This Japanese method of handling money will make you 35% richer ( plus more tips on saving money !)
By: Tanush Kharbanda
Tags: Household Finances, Money, Advice On Saving Money, Saving Money, Japanese

This Japanese method of handling money will make you 35% richer ( plus more tips on saving money !) Tanush Kharbanda Apr 7·4 min read

Are you obsessed with that latest Gucci or Louis Vuitton bag ? Yeah, they might be tempting at first sight, but the price is the only thing that will give you a shock ! Or maybe, you are also one of those people who yearn to become rich and save money and side-by-side, dump all of your money in these luxury items ? Well, this post is worth your time.

One day, one of my friend told me about a bizarre method through which, I can save a fortune ! I was thrilled ! So, I did some research and this is what I found-

Kakeibo (translated- household finance book),is a Japanese trick of saving money. Japan, as we know it now for its advanced cars, skyscrapers and a healthy economy- was not like that 117 years ago. In 1904, Japan was one of the most poorest nations in the world which had millions of dollars in debt. That’s when, Japan’s first female journalist, Hani Motoko, stepped in. She developed this method of saving money, and Motoko’s method was encouraged by the media as well the government. The people followed this method and right now, Japan has reached at the position that we all know and respect.

How does it work ? Well, this method requires no high-tech software or a phone. Just grab two notebooks- a big and one small one, and a pen, and you are good to go ! (By the way, if you can get your hands on those Kakeibo journals that are made for this purpose only, much better.) That is, if you write your data in a notebook rather than entering it on an app, you’re going to remember it better.

This method revolves around four main questions-

How much money am I earning?

How much money I am spending ?

How much do I have to save ?

How can I improve next month ?

How to execute this idea ? You should carry the small notebook wherever you go, so that you can jot down your expense right after you buy those groceries. Use the big notebook and organize it into columns, but they must have these points-

· A monthly income plan- You can make it as a table or a bullet list. Keep a record of your advance payments, salary, debt return, money you get from selling a second hand item etc. In the start of the month, write down the salary you will receive. Also write down about the extra money in a different color.

· A monthly savings plan- This column should be utilized for writing the amount of money you would like to save or put in a money box. You have to decide the amount right before you plan the expenses.

· A monthly expenses plan- Here you need to write your common expenses, like electricity bills, credit card bills, rent, as well as mobile and internet bills.

The money left after you subtract your common expenses and the amount of money you want to save, divide into four categories-

1. Expenditure on living; like food, clothes, medicines, car fuel, household cleaning products etc.

2. Culture and education; like different courses, academies, school fees, books, museum tickets etc.

3. Entertainment. Here, write the money spent on vacations, parties with friends, movies, restaurants and make-up items.

4. Others- Here, write about the things that you haven’t mentioned in the previous categories.

Now, it is up to you to decide the ratio between the above four categories. Also, keep in mind that there are some aspects in the ‘Culture and education’ category where you can’t alter the expense, like school or academy fees. If you plan intelligently, you will be able to keep up with your budget and also, save a FORTUNE! This method will also help you cut down on the useless expenses you make, because they are the ones sucking your wallet up. Isn’t this method hassle-free and simple ?

Here are a few tips on saving money-

a. Put the little odd money in your wallet into a box, even if they may be quarters or dimes. A handful of coins and notes won’t be much, but you will be surprised to see how much you have saved at the end of the month.

b. Put all your returned debts in your same money box, as they may help. After all, combining each drop can give you a sea, right ?

c. While changing money, put some money in the money-box, like 1- 2 dollars.

d. Every time you buy something, round the sum up. For instance, you bought groceries worth $80, round it off to a $100 and keep the rest of $20 in the box.

e. Keep away all the extra shopping you would need to do every month, like buying those 7 pairs of jeans or 5 lipsticks, as they can ruin your budget. If some of them are still important, you can buy them.

Well, I have been using this method and with it, I saw a big change on myself.

Try this method out. It’s trusty, simple and efficient, and like this, who knows that you will be able to buy that Ferrari in future with your saved money ? Just don’t lose heart and keep up !

Thank you.