What is Kakeibo used for ?
Getting to the end of the month with a small nest egg set aside is an almost impossible mission for most ordinary mortals. And yet, from Japan comes a method to save money, it’s called Kakeibo (but it is pronounced Kakebo) and requires discipline and application. Let’s see how it works.
First of all, you need to take note of everything, almost like a diet, where you calculate the calories you eat each day. In this case, the Kakeibo requires to keep a strict account of family expenses (or individual, in the case of singles). It should be established how much money you earn, how many you want to save and how much is spent.
This Japanese method is ancient. Although there are now many apps that perform similar functions, it is based on the use of pen and paper. The first written document that talks about Kakeibo is an article published in 1905 written by the journalist Motoko Hani on a women’s magazine.
Going into the specific, after having set its savings targets, the outputs to be recorded on your savings “diary” must be separated into four categories, also called “pillars”:
Survival: expenses necessary for living (food, medicines, etc.);
Culture: records, books, cinema, theater, concerts, etc .;
Optional: things you don’t need but choose to do like going to a restaurant, drinking with friends, going shopping, etc .;
Extras: unexpected expenses (gifts, repairs).
Then, at the end of the month, four questions should be asked:
How much money do you have?
How much money would you like to put aside?
How much are you spending?
How can you improve in this regard?
Many books dedicated to Kakeibo have been written for those wishing to learn more about the subject. But, in any case, starting to keep a diary of your expenses and set savings targets is the best first step you can take to set aside a nest egg for the future