Kakeibo is the Japanese Money Saving Technique 

Kakeibo is a Japanese art that has been teaching Japanese people how to organize their expenses and achieve financial balance for decades. Read the text and find out more!

Knowing how to manage money is essential to maintaining balanced finances and having a better quality of life. 

However, this task may be more difficult for some people than for others for different reasons. 

For those who find it more difficult, there are tools and techniques on the market that can help. 

Today, we take the Japanese as an example. Japan currently has the third largest economy in the world. 

Certainly, the Japanese have no difficulty when it comes to organizing their finances, and this control is one of the secrets to their success. 

In addition to discipline, they use many methods to help control spending and save money, and we'll talk about one of them today. 

O Kakeibo (or Kakebo) is the Japanese art of saving money. Keep reading and find out what it is, how it works and how it can help you save money and have a more balanced financial life. 

What is Kakeibo?

Kakeibo is a Japanese technique used to save and control finances. It emerged in 1904, being presented by the journalist Motoko Hani in his best-selling book. 

This journalist's story is incredible! Hani Motoko She was the first female journalist in Japan and fought hard for women's education and financial independence. 

At that time, Japanese women were responsible for managing the family economy, so the family's financial success depended on this management: they had to use resources in the best way. 

Recently, another book was released that deals with the same subject, but it was written by Fumiko Chiba. 

Since the launch of this book, this technique has also become known in the West, so people from other countries have the opportunity to change their finances with this technique. 

Before proceeding, please note that you can purchase the version written by Fumiko Chiba on the website Amazon. However, it only has the English edition.  

However, there is a Portuguese version that works as a financial diary, it is a great tool to help you save and have control over your expenses and income. 

The Japanese word Kakebo means “account book for household economy”, so that's exactly what the agenda is for. In fact, it can also be purchased through the website Amazon.

A diary is an important tool for applying the method, but don't let the lack of one stop you from making changes in your financial life.

How Kakeibo Works: Personal Finance Diary

This tool is like a diary book. It is very intuitive and has illustrations, tables, a calendar and spreadsheets, for example.

Besides that, there are still many tips and content that teach and guide you in your earnings and expenses. 

With the Kakebo You can manage your finances and have a space to reflect on your consumption habits. 

Your expenses will be classified into four groups, making it easier to keep track of them.

Survival	Leisure and addictions	Culture	Extras
Food, pharmacy, children, transport, water, energy…	Bars, restaurants, cosmetics, fast food, cigarettes, drinks…	Books, concerts, musicals, museums, theaters, shows, films…	Travel, gifts, household items…

From there, the book will guide you to record all your monthly and weekly expenses and income. 

Apart from that, it also gives you lots of tips on how to save on household expenses or make smart changes. 

With the financial diary you can keep track of your expenses on a daily, weekly and monthly basis.

With efficient control, it becomes easier to identify why there is no money left at the end of the month and thus, you can make the necessary changes to start saving and saving. 

Of course, a planner is a perfect tool to help you control your expenses, but it is very important that you are also willing to be disciplined and follow the guidelines. 

To better understand how the agenda works, check out the video below.

How to use Kakeibo?

As I said before, in order for the Kakeibo technique be efficient, it is essential to have discipline, just like the Japanese. 

The method consists of 5 essential steps, even if you don't use the official diary, you can transfer it to a notebook at home, but you need to follow it strictly. 

Check out these steps below!

1. Classify your expenses

This is the first step to learning how to how to use Kakebo. First, identify all your expenses and classify them as shown in the table above. 

Try to fit all your expenses into one of the four categories, at most, this way, control will be simpler. 

With expenses categorized, it is easier to have a comprehensive view of expenses and also easier to proceed to the second step. 

2. Set priorities

Once your expenses are classified, it becomes easier to define priorities. Analyze them and see which bills are the most important, that is, those that cannot be cut from your family budget. 

Divide them into two categories: can be cut or cannot be cut. For essential expenses, look for ways to save.

Now, for non-essential expenses, the ideal is to cut them as much as possible or reduce amounts and frequencies. 

3. Identify where your money is going

This step is very important, as it is the moment where you need to reflect on where your money is going. 

Monitor your income and expenses and provide a diagnosis for your personal financial management.

Am I managing my money well? Why is there nothing left? Why doesn't my money last until the end of the month? What can I do to improve? Where can I go to save more and save? 

By identifying your “money thief,” you can start setting new savings goals. 

Once you are making progress with the Kakeibo techniques, It's time to do a fresh analysis to see how much you've saved, set new financial goals, and figure out what you can do to save even more. 

4. Set savings goals

Goals are essential steps towards achieving a greater objective, therefore, it is very important to set your savings goals and increase them over time. 

Start with small goals: saving a little, saving a little, making a few cuts, but start and gradually increase. 

5. Make Kakeibo methods a habit

As it is a financial management tool, it is very important that it is put into practice every month. 

Including, the Kakebo diary It lasts for one year, but there are no set dates. Ideally, you should buy it and start in January.

However, there are still a few months left until the end of the year, your financial health cannot wait!

Use the techniques without an agenda, just following the book's recommendations, or start from the current month and continue until the end of the year. 

The diary is affordable, so you can invest in a new one at the beginning of the year to start from scratch, just don't forget to change your financial habits today!

How do Japanese people deal with money?

The Japanese are very disciplined when it comes to money. They control their spending and leave irresponsible consumption out of their budget. 

Furthermore, they have total control over their income and expenses, it is no wonder that most of them have balanced finances. 

In Japan, the use of cash is still very strong, however, this ends up helping them to have greater control over their finances, including applying the Kakebo method more efficiently. 

This is because they separate the money allocated for each category in envelopes, and after the money is gone, they wait until the next month to put it back in.

For example, if the money allocated for cultural expenses runs out before the end of the month, they look for alternative free attractions.

What is financial education like in Japan?

As previously mentioned, Japan currently has the third largest economy on the planet. There have been cases where it has been in second place, behind only the US. 

Much of the country's economic success comes from good financial education practices, for example, discipline, not wasting money, mutual respect and adaptation to risks. 

Therefore, there is no way to be successful in business and investments without good financial planning and, consequently, good financial habits. 

Conclusion

Despite having a different term, the Kakebo It is a personal financial management tool that is easy to apply, as long as there is discipline and transparency. 

Furthermore, it is very efficient for organizing finances, achieving goals and having a balanced financial life. 

If you want to invest but are on a tight budget, use this method to help you get organized and create the habit of saving. 

From then on, you will be more accustomed and investing will be the next step towards having a successful financial life, certainly!

Here on our blog you will find a lot of content that will help you organize your finances and also learn more about the world of investments. 

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