Most of us have dreams to go on a trip, buy a phone, eat dinner at a five-star hotel and so and so on the things we can’t afford at once. But money has the magical ability to disappear overnight after payday. And so we always end up with no money.
But do you know the Japanese secret of keeping money in the wallet for a longer time and the way of multiplying it?
How Japanese save money?
It is through the Kakeibo method of budgeting which is now growing popular all over the world.
If you think of why we should get the Japanese idea, the answer is that Japan was a traditional country of agriculture a hundred years ago and it was not like how it is now. But currently, it managed to be with the highest living standards and became the most technological country with a developed economy. This is because of the Japanese high competence in finance and they are experts in their personal finance.
The Japanese use Kakeibo, which means instead of buying the third watch in 2 months, they would manage to save up to 35% of their income. You too can do this just by following their trick and save 35% of your income.
Kakeibo means the household account book, where you write down your expenses and incomes. Long before the financial apps and digital tables appeared, the Japanese used this budgeting system, and this is still working. The idea of saving this tool is to track how much you earn and spend in detail and so it helps your goal to increase your savings. Through this, you rule unnecessary things out and focus on habits and decisions. The author of the book ‘Kakeibo’, which means the Japanese art of budgeting and saving money explains the method’s efficiency.
In 1904, Kakeibo appeared and it grew popular and was sold to a wide audience by the first woman journalist in Japan. Even though Japan is still a traditional country, the Kakeibo method gave freedom and control over financial decisions.
The books and magazines devoted to Kakeibo are published every year in the country. If you are a fan of Kakeibo then you would know that reasonable budgeting helps you to save money. You would focus your attention on the important things instead of thinking about what you can’t afford.
Tricks to save money
Kakeibo focuses on how much money you have, how much you should save, how much you spend, and how to make things better. And so to draw up the Kakeibo style budgets and for this, you need 2 notebooks, with one big and one small. There are Kakeibo journals that can be of any kind.
The big one would be for your income, plan, and savings and the small one would be to record all the expenses in real-time and so make sure to note everything. Every time you spend money, it should be noted in your small notebook. The big notebook can be organized as you wish and it must reflect some significant things.
First, note the monthly income plan. This can be done as a table or bullet list, and all the money as income should be noted by advance payment, salary, debt return, and the money you get from selling your possessions.
Then have a monthly savings plan, where you write down the amount of money, you like to put in the savings account and this amount should be planned before planning the expenses.
Thirdly, add the monthly expense plan where the common expenses are noted down like utility bills, apartment rent, internet bills, and electricity bills.
The money that is remained after deducting the common expenses and the sum that you wanted to save has to be divided into categories like expenses of living, entertainment, education and culture, and any other category. And then decide the ratio between them.
Plan wisely and then stay within the limits during the month and at the end of each month, you can analyze how much you have managed to follow the plan and save and spend it. And this allows you to draw an exact budget for the coming month and see the expenses that should be corrected.
You can see where the money goes through this, for example, if you are going shopping, you can see what you have spent more. To spend less you might think you should skip lunch at a restaurant and cooking at home instead.
If you have a hobby of shopping, you should figure out and write down whatever you buy and then half of your joy goes away when you record your bills.
So that here are some tricks that you can save more.
- Put all the odd money remained in your pockets in a money box and then the handful of coins will turn into solid sums at the end of the month.
- The returned debts should be put to the money-box, as they are the money that you returned back and managed to live without.
- When you change money, put them into the money box and that will change into a bigger sum.
- Round the sum up, whenever you buy something. For example, if you are have $84 bill round it to $100 and put that $16 into money box. And it will become a great tool to save daily.
- Work with the system of penalties, like for example, whenever you do a bad habit like forgetting something important or skipping breakfast or delaying things you put a dollar in the money box, and so you will save money and get more disciplined.
- Divide the money that you are going to spend into parts and then everything that is left from the 7 day budget should be put into the money box.
- Before you go for shopping, make a list and so that you can stick with the budget.
All of these tricks, will not be followed in the current world, but this would actually work. And if you notice the most technologically advanced nations will keep things writing instead of saving them in apps. Kakeibo will make you focus on financial goals than those digital devices. And it is proven that when we write things, we remember more than when we write something, where the process of writing activates the part of the brain and information is passed directly to the memory.
Everything written by hand becomes more important to us and that is why old-fashioned pens and notebooks work better than high-tech apps.
The Japanese method of budgeting is simple and efficient and hundreds of people around the world have become successful by following Kakeibo. You too can, if you try it.