If one of your goals for this year is to have more money saved in your bank account (who doesn’t want that, right?), then you might want to look into “
“[Kakeibo] is the essential tool used by any money-savvy Japanese household budget manager,” explained Just Hungry. “In a typical Japanese household, the wife is firmly in charge of the household finances... Many magazines aimed at housewives include a giveaway version as a supplement to their December issues for use in the coming year.”
A quick Amazon search for
So how does
- Note down your income and subtract from it fixed expenses like the house rent, and the internet, electricity, and water bill.
- From what’s left of your income, deduct the amount you want to save (20% of your income is a good amount to aim for, according to financial experts).
- The amount that you get after savings is how much you can spend.
- The Japanese also use their
kakeiboto write down their daily expenses in dedicated weekly pages that can be more difficult. There's a page for an end-of-year finances summary, too.
Another aspect of
You can't take money from the other envelopes once an envelope is emptied or spent. If you run out of money in the “optional” envelope, the family will have to wait until the next month to eat out, for example. Obviously, you are not expected to cheat (after all, Japan is a country where you can leave your bag on the table, and no one will steal it). If any money is left in the envelopes, they can be considered as savings.
You are probably thinking this concept of saving especially the envelope technique isn't new, and you are right. You can probably do without the book to practice it yourself. What
Recording everything down and spending only what you have set aside in the envelope makes you more aware of how much money you do have. It means you can plan your finances better. You will know whether you have enough money for that family vacation (and you know how long it will take). And if you don't, then
Kakeibo: The Japanese Art of Saving Money isn’t available in local bookstores yet and the