Japanese Method To Control Your Expenses

In these times of crisis we get into the trunk of saving techniques and among those that top the lists we find Japanese accounting methods . Although they are old methods and that we may believe are outdated, they gain strength when it comes to tightening the portfolios and they are at zero cost. In this way, the bet is to apply the Kakeibo method , a finance system created in 1094.

The concept of cost control that Kakeibo has is a small accounting and finance book such as the one used by our grandmothers to put the household money in order.

The scene is somewhat outdated, however, the method remains valid as digital applications have taken the model and executed it to make life easier for users looking for any way to make ends meet.

Spanish fear for not saving
In Spain, almost 60% of citizens fear that they will not have enough savings to support themselves once they retire. That is why saving represents a solution for many of us, but at the same time it is an almost impossible goal to achieve with so many expenses and unforeseen expenses to pay each month.

Kakebo has an attractive approach that allows people to manually record all expenses in color coded categories. At the end of each month, the total spend is calculated and analyzed using animated characters. The book also asks questions and provides tips designed to help readers reach their financial goals.

7 steps to save
These are the seven steps you must follow according to Kakeibo; a model of savings accounts with which you will surely achieve results.

1. Order your fixed monthly income and expenses. The first thing you should do is write down the total of your income and subtract the fixed expenses, such as:

– Pay the mortgage or rent

– Car Letter

– Public services (electricity, water, internet, telephone, etc.)

2. Set a savings goal. It is essential that this objective be realistic, a saving that is within your possibilities and that you can really fulfill it.

3. Schedule how you’re going to do it. The worst thing you can do is improvise. To achieve the goal you have set for yourself, it is important that you meditate on how you can achieve your goal. For example, take food to work, go to the movies only one weekend.

4. Organize your expenses by categories. This section suggests that you should define what you are spending your money on through four categories: survival, leisure, culture/education and extras.

5. Track your expenses weekly. This not only allows us to know how much money we spend per week, but also allows us to know the categories in which we spend the most.

6. Analyze the results. If you follow all these steps, each month you will be able to study on which days and weeks you spend the most money and whether or not you achieved your goals.

7. Set higher goals. Once you start to get going with these simple steps, you can gradually increase the income of your monthly goal. In addition, as the months go by you will begin to feel proud of yourself and you will think twice about indulging in whims.

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