The Japanese are known, among other things, for being efficient in their organizational methods. One of these methods is Kakeibo, a style of savings and moderation of expenses. With more than 100 years in existence, it has been the favorite financial assistant of Japanese households, who have used it to save up to 35% of their monthly expenses. How do they do it? With a pencil, a notebook and a lot of commitment to write down absolutely ALL the money movements they make in the month, such as:
- Income. Including gifts, tips, pocket money, commissions...everything.
- Fixed Expenses: Things like utilities, car insurance, Wi-Fi, etc.
- Savings: The amount you would like to save per month.
- Budget: How much money you can spend weekly.
- Weekly Expenses: Daily record of everything you spend on. Things like coffee, cookies, snacks, and trips to the movies, museums, or anywhere else count too.
- Extras: Any unexpected expenses such as visits to the doctor, etc.
If you can't trust your memory, paste the tickets you usually bury in your wallet. Especially if they are card expenses, so that you write down on the back of the paper where you spend it and for what. This way you'll know exactly how much you have spent, and you will have an agenda that will be your best financial assistant. This method works because by writing down everything we spend, it's much easier to determine what we want to save on and the expenses that we can make more efficient. Having the money written down helps you visualize it and know exactly where it is going to.
You can download this template here.
This written methodology isn't so different from the digital way to do it through a smartphone, so we recommend that you look up the best apps to record your money movements. Also, if you want help moderating this information, become a subscriber to Dear Money.
Article translated by Rodolfo Schaefer
