It is true that it is more typical of a New Year’s resolution than the time of year we are in, but it is no less true that Saving is always a pending issue and more so when the holidays are approaching.
Today we propose a Japanese method that is 116 years old, so if it has passed from generation to generation … it will be for a reason. Its about Kakebo method and its creator is Motoko Hani, journalist and founder of Japan’s first women’s magazine.
The original idea of the Kakebo method was to help women to manage your household finances in the best possible way and that this would have an impact not only on the house, but also on the economic independence of the woman.
Thus icreated an account book with agenda format in which to write down the income and expenses of the day to day, by weeks and quarters. The way to record the data, to do the calculations are very simple and, in addition, reserve a space to write down goals. Definitely, the key is to write down everything, down to the last penny, yes also what the grocery bag cost you.
The Kakebo method groups expenses into four categories:
- Survival: the essentials beyond fixed expenses, such as food, clothing, and personal hygiene.)
- Leisure / vice: leisure in general or vices such as tobacco.
- Culture: books, movies or newspapers.
- Others: everything that are unforeseen expenses of the month such as a birthday gift or other things that do not fit into the other categories.
How to use?
- Write down the money you earn from your work.
- Subtract estimated fixed expenses like mortgage, water, gas, electricity, or cell phones. The remaining money is what you have to spend the month.
- Set a spending goal for the month. That will be your limit, you cannot spend more than that. The rest (if any) you will save to save or to treat yourself. Make it almost an oath and get into the habit of saving a certain amount of money each month.
- It is time to start “the game.” You have to master daily expenses. Write down on the Kakebo diary every time you use money, for whatever it is.
- Deduct the money from the total amount you have to spend.
- Day by day you will see what you spend more money on and whether or not it is worth it, helping you find new habits and increasing your savings.
The Kakebo is a method that needs us to be constant, since it will take a few weeks to have a more concrete vision of our finances. Even, depending on the model, there is a space to save the tickets for each item, in case you cannot add the expense at the moment and you do it all together on the weekend, for example.
Another incentive that this agenda or savings book presents are tricks such as saving coins of a specific amount or even suggestions on consumer psychology and how and when to buy something.
If you have decided that it is time to save, do not hesitate and get your Kakebo agenda. Watch this video to get a better idea of what it is like.