Japan is not only famous for its interesting cultural diversity, but also the type of people who are workaholic. High salaries do not necessarily make Japanese people consumptive, wasting money. In fact, people in the land of Sakura actually like to downsize. Live in the simplicity. They prefer to save and invest for the future of old age. Of course in this case a way to manage finances is needed so that the salary allocation can be balanced with expenses.
Kakeibo is a popular way to manage finances or save money. Introduced for the first time in 1904 by journalist, Hani Matoko. Until now, this method is still widely used. Not only by Japanese people but have been tested by people from other countries. As a result, Kakeibo is considered effective in frugality so that financial conditions remain safe and smooth. Here are the stages of Kakeibo that you can try:
1. Record all income in detail
The first step that must be done is to record all your income in detail. If you have a source of income other than the office, record all of it. Then there is income from the side selling business online. By entering this primary and additional income, you will know the amount of income you have earned. Once you know, you will not go around spending this money on unnecessary needs. This method will also prevent you from being wasteful.
2. Record all needs in detail
Next, make a list of the needs that you will buy or pay for. Record in detail and make sure nothing is forgotten. First, start by recording various basic or major needs for a month, such as paying rent for a house, water, electricity, credit card bills or other debt, estimated transportation costs and food costs, and others. Other needs, for example for the future, such as savings and investment. The amount matches your financial capacity. Don’t forget to include other expenses, including buying clothes and shoes to support work performance or to replace obsolete ones, entertainment such as watching movies twice a month, and other expenses.
3. Prepare envelopes for each expense item
The next application of Kakeibo is to prepare envelopes. What for? Certainly to collect the money that will be used to finance or spend expenditure plans. Each expense item is given a different or separate envelope. Then the envelope is given a name on the outside so that it will be easier for you to take the funds, as well as control them every time. Separation of expenditure envelopes is considered to make your money not mixed with one another. Then enter the exact amount and according to expenditure needs to avoid waste.