How the “kakebo” method is gradually becoming popular amid the inflation crisis

• This economic discipline goes far beyond accounting records

• It has become very popular in Japan, where saving is often seen as a good social virtue.

He purchasing power of spanish people It has been declining for more than two years. First came the pandemic, with consequences inflationThen the energy crisis as a result of the war in Ukraine, which we have seen as prices for gasoline, electricity, gas rise and even in food, Virtually the entire shopping basket has become more expensive, According to INE, One of the most famous cases was the olive oil case, which was an incident We have previously analyzed in Magent,

In a context like the present one, in which Income does not come with increase in consumer spending, households have begun to implement various and original savings methods. One of the most viral is Japanese: the Kakebo method.

The term derives from the Japanese word “kakeibo”, meaning “account book for the household economy.” Although this discipline goes far beyond an accounting record, it advocates adopting financial awareness and long-term planning that promotes more responsible financial routines for our domestic economy. Let us think more with our heads and let ourselves be less swayed by impulses.

It was started in 1904 by Motoko Hani, the founder of the first women’s magazine in Japan. was aimed Help Japanese housewives manage household finances, to somehow promote your economic independence. Thus he developed a practical system which was not only successful in the Asian country but also spread to the rest of the world.

In short, it involves registering account book (can be a notebook), monthly income and expenses, setting attainable financial goals, When we talk about expenses we mention them all, even small purchases, like a pack of gum or a coffee at the corner bar. One way to write them is to group them into categories such as “consumption” (supermarkets), “leisure” (bars, parties, concerts), “culture” (courses, books or movies), and “extra” (video games). To be recorded under. , technology, etc.).

How to start?

A simple way to start this adventure is to write down estimated income for both of you at the beginning of each month. fixed as variable, Then, fixed expenses are noted, no matter what it is, what you have to pay, like mortgage, rent, gasoline to get to work, internet, etc. After this, the savings objective is deducted to get the monthly budget for the variable expenses classified in the categories mentioned above.

These expenses are recorded daily and at the end of the week they are subtracted from the monthly budget to form a balance. Thus, we have A visualization of how much we have saved and how much margin we have

Increasing or decreasing some expenses. And most importantly, what savings goals have we managed to meet. If we have to buy a high-priced item soon, it is important to know what our annual financial position will be like to afford it.

How to take advantage of it?

The key to all this is to know not only how much we have spent and how much we have earned, but also what, how and when the money was spent. And if we are fulfilling our long term financial goals, Ultimately, it’s about going back to basics: identifying areas excessive spending And reduce impulsive consumption to have more money in the future.

One of these ways is Apply the famous 50-30-30 ruleFirst introduced in the book Your Full Value: Best Lifetime Money Plan, by former United States Senator Elizabeth Warren. This involves dividing your monthly net income into three categories: 50% for basic needs (for example, rent, supplies, food, transportation, and children’s education), 30% for dispensable expenses (for example, home for dinners, trips, subscriptions) and the remaining 20% ​​for savings.

This rule provides a framework that helps you keep in mind how much you save every month, which you can deposit into a savings bank account so that you don’t feel the need to spend it later. And, obviously, this is a flexible rule that can be adapted to each individual’s situation. Furthermore, it should be remembered that this method is only one way Learn how we relate to moneyTo better manage our expenses and know if we are really paying for the products that are really necessary, without always falling into obsession.

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