In 2019 KonMari was all the craze in the US.
Playing off the idea of minimalism, KonMari is a personal organization system that emphasizes only keeping possessions that “spark joy.” Meaning followers typically got rid of a lot of stuff, simplifying their lives.
Kakeibo might be the next big thing. Kakeibo translated literally means “household finance ledger.” And the funny thing is- it’s not a new thing! It was created in 1904 but it’s just now catching on in the US.
It’s Based on Four Questions
- How much money do you have available?
- How much would you like to save?
- How much are you spending?
- How can you improve?
Here’s How it Works
At the beginning of the month, write down your income and fixed expenses – things like your water bill, phone bill, natural gas bill, etc. Then, with what’s left, set aside immediately your pre-determined savings amount. After that, all the remaining money falls into four spending categories: survival, optional, culture, and extra.
Choose ahead of time how much of the remaining amount will go into each category.
Survival: food, rent, transport, kids
Optional: eating out, shopping
Culture: books, music, shows, movies, magazines
Extra: irregular events such as gifts, repairs, furniture
Reflection is Key!
Make sure to look back at the end of the month to see how well you did at sticking to your pre-determined budget and adjust to have better success the next month.
Maybe this is for you, maybe not. Whatever budgeting process you choose, our encouragement is- just start somewhere!