Asset Building as Just an Employee is Difficult! How to Increase Take-Home Pay in the Inflation Era
According to recent data, Japan's Consumer Price Index (CPI) is rising, and I'm sure everyone feels the soaring prices of energy and food daily.
The Ministry of Internal Affairs and Communications announced that the nationwide CPI for February 2025 rose by 3.7% compared to the same month last year. In reality, it feels like it has risen even more.
We are starting to see news that the government and the Bank of Japan are considering reviewing monetary policies as countermeasures against inflation.
It seems like a lie that Japan suffered from deflation for so long.
The "Zero Interest Rate" policy continued for a while, but with a new BOJ Governor, we have already entered an era with interest rates. Times have changed.
During inflation, the value of money decreases, so just keeping it in the bank reduces your assets as if you were paying a fine.
On the other hand, wages do not rise as expected even if you work as a company employee, making it a difficult era to build assets just by belonging to a company.
So, how can we increase our take-home pay in this inflation era?
In this article, I would like to consider what methods should be taken, based on the problems of asset formation for company employees (Salarymen) in modern times.
Why Asset Formation is Difficult for Salarymen Alone
As mentioned at the beginning, it is difficult to build assets in modern times just by belonging to a company as a salaryman.
The environment surrounding salarymen is tough even now, but it is expected to become increasingly severe in the future.
The reasons can be summarized as follows:
• Progression of an aging society with a low birthrate and increased social insurance burden.
• The collapse of lifetime employment. And re-employment becomes harder as you get older.
• An uncertain pension system. (Not knowing how much you will receive in old age or how much savings are needed to sustain life after retirement.)
• Disposable income does not increase because tax and social security burdens increase along with salary.
• There is a limit to reducing expenses while prices continue to rise due to inflation.
The more reasons you list, the darker and more anxious you might feel.
However, it is reckless to suddenly quit being a salaryman to start a new business or create a company.
You would likely run into financial difficulties immediately. Starting without preparation is too risky.
But you want to increase your monthly take-home pay. So, what should you do?
The Concept of Increasing Disposable Income
How to increase take-home pay in this inflation era? One answer is "Become a Sole Proprietor while continuing as a Salaryman."
Recently, more companies are allowing side jobs, so the environment is becoming more favorable.
As you know, salarymen are paid after taxes are deducted.
You should accurately recognize the fact that taxes are expenses taken from your pocket.
I didn't really get it when I was a salaryman either, because it was automatically deducted from my salary before I knew it.
In the case of Business Owners, taxes are paid after deducting necessary expenses.
In other words, unlike company employees, business owners have the advantage of utilizing money before taxes are deducted.
This creates a difference in disposable income.
So, how do you become a sole proprietor? One answer is Real Estate Investment. The reality of real estate investment is being the owner of a "Real Estate Rental Business."
In other words, if you start real estate investment, you can increase a revenue source separate from your salary as a sole proprietor.
Moreover, even if you are a company employee, you can increase your disposable income by recording necessary expenses as "Business Expenses."
In some cases, you can even get a refund for overpaid taxes.
Why Real Estate Rental Business is Easy to Start
I believe that the real estate rental business is easy to start if you have a certain amount of funds.
This is because you utilize a system of rental management that is already built.
The structure of rental management in Japan's real estate industry is very well made, so let's gratefully utilize this existing business model.
Normally, if you want to start a business and maintain profits, you need to spend time building an organization and a system (business model).
But fortunately, in the case of the real estate rental business, you can utilize the mechanism of rental management that is already completed.
Essential mechanisms for "Real Estate Rental Business Management" such as tenant recruitment and rent guarantees are firmly in place, so there is no reason not to use them.
How to Start Real Estate Rental Business?
Representative Partners To proceed with the real estate rental business, you need to choose partners that suit you as a business owner.
I have listed representative partners specifically below:
• Real Estate Management Company: Rental management (Tenant recruitment, eviction, etc.)
• Rent Guarantee Company: Security against rent delinquency risk
• Contractor / Renovation Company: Renovation work
• Fire Insurance Agency: Response to accidents such as disasters
• Tax Accountant: Tax measures
• Judicial Scrivener: Registration related matters
When purchasing a new property, you will choose partners that suit you from this existing mechanism as needed to create Your Real Estate Rental Business Management Team.
What kind of team you make depends on your discretion as a business owner.
If it is an "Owner Change" where you take over a property with tenants, you may take over the existing team created by the previous owner, or you may change parts of it to utilize.
Since you can utilize already established systems and teams, it can be said that this business is relatively easy for anyone to engage in.
Since you can utilize existing mechanisms and teams, it can be said that it is a relatively easy business for anyone to tackle.
Summary
In this article, I thought about "Becoming a Sole Proprietor while continuing as a Salaryman" as a method to increase take-home pay in the inflation era.
To win in the inflation era, just working diligently and saving money is not enough.
Since the value of money decreases, just keeping money in the bank will result in losing to inflation and diminishing assets.
Under such circumstances, I introduced "Real Estate Investment" as a specific method.
There are various other methods, but the real estate rental business, where existing mechanisms are already in place, can be said to have a lower hurdle than starting a new business from scratch.
Converting money into inflation-resistant assets and securing a revenue source separate from the salary paid by the company as a sole proprietor is an essential choice for surviving in modern times.
By increasing a new revenue source without taking the risk of quitting your current company, you can expect daily life to become a little easier and asset formation for old age to become easier.
For the senior generation, it adds to future pensions, and for those aiming for FIRE, it becomes a valuable source of cash income. (Text by Julius)
Related data: 2020基準 消費者物価指数 全国 2025年（令和7年）2月分
About the Author Kenji Kamioka
CEO, Julius Inc. / FIRE Practitioner
Kenji Kamioka is a former IT executive who spent 30 years in the corporate world, with over 10 years working across Asia. His life changed when he read Rich Dad Poor Dad.
Realizing the trap of the "rat race," he started building assets in real estate and stocks while still working. It took him 10 years, but he successfully achieved Financial Freedom and graduated from the salaryman life.
He established his own asset management company to optimize tax efficiency and now dedicates his time to teaching others how to escape the corporate cage.
His advice is not theoretical but based on the gritty reality of achieving FIRE.Credentials: AFP (Affiliated Financial Planner), Certified Real Estate Transaction Agent.
❶『令和のサラリーマンの為のFIREのススメ』(Amazon電子書籍）
❷『FIRE Recommendation for Office Employee』(Amazon Kindle）
