The Japanese are brilliant. They seem to have a simple idea (or vending machine) for everything. I am partially biased here because I love everything Japanese, but if you want to grab a hold of your finances look no further than this extremely useful journal from HarperCollins.
The beauty of the system is in its simplicity. At the start of the month, your income and savings are estimated. Expenses are then divided into five main categories:
- entertainment & leisure
- extras & unforeseen events.
At the end of the month, it is then very easy to see where your precious earnings are leaking away. After a few minor adjustments, you should find that how you spend your money becomes more in tune to your needs. The Kakebo system does not chastise or demand frugality, instead it encourages a greater awareness of when we can spend and when we should hold back.