Kakeibo – The Japanese Art of Saving Money

Modern payment technologies, such as debit cards and one-click payments, have made the physical act of spending money easy, sometimes so easy that it becomes dangerous because, while modern technology is convenient, it can also lead to pointless spending, making it difficult to save.

In Japan there is a kind of “tradition” of using a Kakeibo家計簿, which translates to “household finance ledger” , which offers an easy solution to mindless spending habits . This home budget management system combines purchase tracking with mindfulness to control unnecessary spending and help you reach savings goals.

Kakeibo was invented in 1904 by Hani Motoko , one of Japan’s first female journalists. It is an accounting system originally designed for homemakers , but can be adapted and used by almost anyone. It is designed to put you in control of your budget and make you aware of your spending habits. The simple system asks users to answer four questions:

• How much money do you have available?
• How much would you like to save?
• How much are you spending?
• How can you improve?

Although a kakeibo is a simple ledger , it can be a powerful tool, especially for people used to keeping up with finances on computers and phones. Kakeibo requires you to write down everything you buy and optimize your budget by grouping purchases into four categories:

• Things you can’t live without , like food, toilet paper, and shampoo.
• Purchases you enjoy but don’t need , like takeout or a new pair of shoes.
• Things like books and visits to museums .
• Expenses you didn’t expect , like a doctor’s visit or car repair.

This four-category system helps kakeibo users become more mindful of their spending habits and avoid spending money on things that don’t align with their goals .

A kakeibo is an excellent tool for those interested in minimalism . Being fully aware of what is used in the household budget separates it from other systems, making it a good match for those who want to make sure their money is spent on the things that bring joy to their lives and that you are going for. to enjoy.

And not only is it good for knowing how to spend and how to save, but it also has other benefits related to its use:

Simplify finances by grouping expenses into four different categories.
Encourage realistic monthly savings goals .
Pay attention to the present, past and future.
It encourages saving small amounts daily rather than occasional large sums.
Celebrate small achievements .

How to use a Kakeibo to improve your household finances

1. Set your budget.

At the beginning of the month, set your budget. Take note of your monthly income and fixed expenses. Don’t forget about any debt you’re trying to pay off. Subtract your expenses from your income to determine how much you have for all other monthly expenses.

2. Set your savings goal for the month.

Savings goals are an important part of kakeibo . The method encourages setting realistic monthly goals and writing down what you’re saving for . Once you’ve decided on your goal, set aside your savings by deducting your goal amount from your available spending money

3. Keep track of your expenses.

Each week, as you make purchases, write them down in your ledger. Kakeibo requires you to track your spending in real time, with pen and paper, in the physical, which helps you slow down, pay attention to the present moment, and think about the future impact of your spending.

4. Calculate the money spent in each category.

At the end of the month, determine how much money you spent on needs, wants and whims, unexpected expenses and cultural purchases.

5. Calculate the money spent and saved.

Add up all your purchases and subtract the amount from the total budget from step 1. This number is the amount you saved. Compare it to your savings goal amount.

6. Evaluate performance.

Another component that separates kakeibo from other budgeting methods is its conscious approach to reflecting on performance . Did you meet your goals? If so, write down what went well this month and how you can successfully continue. If not, write down the reasons why you did not reach your goals and how you can improve next month.

Managing your budget and saving takes practice. It is important to be as consistent as possible. If saving money and sticking to a budget has always been difficult for you, Kakeibo might be a great option. The analog method of registering your purchases motivates you to pay more attention to your expenses in an easy and simple way!