What is Kakeibo?

I know... it's hard managing your money went you have so many expanses. And when you hear words like saving, investing, things get even more complicated. Dont worry, im here to help you.

So, here's the question : Want to learn how to manage your wealth properly?

Today we will learn about Kakaeibo. Kakaeibo isnt as complicated as it seems.

Kakaeibo is a Japanese technique of saving and tracking your money. It is being used for centuries in Japan. If you aren't familiar with this concept, don't worry, I got you covered. This article will help you understand Kakeibo in simple language. 

Definition by google- Kakeibo, pronounced "kah-keh-boh," translates as "household financial ledger." 

So, before we start, here's some information you need to know about Kakeibo. Kakeibo got its 1st western recognization in the year 1904. Japanese journalist Hani Motoko wrote about this method in a women's magazine. Then in 2018, Author Fumiko Chiba published the guide "Kakeibo: The Japanese Art of Saving Money," this guide was the one that gave Kakeibo tremendous popularity. After that, Kakeibo was the talk of the town for a long time. 

Comparatively, Kakeibo is a new concept. So many aren't really familiar with the technique. Now that we know a bit of its history, let's move forward. 

Here's how kakeibo will help you:-

 Track your expenses 

Learn how to budget properly

Get into a discipline with your money. 

1. Tracking your Expenses.

I cannot emphasize how important it is to track your expenses. Where you use a book or any digital apps, tracking your expenses will definitely help you. In Kakeibo, people use simple items like a book and a pen. You will get clarity on where your money actually goes. Know your spending and see where you have scope to save more. 

After tracking your monthly expenses, calculate all your expenses and savings. Now you are ready for the next goal.

2. Set realistic goals and make a Plan.

The next step is to step goals for your spendings and savings. Make a budget plan. It will take only take 30 minutes or so to plan out your month. While planning your next month, remember to divide the page into 2 columns- monthly savings ( Always plan how much money you gonna save before-head) and monthly expenses. If you want, you can add more columns to it, like investing, fun, etc. Don't be scared to make your own version.

Now in monthly expenses make 4 categories- Living expenses, culture and education, entertainment, and others. That's all! If you find this process tiring and complicated you can find many Kakeibo journals online.

 I would always recommend writing in a physical book. Now you may ask, "why did you recommanded writing in a book rather than writing in a digital journal?" Simple answer to this is that, it's scientifically proven that went you write something on a book or a paper, you are more lickly to remember it.

You can buy these journals on various online platform like etsy, Amazon, etc.

Be consistent with your goals. Don't be too hard on yourself. 

Kakaeibo can be a bit harsh for people who like no restriction on their spending, but you need to be a bit firm with yourself to see the results. Again it boils down to your attitude towards money. If you are really serious about your money and want to save up to 35% of your income, ( according to the experts in this field) Kakiebo will for sure help.

 Thanks for reading my blog. If you find anything useful, please heart my article. . Also leave a comment if you have something to share with me. I really appreciate that.