A proper budgeting system can help shape your finance, they are technology solutions towards managing and tracking our spending saving and investment these days but not everyone likes the idea of automation, there is a proven method to do your budgeting without the use of financial apps, the system is known as the Kakeibo Japanese budgeting method.
The Kakeibo Japanese budgeting method was introduced so many years ago by a woman, known as Hani Motoko, the first Japan female journalist.
This method was invented in 1904 and it has been proven to be working effectively ever since the day of the invention.
The Japanese love this method a lot and it is working for them.
The saving money method is known as Kakeibo, pronounced “Kah-Keh-boh,” translates as “household financial ledger.”
Kakeibo Japanese budgeting method is a simple way to manage your finances using a pen and a notebook.
This approach is not automated at all, what you need is your hand to write, a pen and a notebook.
This method can help you control yours over speeding habits which can greatly help you grow your finances and make you better plan for the future.
Changing bad financial habits isn’t always easy to do especially if you have gotten deep in overspending, it becomes a serious problem because our spending habits are tied to our daily routine, which is connected to our emotions that makes it difficult to detach from.
The Kakeibo budgeting method can solve your problem, because for the past 116 years, kakeibo has been effective in helping people make smarter financial decisions.
We said it earlier that no technology is included, you only need just a notebook and pen.
the idea behind kakeibo is to help you understand your relationship with money by keeping a ledger of everything incoming and outgoing, just like any other budgeting system.
kakeibo emphasizes on the importance of writing things down physically which help you think deeply and observe your spending habits.
The method works best when you can ask yourself some basic questions following the rules of the kakeibo procedure.
- Can you survive without this item?
- Can you avoid the items, with your current financial status?
- Are you going to use it?
- Do you have space for it?
- How do you get to know about it?
- What is your emotional state when trying to buy?
- How do you feel about buying it?
- Lastly, check how long the feeling last
The above-listed questions will help you to think about your purchase, to reduce unnecessary buying.
We can see that the kakeibo is simple, it guides you towards how to spend your money wisely.
When you follow this method, there would be great growth in your saving habits and more money will be added to your account.
The Kakeibo Japanese budgeting method to follow
One of the rules of kakeibo says to ask yourself deep questions before making non-essential purchases.
Take at least 24hours before you decide to buy anything, this will give you the overall views about why you need the items the most and If you have the money In your account. Don’t spend money on items you will not use as this will help you keep the money for future use.
1. Check your bank balance
Checking your bank balance regularly will help you have control over your money and how much you have to spend. This will show you how much you have and how you want to spend it.
2. Spend in cash
When you shop with the card it is possible to spend more than expected, make sure you have Physical cash to spend, this makes you more conscious of what you’re spending, and you will find it easier to budget.
A set amount of cash to use and spend only what you have budgeted. Set up a reminder that tells you about what you are spending your budgeted physical cash on, and if you have exceeded the limits.
3. Limit the environments that cause you to spend.
Changing an environment that allows you to spend more money will do good you. If getting easily attracted to Instagram influencers will make you spend more, then unfollow.
Stay away from non-essentials, things that make you spend more.
kakeibo is all about using mindfulness to cut out purchases that might only give you a temporary boost of happiness.
The acts of mindful spending and saving are very much interlinked, and the small changes you can make using kakiebo will have a positive impact on your bank account.
Your savings will grow at a faster rate than you ever imagined if you follow the kakiebo rules and making wiser decisions about want to invest that money for things that matter.