Is saving each month still a pending task for you? That will change when you discover kakeibo, the Japanese saving method which is sweeping Western countries thanks to the promise of making us up to 35% richer.

‘Kakeibo’: The Japanese method of saving moneyKakeibo, pronounced “kah-keh-boh,” translates as “household financial ledger.” Invented in 1904 by a woman named Hani Motoko (notable for being Japan’s first female journalist), kakeibo is a simple, no-frills approach to managing your finances.

Simplicity and perseverance are the basis of this saving method that promises to easily help us control our expenses and incomes.
Almost all of us propose to save part of our salary, yet in the moment of truth only a few succeed. According to latest studies, saving remains a pending issue for most citizens.

In the UK, for example, the saving ratio at the end of 2017 fell sharply to only a 3%. It had never been lower since it was recorded for the first time in 1963. In Spain only 4 out of 10 citizens manage to save something at the end of the month.

And according to a well-known saving app almost 60% of the citizens go into debt at the end of the month. The economic crisis and job insecurity are largely to blame.
But it’s also true that we usually make mistakes which make it difficult for us to save. Sometimes we set ourselves a goal too demanding. And when we do not achieve them, we become demoralized and we give up saving.

“If so few people get to save it must be very difficult”, you might think. But after discovering the ultimate Japanese saving method you will realize that it’s actually much easier than it seems.
Kakeibo (家計 簿) is a word that in Japanese means something like “domestic book of savign accounts”.
Followers of this saving method ensure that it’s surprisingly easy to finish the month in green numbers and save part of our salary without suffering. According to them, with Kakeibo we can save up to 35% of our monthly salary.

It’s only recently that Kakeibo is beginning to become popular in the West. But in Japan they’ve been using it for more than a century. Specifically, this notebook for domestic savings was invented by a Japanese journalist, Motoko Hani, in 1904.

At first, Hani directed her invention to women. Why so? Because they were the ones who organized the salary of their husbands every month, distributed it to cover the needs of the house and destined part of it to savings.
Kakeibo is still very popular in Japanese homes today. And its only secret is perseverance, nothing more. If one is constant and rigorous, saving thanks to this method will be a walk in the park.

Here’s step by step what you should do.
Kakeibo method is in fact very simple. First thing we have to do is keep a meticulous account of our incomes and expenses. And when we say meticulous, we mean exactly that.

Right after receiving our salary, we must go to our Kakeibo notebook and write down all our monthly incomes. Then, we will plan our monthly expenses, and allocate an amount to each category. Expenses are divided into 3 categories: survival, leisure and others.

We must also decide how much we want to devote to savings that month. Next step is key…
Controlling our expenses is the fundamental step of this Japanese saving method. Every day we must check everything we’ve spent and write the amounts down in the right spending category (leisure, survival or others).

When we say we must write everything we spend down, we literally mean everything. For the method to be successful, all the amounts must be noted, however small they may be. Doing it every day simplifies and speeds up the task.

It may seem very boring at first. But we’ve already said that the key to kakeibo was perseverance, haven’t we?
At the end of the month, we will add up each spending category. We will know at a glance whether we’ve respected the budget that we assigned at first or not. And in what category we have spent more. With the kakeibo it’s very easy to decide what expenses can be cut.

If you don’t achieve the saving ratio you planned during the first month, don’t despair. You will find it much easier the next month, and so on. Because thanks to this Japanese saving method we’ll be more and more aware of our expenses, and we’ll have bigger control over your expenses.

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