To Avoid Wasting Your Salary: 7 Money Mistakes to Watch Out For

Introduction: Why "No Salary Left" Happens

Seeing a payday notification can lead to a relaxed mindset, often resulting in spending on weekend dining out or sales. An article from NDTV Profit points out that even with a high income, you won't save if you fall into seven pitfalls (published: July 31, 2025). Although the source is India, the principles presented apply directly to Japanese households as well.

For example, the article's example of "going broke even with a monthly income of ₹1 lakh (100,000 rupees)" is akin to approximately 170,000 yen in Japan (exchange rates fluctuate over time), illustrating the lesson that money won't be left unless you "systematize" regardless of income level. NDTV ProfitWise

In the following sections, we will reinterpret the seven mistakes organized by NDTV for a Japanese audience, providing specific action steps and tool examples.

Mistake 1: Spending Before Budgeting (Payday Shopping)

Symptom: Spending on dining out, apparel, and sales right after payday, leading to dwindling balances by mid-month.


Why is it a problem?: Disrupting the "budget→spending" order delays fixed costs and future savings/investments, destabilizing monthly cash flow.


Solution: NDTV recommends the 50-30-20 rule. Allocate 50% to essentials (rent, utilities, communication, etc.), 30% to desires (dining out, shopping), and 20% to savings/investments, automatically transferring on payday. Make payday the "trigger" to activate the system. NDTV Profit

Implementation Steps in Japan (Example: Payday on the 25th of Every Month)

1. 25th: Transfer to Bank A → On the same day

   • Automatic deposit to investment account for "accumulation" (20%)

   • To living expenses account (50%)

   • To sub-account/prepaid for desires (30%)

2. Credit card payments are consolidated in the living expenses account (ensure it can only be paid from this account to avoid shortages before the payment date).

3. The balance in the desires account is the budget. If the balance is zero, the month is over.
   
   
   

Checklist

•  Set the time for automatic transfers (same-day processing)

•  Convert desires account to prepaid/debit (to prevent overspending)

• Count subscriptions within the desires frame
  
  

Mistake 2: No Emergency Fund (Unexpected Bill Panic)

Symptom: Relying on cards for unexpected expenses like illness, unemployment, or appliance breakdowns, disrupting future household finances.
NDTV's Benchmark: Initially, create an emergency fund of **₹75,000 to ₹100,000** (approximately 130,000 to 170,000 yen in Japanese yen). Start with as little as **₹2,000 to ₹3,000** per month.  NDTV ProfitWise

Japanese Adaptation

• Primary Goal: At least "one month's rent + anticipated maximum out-of-pocket medical expenses + part of living expenses."

• Ultimate Goal: 2 to 3 months' worth based on each household's fixed cost level (more for self-employed/freelancers).

• Place it in ordinary savings/savings sub-account or high-liquidity products. Separate from investments, and use in the order of "emergency fund→insurance→investment".
  
  
  

1,000 Yen Start Plan

• Automatically transfer 10,000 yen to the "emergency fund account" on payday each month.

• If the goal is 150,000 yen, reach it in 15 months. Add 30,000 yen during bonus time to shorten the period.
  
  

Mistake 3: Only Saving, Not Investing

Symptom: Assets diminish due to inflation and opportunity loss by leaving money in a savings account.
NDTV's Point: SIP (Systematic Investment Plan) for "small amounts continuously". Separate the roles of saving and investing, and leverage time. NDTV Profit

Japanese Practice

• Invest in accumulation-type mutual funds, with automatic accumulation on payday.

• Depending on your goals and risk tolerance, secure living defense funds→long-term accumulation in that order.

• Allocate part of the "30% desires" to **"future desires"** (travel, education) in a specific accumulation frame to maintain motivation.
  
  
  

NG to Avoid

• Starting investment with a bonus lump sum and stopping from the next month (can't make it a habit)

• Buying only when prices rise and stopping when they fall (dilutes dollar-cost averaging effect)

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Mistake 4: Lifestyle Inflation (Raise = Increased Fixed Costs)

Symptom: Every time income increases due to a raise or job change, the levels of rent, car, smartphone, and dining out also rise.
NDTV's Suggestion: Keep the living standard unchanged for one year after a raise. Direct the increased take-home pay to investment to leverage compound interest. NDTV Profit

Pitfalls in Japan

• High-cost installment payments for smartphones, increasing subscriptions, upgrading rent.

• Since "fixed costs are hard to reduce," take three deep breaths before increasing. Absorb temporary desires with variable costs.