Break Your Spending Into Categories and Getting Financially Naked
Once you have tracked your expenditures for a month, you can break spending into categories. The key to kakeibo is tracking it all with a basic pen and paper, rather than using any kind of app. Why? Research has repeatedly shown that physically writing things down changes the way we behave. It also creates a little more friction to our spending.
Once you have an idea of your spending, you can divide your kakeibo, or budget, into different categories of spending: Essential and non-essential.
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