Although it might take some time to get used to record every expense, the idea is that after some you will be more aware of your financial habits and
learn insights on how you spend money: maybe you’re spending too much on restaurants or maybe you should spend more on culture. The book’s
subtitle slogan is ‘memory can be fuzzy, but the books are accurate’.
How to use a Kakeibo
A the beginning of the month write down your fixed expenses and incomes (e.g. mortgage, rent, broadband bill, etc.). The difference will show you how
much money you have available for the rest of the month.
Estimate the savings that you want to achieve for the month and set it aside. You should just forget it and make everything possible to don’t touch
it during your weekly expenses.
During the month register the expenses in the different categories:
Survival: food, pharmacy, transports, kids. Optional
Optional: bars, restaurants, takeaway, shopping, cigarettes
Culture: books, music, shows, movies, magazines
Extra: irregular events such as gifts, repairs, furniture
Establish the goals of the month (e.g. start to save for your summer vacation)
Establish the promises of the month (e.g. stop smoking, buy petrol from the cheapest station)
At the end of the month (and the year) the battle between the “savings pig” and the “expenses wolf” starts: the difference between the initial
budget and the total monthly expenses will give you the monthly savings....
One thing that all kakeibos focus on is food costs, since food spending is both one of the biggest budget categories and one of the easiest areas to
cut down on costs. Generally a kakeibo categorizes food purchases by the nutritional type: carbohydrates, meat and fish, dairy and eggs, vegetable and
fruit, etc. which also gives you a way to see if you are eating a healthy diet. More recent, easier kakeibo may divide it into larger categories like
regular food, fun food (snacks and drinks), eating out, and so on. There are kakeibos that combine budgeting functions with meal planning and recipe