It's difficult to save money. It's quite difficult. You're always left with little more than a few miserable dollars rattling around your account at the end of the month, no matter how much you think you're saving? We are aware of your concerns.
Rent definitely takes up a large portion of your earnings, and then there are the bills and travel expenses that eat away at your hard-earned cash without you even realizing it.
There's also that voice. “Why to bother?” whispers the tiny, nagging voice in the back of your mind. You'll never be able to afford a home anyway. Pret's coconut flat white is a great way to start the day. You've earned it.”
The kakeibo, a "budgeting notebook" and the newest Japanese lifestyle craze, is here to start a conversation. Hani Motoko, Japan's first female writer, devised the kakeibo in 1904 to assist busy women in keeping track of their income. Now that writer Fumiko Chiba's first English-language kakeibo has been published, it's time to put it to use.
The idea is that you sit down with your kakeibo at the beginning of each month and plan what you're going to spend, what you're going to save, and what you need to do to attain your goals. After that, you evaluate your accomplishments. Does it appear to be straightforward? Yes, it is.
Here’s what you need to know:
1. We need to shift our focus from saving to spending
We hear you say, "No problem." The problem isn't one of money. If that's the case, you'll enjoy this.
According to Chiba, we need to change our mindset about budgeting: we must "spend well" in order to "save well," and vice versa.
Chiba informs us, "We all work extremely hard in order to live and also to enjoy things." “It's critical to keep this in mind when saving.”
To put it another way, if saving is all about what we can't do or have, it'll become a job, and we'll give up. It becomes a lot more appealing proposition if it becomes about precisely planning so that we can do and have what we truly desire.
2. Writing things down will help
Keeping a kakeibo is all about recording your spending, but it’s not enough to plug numbers into a spreadsheet. Putting pen to paper is a fundamental part of the practice.
“We spend so much of our time on our phones or computers,” Chiba explains. “[Keeping track of our accounts online] resembles the way we spend money in real time. The journal is a step away from this, and it provides us with the space and opportunity to examine our expenditures in greater depth.”
Using a kakeibo becomes a form of mindfulness exercise in this way, according to Chiba. “In today's world, everything can be bought and paid for in a matter of seconds. A kakeibo allows us to take our time and think about what we're buying in a calm, calculated manner.”
So at the beginning of the month, you need to figure out and write down how much money you actually have. Look at what you’ve got, from your salary to any freelance bits to that £20 of birthday money from your mum, and tot it all up.
Then take your “fixed expenditure”: the stuff you have to pay, like rent and bills, and take it away from your total amount. Easy enough.
This will leave you with a sum that you can choose to “save” or “spend well”. Don’t worry if it’s in single figures right now – we’re just getting started.
3. You need to be honest about your “musts” and “wants”
Using a kakeibo is about decluttering your finances. If you’ve followed the last step, you know how much money is coming in, and you know what has to go out – so it’s time to figure out how you’re spending the rest, and the ways you can do it better.
The kakeibo works by categorizing your spending and being really particular about it. Takeaways, for example, maybe one of the categories. The items on this list could range from a full-fledged Deliveroo night to a fast takeaway coffee that slipped your memory as soon as you drank it. Be a stickler for details.
You can sort your "musts" from your "wants" once you know where your money is going: what you definitely need versus what you can live without. Sure, we all have to eat — it's a "necessity." But, let's face it, the Itsu habit at lunchtime is a huge old wish. Sure, clothes are "essential" - but does that mean you should spend all of your extra cash at Topshop?
Chiba advises: “To realize your ‘musts’, write down things that would go wrong if you did not spend money on them – these are usually costs that do not go away from month to month, like food.”
By looking at your spending in chunks (rather than a never-ending, guilt-inducing list of outgoings), you can identify the areas you may be able to cut back.
4. Cash is better than card
Nowadays, we’re more likely to have a wad of cards than cash (we wish) in our purse. But this, Chiba, tells Refinery29, could be where we’re going wrong. Using a card makes us less accountable for our spending, while the physical act of handing over cash is something we’re more likely to think twice about.
Chiba even suggests taking cash out of the bank and dividing it into labeled envelopes to help you keep it within your limits.
“I find that physically putting money in envelopes makes you less likely to spend it on things like drinks with your friends,” she continues. “Small actions can have a tremendous impact on your financial goals. The kakeibo fosters patience and constancy in action.”
5. You should finish the month by reflecting on your progress
A quick glance at your mobile banking app (followed by a cold sweat when single figures appear) isn't going to cut it. Your kakeibo requires you to examine your spending for the previous four weeks at the end of each month, identifying accomplishments and weaknesses, and setting goals for the following month.
Apps that track spending simply show us where we're going wrong, according to Chiba. You can obtain a larger perspective by using a kakeibo, however.
“I enjoy saving tiny amounts of money every month. They may appear insignificant at the time, but they add up to a larger sum in the end,” she explains. “Your review period serves as a constant reminder of this progress.”
So get yourself a kakeibo, get scribbling, and don’t forget to give yourself a pat on the back after a month well spent.
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