I tried 'Kakeibo': The Japanese art of saving money-and it completely changed how I spend my money - Deepstash

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I tried 'Kakeibo': The Japanese art of saving money-and it completely changed how I spend my money

https://www.cnbc.com/2020/01/08/how-this-japanese-method-of-saving-money-changed-my-lifeand-made-me-richer.html

cnbc.com

I tried 'Kakeibo': The Japanese art of saving money-and it completely changed how I spend my money
In 2017, I decided to quit my job working for a London publisher and move to Japan. I enjoyed my work and had a great social life, but was craving something new and different. After living in Tokyo for six months, I became fascinated by how small details, mindfulness, and incremental changes were given more emphasis in Japanese daily life.

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Kakeibo

Kakeibo

Kakeibo translates as "household financial ledger" and is a simple approach to managing your finances.

For the past 116 years, kakeibo has been effective in helping people make smarter financial decisions.

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Your relationship with money

The idea behind kakeibo is to help you understand the relationship with money by keeping a ledger with all incoming and outgoing transactions.

The difference from other budgeting systems is that kakeibo emphasizes the importance of physically writing things down as a way to observe your spending habits.

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Reduce impulse buying

Before purchasing non-essential items ask yourself:
  • Can I live without this item?
  • Based on my financial situation, can I afford it?
  • Will I actually use it? Do I have space for it?
  • How did I come across it in the first place? (Did I come across it after wandering into a gift shop out of boredom?)
  • What is my emotional state in general today? (Calm? Stressed?)
  • How do I feel about buying it? (Happy? Excited? Indifferent?)
  • How long will this feeling last?

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Spending money mindfully

  • Leave the item for 24 hours. If you still want it and can afford it, then make the purchase.
  • Don’t let “blowout sales” tempt you. Ask yourself if you would buy the item if it were full price.
  • Check your bank balance first thing every morning. It will ensure that you are aware of how much money you have to spend.
  • Spend in cash. Handing over cash makes you more conscious of what you're spending.
  • Put a sticker to your credit card that states "Do you really need this?!"
  • Change the environments that cause you to spend.

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