Discover Kakebo, The Japanese Method Of Saving Money

Keeping track of your expenses helps you to know the areas in which you spend your money. And it helps you to save more and stop spending money unnecessarily. Kakebo can help you with this.

For many people, saving is almost impossible as the end of the month approaches.

Household expenses are piling up. Then there are personal impulses and unexpected products and services. All this results in an excessive and uncontrolled spending of money just a few days after it arrives.

In Japan, the most technological country in the world, many continue a tradition that started in 1904. Today, it is still the most effective method of saving, especially for household expenses.

It is known as Kakebo. It is used as a system for recording both expenses and income. That system serves for the perfect organization of money.

Kakebo is nothing more than a budget balancing system. In addition, it helps people to become aware of what it really takes to buy.

How Kakebo works

This method starts at the beginning of the month, stating the fixed costs and the total income you will receive.

You can then create a balance based on this data.   You do this by deducting the total expenses, which usually consist of fixed costs and food, from the income.

If you want to save for something you have planned, you need to budget it at this stage.

First, you determine how much you have left by subtracting your fixed expenses from the total amount of money. You can then write down how much money you have set aside to save. Decide how you spend it to be clear about the goal you have set.

Throughout the month (preferably daily, as directed by Kakebo), all expenses of the day or of the week should be noted.

It is recommended that you keep invoices and receipts for purchases.  This way you can write down later that night how you spent the money.

The organization of Kakebo

This “calendar” is divided into many categories that we normally spend the money on:

• Foods
• Transport
• Health
• House
• Spare time
• Emergencies

Daily expenses are recorded in each category. The goal is to add up all the expenses of the different categories. This way you get a general balance at the end of the week.

With this balance you can keep track of how much money you have spent and how much you have left.

• With these results, you can analyze how much you spend and which areas you should hold back a little more.

It will also help you determine an appropriate amount to consider saving. Plus, it helps set a more effective goal for the next month.

Effectiveness of Kakebo

The effectiveness of Kakebo is completely dependent on how organized you are and your willpower.

If you’ve set a goal to “stop buying more clothes,” stick to it. Be consistent and decisive.

It is true that it helps to have a chart or spreadsheet for Kakebo. However, it is only a guideline that you can replace with whatever you want.

You can easily record your expenses and income anywhere and pay the bills at the end of the month.

Having control over your expenses is very important to avoid problems in times of need. Plus, it helps you save for the goals you have in mind.

Whether you’re using Kakebo on a calendar or on a napkin, it’s clear that keeping track of your expenses is essential.

If you’ve chosen to buy a kakebo planner (or a kakeibo, as it’s also known), remember to be consistent and determined.

Did you manage to save what you set out to do? Excellent! Have you exceeded your budget? The next month you should be more disciplined.