“Always remember to pay yourself first”
The vast majority of individuals have the personal-finance mindset of “spend the money as it comes in, and save what is left over”. The downside to this is that there is often little left over, no matter what level of monthly income they may have. Expensive hobbies, having a family, or just living in a big city…all have a way of draining us of any potential savings. We at Tyton have often seen even individuals with 6-figure incomes still living month-to-month.
Consequently, we occasionally run into individuals who are very good at saving; the few that instead see the world as “save what I want to, and spend what is left over”. These individuals also find themselves in trouble, however, as they often find their only option here in Japan are savings accounts with 0.01% interest…
An effective solution to both of the above examples would be setting up an internationally-based automated regular savings plan. This would give structure to the former individual helping them to save, and would fit smoothly with the latter example’s savings habits, only this time they have the ability to get a little more growth on their savings.
Ultimately the risk/return of your actual savings are something you can decide, and we at Tyton can help advise on. However, more important is whether or not the savings structure even exists.
That 850 USD saved each month at 10% growth each year would give you 1 Million USD in 25 years…?
That Japanese bank deposit insurance is capped in the event of the bank becoming insolvent/bankrupt…?