Here is a simple Japanese spending plan that will save you 35% of your income.
Step 1: Use a notebook to record
When starting to save, a lot of people often don’t know which medium to choose to keep the most detailed records. It is best to use a small notebook to record expenses. Writing down expenses yourself helps you remember more information.
The family expense record was invented in Japan by Hani Motoko in 1904. And she is considered the first female journalist in Japan.
Step 2: Plan monthly income
First, start by writing down all your sources of income and how much you actually earn in a month. Create 4 columns corresponding to 4 weeks in 1 month. Then, make a table for each week or even write it in bullet points, columns or whatever style makes it easy to understand and remember.
At the beginning of the month, write the income you are sure to receive in red ink. Then write your monthly expenses in green. Make a note of every single amount, even the smallest, that you have spent.
Step 3: Monthly savings plan
Draw another table that shows how much you want to save each week for each month. It’s important to decide on this amount before you start planning your spending.
Write down any fixed expenses you have for that month, such as rent, utility bills, phone bills, or Internet bills.
Step 4: Plan your monthly expenses
The amount for expenses each month (excluding savings) should be divided into 4 categories. The first category covers living expenses such as food, clothing, gas, household products, etc. The second category covers cultural and educational expenses, which may include tickets to exhibitions. museum or educational courses. The third category is entertainment expenses. And the last item is all other expenses.
Step 5: Analysis at the end of the month
At the end of the month, analyze everything and see if you’re within your planned spending limit. Now you can understand how much you spend on things you don’t really need that month and plan a better budget for the upcoming month.