Decluttering Log | I stopped keeping a 'household account book' and started saving money. My super simple household budget management method that has lasted 20 years

“To save money, first understand the flow of money in and out.”

This is a phrase you will almost certainly find written in any book on household budget management. I certainly agree that it is true. However, when you actually go to a bookstore to start a 'household account book' and flip through the notebooks on sale, you see a mountain of entry categories lined up.

Food expenses, daily necessities, social expenses, education expenses, fixed costs... Have you ever had the experience of quietly closing the book in front of those finely divided pages, thinking, 'There is no way I can keep this up'?

Actually, I am one of those people. The more determined I was to manage things strictly, the more of a burden the account book became, and before I knew it, I stopped opening it. As a result of repeating such failures, what I arrived at was discarding the very term 'household account book'.

The comfort of calling it a 'pocket money ledger' instead of a 'household account book'

The 'ideal household account books' lined up in bookstores are all beautiful and functional. However, that very meticulousness was the biggest hurdle for me.

“Vegetables are food expenses, but detergent is a consumable. But how should I divide them if I bought them together at the supermarket?” “Is this entertainment expense? Or is it self-investment?”

The more categories there are, the more time and energy are stolen by 'worrying' rather than writing. While chasing discrepancies of a single yen and tilting my head at numbers that don't add up, the original goal of 'grasping the flow of money' is replaced by 'the task of making ends meet' before I know it.

So, I deliberately stopped calling it a 'household account book.' Instead, I named it a 'pocket money ledger,' a term I was familiar with as a child.

When you hear 'household account book,' you feel the 'weight' of your family's future and household responsibilities, but with a pocket money ledger, it is a pass as long as you know 'how much came in and how much was spent.' I used to use Excel, and now I have moved to Google Sheets, but the content is surprisingly rough and simple.

Disclosure: There are only '5' input items

The content of the spreadsheet I have been using for 5 years is surprisingly simple. There are only 5 columns prepared.

1. Date: The day money was spent

2. Source of funds (type): Credit card, cash, electronic money, etc.

3. Major category (classification): Rough classification such as food, consumables, hobbies, etc.

4. Minor category (details): A note that makes sense when looking back, such as groceries, medical expenses, books, etc.

5. Amount: Amount spent

That is all. Other than that, I just prepare a cell to enter the monthly pocket money amount and set one simple formula to subtract the 'total expenditure' from it.

The balance (goal) of 'how much I can spend for the rest of the month' is always displayed in real-time. This sense of security from seeing 'where I stand right now' is the key to management.

No totaling, no carrying over. The reason why money still accumulates.

It might come as a surprise, but I don't do any detailed monthly totaling or complicated carry-over work at all.

The important thing is not to analyze past numbers in detail, but the habit of watching money come and go itself. Looking back on a single month and thinking, 'I spent a bit too much this month' or 'I managed to save this month.' As long as you have that kind of outline, that's enough. Rather than worrying about small carry-over amounts, it's much healthier to start a new month with a fresh mindset.

However, it's strange how, by continuing to record things calmly like this, your own 'spending habits' start to stand out.

For example, suppose you look back at your records and realize, 'I buy a lot of bottled drinks at convenience stores without thinking.' Once you realize that, a concrete action like 'I'll bring a water bottle from home tomorrow' naturally emerges.

Instead of trying hard to save money, you view your actions objectively through the mirror of recording. Then, your way of spending money naturally becomes simple and refined.

The secret to longevity, learned over 20 years of practice.

There are two reasons why I have been able to continue this habit for 20 years, including my time managing it in Excel.

One is that I can input from my smartphone at any time. The biggest advantage of using Google Sheets is that you can input from your smartphone the moment you finish a payment, whether you are traveling or at a cafe while out. Eliminating the mental noise of 'I'll do it all later' is the greatest ally of habit formation.

The other is a relaxed approach that doesn't demand perfection. Rather than ending up as a 'three-day monk' by being too serious about a household account book, it's better to let it blend into your daily life as a simple pocket money ledger.

Organizing the flow of money is a continuation of organizing your life. If the flow becomes simple, unnecessary attachments disappear, and as a result, money will follow.

If you are currently worried that you 'can't keep up with a household account book,' please try closing that heavy cover once. And why not start by just writing down the 'amount spent today' on a blank sheet? That 'effortless first step' should be the gateway to a simple and rich life.

Thank you very much for reading until the end.