Kakeibo: The Japanese Art of Saving Money by Fumiko Chiba is a guide to a century-old Japanese budgeting method called Kakeibo, which means "household financial ledger." Introduced in 1904 by Hani Motoko, Japan’s first female journalist, it’s a pen-and-paper journaling system designed to promote mindful spending and saving without relying on apps or spreadsheets. Key Concepts of Kakeibo The Kakeibo method focuses on intentional financial planning and reflection to achieve savings goals and spend wisely. It emphasizes handwriting to foster mindfulness, encouraging users to slow down and consider their spending habits.
The process involves:
- Monthly Planning: At the start of each month, you calculate your income (after taxes), set a savings goal, and plan how to allocate remaining funds. You write down fixed expenses (e.g., rent, utilities) and determine how much to spend on variable expenses.
- Categorizing Expenses: Spending is divided into four categories (customisable, but typically):
- Survival: Essentials like food, transport, and housing.
- Optional: Non-essential wants, like dining out or entertainment.
- Culture: Activities like books, museum visits, or concerts.
- Extras: Unexpected costs, like repairs or gifts.
- Daily Tracking: Record each expense by hand, noting its category and cost, to stay aware of spending patterns.
- Weekly and Monthly Reflection: At the end of each week and month, tally expenses, compare them to your plan, and reflect on questions like:
- How much money do you have?
- How much do you want to save?
- How much are you spending?
- How can you improve next month? This reflection helps identify overspending and adjust habits.
- Mindful Spending: Before non-essential purchases, consider questions like: Can I live without this? Am I in the right emotional state to buy? How long will this purchase make me happy? This reduces impulsive spending.
Kakeibo aligns with Japanese principles of simplicity and mindfulness, similar to Marie Kondo’s decluttering method. It encourages users to "spend well to save well," focusing on intentional purchases that align with personal values, like saving for travel or big projects.
While I admire its minimalist approach, I’ve tried it, and frankly, it’s not for me. Here’s why I’ve ditched Kakeibo and adopted a more practical, modern budgeting strategy that aligns with my lifestyle.
The Tediousness of Manual Tracking
Let’s be real—manually writing down every single expense is exhausting. I gave Kakeibo a fair shot, diligently jotting down my daily spending in a notebook years ago. But the process felt like a chore, especially when it came to doing the math by hand. Adding up every coffee, grocery run, or transport fare was time-consuming and prone to errors. In 1904, pen and paper were the only tools available, but today, we have better options. I’ve switched to using budgeting apps and Excel spreadsheets, which do the calculations for me instantly. These tools save time, reduce mistakes, and let me focus on analysing my spending rather than wrestling with numbers.
Tracking What Matters Most: Food
Kakeibo advocates for tracking every single expense daily, but I find that overwhelming. Instead, I focus on the one category that fluctuates the most: food. Food spending is my biggest budgeting challenge because it varies daily and can easily spiral out of control. By tracking my food expenses, I get a clear picture of how much I’ve spent and how much I have left in my budget. This helps me make conscious choices—like opting for a $2.50 Yakun coffee instead of a $7 Starbucks latte when funds are tight. Other expenses, like MRT fares, utilities, pet food, insurance, Netflix, and my part-time helper, are fixed costs. These are predictable and easy to manage monthly, so I don’t waste energy micromanaging them.
Spending on Joy Without Guilt
One of Kakeibo’s principles is cutting back to save money, but I don’t believe in slashing everything that brings happiness just to pad my savings account. As personal finance guru Ramit Sethi says, “Find ways to earn more money and not live miserably.” I wholeheartedly agree. Budgeting shouldn’t mean depriving yourself of joy—it’s about finding balance. For example, I’ve made compromises that save money without sacrificing my lifestyle. Instead of paying for an expensive personal trainer, I now go to a climbing gym with a friend, cutting my fitness costs by 50% while still having fun. Similarly, I swapped pricey mall manicures for more affordable options in my neighborhood or during trips to Batam or Johor Bahru. These small tweaks keep my budget in check while allowing me to enjoy the things I love.
A Budget That Works for Me
While Kakeibo’s mindful approach resonates with many, it’s too rigid and time-intensive for my taste. I prefer a streamlined system that leverages technology, focuses on variable expenses like food, and allows room for joy. Budgeting doesn’t have to be a grind—it’s about making intentional choices that align with your values and goals. By tracking what matters, embracing affordable alternatives, and prioritising happiness, I’ve found a way to manage my money without feeling like I’m stuck in 1904.