Kakebo – The Japanese Method of Saving Money


Life is uncertain and an individual can face difficult time at any point in the life. That’s why it is always advisable to learn from financial experts to overcome any type of uncertainties. However there is one trick, which does not require any detailed financial knowledge but is still the simplest among all – KAKEBO.

If you’re having trouble putting expert advice into practice, then lets learn a hundred-year-old Japanese method called Kakebo, which will help you save up to 35% of your monthly salary.

Wrongly named by many as the Kakebo method, those who have tried it claim that it is the best way to keep their bills up to date and not to be scared at the end of the month.

So why not put it into practice?

Here are the keys to implement the Kakebo method:

Buy a notebook and keep all your bills

The first thing, Kakebo method recommends is to go back to the traditional and write down all your expenses in a notebook. Forget about finance apps or any kind of notes on your mobile phone and save all the item tickets (whether food, clothes or entertainment) you’ve bought. This will help you see what you’re doing to make your money fly. To do this, stand in front of your notebook one day a week and write down your expenses.

Divide by categories

Once you have all your bills in order, divide them into four categories:

  • Survival (housing, transportation, food and medical expenses)
  • Cultural (books, concerts and movies)
  • Optional (clothing, accessories, tobacco, restaurants, discos)
  • Extra (unexpected)


The Kakebo method then recommends you to assign a color to each type of expense.

In this way, you will see at a glance and every week all the waste that, at first, did not seem to affect your personal finance but that can be a big deviation at the end of the month.

Also, by visualizing your finances each week, you can correct all those unnecessary expenses for the next week.

As the Kakebo Method states, with this technique you become more conscious and begin to optimize your salary, saving up to 35% in some cases.

If you want to know more, you can always take a look at the Kakebo for 2018 book that will help you to control your finances in an easier and simpler way.

Author Bio:

Hi, I am Nikesh Mehta owner and writer of this site.

Nikesh Mehta - ImageI’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business.

I can be reached at [email protected]. You may also visit my LinkedIn profile.

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