Find Your Budget Style
February 1, 2024
Budget planning is one of the most important things you can do for your financial well-being. There are many budgeting techniques to help you manage bills and save money—from using an envelope to paying yourself first. But what’s best for you? If you’re still looking for a budgeting method that suits your lifestyle, you might try the Japanese art of kakeibo. Pronounced “kah-KEH-boh.”
Created more than a century ago (fun fact!) by Japan’s first female journalist, kakeibo translates as “household financial ledger” and was designed as a simple budget tool for beginners. But it’s also a philosophy centered on mindful spending and intentional saving.
With kakeibo, you keep a journal and write down your monthly income and expenses, as you do with other budgeting techniques, so you can track where your money is going. Kakeibo uses four spending categories that are slightly different from other budget methods:
- Needs – essentials like housing, food, or transportation.
- Wants – enjoyable but not necessary items, such as clothes or travel.
- Culture – things like books, museums, concerts, or sporting events.
- Unexpected – like medical expenses or home repairs.
Thinking about your budget in this way encourages you to consider how you’ll invest in quality of life as part of your overall spending mix.
Plus, you can doodle in your budget journal! You might draw connections between purchasing trends, use color to highlight end-of-month issues, or add gold stars to show progress against savings goals. You might note behavioral patterns that need fixing or opportunities for additional savings that you’d otherwise miss just plugging numbers into a spreadsheet. It’s like keeping a diary for the dollars you earn and spend.
Kakeibo also suggests you write down your answers to four questions intended to spur reflection each month:
- How much money do you have to spend?
- How much would you like to save?
- How much are you spending (per the four categories above)?
- How can you improve next month? This question, in particular, is designed to help you reflect on your priorities and be intentional in your spending and saving.
Research shows the act of handwriting can help you slow down, focus, and de-stress. It can help boost memory. Journaling can help you take control of your finances by reflecting on why you’re making each purchase. Ultimately, you may be able to save more money while spending less on things you don’t need and more on things you enjoy.
Could kakeibo be the right budget method for you? Grab a pen and notebook and get started!
Visit RCU’s Financial Education Center to find more useful resources for financial self-care.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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