Check it out lakjsd,
The other day, I heard about a budgeting method first published in a Japanese women’s magazine from 1904 that's going to change how you think about spending money forever.
And no, this isn't some weird finance bro hack or a clickbait gimmick.
Even though it kinda sounds like it…
It's called Kakeibo (pronounced "kah-keh-boh"), and it's a Japanese budgeting system that's been around for over a century because it actually works.
(Quick disclaimer, this is a little longer than usual because I fucking love this shit. So if you’re pressed for time, skip to the TLDR.)
Here's the coolest part: it was invented by a Japanese journalist born into a former samurai family (she knows ball) named Hani Motoko, who looked at how people were blowing through money without thinking and said, "There's gotta be a better way."
And she was right.
See, most budgeting methods focus on the WHAT.
What did you spend?
What's your balance?
What are your categories?
Kakeibo focuses on the WHY.
Why did you buy that thing?
Why are you spending on this category?
Why are you constantly broke even though you make decent money?
And that shift from "what" to "why" is what makes this method so powerful.
Let’s break it down.
Kakeibo translates to "household financial ledger," which sounds boring as hell but stick with me.
It's basically a mindful spending journal where you write down every single thing you buy and then take time to think about whether you really needed it.
The idea is simple: most people spend money on autopilot. You see something, you want it, you buy it.
You're reacting instead of thinking.
Kakeibo forces you to slow down.
It makes you pause before you swipe that card and ask yourself, "Do I actually need this? Does this align with my goals? Or am I just buying this because I'm bored/stressed/saw it on Instagram?"
And when you start asking those questions, your spending changes.
Fast.
So how’s this shit work?
Here's the framework:
Step 1: At the start of each month, set your budget and savings goal
Before the month even starts, you sit down and map out:
- How much money you have coming in
- How much your fixed expenses are (rent, bills, etc.)
- How much you want to save this month
Don’t overthink it, just be intentional instead of winging it and hoping you don't overdraft.
Step 2: Split your spending into 4 categories
This is where Kakeibo gets smart.
Instead of having 47 different budget categories that you'll never stick to, you only have four:
General: The stuff you can't live without. Rent, groceries, utilities, transportation. The basics.
Wants: The stuff you enjoy but don't need. Eating out, new clothes, that subscription box you forgot you signed up for, your hobbies.
Culture: Books, concerts, museum visits, movies, anything that feeds your brain or soul.
Unexpected extras: The stuff you didn't plan for. Car repairs, medical bills, surprise birthday gifts, emergencies.
That's it.
Four categories.
Simple and (more important) doable.
Step 3: Write down EVERY purchase
This is the part people hate, but it's the important part.
Every time you spend money, you write it down.
Every coffee, grocery run, and impulse Amazon order at 11pm.
All of it.
Now, I know what you're thinking. "Caleb, that sounds exhausting."
You're right. It is.
But here's the thing: when you have to write down that you spent $47 on DoorDash for the third time this week, you start feeling real dumb real fast.
And that feeling?
That's accountability.
I.e., the thing that actually changes your behavior.
You can use a physical journal if you're old school.
Or just use your phone's notes app.
Or (shameless plug alert) you can click here to get more lessons like this + the Dollar Wise budgeting app for 20% OFF…
That way you can track everything automatically so you don't have to manually log every transaction like it's 1904.
Step 4: Review your month
At the end of the month, you sit down and ask yourself four questions:
- How much money do I have?
- How much money did I want to save?
- How much money did I actually spend?
- How can I improve?
This is where the magic happens.
You realize you're spending $200/month on coffee…
Or that you're dropping $150 on subscriptions you don't use.
Or that your "Wants" category is eating up 40% of your income.
And once you SEE it, you can't unsee it.
You can't keep lying to yourself about where your money's going. You can't pretend you're "doing fine" when the numbers are staring you in the face.
You finally have clarity.
And clarity is what lets you make better decisions.
See, most budgets fail because they're too rigid.
They assume you're a robot who never has a bad day, never gets invited to a wedding, never has an unexpected expense.
They make you feel like you failed every time you spend money on something that wasn't in the plan.
Kakeibo is different.
It doesn't punish you for being human.
Instead, it asks you to be honest about your spending and intentional about your choices.
It's about awareness > deprivation.
When you write down that $60 you spent on takeout (or see it in the Dollar Wise app you get FREE with your Master Your Money membership, currently 20% OFF), Kakeibo doesn't say "You're bad with money."
It says, "Okay, you spent $60 on takeout. Why? Were you too tired to cook? Did you forget to meal prep? Are you stressed and using food as comfort?"
And when you answer that question honestly, you can start fixing the ROOT problem instead of just beating yourself up about the symptom.
That's why people who use Kakeibo end up saving way more money than people who use traditional budgets.
Because they're not just tracking spending.
They're tracking behavior.
TLDR: If you wanna try it yourself…
You don't need anything fancy to start.
Here's what you do:
Grab a notebook or open a notes app on your phone
Write down today's date.
Write down how much money you have right now.
Set a savings goal for this month
Even if it's just $50, pick a number and commit to it.
Start tracking every purchase
Every. Single. One.
Write down what you bought, how much it cost, and which category it goes in (General, Wants, Culture, or Unexpected).
At the end of each day, review your spending
This takes 2 minutes.
Just look at what you spent and ask yourself, "Did I need that? Does that align with my goals?"
You don't have to be perfect.
You just have to be honest.
At the end of the month, do your review
Look at the numbers to see where you overspent and where you did well.
Now ask yourself how you can improve next month.
Repeat as needed.
That's it.
That's the whole system.
And here's what I love about Kakeibo: it treats you like an adult.
It doesn't tell you what you can and can't buy or make you feel guilty for spending money.
It just asks you to think before you spend.
And when you do that, everything changes.
You stop impulse buying because you don't want to write down another dumb purchase.
You stop overspending on takeout because you're tired of seeing that number balloon every month.
You start prioritizing the things that actually matter to you instead of blowing money on stuff you forget about a week later.
And you finally feel in control of your money instead of constantly wondering where it all went.
That's the power of mindful spending.
And that's what Kakeibo teaches you.
If you've tried budgets before and they didn't stick, try Kakeibo.
If you're tired of feeling like money just slips through your fingers, try Kakeibo.
If you want to save more but don't want to feel like you're punishing yourself, try Kakeibo.
It's been around for 120 years because it works.
You got this, Pookie.
Taquitos,
Caleb "Mindful Spending Is The Move" Hammer
P.S. The best part about Kakeibo?
You can start right now.
You don't need to wait until the 1st of the month.
Just grab your phone, open your notes app, and start tracking.
The sooner you start, the sooner you'll see where your money's actually going.
And trust me, you're gonna be surprised.
Want help?
Click here to get Master Your Money for 20% OFF and finally get control of your finances.
And if you hate it after 7 days, we’ll give you a refund.
See ya soon.
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