Ultimate guide: How to do Japan on a budget

For years, I put off visiting Japan because I'd heard it was shockingly expensive, a land where watermelons cost $50 and sushi was worth its weight in gold. I was fascinated by the culture and loved the food, at least what I ate at local restaurants in Australia, but I dragged my feet on booking a flight to Tokyo. When I finally made my first trip there in 2017, I was delighted to discover the restaurants, bars and attractions are far more budget-friendly than I had imagined. Hooked now on the delicious, dynamic destination and the incredibly welcoming people, I've returned several times.

With the exchange rate at historic highs (currently one Australian dollar buys about 93 Japanese yen, compared to 73 in 2020), there's never been a better time to go. Here are my tips for the best of Japan on a budget.

Visit Japan while the Australian dollar is strong. Credit cards are accepted at hotels and major attractions, but you'll need some cash in your pocket for taxis, public transport, small restaurants and the ubiquitous vending machines. In most cases, you're better off withdrawing yen from an ATM in Japan. You can find them in most convenience stores. Even with applicable fees charged by your bank and the ATM provider, this approach tends to provide a much better result than exchanging dollars for local currency at the airport.

Several low-cost airlines, including Jetstar, Scoot and Air Asia, now fly between Australia and Japan. Sign up for sales alerts and consider booking a non-direct flight to save money. Go beyond Tokyo in your fare search. Cheaper deals can be nabbed if you fly into Kansai International Airport, the gateway to Osaka and Kyoto. All cities in Japan are well connected by the rail network.

You'll save a motza if you visit outside of March and April, and school holidays. Yes, spring is a gorgeous time to visit, when the cherry blossoms are in bloom and the weather is neither too hot nor too cold. It's also the absolute peak season, when tourists from all over the world arrive and send hotel prices through the roof. Autumn is also beautiful, a time when the green leaves change colour to picturesque shades of brown, orange and red. Skiers and snowboarders love winter in Japan, and summer is a good time to enjoy outdoor festivals.

Eating out doesn't have to be expensive in Japan. Lunch deals at restaurants cater to office workers, but they feed hungry travellers just as well. Many lunch sets cost less than 1000 yen (around $11), including a main dish, rice, salad and a drink. Look for affordable eats inside train station hubs and in business districts.

At night-time, so-called "300 yen" bars offer drinks and small plates for, you guessed it, 300 yen ($3.25) apiece. Be aware that karaoke bars can turn a night out into a nightmare when the bill is presented. Unscrupulous operators have been known to charge up to $100 per song for the privilege of belting out Britney or Beyonce, a charge that isn't made clear until the end of the night.

Capsule or pod hotels, at 3000-5000 yen per night, are super-cheap options for travellers who don't mind sleeping in glorified horizontal lockers. To enjoy much more space and private bathroom facilities, seek out three-star city hotels, priced from about $100 per night. Booking direct with the hotel is often cheaper than via booking sites, with added bonuses including free breakfast or happy hour. Some hotels offer single rooms - sometimes with just one pillow and one towel - that can represent good value for solo travellers.

Public transport in Japan is efficient, safe and easy on the hip pocket. With the unlimited Japan Rail Pass, available only to international visitors to purchase before they arrive, it's easy to zip between and within cities.

If you plan on purchasing a rail pass, try to do it before October 2023, when prices will increase significantly. A 14-day pass will go up from 47,250 yen to 80,000 yen. Local trains and buses are not covered by the pass, but at just a few dollars per ride, they are still a low-cost way to get around.

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You know what's better than low-cost? No cost. Many attractions and monuments in Japan are free to enter, including temples, gardens and festivals. Check out sites like Tokyo Cheapo that offer updated lists of free and almost-free activities.

Volunteer guides - or "goodwill tour guides" - are locals who give up their time to show visitors around their cities and practise their language skills. See japan.travel for a list of volunteer guides.

Forget everything you thought you knew about 7-Eleven. In Japan, convenience stores are an essential part of daily life, the go-to spot for affordable sushi rolls, coffee, cosmetics, magazines, ATMs, alcohol and karaage chicken. Step into any 7-Eleven or FamilyMart and it will be busy at all times of the day and night. Most locations offer tables and chairs for customers so they can sit down to eat and drink, as well as clean bathroom facilities.

There's no need to spend a fortune on shopping in Japan, though you can certainly splurge on fashion, cosmetics and homewares if you have deep pockets. Discount stores cater to the frugal shopper, offering super-cheap prices on everything from stationery to kitchenware, toys, clothing and souvenirs. Check out the Don Quixote chain, known locally as "Donki", as well as Daiso and no-name 100-yen shops.

Flea markets are another great way to shop for treasures on the cheap. You'll find weekend markets all over Japan, in parks and parking lots and at pop-up festivals. On a recent visit, I purchased an adorable kids' cartoon book from the 1950s and antique sake jugs that are now on display in my kitchen.

Along with vintage kimonos and handmade ceramics, second-hand markets are a rich hunting ground for quality household goods. Many Japanese people tend to adhere to the Marie Kondo approach of disposing of things they no longer use.

Tipping is neither expected nor required in Japanese culture. Taxi drivers and restaurant servers don't expect customers to leave the change and it can feel potentially awkward to attempt to leave a tip. The Japanese believe you are already paying for the service by patronising the business. Reward good service with a polite compliment, a warm smile and a positive online review.