A Simple Japanese Money Trick to Become 35% Richer

A Simple Japanese Money Trick to Become 35% Richer


Have you ever wanted to save money for a trip
to Europe, a new car, or something big you can’t afford all at once? Then you know how money has a magical ability
to disappear overnight, right after payday. But it looks like the Japanese know the secret
to making it stay in your wallet longer, and even multiply there. The Kakeibo (ka-KAY-bow) method of budgeting
is growing popular all over the world, and for a good reason. Why listen to the Japanese? A hundred years ago, Japan was a traditional
agricultural country – nothing like how we know it now. No robots, uh uh. How did it manage to become the most technology-savvy
country, with a developed economy and one of the highest living standards? One of the reasons is the high financial competence
of the Japanese themselves. They’re experts in personal finance. They use Kakeibo. Which means they don’t buy that third handbag
in 2 months and manage to save up to 35% of their income. Sound good? Then be ready to take notes. “Kakeibo” translates to “household account
book.” It’s a notebook where you write down your
income and expenses. Long before any financial apps or digital
tables appeared, the Japanese had this system of writing up a budget. And it keeps working today. The idea of this saving tool is to track how
much you earn and spend in detail. Its final goal is to increase your savings. Look simple? It is. No apps, no technology, no tricky calculations. That’s the point: you rule out everything
that’s not necessary and focus on your habits and decisions. This is how Fumiko Chiba, the author of the
book “Kakeibo: The Japanese Art of Budgeting Saving Money” explains the efficiency of
the method. Kakeibo appeared in 1904 and grew popular
thanks to the first woman journalist in Japan – Hani Motoko, who sold it to a wide audience. Chiba says that even though Japan is still
a traditional country in many ways, Kakeibo gave women freedom and control over financial
decisions. Dozens of books, magazines and articles devoted
to Kakeibo are published in the country every year. Kakeibo fans know that reasonable budgeting
helps you save money. Instead of thinking about things that you
can’t afford, you switch your attention to what’s important, and what you can spend your
money on. Kakeibo is based on 4 main questions:
1. How much money do you have? 2. How much would you like to save? 3. How much do you spend? 4. How can you make things better? To draw up a Kakeibo style budget, you’ll
need 2 notebooks – a big and a small one. You can buy special Kakeibo journals, but
any kind will work. You’ll use the big one to write down your
income, and plan expenses and savings. As for the small one, you’ll be carrying
it around with you to record all the expenses in real time, so you don’t forget a single
cent. Using the small notebook is easy: you just
make a note every time you spend money. You can organize the big notebook as you wish,
but it must reflect the following points: A monthly income plan. It can be done as a table or a bullet list. You’ll need to record all the money you
get as income: advance payment, salary, debt return, money you get from selling a secondhand
laptop, etc. At the beginning of the month, you put the
income you know for sure you’ll get into the table. You can add notes about the extra money in
a different color or in block letters. A monthly savings plan. You write down how much money you’d like
to put in a money-box or a savings account. It’s important to decide this amount before
you start planning your expenses. A monthly expenses plan. Here, you write down your common expenses:
utility bills, apartment rent, mobile and internet bills. The money that’s left after you deduct common
expenses and the sum you want to save should be divided into 4 categories:
• Expenses on living. Here you include food, household cleaning
products, clothes, medicine, gas or subway pass, etc. • Culture and education. Courses, training, tickets to museums, and
books will fall into this category. • Entertainment. Having fun will be recorded too, and this
might be the black hole eating up your money! This includes meetings with friends, movies,
short trips, restaurants, cosmetics and the clothes you don’t need. You might argue that a person can’t survive
without another lipstick and 5 pairs of jeans, but Kakeibo is merciless. That’s why it works so well! • Ok, the final category is “others”. It’s for everything else that wasn’t mentioned
in the last 3 categories. It’s up to you to decide the ratio between
the 4 categories. If you plan wisely, it won’t be difficult
to stay within the limits during the month. At the end of each month you’ll analyze
if you’ve managed to follow the plan and save or spend extra money. It’ll allow you to draw up a more exact
budget for the next month and see what expenses need to be corrected. Even if you don’t have a big plan to save
much, you’ll see where most of the money goes. For example, you might spend too much on food. How can you spend less? You might think about skipping lunch at a
restaurant or cooking at home instead of taking out your dinner. You’ll be amazed at how much you can save
on tips only. If a shopping spree is your favorite hobby,
you’ll have to face the figures when you write down everything you buy. Half of the joy goes away when you have to
record your bills. If you do think big and are already driving
a new car in your dreams, here are some other tricks that’ll help you save more. 1. In the evening, put all the odd money that
you’ve got in your pockets in a money-box. What seems like a handful of coins will turn
into a solid sum at the end of the month. 2. Put all the returned debts to the money-box. In fact, it’s not an income. You just get back money that was taken away
from you before. After all, you’ve managed to live without
it all this time. 3. When changing money, put a small amount into
the money-box. 1-2 dollars are enough, later they’ll turn
into a bigger sum. 4. Every time you buy something, round the sum
up. Say, if you have a $74 bill, round it to a
$100 and put the other $26 into the money-box. It’s a great tool that’ll allow you to save
daily. 5. Work out a system of penalties for yourself. You can “punish” yourself financially
for bad habits like skipping the gym or having an argument with a partner or friend. Each time, put a dollar in your money-box. If that’s not enough motivation, let it
be $10. But don’t be too harsh on yourself! You’ll benefit from this anyway: either
you’ll get rich or you’ll be more disciplined. 6. Divide the money you’re going to spend during
the month into 4 parts. Everything that’s left from the 7-day budget
will go to the money-box too. 7. Put off any non-urgent purchases for a month. If you still want to buy it after that, then
do it. This will save you from impulsive shopping,
which can damage any budget. 8. Always make a shopping list before you go
to the supermarket. This piece of advice is as old as the hills,
but who actually follows it? Kakeibo fans do, and it works for them. You probably wonder why the most technologically
advanced nation keeps writing things down instead of putting everything on an app. Fumiko Chiba says that Kakeibo makes you focus
on your financial goals better than any digital devices. Research shows that we remember something
we’ve written down better than something typed on a keyboard. The writing process activates the part of
the brain that lets the information pass directly into memory. Typing doesn’t do that: our hands work automatically. That’s why motor memory is almost everlasting. Say, if you want to learn Japanese or French,
or any other language, it’s best to write down new words. If you skip that step, they’ll leave your
memory as quickly as you close the laptop. Writing makes the process personal. We internalize everything we write by hand;
it becomes more important to us. So, that explains why high-tech apps might
not work as well as an old-fashioned pen and notebook. As you see, the Japanese method of budgeting
is simple and efficient. Hundreds of thousands of people around the
world have become better off following the Kakeibo plan. Do you want to try it too? Or you prefer digital methods? Let me know down in the comments! If you learned something new today, then give
this video a like and share it with a friend. But – hey! – don’t go counting your
spare change just yet! We have over 2,000 cool videos for you to
check out. All you have to do is pick the left or right
video, click on it, and enjoy! Stay on the Bright Side of life!

100 Comments

  • BRIGHT SIDE

    June 26, 2019

    Hey there, BrightSiders! How much money did you manage to save last week?

    Reply
  • LIBqueen

    August 12, 2019

    There's an app for that…probably

    Reply
  • Kowsi Bu

    August 12, 2019

    It's a app in playstore

    Reply
  • Mansoor Ali Bozdar

    August 12, 2019

    Wo good

    Reply
  • Brushed by Namira

    August 12, 2019

    Is this even possible for freelancers? 😕

    Reply
  • CyreneQ

    August 17, 2019

    I'll be too busy writing and trying to do all that math to even think about spending money.

    Reply
  • Francoise Thepot

    August 18, 2019

    this is what i call budgeting

    Reply
  • Sabah Taha

    August 19, 2019

    Japan has the highest national debt in fhe world dude

    Reply
  • Zelmira Cholevova

    August 20, 2019

    Thank you, very smart.

    Reply
  • i.Flex TV

    August 22, 2019

    Amazing 👍🏼

    Reply
  • carol annjeanette

    August 23, 2019

    I always do this since i wss a kid. Never know it was a thing- lol

    Reply
  • Jesus Alam

    August 24, 2019

    Wow that's GOOD ONE

    Reply
  • ASTRO INTERNATIONAL PVT LTD

    August 24, 2019

    Japan a country like no other 🇯🇵🙌🏻

    Reply
  • Christopher Mayuran

    August 25, 2019

    thank u

    Reply
  • viral minds

    August 25, 2019

    How to make animation like this

    Reply
  • Vasanth Kumar

    August 25, 2019

    India is similar to japanese

    Reply
  • Abir Ahmed Tanvir

    August 25, 2019

    Valuable Video, Thanks ✨

    Reply
  • Marzo M3

    August 26, 2019

    Hahaha luckily I use galaxy note 9, so i still can write and using teachnology 🤣

    Reply
  • video rate

    August 26, 2019

    My wife is philipino and practices reverse Kakeibo. I practice Kakeibo in my head..

    Reply
  • cesar jr. ibanez

    August 26, 2019

    Kakeibo Ooooommm!!! Hahaha

    Reply
  • Tenzin Tendar

    August 28, 2019

    What about investment?

    Reply
  • Dovahkiin Lonep

    August 28, 2019

    I practice a similiar to this one but i just rule out the things i need to pay like Gas for the car and bills and everytime i go shoping ill just ask my self do i need this or not amd if i do how can i save and if i simply want something i dont buy it 1st hand ill just keep on passing by it a couple of time for most of the time ita just a reflex that u just want it at that time but soon you will not pay attention to it. 😁 and always collect the change especially the coins and save it. So far saved $4k from mga $5k savings for the past 5 months. Since earning it is not easy onboard merchant ships.

    Reply
  • danjel hysenaj

    August 29, 2019

    I have practised this before showing this video and I didn't know that the name was kaikaibo 🙂 Thank you as always you guys do a great content and enjoying your information and knowledge sharing!

    Reply
  • Padmini Mansingh

    August 29, 2019

    I have no income yet,

    Reply
  • JAY DIVASALIWALA

    September 1, 2019

    Any Indian?

    Reply
  • Robert Adkins

    September 2, 2019

    Well that sounds quite interesting and disciplined, but I have dealt with alot of Chinese, and japanese and can honestly tell you they are extremely cheap motherfuckers also

    Reply
  • Punit Gupta

    September 2, 2019

    You dont need to go through all this rigmarole. Just put 30% of your paycheck every month in a mid term fixed deposit. Your lifestyle will take care of itself.

    Reply
  • kiran taur

    September 2, 2019

    Let's have try to it

    Reply
  • Olajuwon Uthman farouq

    September 2, 2019

    I love this voice better than the rest

    Reply
  • Mind isEverything

    September 3, 2019

    Stop buying drugs and hookers for 6 months. Problem solved.

    Reply
  • SCORES FOCUS

    September 3, 2019

    Was this a excel notebook.?

    Reply
  • Martin Ziggy

    September 4, 2019

    Kakeibo is amazing!

    Reply
  • Zafran Ossen

    September 4, 2019

    Super technice 👍👍

    Reply
  • S. Angel

    September 4, 2019

    One of the reasons is they have a higher IQ and isn't fooled and tricked into being over consumers…making their own iPhone for 5 bucks while you bought yours for 900.00 🤷🏽‍♀️

    Reply
  • cyberswarup

    September 4, 2019

    A new Japanese word 'kakeibo' after doraemon, nobita, sizuka, jian, shinchan, himawary, etc.

    Reply
  • NamiSaysHi

    September 5, 2019

    The real trick to saving money is…

    not wasting it on stuff you don't need

    Reply
  • MacAutomationTips

    September 6, 2019

    I’ve been using YouNeedABudget to nearly everything the Kakeibo method requires, but without using paper notebooks and tediously writing down financial transactions.

    With YNAB, all my transactions are downloaded into the app, and I assign my various spending to my budget categories.

    The key difference with YNAB is it includes also planning and budgeting for true expenses like holidays, car maintenance and insurance, vacation and travel, etc.

    YNAB is cross platform, which means I can access it on my iPhone and desktop. It's the best subscription I use and it helps me to always keep money in my checking and savings accounts.

    Reply
  • Hippo Jet

    September 6, 2019

    whaaaaat? headache i have headache from video…ow

    Reply
  • Krishna Rao

    September 7, 2019

    Reminds me of Nobita's Mom

    Reply
  • Connie Montenegro

    September 9, 2019

    its always necessary to save for lnterest but not advisable to put in a total 100 percent, most especially the low income persons. get an lnvestment that can multiply your lncome so as to avoid being totally broke

    Reply
  • Anand Ramanathan

    September 9, 2019

    Very helpful. Thanks

    Reply
  • Frank P.

    September 9, 2019

    Don't think it makes u richer. Just pretty much managing/budgeting. You do that, you can't buy stuff u want. You do that, u can save a sum to spend. So spend now or save and spend later.

    Reply
  • Gaurav Pal

    September 9, 2019

    Digital

    Reply
  • curious gamer

    September 10, 2019

    So i'm guessing in english it's called common sense?

    Reply
  • AEW sMark

    September 12, 2019

    I been doing this. Just didn't have a fancy name for it

    Reply
  • Simonas Zickus

    September 12, 2019

    Not sure why you need to you use cash and paper notes since it is XXI century. We have been using credit card to pay for stuff and excel sheet to record it.

    Reply
  • yousuf Hassan

    September 12, 2019

    Good points

    Reply
  • Success Stories

    September 13, 2019

    Just earn and invest

    Reply
  • D Keo

    September 14, 2019

    I could save money if I just didnt go to college, got married and had kids.

    Reply
  • roger moody

    September 14, 2019

    I still like Marie Kondo!

    Reply
  • Swee Loong Thong

    September 14, 2019

    I love Japan!

    Reply
  • jamal jan

    September 14, 2019

    It's the same thing in most Asian countries

    Reply
  • A B

    September 14, 2019

    I decided to save up the cash left from my school lunch money. Every week I store every cent left from the week before into a jar.

    Reply
  • Sudhesh Sankar KK

    September 15, 2019

    Thank you thank you thank you for sharing 🙏🙏🙏

    Reply
  • olga sena Malyamungu

    September 16, 2019

    Thank you for the tips.
    Remember this: money seating in your account is for the bank to use! Do not live to save rather save with the intention to invest. Make money work for you not the other way around. No one has ever become wealthy by saving their entire life. Be an elite and build for generations.

    Reply
  • pleiades

    September 16, 2019

    Stop buying grains sugar dairy. You will eat less and save a fortune. You will be healthier and ditch medical insurance. Become your own doctors

    Reply
  • Evropa Khan

    September 16, 2019

    Currency is a crazy human construct.

    Reply
  • Maeren Rose Kadusale

    September 17, 2019

    Been doing this since ever haha At least now I know the term Kakeibo 😁

    Reply
  • Balázs Sebestyén

    September 18, 2019

    "You will be amazed how much you can save on tips only". ROFL

    Reply
  • surfman88

    September 18, 2019

    Excel your bank account and do the same works well as well

    Reply
  • Sunny Meshram

    September 20, 2019

    Bakvas

    Reply
  • Jeremy Wansbrough

    September 21, 2019

    money docent disappear you have to be a total [email protected]#$%^&*() to not already know this.

    Reply
  • Burak Kaan Kızılkan

    September 22, 2019

    it was a nice idea until you focus on cutting expenses instead of increasing income. that's small thinking, that's competitive thinking. there is enough resources for ALL OF US to be rich. pinch pennies? buying one less pair of jeans, restricting ourselves to not have too much fun? that's pathetic! we're human, we have created money and we can do MUCH better.

    Reply
  • Bluespy14

    September 22, 2019

    Put $1 in every time you complain about someone or something. I will try this

    Reply
  • Veronica Gallagher

    September 24, 2019

    I saved quite a bit of money from stop wearing makeup. I hope this helps even one person! I have learned to accept myself as I am and not worry about what others think. Thanks for the video, as always, Brighside!

    Reply
  • shota guruli

    September 25, 2019

    If your income is only 160$ I do not think that there is any kind of method to help u there :/

    Reply
  • Hassan Gillani

    September 26, 2019

    It doesn't work. As I don't have income.
    😑😔

    Reply
  • Tunde Edun

    September 28, 2019

    In cars business #

    Reply
  • MA Vlogs

    September 30, 2019

    Such a great information. I will try it

    Reply
  • Raghuram .p.b

    October 1, 2019

    This happens in India too except some fancy books written for it.

    Reply
  • Deepika Shrestha

    October 3, 2019

    Am I the only jobless who's watching this 😂

    Reply
  • Calinescu Alexandru

    October 3, 2019

    Good video.

    Reply
  • Adeel Siddiqui

    October 4, 2019

    I prefer digital

    Reply
  • Archangel Tyrael

    October 4, 2019

    So save your money so you can spent it on something you don't need?

    Reply
  • Iraj Matthee

    October 5, 2019

    Pen to paper has another advantage, computer hackers won't known your budgeting business 😉

    Reply
  • Tony Faxton

    October 7, 2019

    We are talking about country, with the most amount of DEBT in the entire world? Went bankrupt almost TWICE, and during this financial crisis, wiped those precious savings of Japanese Kakeibo, pushing the population to suffer for 2 decades with deflation? The country who can't even pay for its own Olympic games next year, that they have to play baseball game right next nuclear waste site, and government is planning to release nuclear waste into Pacific Ocean because it's cheaper? LOL. Yeah, right Japan is wealthy country alright.

    Reply
  • RBQITEC

    October 7, 2019

    Well. it's called minimalism

    Reply
  • Niki Weissenbäck

    October 8, 2019

    Japan is the number one Country when it cones to debts so…. I wouldn’t say they can manage money that well and it isn’t a booming economy

    Reply
  • Andrew Hall

    October 8, 2019

    You talk a lot and say NOTHING.

    Reply
  • Chocolate Marshmallow

    October 8, 2019

    My way to save up money

    When i have extra money in my wallet from school i always have to put it on my saving wallet and i try my best to save up a lot even tho chinese new year gives me money alreadyi still save up in to my bank account . I don’t spend a lot like my sister on a shopping spree or anything else useless like makeup , purses and others that don’t get me satisfied . If this works for you make the button blue and try my tip

    Reply
  • GopiKrishnan Jayaraman

    October 11, 2019

    Oh.. you named this stuff? Thanks.

    Reply
  • Yogesh Suthar

    October 11, 2019

    what about note 10 and s-pen

    Reply
  • Sam Kingsway

    October 12, 2019

    I can't give up going out for dinner. Other things can suffer. Don't need new clothes. Have a ton. lol… But going out for a nice meal and a glass of wine is super important to happiness in my life. Plus, I have children. That is not included in this… Kidding. It's the need. The biggest one of all. Thumbs up if your children come first.

    Reply
  • Alien SpaceX

    October 14, 2019

    It's described in Indian scriptures 3000 years ago.

    Reply
  • JOOR

    October 15, 2019

    Lol we all know that japan is a capital of slavery

    Reply
  • James Stencil

    October 16, 2019

    Finally!! A super great video from this channel again. I have been watching for ever.. now it is here.. good work thank you😊

    Reply
  • anurag deere

    October 16, 2019

    Awesome video

    Reply
  • CryptoCrazyJoe

    October 16, 2019

    only problem is that in 21 century your money loosing value if they sitting cold(saving)…….good idea wrong century

    Reply
  • R. A.

    October 17, 2019

    Saving isn't such a special technique invented by the Japanese. Westerners are weird people to spend money they don't have.

    Reply
  • Muna War

    October 17, 2019

    i think KAKEIBO is the very effective way of money discipline

    Reply
  • Advocatus Diablo

    October 22, 2019

    Perhaps the Japanese government may benefit from this video

    Reply
  • HelpiconTV

    October 22, 2019

    How did Japan become the country it is today?
    Apparently, we have a very short memory.
    Do we recall that the USA actually helped Japan after the war, or that Japan was known for ‘China-like’ cheap merchandise? I love japan and it’s people, but we can’t rewrite history.

    Reply
  • M2tO

    October 23, 2019

    When you do Kakeibo and everything turns out perfect at the end of the month:

    „Just According to Keikaku“

    Reply
  • しますお願い

    October 30, 2019

    they save and then you'll see alot of then after alot of work stress they end up in drinking and gambling in PACHINKO 🙂

    Reply
  • Herry Tjoa

    November 2, 2019

    Actually i did this kakeibo long ago. But i dont write down every expenses. I using money lover app to track all my expenses. And i write down expenses and profit report at the end of the month, then i start budgeting next month expenses, i also cut down these expense that is not nessecary. I also divide my expenses into 5 category ( living – social – entertainment – future – girlfriend ) and divide my income into 3 category ( Daily spend 50% – Future / emergency fund 30% – Invest 20% ) when iam short in cash by living, i will try any way not to touch other budgets. And now i just divide my expenses and income by the end of the week. I know its hard to do. But when you get it. The money you save can take you travel around the world. I just using that money go to thailand – singapore – malaysia – taiwan. And now i have my budget to marry my girlfriend 🙂

    Reply
  • Riley Lee

    November 3, 2019

    Kakeibo definitely

    Reply
  • anuja mestry

    November 12, 2019

    How do cosmetics come into the entertainment category? For some of us it is a necessity unless you overspend on multiple products

    Reply
  • Xercister

    November 13, 2019

    I should have written this down…

    Reply
  • TheBlueQuasar

    November 17, 2019

    Probably your best video.

    Reply
  • Çarlo ruze Dymlair

    November 18, 2019

    Informative

    Reply

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