Kakeibo: How to save Japanese money up to 35 percent

ElizabethBusiness Article, Financial News, Small Business Ideas

Although already aware of the importance of setting aside a portion of income, but still, there are still many people who have difficulty managing finances. In other words, saving is a difficult thing for the majority of people. Well, if you don’t want to keep going like them, try kakebo.

What is Kakeibo?

Kakeibo is a Japanese money-saving concept of up to 35 percent. This concept was discovered in 1904 by Hani Motoko, a Japanese journalist. Now, the concept of kakeibo is increasingly popular after the writer Fumiko Chiba released a kakeibo guidebook in English.

Compared to other money-saving concepts, kakeibo is simpler. At the beginning of each month, you only need to check how much money you actually have. Check carefully what you get, from a fixed salary, bonus, or other additional income.

Next, plan exactly how much money you will spend, how much to save, and write down what needs to be done to ensure you can fully commit to the plan that you make yourself.

After that, separate money into four categories, namely:

  • Survival, namely food, household needs, transportation, rent, and health.
  • Optionally, including eating out, clothes, and purchasing hobby items or collections.
  • Entertainment like buying a book, watching a concert, or watching a movie.
  • Additional costs, namely unexpected costs, buying gifts, or home repair costs.

Simple things that make a difference

Believe me, if you really can commit, you can definitely spend the right money for each category. The good news is that you can even record weekly expenses so you can easily track where your money is going.

Then at the end of the month, check your kakeibo notes to see the last month’s overall expenditure, and check whether your budget plan works or something is wrong, then plan how you will do different things … Read more

Why It Is Important to Have a Solid Financial Plan

ElizabethFinancial News

Finances are a very important part of life. They are also very tricky in different ways. While some people are rather skilled at making money, those same people may find it challenging to save their money. One thing that people may realize as they gain experience is that finances come in waves. There will be times when money is scarce. This is one of the reasons that it is important to have a solid financial plan. There are many factors to figure out when it comes to a financial plan.

When it comes to financial planning, it is not enough to have a plan for the present. You must also have a financial plan that factors in the future. One of the common things to plan for is getting out of debt. A lot of people accumulate debt over time, especially with student loans. In many cases, their debt is in the form of student loans. Then they are trying to pay off their loan for a good part of their career. The unfortunate thing is that there are a lot of factors that stand in the way of them getting debt free. A solid financial plan can help with this.

Another factor that needs to be considered with financial planning is retirement. In this current economic climate, retirement is a very tricky thing to save for compared to 30 years ago. . The traditional way of making money and saving for retirement is not as effective as it used to be. It is very likely that you are going to need an alternate form of income so that you can more easily save for retirement. This can be in the form of investing or starting a business. With the right skills, you can build a source of income … Read more