It’s fun for couples living separately to have a date in each other’s homes. However, it’s not uncommon for couples to think, “Since we’re always together, wouldn’t it be better if we lived together?” 

However, if you start living together without discussing financial matters, it could lead to problems. To avoid such situations, it’s important to have a conversation in advance about how to manage money while living together.  

In this article, we will explain common financial troubles that occur when living together and some financial advice on how to manage money. If you are considering living together, please use this as a reference. 

At Village House, we offer over 1,000 properties across Japan. If you are looking for a rental property to live together, please check our website. 

Common financial problems when living together 

Unequal burden 

If the financial burden is disproportionately placed on one person, it is more likely to cause problems. Generally, the person with the higher income tends to bear more of the costs. 

For example, you may feel it is unfair that the household chores are split equally even though you are the one who pays more for living expenses. On the other hand, some may feel guilty about having their partner paying more for the expenses. 

If there is a difference in income and your partner is paying more, you can live together harmoniously by showing consideration, such as reducing their share of the household chores. 

Unclear spending 

If you spend money impulsively or pay for daily expenses without thinking, you won’t know what you spent your money on. 

Without realizing it, you may overspend and find yourself in a situation where you don’t have enough money to live on or can’t save. When it comes to monthly living expenses and savings, it’s important to be mindful of unnecessary spending while steadily making preparations for your future marriage. 

Different financial perspectives 

Differences in financial perspectives between partners can sometimes cause problems. 

For example, if one partner spends more money on hobbies or entertainment than what they earn each month, it would be hard to save money. Additionally, if your partner is a spender or has little interest in saving, it can be difficult to save money. 

There is also the concern that problems may arise, such as your partner asking for money or spending it without your permission under the pretext of living together. 

Living expenses required while living together 

According to the “Household Budget Survey by Number of People in a Household in September 2023 (Table 3-1)” by the Statistics Bureau of Ministry of Internal Affairs and Communications, the living expenses for two people, excluding rent, are around 220,000 yen. When adding the fixed cost of rent, it is advisable to budget around 300,000 yen per month for living expenses while living together. 

Breakdown of living expenses while living together 

• Rent 

The general guideline for rent is around 25-30% of household income. To allow for some financial flexibility, such as saving for the future or going on dates and trips, it’s a good idea to look for a rent amount that doesn’t place too much burden on your cohabitation budget. 

• Food expenses 

The budget of 71,933 yen for food includes not only home-cooked meals but also dining out and alcohol. This comes to about 2,400 yen per day for two people. Since food costs are ideally set at 10-15% of household income, you should calculate an appropriate amount based on your income by considering options such as cooking at home or bringing packed lunches. 

• Utility bills 

The average cost of utilities such as electricity, gas, and water is 17,015 yen. The amount and usage vary depending on the season and the area you live in. You can save on utility bills by spending as much time as possible in the same room using only one air conditioner and taking baths together to reduce energy usage. 

• Daily necessities 

Since daily necessities cover a wide range of items related to household chores, such as laundry, cooking, and cleaning, as well as personal care products like shampoo, body soap, and toilet paper, some people may find it difficult to determine how much to budget for these items. Nevertheless, the average cost for daily necessities is 10,568 yen. To save money, you can purchase daily necessities that do not have an expiration date when they are on sale. 

• Communication costs 

The average cost for communication expenses, including smartphones and internet, is 9,895 yen. 

When living together, the number of times you need to contact each other decreases, which can reduce smartphone usage. Additionally, you only need to pay for one internet connection instead of paying separately, which helps save money. 

If you want to keep communication expenses as low as possible, you might want to consider renting an apartment where internet fees are included in the rent. 

• Entertainment and social expenses 

Social expenses, including dining out with friends or work-related gatherings, amount to 16,587 yen on average. Living together also requires a healthy sense of personal space. To avoid being overly involved with each other, make time to hang out with friends or colleagues. 

Entertainment expenses, such as for movies or concerts, amount to 25,465 yen on average. If you share hobbies as a couple, you can enjoy them together. However, being a couple does not necessarily mean that you have the same hobbies. It’s important to enjoy your hobbies within reasonable limits to avoid burdening your partner. 

• Transportation costs 

The average transportation cost is 24,607 yen. However, transportation costs vary depending on your lifestyle, such as train fares when going out for leisure, car fuel, and taxes. It’s also good to take a walk around the neighborhood together on your days off for your health. 

Methods to manage money while living together 

Contributing a fixed amount 

By contributing a predetermined amount each month, managing money becomes easier. 

However, it’s important to have a thorough discussion beforehand to avoid any financial disputes. By each contributing a fixed amount, both parties will be more conscious of keeping expenses within the budget. Additionally, any leftover funds can be saved. This method is suitable for those who want to maintain an equal relationship while living together. 

Managing a joint bank account 

Opening a joint bank account with your partner makes it easier and more convenient for both of you to keep track of monthly expenses. By paying rent and living expenses from the joint bank account, you can reduce the risk of financial disputes. 

Managing with a credit card 

If you open a joint bank account, managing expenses with a credit card is also recommended. Not only can you easily check your spending with a monthly statement, but you can also earn points. The points you earn can be used for a variety of purposes, such as discounts during shopping or exchanging them for prizes. 

However, the downside of using a credit card is that its convenience can lead to overspending. If you don’t mind a little fluctuation in your monthly living expenses, a credit card is relatively easy to manage. 

Dividing by expense categories 

There is a method where partners can split the bills between fixed monthly costs and variable expenses that fluctuate each month. The person with the higher income covers the fixed costs, while variable expenses encourage a mindset of “let’s save as much as possible.” Any leftover money can be used freely, but it’s a good idea to agree on savings amounts beforehand. 

Men typically earn more, so it is common for them to cover fixed expenses like rent and utility bills. By discussing which expenses each of you will be responsible for based on your income, neither of you will feel stressed since the burden is shared evenly. 

Six tips for managing money while living together 

When living expenses are not properly managed, it can often lead to conflicts. To prevent trouble while living together, here are six key points: 

1. Keep a household budget 

2. Establish rules about money 

3. Review living expenses regularly 

4. Set a savings goal 

5. Discuss expensive purchases in advance 

6. Don’t keep secrets 

To build a better relationship with your partner for the future, make sure to discuss your money management methods. 

At Village House, there are no requirements for security deposits, key money, handling fees, or renewal fees. If you want to save on initial costs, please feel free to contact us. 

Machiko Doi

Hello, I’m Machiko Doi, a freelance writer who writes about housing and living in Japan.

I live in an 80-year-old house that I inherited from my grandparents along with my two shelter cats and daughter.

We live a relaxed life while repairing the house.

I like to cook vegetables from the garden and fresh fish caught by my father, and enjoy them with cold beer on a hot day or hot sake on a cold day.