Jakarta, CNBC Indonesia – Managing personal finances is a very important skill so that you can be financially independent.

However, people are often confused about how to save properly. So that money can be collected, you can try saving in the Japanese style.

The Japanese have a financial philosophy called kakeibo. Kakeibo is a well-known financial management method that is often used by housewives in Japan. This method was first introduced in 1994 by a journalist named Makoto Hani. In 2017, kakeibo was again popularized through a book written by Fumiko Chiba entitled Kakeibo: The Japanese Art of Saving Money.

Like all financial budgeting, the idea behind kakeibo is to help us understand our relationship with money by recording all expenses and income.

However, what differentiates kakeibo is that it does not use any digital technology such as applications or Excel sheets. Kakeibo emphasizes the importance of physically writing things down – as a meditative way to process and observe your spending habits.

According to the kakeibo method, you should ask yourself the following questions before buying anything:

• Can I live without this item?
• Based on my current financial situation, can I afford it?
• Will I actually use it?
• Do I have room for it?
• How did I first find this item? (Did I see it on Instagram? Did I find it after wandering around the mall because I was bored?)
• How is my emotional state today? (Calm? Stressed? Relieved? Feeling bad about yourself?)
• How do I feel about buying it? (Happy? Excited? So-so? And how long will this feeling last?)

Japanese way of saving

The following is the Japanese Kakeibo savings method that you can follow.

1. Record all income

The first step you need to take is to record all income at the beginning of each month, both from routine income such as monthly salary and additional income.

The Kakeibo method recommends that you record your finances by writing with a pen or pencil in a book so that you really understand what you are recording.

2. Save first, then allocate funds to several posts

The Kakeibo method recommends that you first set aside money to save, then allocate the rest to several expense items. In the Kakeibo method, there are four categories of expenditure items, as follows:

* Survival or basic needs such as food costs, bills, installments and other obligations.
* Optional or secondary needs include entertainment, eating out, and so on.
* Culture or the need for additional insight, for example books, films, magazines, and so on.
* Extras or other expenses such as buying gifts for children's friends' birthdays, money to mourn neighbors, and so on.

3. Wait 24 hours before purchasing items

Japanese people usually consider for a long time before deciding to buy goods. Try not to get into the habit of buying things you like immediately after seeing them.

Think ahead for at least a full day to see whether the item is just a want or a real need. If you are still thinking about the item after one day, the item meets your needs, and finances are sufficient, buy the item.

4. Check your account balance frequently

Frequently checking your remaining account balance can help you control your finances. Because, this will help you to focus on managing the amount of money you have to spend.

5. Create a reminder in your wallet

One interesting trick you can do to save money is to insert a reminder note in your wallet with the words “Do you REALLY need this item?”

In this way, you will remember to always make considerations before making a shopping transaction.

6. Make transactions using cash

Transactions using a debit or credit card often make someone unaware of the amount of money being spent. Therefore, try to make transactions with cash so that you can be more aware of how much money you have spent on shopping.

[Gambas:Video CNBC]

(hsy/hsy)