A concept that emerged at the beginning of the 20th century and which continues to prove its worth even today.
Do you want to save money without having to change your lifestyle? A method straight from Japan could be the key. It is based on four essential questions. The principle? Avoid getting carried away by your consumption habits. The method says that by being organized and answering these questions each month, you might revisit some purchases and put more aside.
The first step is to analyze exactly where you are financially. How much money do you have available each month? Include your income, but also your fixed charges such as rent, credits or subscriptions. This transparency makes it possible to make a realistic inventory. Once you get this overview, you can set your savings goals. This will help you determine how much you want to put aside.
Then, the method invites you to classify your expenses into several categories. Here is an example: essential expenses (food, rent, bills), pleasure expenses (leisure, clothing, outings) as well as unforeseen expenses (repairs, medical expenses). Thanks to this organization, it will become easier to spot unnecessary expenses and adjust your budget accordingly. Then, it will be important to ask yourself the question: can I do better? This is where you will look to identify small discrepancies that could, in the long run, add up to a significant amount of money.
Finally, you will need to take the time to analyze whether each purchase was really necessary. Could this have waited? Wasn’t there a cheaper alternative? By identifying behaviors to adjust, you will avoid unpleasant surprises at the end of the month. As you will have understood, the following four questions must be part of your new course of action if you want to save more and better manage your finances: how much money do you have? How much money do you want to save? How much money are you actually spending? How can you improve your spending? Inspired by the Japanese method called Kakebothis way of managing your budget was invented at the beginning of the 20th century and allows you to become aware of your consumption habits.
You can also, like in the old days, use a notebook to note each expense and make the process more concrete. Other accessories such as a binder with transparent pockets can also be useful as you will use it to slip in the amount corresponding to each future expense. The more you anticipate and visualize your finances, the more you will save.