Prepare notes for bookkeeping
Kakeibo always uses a physical notebook and pen to do the bookkeeping. You can use a journal or notepad. However, this principle can also be apply using a spreadsheet on your laptop. You can also use a financial management application on your cellphone.
Categorize your expense
Kakeibo allows us to record and divide expenses into 4 categories, namely: needs, wants, entertainment, and unexpected expenses. Expenditures to meet essential needs such as food, household needs, electricity and telephone bills, education costs, and transportation costs. Optional expenses include shopping, buying gifts, buying makeup, etc. Expenditures for entertainment include subscribing to streaming movies, concert tickets, or buying comics. Additional expenses and unforeseen expenses. For example, hospital fees, buying new gadgets or buying home supplies.
Determine your monthly budget
Write down your fixed income and expenses at the beginning of each month. Do not write down uncertain income such as a gift from a boyfriend or a bonus from the office. You have to make sure that your total expenses don’t exceed your income. You must determine the budget for each category of expenses.
Define your goals
The Kakeibo method also helps achieve your financial goals. Can you save your finances to buy a new gadget, prepare an emergency fund or prepare for your master’s degree? Create specific goals and include the amount you want to achieve. It is not recommended to make general goals such as wanting to be extravagant but still rich.
Then, you can write down solutions that can be done to achieve these goals. For example, reducing buying coffee at cafes or reducing check-out flash sales in e-commerce. My tips, make some financial posts, for example, have 3 savings accounts to receive income, take cash, and shop online. If you plan to save, you can determine the estimated amount of savings by reducing fixed income and expenses.
Track weekly expenses
This is an important component of Kakeibo, which is tracking weekly expenses. This is so that your expenses are following the set budget. In addition, you can also reflect on the reasons for making certain transactions. Maybe you buy something just because of FOMO (Fear of Missing Out) or are afraid to miss the trend. Every night you can record all expenses. Tips from Kakeibo, which is to save your receipts and receipts so you can check them at a later time. If you can’t do this every day, just do it twice a week or at least once a week.
Maybe this method is complicated because it requires you to remain consistent in managing money. But believe me, in the future this will make your life easier. You can be more mindful of every transaction you make and not be confused about where your money is going.
The Kakeibo method allows you to achieve your financial goals. However, every goal must require action so that the goal can be achieved. If at this time you feel like spending excessively which is detrimental, try consulting a professional. You can try to find out why you are behaving this way and how to deal with it through counseling with a psychologist.
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