Sarah Harvey, the author of "Kaizen: Japan's Secret to Lasting Change," worked in Tokyo at a publishing house and fell in love with Japanese culture during that period. She now lives in London again, and for CNBS Make it, she reveals that with the Japanese method, kakeibo has learned to save money.
- In 2017, I decided to move to Japan and quit my job at a London record label. I enjoyed the business and had a nice social life, but wanted something new. Already after six months of living in this Asian country, I have noticed that details and structural changes mean so much to the daily life of Japanese people, ”Harvey says.
Living in Japan has helped her "reset" when it comes to, she says, frivolous spending habits.
What is kakeibo
It is translated as a "household financial book" and was invented in 1904 by Hani Motoko, the first Japanese journalist.
For retailers, this technique can be significant, as it is based on the idea of how not to spend beyond the basic framework and in line with our budget.
- I used to shop when I'm bored, stressed or sad about something. However, I used to shop when I was happy - says Sara.
You don't need a phone for a kakeibo, just a notebook and a pen. It differs from others in that it does not imply software, Excel spreadsheets, or other programs, but much like the Bullet Journal - it emphasizes the importance of writing things down manually as a meditative way of processing and observing our spending habits.
Research proves the great importance of handwriting, because as they say - we are then more present and aware of the situation, while at the same time finding and acknowledging the causes of our bad habits.
Kakeibo says to ask yourself these questions before buying:
- Can I live without this?
- Can my budget "endure"?
- Will I use this item?
- Do I have anywhere to hold it?
- How did I ever get the idea to buy this?
- How do I feel emotionally today?
- How do I feel when I buy this thing and how much will that feeling hold me?
It is important to note that kakeibo is not designed to squeeze out all that “joy” from our lives. The point is to be moderate and aware of the situation, but one should not make radical moves and give up everything.
Strategies for spending money
Some simple kakeibo strategies for rational spending:
- Leave the item for 24 hours and in that period you will understand if you really need it. If you're still thinking about it the next day and you can afford it - buy it!
- Don't "fall" for sales. Shopping, when there are discounts, usually ends up picking up things you never use. For each piece of clothing, you want to buy, ask yourself if you would buy it at full price.
- Check your bank account balance regularly. Checking your balance can help you feel in control of your finances, as it questions how much money you can spend.
- Force a cash payment because a careless card swipe creates the illusory picture that we have "lots of money" in the account. Try to set aside a certain amount of money in one week and move around in that domain.
- There is one great idea of how to get rid of impulsive shopping: stick a piece of paper on your payment card that says "Do I really need this?" And then some things will be much clearer ...
- Isolate from all wear-and-tear environments. These can be brand info mails, social networks, shopping malls in times of boredom ...
