over your budget because it takes awhile to get everything right.
Click on the picture to go to a copy of my current financial spreadsheet that I use while on the JET Program. It is made of three spreadsheets: America Finances, Japan Finances, and Monthly Savings. Everybody has a slightly different way of thinking about finances so it’s best just to use this as a guide.
