When I first stumbled upon a faded leather-bound journal tucked away in a Kyoto antique shop, I had no idea it held the secret to one of Japan’s most enduring money-saving methods. Over a hundred years ago, Hani Motoko—Japan’s first female journalist—created Kakeibo (pronounced kah-keh-boh), a household budgeting system that empowered women to take control of their finances. But this wasn’t your typical spreadsheet-style budget—it was personal, mindful, and surprisingly effective. Are you too curious to learn to save money like the Japanese?
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In today’s world of financial apps and one-click purchases, saving money can feel overwhelming.
But Kakeibo brings it back to basics: it slows you down, invites you to reflect, and helps you make intentional decisions.
In this article, we’ll walk through how Kakeibo works, how it differs from typical Western budgeting systems, and how you can easily adapt it to your own life—even if you live in New York or Manchester instead of Tokyo.
What Is Kakeibo? Origins, Philosophy & Core Principles
Kakeibo (家計簿) means “household financial ledger” and was created in 1904 by Hani Motoko as a way for Japanese homemakers to track expenses and make more thoughtful spending choices.
This method sees budgeting as self-care, not restriction. It’s not about depriving yourself—it’s about aligning spending with your values.
This method is based an circles around a mindful Money Framework:
- Spend consciously: Know what you’re spending and why
- Reflect intentionally: Ask yourself key questions each week and month
- Save mindfully: Set realistic goals based on reflection.
Core tools to accomplish it:
- A pen and a notebook (no digital tools needed)
- Four-category spending system
- Weekly and monthly journaling prompts
How Kakeibo Works: The Method to Save money like the japanese in 5 Steps
I really want you to learn this method properly. So, let’s cover how yo too can adapt it to your lifestyle with these 5 simple steps.
1. Set Your Monthly Income and Fixed Expenses
Write down your take-home pay and subtract regular costs like rent, bills, and subscriptions.
Example: $3,200 (income) – $1,800 (fixed costs) = $1,400 discretionary budget
2. Establish a Monthly Savings Goal
Decide how much you want to save. Kakeibo suggests setting a goal before you spend, not after.
Try starting with 10–20% of your discretionary income.
3. Break Spending Into Four Categories
- Needs: Rent, food, utilities
- Wants: Shopping, dining out, beauty products
- Culture: Books, classes, museums
- Unexpected: Repairs, emergencies, birthdays
4. Weekly Tracking and Journaling
Each week, record what you spent in each category. Reflect by asking:
Did this purchase bring me joy or regret?
Was it a need or a want?
How did this purchase made feel afterwards?
5. Monthly Review
Tally up your spending. Compare it to your goal. Reflect without shame:
What worked?
What will I change next month?
Kakeibo vs. Western Budgeting: Why It Feels Different
Now let’s compare how Kakeibo is different from the usual way of budgeting and saving money.
| Feature | Kakeibo | Western Budgeting |
| Format | Papar & Pen | Apps, spreadsheets |
| Focus | Emotion & intention | Numbers & automation |
| Frequency | Weekly reflections | Monthly tracking |
| Categories | 4 Universal buckets | Varies (50/30/20, zero-based, etc) |
| Philosophy | Mindfulness | Efficiency |
Where Western budgeting asks how much—Kakeibo asks WHY?
Why Kakeibo Works: The Psychological and Cultural Factors to Save Money Like The japanese
Now, let’s assess the reasons why this simple method to save money like the Japanese works so well and can be a powerful tool to boost your financial goals.
Cognitive Simplicity: Four categories = easier choices
Memory Retention: Handwriting your expenses improves accountability
Cultural Roots: Japan values shibumi (subtle excellence), and Kakeibo mirrors that by focusing on intention
Reduces Decision Fatigue: Your spending categories are pre-set
Encourages Self-Compassion: Missed a goal? Reflect, don’t punish yourself.
According to behavioral economist Dan Ariely, writing down goals improves commitment and memory retention—core benefits of Kakeibo.
Readers have also loved: Fix Budgeting Mistakes & Get Your Budget Back On Track – 5 Simple Steps
How to Adapt Kakeibo to a Western Lifestyle
In the western hemisphere, our lives might be slightly different from the Japanese. However, there are simple ways that you can adapt Kakeibo to your lifestyle without breaking a sweat.
1. Use Local Currencies and Budget Contexts
Adjust to your country’s cost of living. Don’t compare your budget to others—compare it to your goals
2. Translate the Culture bucket into What Nourishes You
In the West, this might mean therapy, yoga classes, or podcasts—spending that feeds your mind and soul.
3. Adjust Spending Categories for Modern Life
Include tech subscriptions, side hustles, or childcare in “needs” or “wants,” depending on personal context.
4. Blend Analog and Digital
Use a budgeting app to check bank balances, but record expenses and reflections by hand.
5. Use It With Your Family or Partner
Set goals together.
Reflect as a team.
Financial peace becomes a shared journey.
6. Create a Western-Friendly Kakeibo Journal
Plenty of printable templates are available—or make your own with four columns and weekly reflection space.
Who Should Try Kakeibo? And Who Might Not Benefit
Kakeibo Is Great For:
- Women overwhelmed by apps or spreadsheets
- Emotional or impulse spenders
- People who want to connect their values to their money
While Kakeibo can be great for certain groups, this method to save money like the Japanese, might not fit the following groups:
- People who prefer automated systems
- Freelancers with highly irregular income (unless adapted with bi-weekly reviews)
Final Thoughts: A Budget That Helps You Feel, Not Just Count
Kakeibo is more than just a budgeting tool—it’s a mindset shift. It brings peace to your finances, not stress.
It slows you down in a world that’s always rushing you to spend. And it’s surprisingly simple: just a notebook, a pen, and your full attention.
Why not try it for just one month and see how your relationship with money changes?
So, are you ready to give your budget a soul—and save money like the Japanese?
FAQs
Is Kakeibo better than apps like YNAB or Mint?
Not necessarily—it’s different. Kakeibo works best for people who want a reflective, hands-on approach.
Can I use Kakeibo if I have debt?
Yes! Many users find it especially helpful for slowing spending and prioritizing debt payments.
Do I have to journal by hand?
It’s recommended. Handwriting deepens reflection and accountability, which is part of why it works.
How long before I see results?
Most users report a noticeable mindset shift in just a few weeks—and savings results within 1–2 months.
Last Updated on 28th May 2025 by Emma
