Should I keep a household account book?

I'm a laid-back Type O!
It's Eru!

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When it comes to money issues like saving and budgeting,
the question is, 'Should I keep a household account book?'

Opinions are always swaying back and forth on this.

How about you?
Do you keep one?
Do you not?

Well, for most people who don't keep a household account book,
the reason is probably it's a hassle...

This time, Eru, who is also a Financial Planner,
will answer that question for you★

As an FP, I don't keep a household account book

That's right! Even though I'm an FP,
I don't keep a household account book!

Did you find that surprising?

I also have a proper reason for not keeping one.

So, let me tell you.

The things you pay every month are fixed

Exactly. Fixed costs.
Things you pay the same amount for every month.

Fixed costs are things like rent, smartphone bills, and commuter pass fees that you have to pay in the same amount every month.

So, you can already figure something out on your own, right!

How much money you need.

Let's calculate that total again.

You might think, 'Wow! I'm paying this much!!'

If you feel that way, I think it's fine to try canceling services you aren't using!

The amount you can spend is fixed.

That's right. To some extent, the amount you can spend is fixed.

Roughly speaking, it's your take-home pay.

I'm sure there are people who have other income too!

So, this formula holds true.

Take-home pay - Fixed costs = Amount you can spend

It's a rough estimate, haha.

Try calculating it once!
You might be able to face reality, thinking, 'Wow... is this really all I have?'

Credit cards are debt.

Now, here is the mindset of, '
If you don't have money to spend, why not just use a credit card?'

I'm not denying credit cards themselves.

In fact, many people use credit cards for things like electricity and gas bills.

You get points too!

Paying by credit card is very convenient because you get points and can pay even if you don't have cash, but you must not forget that it is debt!

Because the bill comes the following month.

That's why I recommend checking the total amount frequently when making credit card payments!!

That way, you'll think, 'Oh, I'll stop using the card for this month.'

I also check on the 10th and 20th of every month.

Of course, sometimes you'll think, 'Wow...', so checking is necessary!

I recommend these articles for saving money!

The meaning of keeping a household account book

So, why is it recommended in the world that we should keep a household account book?

Data analysis

In a word, it's data analysis.

Like, 'I spent X amount on food!' or 'The electricity bill this month was X amount!'

Data comes out.

Then, you start to understand things like,
'I spent more money than usual...' or
'Oh! I managed to save this much this month!'
you start to realize these things.

Alright! Satisfied! Satisfied★

But, you shouldn't just end it there.

Did you achieve your goal?

Collecting data without any meaning is a hassle, right?
After all, data is only meaningful when there is a 'purpose', right?

'Alright! The amount matches perfectly!!'
Feeling refreshed★

Well, that's meaningless.

Feeling refreshed is, frankly speaking,just self-satisfaction.

'Save 1 million yen!' or
'Save 500,000 yen for an overseas trip!' -
a household account book is only meaningful when you have a goal.

A household account book is for thinking about why you can't save money.

A household account book is only useful when you use the data.

If you just want to feel refreshed, wouldn't you rather do something you like more?

If you don't know what your target amount is,you should aim to save an amount that allows you to live comfortably for 3 months without working!

A household account book for your financial 'troubles' and 'goals'.
Let's make good use of it★

Summary

For now, I just set a monthly savings amount and put it aside.
Therefore,
Income - Pre-saved amount = Available money

This formula holds true.

So, I am not currently keeping a household account book.

Nowadays, there are apps that let you keep a household account book just by taking photos, so it might be easy to get started!

Well then, everyone, have a wonderful day★