Happy Friday friends!

We’ve all heard the constant buzz around budgeting. Yelling at us to track your spending, cut back, save more, yadda yadda.

That’s why we want to introduce you to the Japanese budgeting method called Kakeibo (pronounced kah-keh-boh), which roughly translates to: “household financial ledger.”

It’s a journal-based budgeting system that helps you get clear on what you’re earning, what you’re spending, and how you want to manage your money moving forward.

But first, did you catch this week’s Spending intervention?

We talked to Joni, a recently divorced lottery winner, about how she spends money now that she has a lot of it.

💡How to Make Kakeibo Work for You

You can get started today with 5 easy steps.

Step 1: Set yourself up. Grab a notebook or spreadsheet. We have a Spending Planner you can do this in. Check it out here and use code MAY50 at checkout to get an extra 50% off!

• Your total income for the month

• Your fixed expenses (like rent, bills, subscriptions)

• Your savings goal

Step 2: Know what you’re working with. Subtract your fixed expenses and savings goal from your income. That number? That’s what you have to spend on everything else.

Step 3: Divide your spending into four simple categories. The traditional method suggests these four, but we say there’s room to make this part a little more your own

• Needs: groceries, gas, essentials

• Wants: takeout, new clothes, impulse buys

• Culture: books, shows, events

• Unexpected: surprise expenses like car repairs or doctor visits

Step 4: Track everything. Every time you spend money, write it down in your notebook under the right category. Yes, every time. (Don’t worry—it gets easier, we promise.)

Step 5: Reflect at the end of the month. Ask yourself:

• How much did I save?

• Where did my money go?

• What felt worth it? What didn’t? (this is the bread and butter, y’all!)

• How can I improve next month?

That’s it. Really. Sometimes the most effective tools are the simplest.

Wanna hear more about the Kakeibo method? Watch this.

TGIF,
Misti

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