definition yen - the Japanese unit of currency
If PanYan is a pickle, is YenYen a savings-craving?
Ideas from The Land of The Rising Sun are certainly trying to have an influence on us lately. First Marie Kondo had us all tidying our homes, then we all went to do shirin yoku [forest bathing] and now, it seems, we need to be mindful about our spending, and adopt the kakeibo philosophy when dealing with domestic finances.
Kakeibo is the Japanese term for a "Domestic Accounts Journal" [pronounced "kah-keh-boh"]It is a way of managing a weekly/monthly spending plan with a view to meeting savings goals, living within one's means and recognising where the money goes, and developing strategies to spend less and save more.
This journal has recently been published in an English format.
1- At the start of each month write down your money goals, and how much you want to save. Review this each week. Are you on track?
2- Calculate how much money is left after essential bills have been paid each month [divide into weekly amounts]
3- Keep a detailed weekly spending log
4-Reflect each week/month on your progress
5- Write down what steps you could take to meet your goals.
"Oh -I never knew that was how you were supposed to do it - we've been going wrong all these years!" laughed Bob. Most people I know who follow a budget use something similar to this - they just don't consider it to be a Japanese Philosophy. Since my teens I have kept a spending journal like this - at first in a notebook, then for my first 5 years of marriage, using the one at the back of the Good Housekeeping Diary, and then for many years on my computer using the "Quicken" programme. Nowadays I am not quite so diligent - mainly because after 40 years of marriage, I've got a pretty good idea of where the money goes each month, and I can access my credit card/bank balance instantly online. Just occasionally I stop and monitor spending carefully for a few weeks to ensure no new spending patterns have crept in. Keeping diligent track of our financial habits has helped us get through 5 years of studying for ministry, an eleven year mortgage [paid off in nine] and now significant monthly car repayments.
I know that lots of you in Blogland budget carefully - what would you say was your best tip for good financial management? What has helped you most?
I am glad there are things to help people but I get tired of these fads/trends of reinventing the wheel or chucking stuff out!
ReplyDeleteAs you say, they are fads & trends. One minute it is 'decorate with floral fabrics', then it is'chuck out your chintz'. Find what works for you, stick with it, and let others do their own thing!
ReplyDeleteI always learn something new when I read your posts, Angela. My best budget tip is to live beneath your means! I kept a spending log for 3 months, tracking every penny I spent. Then, I set up a budget with various spending categories and kept track of my spending, weekly and monthly. I wrote it all out, by hand. I still do. :)
ReplyDeleteTracking your spending I think is the first step - knowing what happens to your money each month and then deciding if you are happy with the way it is spent. Step 2 would definitely be to save before you spend. Nationwide have brought out a new scheme to help people do that called Payday Saveday. Saving - even if you can only afford £5 a month gives you a buffer against unexpected expenses. My 3rd step would be to open a 'bill account'. Add up all your bills for the year add 10% for the following year inflation divide by 12 and put this amount into an separate account each month and use it only to pay bills never dib in for any other reason and you can be satisfied you will never be short to pay a bill.
ReplyDeleteI always have good intentions of writing down every little thing but I know that I won't stick to it.
ReplyDeleteMy money all comes in at the end/start of the month so I just make sure that I pay the rent, utilities, extra health insurance and one major debt at the start of the month. Then I buy my transit pass for the month, get change for the laundry, put aside my grocery money and then the small amount left goes to my spending allowance.
I then have a PT job that pays 2 middle of the month bills - and then goes to savings - it's not much but it's a bit.
If there is a major expense coming up then that has to be saved for separately by cutting back on groceries and allowance.
I am good about paying the bills first and I know how to stretch the groceries - socializing is my achilles heel. It's not as though I'm gadding about all the time but Toronto is an expensive city with lots to do so going out can add up quickly.
I find it rather amusing that this is yet another trendy thing from Japan when it's what people such as yourself have been peaching for years!
If people need a bit of help with managing limited resources, many churches (including my own) are connected with Christians Against Poverty (CAP) and I can recommend their CAP Money Course - https://capuk.org/i-want-help/courses/cap-money-course/introduction - and if you need it, personal support. And the CAP Money Course uses many of the techniques Ang has mentioned above!
ReplyDeleteThanks for that Bob. CAP is there to give free help and advice to anyone, whether or not they are connected with the church. CAP has been endorsed by Martin Lewis, the Money Saving Expert
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