Jakarta, CNBC Indonesia – Everyone knows the importance of saving, but not everyone can do it. So, if you are a group of people who find it difficult to save, maybe you are interested in following these tips.
As many people agree, changing bad financial habits is not easy, one of the reasons is because our spending habits are deeply ingrained in our daily routines, and the act of shopping also includes emotional aspects that are difficult to let go of.
Fortunately, over the past 116 years, kakeibo has been effective in helping people make smarter financial decisions.
What’s that Kakeibo?
Kakeibo is a financial philosophy from Japan. Kakeibo was originally A well-known financial management method that is often used by housewives in Japan. This method was first introduced in 1994 by a journalist named Makoto Hani. In 2017, kakeibo was popularized again through a book written by Fumiko Chiba entitled Kakeibo: The Japanese Art of Saving Money.
Like everyone budgeting finances, the goal behind kakeibo is to help us understand our relationship with money by recording all expenses and income.
However, what differentiates kakeibo is that it does not use any digital technology such as applications or Excel sheets. Kakeibo emphasizes the importance of physically writing things down – as a meditative way to process and observe your spending habits.
According to the kakeibo method, you should ask yourself the following questions before buying anything:
- Can I live without this item?
- Based on my current financial situation, can I afford it?
- Will I actually use it?
- Do I have room for it?
- How did I first find this item? (Did I see it on Instagram? Did I find it after wandering around the mall because I was bored?)
- How is my emotional state today? (Calm? Stressed? Relieved? Feeling bad about yourself?)
- How do I feel about buying it? (Happy? Excited? So-so? And how long will this feeling last?)
The following are 6 steps to saving which are extracted from the Kakeibo philosophy.
1. Write a manual for all income
The first step you need to take is to record all income at the beginning of each month, both from routine income such as monthly salary and additional income.
The Kakeibo method recommends that you record your finances by writing with a pen or pencil in a book so that you really understand what you are recording.
2. Save first, then allocate funds to several posts
The Kakeibo method recommends that you first set aside money to save, then allocate the rest to several expense items. In the Kakeibo method, there are four categories of expenditure items, as follows:
* Survival or basic needs such as food costs, bills, installments and other obligations.
* Optional or secondary needs include entertainment, eating out, and so on.
* Culture or the need for additional insight, for example books, films, magazines, and so on.
* Extras or other expenses such as buying gifts for children’s friends’ birthdays, money to mourn neighbors, and so on.
3. Wait 24 hours before purchasing items
Japanese people usually consider for a long time before deciding to buy goods. Try not to get into the habit of buying things you like immediately after seeing them.
Think ahead for at least a full day to see whether the item is just a want or a real need. If you are still thinking about the item after one day, the item meets your needs, and finances are sufficient, buy the item.
4. Check your account balance frequently
Frequently checking your remaining account balance can help you control your finances. Because, this will help you to focus on managing the amount of money you have to spend.
5. Create a reminder in your wallet
One interesting trick you can do to save money is to insert a reminder note in your wallet with the words “Do you REALLY need this item?”
In this way, you will remember to always make considerations before making a shopping transaction.
6. Make transactions using cash
Transactions using a debit or credit card often make someone unaware of the amount of money being spent. Therefore, try to make transactions with cash so that you can be more aware of how much money you have spent on shopping.
[Gambas:Video CNBC]
(hsy/hsy)