Kakeibo
a simple way to understand your spending
It is possible to know roughly how much you earn and still be unsure where the money goes. Small purchases, regular payments and unexpected costs can make the overall picture difficult to see.
Kakeibo is a Japanese approach to household budgeting that combines a written record of spending with a brief monthly review. Its guiding questions are simple:
- How much money do I have available?
- How much would I like to save?
- How much am I spending?
- What could I change next month?
How it works
At the beginning of the month, write down your available income, regular commitments and the amount you intend to put aside. What remains is your budget for day-to-day spending.
Record your purchases as you go. In the popular simplified version of kakeibo, spending is organised into four categories: essentials, enjoyment, culture and learning, and unexpected costs.
Once a week, check how much remains. At the end of the month, compare your plan with what actually happened. Which expenses were worthwhile? What did you overlook? What would you like to do differently?
The record gives you something concrete to work with. A purchase can be affordable and still offer little value; another may be worth keeping even when money is tight. The categories help you notice these distinctions.
Getting started
An ordinary notebook and a pen are enough. Choose a realistic savings target and keep the record simple enough to maintain. If there is nothing available to save, the figures can still help you understand the gap between income and commitments.
The downloadable manual below includes a step-by-step guide, a worked example and a monthly worksheet. It presents a practical adaptation of kakeibo, with sources and explanations of the simplifications used.
Download the English manual
