With the '5%' habit of money, life becomes interesting.

"How do you save money?"

is often talked about, but

"How do you spend money?"

is not talked about much.

However, I believe that how you spend money is what truly reveals your character.

I am not good at saving or spending money, but there is something I have been conscious of for the past few years.

That is the "5%" habit.

Spend 5% of your income on learning, and 5% on society.

Thanks to this habit, I feel that my life has become more interesting, so I would be happy if this provides some insight or serves as a reference for you.

I wrote this note in line with the "#Things I'm thinking about regarding money" note project.

Becoming a "Capital Holder" instead of a "Wealthy Person"

I prefer the idea of being a "capital holder" rather than a "wealthy person."

In Japan, I think there is a strong sense that success equals being wealthy, but I don't think it's just about money.

What I mean by this is the idea that the "capital" a person possesses consists of three types: not just economic capital like money, but also cultural capital like knowledge, and social capital like human networks.

1. Cultural capital (knowledge, etc.)
2. Social capital (human networks, etc.)
3. Economic capital (money, etc.)

This concept of capital is said to have been proposed by Pierre Bourdieu (a French sociologist) in 1972. He classified the capital a person possesses into three categories: economic capital, cultural capital, and social capital.

As cultural capital and social capital accumulate, they lead to your work, and as a result, economic capital also accumulates.

And even if it doesn't lead to economic capital, I feel that as knowledge and human networks accumulate, your options expand and life becomes more interesting.

In other words, it's not about putting economic capital first, but about the sense of accumulating all three types of capital.

5% goes to "learning"

When you hear the word 'investment,' what comes to mind?

The first things that came to my mind were stock investments and real estate investments.

However, I believe the greatest investment is'self-investment.'

It is easy to think only of visible, direct financial investments, but I realized that 'self-investment' from a long-term perspective is essential in the era of the 100-year life.

That is why I started making it a habit to spend 5% of my income on'learning.'

If youdeduct it in advance, I think the hurdle for spending money becomes lower.

In terms of the capital mentioned earlier, this leads to accumulating 'cultural capital.'

Of course, you can learn without spending money, but by thinking 'I will consciously spend 5%,' I have become more aware of things I wasn't interested in before, and I have been able to view it as a long-term investment.

In my case, three years ago was a turning point, and I started actively buying books that I had never read before. I went from reading zero books to reading 100 books a year.

I started reading so-called self-help books, as well as books on output, leadership, and communication, which is how I became able to continue writing these notes every day.

As for the 5% for 'learning,' besides buying books, I spend money on attending seminars and lectures on themes I am interested in, and participating in seminars and online communities.

Recently, I have been participating in management seminars, liberal arts seminars, marketing seminars, and presentation seminars. Especially with liberal arts seminars, although they are by no means immediately useful, I have become able to invest in learning that is important in life.

Until now, even for books or seminars I was slightly interested in, I would think, 'I don't really need to buy this now,' and found it hard to spend money, but by consciously deciding to spend 5%, the hurdle gradually lowers.

5% for 'society'

And, apart from learning, I also make it a point to spend 5% of my income on 'society.'

For example, donations.

'Donations are something only rich people do, right?' you might think. But looking at it globally, that is not the case.

There is something called the World Giving Index published by the UK-based charity Charities Aid Foundation (CAF). Looking at the figures released in 2019, Japan ranks 64th in the world in terms of the percentage of 'people who have made a donation,' with only 23% of people donating. Even in Sri Lanka, which is a much poorer country than Japan, 50% of people donate, and in Indonesia, 69% of people donate.

By the way, I think NPOs come to mind as recipients of donations, but how many NPOs (private, non-profit organizations that engage in social activities) do you think there are in Japan?

Believe it or not, there are said to be about 50,000 NPOs.

When you hear the word 'donation,' you might think of it as something altruistic—that is, doing it for someone else or for society—but for me, it's actually for my own sake.

By making a donation,

the connection between myself and society increases.

The feeling that I am contributing even a little bit to social issues enriches my heart.

It leads to that.

For example, if you compare buying a meal for yourself for 1,000 yen with donating 1,000 yen to an NPO, the latter gives you a sense of fulfillment, like 'I did something good,' which fills your heart.

In terms of the 'capital' concept mentioned earlier, it also leads to the accumulation of 'social capital.'

Recently, there are also monthly supporter programs for donations, where you can donate a fixed amount of money continuously every month. By donating continuously, you can feel a deeper connection, and social issues increasingly become your own personal concern.

I truly respect the aspirations and drive of those working to solve social issues, and just having the feeling of being connected to such people gives me courage.

For those who don't know where to donate, I recommend a service called SOLIO, which allows you to donate by genre.

Donating is not the only way to spend money on 'society.' You could support a crowdfunding campaign run by someone you are connected to, or buy social good products.

By being conscious of 'let's spend 5% on society,' I have become more attuned to donations, crowdfunding, and social good activities.

Something I thought was great recently is 'haishop,' a souvenir shop that only carries social good products.

As of December 2021, they have a store in Shibuya Scramble Square, and the staff explains each item and what kind of social good it creates.

Things like accessories made from collected plastic waste, jam produced and consumed locally in Tokyo, and stationery made entirely from recyclable materials.

Just knowing about these things makes life more interesting. Being able to have a perspective I didn't have before makes the world feel more colorful.

There are many social issues in the world, and I cannot solve them all by myself, nor can I make them all my own personal concern. However, if money starts to circulate to the people who are working on them, even a little, and if more people start spending 5% of their money this way, I think a better cycle will be created.