The practice of kakeibo became fashionable a few years ago. Commonly translated as “household financial ledger” and often intellectualized as an “art”, kakeibo is a lifestyle adjustment plan, in which consumers become thrifty and consider more conscious spending habits to save a few yen more during times of inflation, tax hikes, recessions and other economic downturns. Although the kakeibo is essentially just cutting unnecessary costs, it and other money-saving techniques are finding purchase in the current economic climate.
Recently plunging to a 24-year low against the dollar (with similar declines against the pound and euro), the yen has lost 18% of its value against the world’s most traded currency this year. . This coincided with a rise in inflation in the country – consumer prices rose by more than 2.5% year-on-year in May – triggered by various factors, including the post-pandemic recovery, shortages in the global supply chain and Russia’s invasion of Ukraine.
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