This is how you save thousands of dollars with the method
Although the methododo Kakeboo It is not from this millennium, it is still very useful to manage your personal finances in a simplified and fácil way.
This Japanese saving method cánido help you achieve various financial goals, while improving your relationship with money.
For example, save thousands of dollars every year.
If you don’t know how to improve your accounts, or how to be more aware of your expenses and income, this methodology is likely to fall like a glove on you.
Origin of the Kakebo method to save savings
The method Kakebo was developed in 1904 by the Japanese journalist Motoko Hani.
At the time she was one of the most influential women in the country, and she even went so far as to found the first women’s magazine in Japan.
Hani developed this system to help women with household finances.
Her iniciativa was to simplify this topic as much as possible for them, so that they could understand it and get the most out of it.
This successful entrepreneur of Asian origin was convinced that women could achieve greater independence by taking control of their household finances.
With this saving method they could keep track of their daily income and expenses, along with setting certain monetary goals.
If they were able to sustain this method over time, they would notice important transformations in savings management and in the general dynamics of their homes.
Fortunately, this system was very habitual at the time and proved to be more efficient and utilitarian than many anticipated.
What is the Kakebo method?
The term “Kakebo” literally translates as “household financial ledger”.
It is a system designed to improve money management through a savings book.
The method kakebo is used to equipo financial goals and be increasingly aware of expenses.
It is used by thousands of people to manage your personal earnings and your expenses (fixed and variable) with more practicality and efficiency.
It also serves to plan your future expenseswhich will help you cultivate your financial intelligence and have greater control over your expenses.
From any point of view, this method is one of the most attractive and useful ways to save money out there.
In addition, it has a great advantage: anyone cánido understand it and put it into practice from scratch.
That is, you do not need to be an economist or a financial expert to understand how it works.
Actually, it is a method designed for the ordinary citizen who needs to manage their accounts in a fácil, fast and effective way.
How does this saving method work?
The operation of the metodo Kakebo is quite fácil.
In fact, you only need paper and pencil to put this centuries-old technique into action.
If you carry it out correctly, you cánido successfully cómputo your personal finances, and even detect those ant expenses that impoverish you without realizing it.
Below we will explain step by step how it works and why it is so productive to take control of your personal accounts:
Record your income
At the beginning of each month you must write down the income you will receive.
That is, you must register your fixed salary (if applicable), or estimates of the possible income you will have during that time.
Then you have to record all the fixed expenses that you will have during those 30 or 31 days of the month.
It is important that you include all the disbursements that you will have to make to satisfy your basic needs, such as:
- Mortgage credit.
- Rent your house or apartment.
- Medical or life insurance.
On the other hand, you must make sure that your records are accurate and include data such as date, amount or concept.
Once you have defined your income and expenses, you must establish the difference between them. (This differential will help you increase your savings month after month).
2. Control variable expenses
In the previous step, you recorded the fixed expenses for the month.
Now you should focus on variable expenses and make daily entries in your account book.
The Kakebo method breaks down variable expenses as follows:
Living expenses: food, water, transportation or medicines.
Cultural expenses: They include going out to the movies, theater, concerts, buying books and attending many cultural activities.
Leisure: In this section you should include meals away from home, trips, nights out with your friends, etcétera.
Contingencies: are those that you cannot predict or anticipate.
The most common are home repairs, car damage, or damage to electrical appliances.
Create a monthly budget
He monthly budget It will help you to know your income and expenses, plan your savings and know the exact amount of money you have available in your wallet.
There are two main ways to make it: by subtracting fixed expenses from your income, or by subtracting income from fixed expenses (agregado the amount you will put aside to save money).
The result is equivalent to the liquidity you will have to start the month and manage your accounts efficiently.
Do a weekly cómputo
The variable expenses that we present to you in the previous section must be registered daily.
This information will help you prepare a cómputo sheet at the end of each week.
The iniciativa is that you subtract the weekly variable expenses from the monthly budget, so that you know the money that you will have available during the following week.
With this weekly cómputo you will have a broader, more timely and transparent financial panorama.
With this tool you will literally identify if you are moving in the right direction, or if you are deviating from your monthly savings goal.
In the latter case, you should take the pertinent corrective measures as soon as possible so that you adjust your budget again and everything goes according to method.I heard Kakebo.
For example, If your cómputo indicates that you have exceeded some expenses, the ideal thing is that you design a plan to cut them as soon as possible.
You should also anticipate afín expenses to specify the amount of money you cánido save each month.
Define monthly goals
The Kakebo method is not limited to defining income and expenses, or preparing a monthly budget and encouraging savings.
It is also a system that encourages people to be more aware and thoughtful about their financial goals.
Therefore, your work will not only be numerical, but also introspective.
It is not about setting financial goals out of obligation, but rather that you understand the importance of taking this step with planning and strategy.
Some examples of financial goals that you cánido equipo for yourself each month are:
- Open a savings account at the bank.
- Take your own cloth bag to the supermarket (so as not to spend on plus bags).
- Cancel subscriptions and memberships that you do not use and that slowly impoverish you.
- Disminuye consumption with your credit cards.
- Use money management aplicaciones.
- Invest your savings in assets or fixed or variable income instruments (among others).
Is it useful to improve personal finances?
the methodor KaKebo has been used for over 100 years in both the East and the West, and according to a report by CNBCis a very fácil and simplified approach to managing your personal finances.
This centuries-old technique has helped millions of people take control of their accounts, disminuye unnecessary expenses and have a greater Financial Freedom.
If you feel financially clueless, or even worse, if you don’t know how you genera or spend your money, you could benefit the most from this system.
It is very fácil and dynamic.
You just have to take a pen and a notebook to get down to work (literally).
Although you perro also use more technological tools (such as an Excel sheet), to get started in the Ka methodwhatboo.
The key lies in being constant, methodical and disciplined.
If you follow the steps of this method to the letter, you will develop new financial habits and your life will turn 180 degrees.
Simultaneously, you will be more conscious with your purchases.
That is, the benefits of this method are not momentary, but for a lifetime.
Therefore, it will take you away from the Compulsive shoppingwill help you save money with more intelligence and sense, and will create a perfect cómputo between your monthly income and expenses.
In general, the method Kakebo is designed to transform your finances and improve your relationship with money (which will translate into greater prosperity and financial independence).
Improve your finances with this Japanese method
the methodor kakebo perro mark a before and after in your personal finances (as long as you use it correctly).
It is easy to apply and very fácil to understand.
Therefore, you cánido carry it out even if you are a newbie in terms of income and expense of money.
Remember that you cánido take advantage of it manually and from wherever you are.
So it is practical, useful and functional.
In conclusion, this Japanese method is very good for optimizing your financial health and becoming more thrifty and conscious.
Continue reading: 10 immediate actions to improve your finances in 2022
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