Fly On Wall Street

Kakeibo: what you need to know about Japan’s money saving technique

The Japanese always seem to have everything together and Brits can’t get enough.

Just think about the madness surrounding Marie Kondo in recent years who taught us The Life-Changing Magic of Tidying Up. Then there’s the ancient tradition of Wabi-Sabi, the art of embracing the imperfect, which mindfulness bunnies far and wide latched onto and now there’s Kakeibo, the Japanese technique of saving money.

If your finances are in need of a little order (read: huge helping hand), find out everything you should know about the art of Kakeibo and why the Japanese have presented us with something genius, once again…

What is Kakeibo?

Pronounced kah-keh-boh, Kakeibo was invented in 1904 by journalist Motoko Hani and it’s about journaling your incomings and outgoings so that you recognise where you’re spending unnecessary money and can rectify it.

It’s essentially a hybrid between bookkeeping and practising financial mindfulness (yes, that’s a thing).

How does it work?

At the start of each month, document your incomings and fixed expenses as well as your saving goals. It must be handwritten as documenting it yourself rather than just plugging it into an app is all part of the practice.

Start by splitting your spending into four columns in the following categories:

Next, note down four questions (below) and write down the answers:

You will now have a complete sheet and will have had to properly think about where exactly your money goes – something you’ve probably not done before. Already things are looking up…

How do you stay on track?

First of all, you’ll be tasked with keeping a journal of your spending by writing down the totals of your expenditure everyday next to the corresponding category and secondly, the practice asks that you take time at the end of every week and month to check how you’re doing.

This financial ‘check in’ will either encourage you further if you’re already doing well or give you the nudge to get back on track. Win-win.

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