It's not a manga comic, but some people present it that way. It's not exactly an accounting book, but it looks like one. We're talking about the Kakebo method. If you have trouble saving, you can try doing it like the Japanese.
What is Kakebo?
The Kakebo method is a money saving and management system devised by Motoko Hani in 1904 as a way to empower Japanese housewives and women through household finances.
Hani, founder of the country's first women's magazine, wanted to take advantage of the traditional way money was distributed in the country's households, where women received money from their husbands and had to use it to cover all household needs. Only what was left over would be theirs, hence the importance of learning to manage it well and make the most of it.
The term Kakebo or Kakeibo can be literally translated as “household account book” because that is the main function it fulfills, although not the only one. The savings method devised by Hani seeks to simplify the process and make everything very simple and visual.
How does this savings method work?
The Kakebo savings method works like a basic budget that each author has subsequently adapted with different visual proposals. You will find many Kakebo books on the market, each with its own particularities.
What doesn't change is the basic operation of Kakeibo. The system forces you to compare your income and expenses at the beginning of the month. In other words, on the 1st of each month (or the 31st of the previous month) you will have to sit down and review what your income and expenses will be, and how much you want to save.
The book will teach you how and where to record your income, fixed expenses and how to divide the rest of your expenses. The starting point is four basic categories: Survival, leisure, culture and others. From there, each day you should write down how much and what you have spent your money on, which will be subtracted from the available balance for the month each week.
In addition to keeping track of your accounts, Kakebo books always include tips and savings recommendations for each month. For example, formulas for spending less at Christmas or more timeless tricks, such as saving all coins of the same type to save.
In essence, the Kakebo method is not so different from the classic Excel budget. The difference is that it is more visual and there is a whole community of people who follow it to support you.
Is the Kakebo method for you?
If what you want is to have a budget to know how, when and what you spend your money on, this is a method as valid as any other (including an Excel spreadsheet).
This formula will allow you to be more aware of how you use your money and what your financial situation is at each moment of the month. It is a model that requires consistency and a certain amount of dedication for it to work. What you must be clear about is that Kakebo is not going to save at home for you, everything will continue to depend on your actions and your willpower. This method gives you visibility into your financial status and your savings goals.
Alternatives to the Kakebo method
The Kakeibo method is just one way to save through a budget, but there are many other ways to achieve this goal.
One of the most well-known methods is the 50-20-30 rule for saving , which actually proposes distributing your income according to a series of percentages. Specifically, you should allocate 50% to your fixed expenses (what you need to live), 20% to savings and investments, and 30% to leisure and indulgences.
Another alternative is pre-saving, which consists of deciding what percentage of your income you want to save each month and setting it aside from your daily account at the beginning of the month, as soon as you get paid. This way, since the money is not available, you are not tempted or given the opportunity to spend it.
As you can see, in addition to the kakebo method, there are different ways to achieve the same goal: saving and having control of your finances, something that will ultimately bring you closer to your life goals, such as buying a house, saving for a down payment on your mortgage or travelling around the world.