How to Save Money the Japanese Way?

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3 years ago

In this modern-day world where spending money was as easy as just a click to pay or just one tap of our card, spending becomes effortless and saving money becomes a challenge for most of us.

Have you ever been to the shop to get a couple of items and went back home with two bags in your hand, even forgot what you went there for? It happens to me. And it always happens if I let my husband do the shopping alone.

Shops did a very good job to make us buy something impulsively. They know where to put an item to catch our attention and for you to buy them without thinking. Hence, overspending becomes our issue.

Do you struggle to manage your finances?

Let me show you this Japanese method of saving money which is very simple and doable. Anyone can start this simple trick to save!

Kakeibo

Kakeibo comes from the Japanese term meaning "Household Financial Ledger". It was invented in 1904 by a woman named Hani Motoko -Japan's first female journalist.

Hani Motoko (Image credits: amazon.co.uk)

This Kakeibo method is a solution to our mindless spending habits. This budgeting system combines tracking our spending with the habit of being mindful of our purchases to cut unnecessary spending and help us achieve our savings goals.

You don't need much, no technology involved, just a notebook and a pen and this will be your budgeting journal. First, you have to ask yourself these questions and set your financial goals:

  1. How much money do you have?

  2. How much would you like to save?

  3. How much do you spend?

  4. How can you improve?

This method includes tracking your expenses, put them in categories and review your expenses at the end of every month.

Kakeibo requires us to write down everything we buy and to simplify our budget by grouping our purchases into four categories: 

  • Needs. The essentials, things we can live without like food, groceries, bill payments.

  • Wants. Purchases we enjoy but unnecessary like-new clothes, takeout food, entertainment.

  • Culture. These are the spending on cultural activities such as books, going to pictures or museums.

  • Unexpected. These are other expenses that we were not expecting like medical bills or home repairs.

The four-category system can help us become more mindful of our spending habits and avoid wasting money on things that don’t align with our goals.

Why Use Kakeibo

Kakeibo is a great tool we can use to save money because it teaches us to be mindful of our purchases making sure that our hard-earned money goes to where it should be with less regrets of unnecessary purchases at the end. Our purpose is to save money and as the research says, kakeibo can make you 35% richer overtime.

Did you know the benefits of writing our finances by hand helps us to be more present and aware. It helps us to become completely honest about our needs and wants. Therefore, it helps us to become self-aware instead of being image-conscious.

Some benefits of kakeibo are: 

  • It simplifies our finances by grouping spending into four distinct categories.

  • It encourages realistic monthly savings goals.

  • It pays attention to the present, past and future.

  • It encourages saving small amounts daily rather than occasional big sums.

  • It celebrates small achievements.

How to use Kakeibo

  1. Establish your Budget.

Credits: unsplash.com

Write down your monthly income and your fixed expenses. Then take away your expenses from your income to determine how much money you have left to work out for your monthly spending.

  1. Set your saving goal for the month.

Credits: unsplash.com

You have to set a goal. How much do you want to save? Make a realistic saving goal as this is an important part of kakeibo. Once you’ve decided your goal, set aside that money by deducting your goal amount from your available spending money. 

  1. Keep Track of Your Spending.

Credits: unsplash.com

Using the Kakeibo method, before purchasing non-essential items or things you want but not necessarily needed, you must ask yourself these questions:

  • Can I live without this item?

  • Can I afford it?

  • Will I use it?

  • Do I have space for it?

  • How did I come across it? (While window shopping?)

  • How do I feel about buying it and how do I feel before buying it?

  1. Calculate the money spent in each category.

Credits: unsplash.com

How much money did you spend on needs, wants, cultural and unexpected expenses? Keep track, write it down, compute.

  1. Calculate the money spent and saved.

Now you have to add it all up, all the purchases and deduct it from your budget. The amount left is the money you save. Now compare it to your desired goal.

  1. Assess your performance.

Did you meet your goal? If yes, well done if not, cheer up and work it out the next month.

To master this saving method, you have to remember to be mindful. You have to pay close attention to your spending. You must write down your spendings as you go. Remember that this is your journal to be updated from time to time. And make sure at the end of the month after assessing your performance to embrace setbacks if you didn't meet your goal for that month. Reflect on what had happened and move forward.

This takes time to master, if you keep doing kakeibo, it will be a habit.

Let's go save money the Japanese way!

Thank you so much for reading.

Created by: @christabella

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3 years ago

Comments

@jane. It was tired momma who wrote it hehe

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User's avatar Yen
3 years ago

I'm saving money na po through BCH n BTC din po, hopefully ndi po un mgalaw pra mareach n maachieve q po ung goal q po :)

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3 years ago

Sbs please

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3 years ago

Niiice. Nice lecture early in the morning!!

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3 years ago

What excellent material to use as advice for taking care of our money! It has been a surprise to learn about Kakeibo as a great tool for this purpose. Thank you so much for creating an excellent article!

$ 0.05
3 years ago

Thank you so much for reading and your nice words. I appreciate it. This is new to me and starting practising it as well. :)

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3 years ago

Kami ni mami pag namimili talagang yung need lang sa pang araw araw. Wala ng listahan saulo naman na ee. Si mami kasi ang nagastos kaya dapat ung kelangan lamg talaga. Pwero pag naman sobra di sya magdadalwang isip ng bumili ng ganito ganiyan. Pero alam mo pag ako ang mamimili tapos diko sya kasama, pero sa kanya pa ring pera ha. Ang dami kong gustong damputin, puro foods 🙈🤦. Buti nalang talaga at pera ni mami ang ginagastos dahil pag sarili kong pera baka ilagay ko ma lahat ng foods sa cart 🙈

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3 years ago

Ang bait naman ni Mami! 🥰 Totoo pag di nakatingin asawa ko sa cart lagay ako ng lagay mahilig ako sa mga condiments nagtataka tuloy san nanggaling yung buong rack ko. Saka bhe sanay ako na gastusin ang pera ko pag pansarili ko para proud pa rin ako.

$ 0.05
3 years ago

Kaya nga, saka no choice wala akong trabaho 🙈. Hahaha, magagamit din naman un diga sa oang araw araw at lahat makikinabang okie lang un haha. Sana all nalang talaga may kwarta 🙈.

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3 years ago

Just yesterday I watched on our television a similar way to save money.Of course,I like this Japanese way,but I do not know if I would be consistent in calculating.Although,I have to admit that we do not spend money unnecessarily too much.If I send my husband in store,he will bring me just those things, which I wrote him on paper.I usually buying more things that we need hahah.

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3 years ago

Thankyou po sa sponsorship ate

$ 0.05
3 years ago

I love your moving avatar! Don't know how you call it. 😅

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3 years ago

Chinese and Japanese are really good in handling finances. I would like to do the practices kaso bhe wala nman akong e save 😂😂😂 but some of the practices I am doing it, I have written my budget styles here too.

$ 0.05
3 years ago

Hahaha bye yun lang! 😅 Pero sa totoo pag may listahan ako di aki nagooverspend pero pag nakalimutan ko panay dampot lang lagay sa cart. 🤣

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3 years ago

Ako namn di ako naglilista.. May budget allocation ako for groceries like 2k lang dapat lahat mabayaran ko.. And mga basic necessities lang talaga nilalagay ko rin haha

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3 years ago

Kya sila yumayaman 😁 mga pinoy kc puro gastador 🤣

$ 0.05
3 years ago

Truth madam! Kahit savihing kuripot o madamot, marunong lang talaga sila sa pera.

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3 years ago

The Japanese are really credible people in saving.. And the Chinese too. Something to learn from them. Great pointers you got here! Sana ma apply ko in real life, heheh!

$ 0.05
3 years ago

Yes, every household practice that. They are really good at handling their finances. I too will try this. :)

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3 years ago

Thanks for the tip 😊

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3 years ago

I need to save but I don't earn for that. Now I am pooling what I am earning here to buy myself a smartphone in March on my birthday. Because the previous phone was damaged in November and I am incommunicado hahaha.

$ 0.05
3 years ago

Yes, I understand. And oh, advance happy birthday! I'm positive that you'll have that phone before your birthday. :)

Ps After hearing incommunicado I remember John Wick's ex-communicado. 😅

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3 years ago

I hope your good wishes come true for me. Thanks for your upvote I appreciate it. I'm glad that I reminded you of a movie with my word of incommunicado but I didn't have the pleasure of seeing it. Maybe sometime they will play it on TV and see it.

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3 years ago

Great post to share , as I am wasting money in overspending . I think I need to apply that saving technique. It may help me to save some money really. love tired-momma

$ 0.05
3 years ago

Cheers! I too is guilty of overspending so I myself is going to try this and hopefully it works for me. :)

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3 years ago

Finally, I already found an article which really a great help from me. Thabk you for sharing this even though I have no basic salary hahahaha

$ 0.05
3 years ago

That's very nice to hear that it could be of help as I myself needs to practice Kakeibo too! :)

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3 years ago