How Japanese Apply The Money Method Of Saving and Spending?
It isn’t easy to save money. Indeed, It is undoubtedly challenging. Not only are you never able to save money, but the few poultry dollars you have left at the end of the month are what you’ve ended up with, correct? We understand what you mean. Your paycheck is probably spent on rent or mortgage followed by other bills and travel expenses that rob you of your hard-earned cash without you even realizing it.
Of course, there’s that voice: “It’s such a burden, why would you want to? There’s no way you’ll ever be able to afford a house. Do yourself a favor and treat yourself to a freshly made caramel frappuccino from Starbucks. That’s exactly what you deserve”.
Popular Japanese trend, Kakeibo, a budgeting journal, and the latest Japanese lifestyle trend will help launch your journey. In 1904, Hani Motoko, the first female journalist in Japan, created the Kakeibo, a valuable financial tool for busy women.
To put it to use, we can use the first English language Kakeibo, which was recently released and written by Fumiko Chiba. Let’s say the concept goes like this: At the beginning of each month, you sit down with your money manager, called a Kakeibo in Japan, and plan your expenses, your savings, and anything else you need to achieve your goals.
Finally, you check your progress. Doesn’t it sound simple? Yes indeed.
Here Are 5 Guides For You:
1. We must focus less on saving and more on spending.
You will enjoy this, so do not worry. We understand. Finances are not the problem. When it comes to budgeting, we need to spend well to save well.
Chiba tells us that we all work hard to live and also to enjoy things. Keep this in mind when saving. That is to say, If all we can do and all we can have is sacrifice to save something, we’ll be very disappointed, and we might abandon our effort. It becomes much more attractive when it’s all about carefully monitoring expenses to have everything we want.
2. The more you write things down, the better.
The primary function of a Kakeibo is to record your spending, but you’ll find you might not have the time to enter numbers into a spreadsheet. Being able to sit down and put words to paper is an essential aspect of creative practice.
Smartphones and personal computers play such an essential role in our daily lives, says Chiba. Those are designed to mimic how we spend money, which is entirely different from the old system. The journal is removed from this, which frees us to focus on our spending in greater detail.
Chiba uses a Kakeibo as a sort of exercise in mindfulness. With modern communication, everything can be purchase and paid for in an instant. A Kakeibo helps us to think about what we buy more carefully while also slowing us down.
To do this, you must begin at the beginning of the month and determine how much money you currently have. Also, look at the money you’ve got. The money you get from your salary and any freelance work should be included in the total.
Now you need to subtract your “fixed expenses,” like rent and bills, from your total amount. Doable, isn’t it? You will have the opportunity to decide whether you want to save or “spend well” with a sum of money remaining. It’s okay if you only have a few dollars. We’re just getting started.
3. To succeed, you must identify your “musts” and “wants.”
It’s about getting your finances in order by using a Kakeibo. If you’ve gone through the previous step, you know how much money you have coming in, and you know what you’ll be spending the rest of the money on.
It’s time to find out how you can better spend the rest of the money and identify ways to cut back. A good example is a takeout. The Kakeibo budgeting method has you divide your spending into categories and specifies each expense. This list covers a wide range of options, from an all-out uber eats night to a quick takeaway coffee that just came to your mind.
Stick to the facts. Once you know where your money is going, you can distinguish “must-haves” from “luxuries.” Of course, everyone needs to eat. That’s “need.” But on the other hand, there’s no denying that your lunchtime routine is a huge desire. While you have to wear clothes, it doesn’t mean you should spend all of your money on Gucci.
Write down things that are possible to spend money on. These are generally costs that are every week, like food. You can find areas to cut back on if you focus on your expenses in smaller units, such as spending over time rather than a long list of expenditures.
4. Cash is preferable to a card.
Nowadays, we have far more cards than cash in our pockets. According to Chiba, this could be the error we’re making. The act of handing over money is something we are more likely to think twice about while using a card serves to reduce our personal accountability for our spending.
There is even a suggestion in Chiba’s book to do just that. Take cash out of the bank and divide it into labeled envelopes. She describes it like this: “I think putting money in envelopes affects whether or not you spend your money on things like alcoholic beverages with your friends.”
Small actions can go a long way toward helping you meet your savings goals. Similarly, the philosophy taught by the Kakeibo promotes acting with patience and consistency.
5. Summarize your progress at the end of the month.
You won’t be prepared just looking at your mobile banking app if you’ve only glanced at it. Each month your Kakeibo requires you to review your spending from the prior four weeks recognizing successes and setbacks and setting financial goals for the next month.
Chiba states that in apps, spend tracking shows us where we are going wrong. But using a Kakeibo allows you to obtain a more holistic view. She elaborates, “They seem insignificant now, but they actually lead to a greater total in the end. Every month I get a little thrill out of saving small amounts while you’re in the review period; you’re reminded of this progress.”
So grab yourself a Kakeibo, sit down, and get writing. Once you’ve done that, pat yourself on the back. Click Here if you would like a copy of “Kakeibo the Japanese Art of Budgeting and Saving Money.”
And Nevertheless, don’t forget the “Daily Expense Journal” as well.