How the Japanese Saving Method works

How the Japanese Saving Method works

Saving is something that is not easy to achieve, it requires a lot of discipline and a good financial method. There are many that have been created recently, but there are some very special ones, and there is none like the Japanesebecause this has survived for many years.

Do you know what this method is and how to apply it?

Here we explain what it is about and how to put it into practice.

The Japanese savings culture and the origin of its famous method

The savings rate in Japan is 25%, very different from what we generally do in the West (for example, in Spain it is 5%).

Japanese culture is framed by this valuable habit of saving, which, without a doubt, we need to imitate.

The Japanese saving method or Kakebo (pronounced kakibo), is already over 100 years old, it was in the year 1904 when Motoko Hanithe country’s first female journalist, made this valuable contribution to Japan’s financial culture.

Her method was created with the purpose of making women excellent managers of household finances.

To this day, more than a century after its invention, the Japanese continue to buy this book year after year, and even have a digital version on their teléfonos inteligentes.

What is the Kakebo (Japanese saving method)

The Kakebo consists of a notebook that is divided into days, weeks and months, in which it is possible to record expenses and income, categorizing them into different topics to later determine, at the end of the month, the remainder.

Now, this is not just a record of income versus expenses. The philosophy of this method is to have an iniciativa of state of your financesso that you are able to identify what you are doing wrong and make decisions that help you save.

It’s about being aware of how you spend money and making the necessary changes to improve.

How to apply the savings method Japanese

How does it apply? In practice, it is about doing this:

1. Acquire a Kakebo notebook.
2. save all your tiques either bills shopping.
3. Having this, sit at annotate all your cats, from fixed cats to those that are a mere eventuality.
4. Divide by categories: essentials (food, transportation, housing, medicine, etcétera.), cultural (music, movies, or books), optional (parties, accessories, leisure, or cigarettes), plus (all those things that could be considered an unexpected expense).
5. By becoming aware of your expenses versus your income, determine a realistic savings goal.
6. Establishes a budget of how much you are going to spend in a month, or in relation to the salary you receive in a certain period of time.
7. After, evaluates if you achieved the objectives.
8. If you have not achieved it, evaluate again, and take the necessary measures to achieve your goals.

In Japan the Kakebo it is quite an addiction, and not without reason, it has given very good results to the Japanese, in such a way that for us westerners we could consider them as stingy.

but imagine save more than 30% of your income That’s how much the Japanese save with this method! Apply these principles and see how you meet your financial goals and, step by step, you will achieve greater financial freedom.

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