Kakeibo – Japan Financial Trick


For those of you who may have a little difficulty managing your finances, the kakeibo technique might help you overcome this problem. Kakeibo (pronounced ‘kah-keh-boh’), is a Japanese term meaning “household account book.”

Kakeibo has been introduced in 1904 by Japan’s first female journalist named Hani Matoko. Now, this method has become popular again after the release of a book called Kakeibo: The Japanese Art of Saving Money written by Fumiko Chiba.

It is necessary to realize that managing finances is an easy thing to be difficult, so don’t assume that your failure to manage finances makes you feel down and lose your enthusiasm. On the other hand, being a person who can manage finances well is one of the achievements in life.

That way you will be motivated to become a person who manages your finances wisely. Well, Kakeibo is an interesting method for you to set an example for yourself in the future. Interestingly, kakeibo is a method that is quite old in age. So to practice the kakeibo technique, you don’t need sophisticated tools, just intention, enthusiasm, patience, a few envelopes, and a little analytical ability. Easy isn’t it?

The key to the kakeibo technique is only your persistence in recording the inflow and outflow of money you have and your ability to analyze the spending habits that you or your family do every month.

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In practice, you will need to answer your four basic financial questions, namely:

– How much money do you have?

– How much money did you save?

– How much money will be spent?

– How can I fix it to make it even better?

Don’t forget to record your answers so that you have accurate data from the answers to the basic questions of the kakeibo technique. Then you can find out what savings formulation you should do with the help of the following 5 steps:

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Record in detail all income and expenses

If you are not used to taking notes, then this habit is the first thing you need to change. If you are serious about changing, the first thing you have to do is record your income and income from daily to yearly. So that your life remains colorful, don’t forget to note also additional expenses that support your activities, such as hanging out costs to other unexpected costs.

Unexpected costs are very important to note. To keep you from sticking to your plan at the beginning, keep in mind that living in Indonesia will have a lot of unexpected expenses (invitations, study tours increased monthly administration fees)

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Determine The Amount Of Money To Save

Spending money to save at the beginning of the planning period is a wise thing because otherwise, it often happens that there is no money left to save.

You don’t want to be stuck in the Rat race cycle, do you?

By setting aside at the beginning you are wise to set aside your money for future financial planning and goals, good luck!

Japan Yen Illustration

Create an Expenditure Budget

In the Kakeibo concept, there are four important elements in the distribution of expenses, namely:

– Survival: Contains a list of basic needs such as food, transport, housing costs, etc.

– Optional: It is a secondary need such as entertainment, vacation, fashion shopping, hanging out or eating out, etc.

– Culture: Represents the need for additional insights, such as subscriptions to streaming movies and music, magazines, books, etc.

– Extra: Represents other expenses such as house repair costs, vehicle service fees, wedding gifts, etc.

It should be noted that you must add the annual expenses that you bear, such as motor vehicle tax bills to vacation allocations with family.

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Prepare Post-Expenditure Plain Envelopes

Kakeibo has a very unique characteristic, considering that kakeibo was found in the distant past, modern systems were found. Instead of making you dizzy with the mechanics.

On kakeibo you only need an envelope to distribute the money into the several expense posts that you have created previously.

Each expenditure post is given a different and separate envelope, then on the outside of each envelope is named according to the personal destination post that you have prepared beforehand such as ‘Food Costs’, ‘Monthly Shopping’, ‘Online Shopping’, to “Annual Tax Fees”

This way it will help you more to use the funds that have been planned, and you will easily control expenses. It should be noted that if the money in the envelope has run out you are prohibited from taking it from another envelope. This is to test your discipline in controlling money, but if you are pressed, you alone can determine the priority scale.

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End of Month Financial Evaluation

This process can be done from daily to monthly. However, for consideration of time and effectiveness, it is recommended that you do it once a day. But not in detail and only recording expenses that you “regret” so that they don’t happen again in the future. Remembering that time was still fresh in your mind about the expenses you made.

At the end of the month, you can further analyze the expense records that you regret and provide a personal record of these expenses. If it turns out to be according to plan, there are even leftovers from the plan post, which means that you have successfully implemented the Kakeibo method. Otherwise, don’t worry you can try it next month.

Life is like running a marathon, so we are good at managing our energy, determination, and efforts towards the finish line — RMND

Source : Mayanesia

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