Kakeibo is a 117-year-old Japanese budgeting technique whereby users have claimed the technique has helped cut monthly expenses by up to 35%. In English, Kakeibo translates to household account book. This budgeting technique requires you to physically handwrite your monthly income, monthly savings goals and expenses. By handwriting your expenses, the idea is you will become more aware of how you spend your money. This technique asks users to answer four questions:
As you handwrite your monthly expenses (ideally as you incur them so you do not forget any), you must group them into one of four categories:
Steps to implement Kakeibo: