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.

Kakeibo

Money & Investments

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.

Your relationship with money

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

Reduce impulse buying

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

Spending money mindfully

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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