Japanese people are famous for their discipline. The high cost of living in Japan make them very tight in expenses. The way they have emerged from economic downturn is also an example for us. Then, what kind of technique Japanese do to deal with the high cost of living there?
Kakeibo is a populer way to manage or save money. Introduced in 1904 by Japanese female journalist, Hani Matoko. Later, popularized again by Fumiko Chiba through her book "Kakeibo; The Japanese Art of Saving Money".
There are 4 important questions that are always used as the basic principle of the kakeibo method;
1. How much money do you have?
2. How much money will be spend?
3. How much money is actually spend?
4. and how to fix financial condition?
After understanding the 4 basic questions, the next step is at beginning of each month write your income and regular expenses for the month. The differences between income and regular expenses is the money you have.
The next step, determine the amount of the money you want to save, then write it down next to the amount of money you have at point 1. The rest of your money is for your daily needs.
Then, make a daily expenditure record. This expenditure is divided into 4 categories, such as:
1. Survival / basic needs; food, transportation, etc.
2. Optional / secondary needs; entertainment, traveling, etc.
3. Additional; for additional insights; books, films, magazines, etc.
4. Other expenses/expenditure; gifts, car repairs, etc.
Use envelopes to control each of this categories. If the money in the envelope runs out prematurely, the budget for that category is up. it is strongly recommended not to take a budget from another category if the budget for that category has run out. Kakeibo method can make you become discipline in overseeing every need.
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