Saving money may seem a complicated task. But it is in Japan where there is a method that has been helping families for more than a century to control their expenses. This is the Kakebo, and its name literally means “Book of Accounts for the Domestic Economy.”
This technique was created in 1904 by journalist Motoko Hani. And today it remains one of the simplest and most effective tools to organize personal finances. Here, Motoko wanted to provide Japanese women with a tool that allowed them to manage day -to -day finances more efficiently.
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What is the Kakebo method for
The Kakebo method allows home accounts to be organized with just paper, pencil and a little constancy. This consists of bringing a daily and written record of income and expenses, whether fixed or variable, and divide them by categories.
In this way we can precisely see our daily expenses, and observe them visually to eliminate those that are not necessary. This will also allow realistic savings objectives, one of the most difficult premises today for many families.
The method proposes to divide expenses into four major blocks:
- Basic expenses: food, housing, transport….
- Leisure: restaurants, cinema, books, trips.
- Personal development: training, courses, activities …
- U.S. OR EXPENSIES: Those that cannot be predicted or avoid. For example, home repairs, car breakdowns, arrangement or change of appliances … On the other hand, it is advisable to have an emergency fund for these unexpected events.
With this we will even record the smallest day -to -day expenses. Because writing down the small disbursements, such as the fact of a simple coffee, helps to have a real panorama of consumption and avoid surprises at the end of the month.
Registering day -to -day expenses is fundamental
It will be at the beginning of each month when a saving goal is established and a budget is set. Then, day by day, expenses in the corresponding category are recorded. At the end of the month, accounts are reviewed to check if the objective has been met and what areas offer margin to cut.
Beyond the organization, Kakebo encourages a more conscious relationship with money. By forcing to reflect before spending, it becomes an exercise of self -control and planning that, little by little, translates into greater savings capacity.
Thus, with this method we record what our domestic expenses are very precisely, which allows us to observe in a very visual way and correct the superfluous and avoidable expenses. This will allow to establish realistic savings goals and help to know what type of disbursements we have to limit.
With Kakebo we will establish realistic savings goals
For example, in basic or fixed expenses, we include those that cover the needs that remain more or less unchanged over time: the mortgage or rental, the insurance, etc. From the amount that results between the difference in income and fixed expenses we will decide how much we allocate to the monthly savings according to the Kakebo method. With this we will obtain our monthly budget for variable expenses, of which we will have to keep registration daily or in the most regular way possible.
More than a hundred years after its creation, the Kakebo method continues to demonstrate that sometimes the simplest solutions are the most effective. For those who seek to improve their personal finances without complications, this Japanese technique is consolidated as an essential tool to plan, reflect and, above all, to consciously save month to month.