Nothing will shake a 25-year-old more than chat about starting up a pension. Fact.
The concept of saving vast sums of money in a time when more than half of our earnings go on rent is an idea so perplexing that it sends even the strongest of souls into a deep-rooted panic.
Luckily, the Japanese – as always – have our backs.
Literally translated as ‘household finance ledger’, kakeibo relies on you writing down information about your finances and thinking mindfully about your spending habits.
The idea is that by using a pen and paper to chart your incomings and outgoings you’ll have more of a handle on where your money is going each month and be able to save better.
But before you dismiss the simplicity of writing things down as mere zeitgeist, you should know that research backs up the benefits – a 2015 study found that when we write down our goals we’re 33% more likely to achieve them, and some experts believe kakeibo could even cut our spending by 35%.
Special kakeibo journals that are available to buy encourage you to list your fixed income and known expenses at the start of each month and set savings goals for that time period.
At the beginning of each month, you ask yourself four questions:
- How much money do you have?
- How much would you like to put away?
- How much are you actually spending?
- And, how can you improve that? You’re meant to reflect on each of these and think mindfully about the answers.
Like all financial plans, flexible and curated approaches works best. But, outlining a clear black and white goal, you'll have a stark reminder of previous thoughts and future wants.