I’d always considered myself decent with money. Bills were paid on time, savings slowly built up, and splurges were carefully planned. But like many, I struggled with the nagging feeling that I wasn’t maximizing my financial potential.
That’s why, over the past two months, I decided to pit two popular budgeting methods head-to-head: Japan’s “Kakeibo” versus the trendy “cash stuffing” method. The results genuinely surprised me.
Let’s dive into what happened
What is the kakeibo method?
The first month, I immersed myself in Kakeibo, the Japanese budgeting practice meaning “household finance ledger.” At its core, Kakeibo involves meticulous tracking of every expense using pen and paper, categorizing spending into needs, wants, culture, and unexpected expenses.
Each Sunday evening, I’d sit with my notebook, reflecting on the previous week’s spending and planning for the next. This mindful approach encouraged intentionality. Instead of impulsively tapping my debit card, I found myself genuinely questioning purchases, “Do I truly need this?” or “How will this add value to my life?”
The Kakeibo method slowed me down—in a good way.
Getting hands-on with cash stuffing
For month two, I switched gears completely and dove into cash stuffing. Popularized on social media platforms like TikTok, cash stuffing means withdrawing your entire budget for the month, dividing it into labeled envelopes (groceries, dining out, entertainment), and spending only from these envelopes.
Admittedly, I initially found this method more intimidating. Carrying around cash felt foreign—like something my grandparents might do. But very quickly, I saw the charm. Watching the physical cash diminish made me profoundly aware of every dollar spent.
Still, lugging around envelopes everywhere was cumbersome and not always practical.
Which method saved me more money?
After meticulously keeping track, I was ready to crunch the numbers. My expectation was that the cash stuffing method would win out—it seemed inherently stricter and therefore better at cutting spending.
Surprisingly, I saved more using Kakeibo. About 15% more, in fact.
While cash stuffing prevented mindless spending, I found myself bending the rules. If one envelope ran out early, I’d sometimes “borrow” from another. With Kakeibo, the weekly reflective practice seemed to alter my spending behavior more fundamentally.
Why did Kakeibo work better?
I believe it comes down to mindfulness and accountability. Studies suggest that physically writing down expenses makes us more conscious of spending decisions. A 2020 survey by budgeting app Mint found that those who wrote down expenditures saved approximately 10-20% more annually.
In my own experience, the act of writing forced me to confront financial choices immediately, reducing impulsivity. Kakeibo made me feel more connected to my financial reality, prompting better long-term habits rather than short-term restraints.
Cash stuffing: effective but stressful
Now, don’t get me wrong, cash stuffing had clear benefits. The visual cue of dwindling cash was powerful. I vividly remember hesitating before buying takeaway coffee—those dollars disappearing felt tangible.
But cash stuffing felt restrictive to the point of anxiety at times. An unplanned outing with friends left me scrambling. Plus, relying solely on cash can be unrealistic in today’s increasingly digital world. Many times, especially online shopping, I had to juggle between digital payments and cash, complicating my budgeting.
The supermarket test
Grocery shopping with cash envelopes turned into a constant mental math exercise. “Can I afford this cereal, or will I run short on vegetables later?” Meanwhile, with Kakeibo, I had already thoughtfully set my weekly budget, giving me flexibility within clear limits. Shopping became simpler and less stressful.
Before I go
Budgeting methods aren’t one-size-fits-all. But after 60 days of careful experimentation, the Kakeibo method clearly won me over. Its blend of mindfulness, intentionality, and simplicity aligned perfectly with my lifestyle and personality. While cash stuffing might be effective for short-term spending control, Kakeibo promotes a healthier relationship with money long-term.
If you’re looking to genuinely transform your spending habits rather than merely manage them, I wholeheartedly recommend giving Kakeibo a chance. It might just surprise you as much as it did me.
