Income 110,000, savings 100,000 yen. Can we do it as it is?

◆ The salary is 110,000 yen. Can we do it as it is?
The “Money Plan Clinic” is the answer to your household concerns.

This time, a 31-year-old woman who calls herself “poor girl” talks about her worries. Keiko Yatsui, a household consultant, is in charge.

◇ Consultant
Nozomi Tanaka (pseudonym)
Female / part-time employee / 31 years old
Parent’s house (owned house apartment)

◇ Family structure
Mother (60s / contract employee), older sister (36 years old / help with domestic affairs)

◇ Consultation content
Time has passed since I left college and remained a part-time worker. So-called “poor girls”. I almost give up on becoming a full-time employee.

My current part-time worker has a low salary, but I like the work environment. Fortunately, there is no rent or utility bill because it is my parents’ house. I only put in 10,000 yen a month. The chances of getting married are low, so can I just go on alone?

◇ Household income and expenditure data
Nozomi Tanaka’s household income and expenditure data is as shown in the chart.

(1) About miscellaneous expenses
Sometimes I buy clothes, but half of them are gifts for my family. For example, 20,000 yen each for mother and sister’s birthday, 5,000 to 10,000 yen for Mother’s Day, 3,000 yen for mother, sister and uncle on Christmas, 8,000 yen for mother and sister, 10,000 yen for uncle. I sent a new year for about 3000 yen.

(2) About family
The mother is physically tight and wants to quit her job, but her household is still suffering. My sister is single and lives on a pension for the disabled. His father passed away five years ago.

◇ Three advices from household consultant Keiko Yatsui
Advice 1: Increasing savings is a top priority when considering future household budgets
Advice 2: Let’s review the need for “expenditure” again
Advice 3: Aiming to “work for a long time” is also an effective way to increase income

◆ Advice 1: Increasing savings is a top priority when considering future household budgets
The most worrisome thing about households is that they have little savings. The amount of savings of “100,000 yen” is a very unfortunate amount when something happens.

Furthermore, since the monthly savings are “20,000 yen”, it would normally be 240,000 yen a year. As a result, you’re losing your savings and spending on something that year.

The question is what it is. Think about what it’s about and whether it was a really necessary expense for you. How about starting from there?

One of the tendencies of people who do not easily accumulate is “washed out consumption”.

The reason for consuming it is “because it was cheap” or “because it is popular”. There is no subject “self” there. In other words, I didn’t buy it because I really needed it.

Income is limited. These spending can be a huge drag on savings, especially if households cannot afford it. Please check it out, too.

◆ Advice 2: Let’s review the necessity of “expenditure” again
As a concrete household review, let’s first consider insurance, which is a fixed expenditure. Of the three insurances currently insured, Mr. Tanaka thinks that whole life insurance can be continued as it also has savings.

On the other hand, I feel that the premium for medical insurance is a little expensive. Regarding the coverage, why not reduce the insurance premium by, for example, changing the 120-day type to the 60-day type, or removing the special contract for female illness?

Also, for cancer insurance, the premium of 3964 yen will be close to 2 million yen if you continue to pay until you are 70 years old. Considering that you already have medical insurance, your current age, income and savings, it is a good idea to save that much.

Another thing I’m interested in is a gift for my family. The total amount of data received, such as birthdays, Mother’s Day, and Christmas, is about 80,000 yen per year.

I think it’s really wonderful to have a family feeling, but considering the current situation, I would like to hold back a little more and increase that savings. Even if you switch to some handmade products to keep costs down, Mr. Tanaka’s feelings should be fully conveyed.

◆ Advice 3: An effective income-increasing method to aim for “working for a long time”
Mr. Tanaka’s consultation is “whether I can continue to be single as it is”, but considering that I will retire eventually, savings will be the point.

There are two ways to increase your savings: reduce spending and increase your income. One of the things that people tend to think about when it comes to increasing their income is to become a full-time employee and raise their annual income, or to change jobs and raise their salary.

However, working for a long time also leads to an increase in income as a result. If you work until you are 65 or 70, you can expect the same effect as increasing your income.

In the case of Mr. Tanaka, it is unlikely that he will become a full-time employee at his current workplace, but he is satisfied with the ease of working. For non-regular employees, there are many cases where they are very dissatisfied with the workplace, so that is a safe part. Therefore, why not try as hard as you can in your current workplace?

However, giving up on career advancement for full-time employees means narrowing down your options. Of course, the reality is harsh, but I would like you to keep that hope.

The one who taught me … Keiko Yatsui

Household consultant. After graduating from university, he entered a major credit union. Since I want to be in a position to recommend what is really good for customers, I became independent as a financial planner focusing on personal consultation, and I am also active in television, newspapers, magazines, etc. Guide for All About Money.

Interview / text: Kyotake Shimizu

Sentence = Arujan Editorial Department