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How much of your net salary do you manage to save?


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In any event, it looks like the average household spends about 74% of their income each month.

 

What do u mean by transferring assets as opposed to expenses?

Sorry I'm a bit Tim-nice-but-dim when it comes to financial stuff

 

What it means Tubby is that rather than spending money (an expense) on your mortgage the government is basically saying that you are moving your money from one place to another (asset transfer). Of course, if you are renting then you are technically spending a lot more than someone who is just paying a mortgage, even if you rent is less than the mortgage payment. Someone else summed it up like this

This is what happens when you use averages. Obviously there is no way people are paying 16,000 yen for housing.

When you rent, you pay a fixed sum every month. That's expenditure. Let's say A pays 50,000 yen a month rent on his little one-room flat.

When you take out a housing loan, the value of the property is offset against the loan; your monthly mortgage repayments count as a transfer of assets, not an expenditure. Let's say B repays 150,000 yen on the loan on his detached suburban.

In sensible terms, the average amount spent on housing by A and B is (50,000 plus 150,000)/2=100,000 yen.

In accounting terms, since B is supposedly just moving his assets around and not actually incurring an expense, the average amount spent on housing by A and B is (50,000 plus 0)/2=25,000 yen.

 

The larger the proportion of home-buyers in the equation, the lower the average amount supposedly spent on housing.

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Thanks for the explanation. I've looked up household spending before and didn't understand the housing part. The average mortgage payment for a chumon juutaku is 120,000 a month. The average cost for that kind of house is something like 36 million. At 2.5% interest for 35 years, you can borrow 33 million with a 120,000 payment.

 

I am mainly interested in household income/spending because I have kids and cannot see how folks will be able to do the traditional thing and start coughing up a million plus per kid for higher education and associated costs in a few years' time. This generation of parents simply doesn't have the income. I can only see further reliance on the bank of jijibaba.

 

For any other number freaks, the working age population, defined as 15 to 64 y.o, fell by 1.2 million last year, most of it due to baby boomers turning 65. The percentage of over 65s is now 25.1%. The population itself fell by 250,000.

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In comparison to how much extra, national health is in Japan, is tax in Britain still more or is it still cheaper to pay low tax + the health premium here in Japan?

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Good question Tubby. I can't comment on Britain but compared to Canada, once you add in all the extras, income tax ends up being pretty similar. If you have health problems and have to pay the 30% difference for care, I think taxes are actually slightly more expensive here. In any case, it's too much!!

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