The secret of money making

Everyone wants to be rich, but what stops us from becoming rich?. It's ourselves indeed. Most of our money slips through our hands. We spend a lot buying useless products. And many spend more than their income. All these habits will drag us from being financially independent.

Here in this article let us see a Japanese budgeting method being followed since the 19th century. Japan in the old days, was a very cultural and agricultural country. But now, it is one of the world's biggest economy. How does this happen?. Because everybody in japan is experts in personal finance. The popular and effective budgeting method followed is the Kakeibo method of budgeting. Kakeibo means a household accounting book. The idea is to cut down unwanted expenses and improve savings. Based on this there four main questions arose.

#1 How much money would you like to save?
#2 How much money would you like to spend?
#3 How much money you have?
#4 How can you improve your life?

You are required to have two books for this. A small one and a big one. This big one will be in your home used to write down your income, expenses, and plan your savings. The small one has to be carried around by you to write down all your daily expenses. By this, you won't miss a penny at your expense. Record all your monthly income and plan your monthly budget as four split categories.
#1 Expenses on living: Food, gasoline, house rent, needed clothing, and medicine.
#2 Education: Course fees and books.
#3 Entertainment: Movies, hanging out with friends, parties, etc.
#4 Other expenses: Everything that doesn't fall in all three above segregation.

By doing this, you can monitor the path of your expense and then plan how to minimize the expenses. It is also recommended to invest the savings every month in so many investment options available. By doing this, you will probably improve your financial capacity and will have more money in your hands. If you are planning for any luxury purchases, Postponed it a month, and if you still want that product buy it or else don't. Hope this helps you to improve your idea of personal finance and savings.
Have a great day :)