Multymeter.com – Business & Finance : The Japanese are known as hard workers and tenacious, the Japanese also adopt a frugal lifestyle or are called Kakeibo.
Japanese people do not like to waste money. Kakeibo is a well-known method of financial management and is widely practiced by housewives in Japan.
This method was first introduced in 1994 by a journalist named Makoto Hani. The Japanese way of saving is often an inspiration for groups that have difficulty saving.
This method was popularized again through a book written by Fumiko Chiba in 2017 titled Kakeibo: The Japanese Art. of Saving Money The Japanese Way of Saving.
The word Kakeibo itself means household financial records, which means that this kakeibo saving technique prioritizes financial recording and planning within the household sphere.
Here are some common ways Japanese people try to manage finances using the kakeibo method:
1. Record all income
The first step you should take is to record all income at the beginning of each month, both regular income and monthly salary and additional income. The Kakeibo Method advises you to record your finances by writing with a pen or pencil in a book. so that you really absorb what you notice.
2. Save first, then allocate funds to various publications.
The Kakeibo method advises you to set aside the money you want to save first, then allocate the rest to various spending items. In the Kakeibo method, there are four categories of spending items as follows:
• Survival or basic needs such as food costs, bills, fees and other obligations.
• Optional or secondary needs include entertainment, going out to eat, etc.
• Culture or the need for additional knowledge, e.g. books, movies, magazines, etc.
• Extras or other expenses such as buying gifts for children’s friends’ birthdays, money for visits to neighbors, etc.***
