What Is the Best Way to Avoid Running Out of Money Too Quickly?
This post uncovers the best way to avoid running out of money too quickly.
Because people everywhere face the same money problems: spending too much, buying things on impulse, not saving enough, and feeling stressed about money. So let’s dive into a good solution that can help you regain control!
Related- Why is self-discipline the key to becoming a good saver?
Kakeibo saving method is the best way to avoid running out of money too quickly
People all around the world are looking for the best way to avoid running out of money too quickly. And the Kakeibo saving method is the answer.
What is the Kakeibo Saving Method?
The Kakeibo saving method is a simple and effective way to manage your money. Because it helps you save more, control your spending. So you can avoid running out of money too quickly. Kakeibo (pronounced “kah-keh-bo”) is a Japanese budgeting system that has been around for over 100 years. It was created in 1904 by Motoko Hani, Japan’s first female journalist, and it’s still widely used in Japan today. It proves that mindset is everything.
But what makes Kakeibo special is its focus on being mindful and aware of your emotions around money. Unlike digital apps or complicated spreadsheets, Kakeibo uses a simple pen-and-paper approach to track your spending. So this helps you become more aware of where your money is going and why you’re spending it. It also encourages you to think carefully about every purchase, helping you stay in control of your finances.
Why Kakeibo Is the Best Way to Avoid Running Out of Money Too Quickly?
- It can cut your spending by up to 35% by focusing on what matters most.
Kakeibo helps you focus on the things you really need. So you can cut out unnecessary spending and save up to 35%.
- It helps you build a consistent saving habit.
By saving a set amount of your income right away, Kakeibo makes it easy to save regularly and build a strong savings habit over time.
- It reduces stress by giving you a clear picture of your money.
Tracking all your spending with Kakeibo helps you see exactly where your money goes. So this clarity takes away the stress and gives you peace of mind. And work life balance.
- It makes you think twice before buying.
Kakeibo encourages you to pause and think before you act of making a purchase. This way, you’ll avoid buying things on impulse and save money in the process.
- It helps you stick to your budget.
With Kakeibo, you set clear limits for each spending category. So this keeps you from going over your budget and helps you manage your money more effectively.
- It helps you understand where your money goes.
By sorting your expenses into categories, Kakeibo shows you where you’re spending the most. This makes it easier to make smarter choices with your money.
- It uses the envelope system to keep you on track.
Kakeibo’s envelope system gives you cash for each spending category. Once the cash is gone, you stop spending in that area, making sure you don’t go over your budget.
- It encourages improvement every month.
So at the end of each month, Kakeibo helps you review your spending and saving. Because this lets you see what worked, what didn’t, and makes better choices moving forward.
How to Use the Kakeibo Method to Avoid Running out of Money
kakeibo method gives you emotional clarity, financial control, and a peaceful relationship with money. Here’s how you can apply Kakeibo to manage your monthly income. So let’s walk you through this timeless method — step by step.
Step 1: Divide Your Spending into 4 Simple Categories
— Because clarity starts with structure
Each month, Kakeibo asks you to organize every yen, dollar, or rupee into just four intentional buckets:
Category 1. Survival – The non-negotiables
🏠 Essentials like:
- Rent/mortgage
- Food and groceries
- Utilities
- Transportation
- Medical expenses
Category 2. Optional – The lifestyle choices
🍣 Wants like:
- Dining out
- Shopping
- Hobbies
- Streaming services
Category 3. Culture – The soul food
📚 Enrichments like:
- Books
- Courses
- Art
- Theater
- Music
Category 4. Unexpected/Extra – The what-ifs
🔧 One-offs like:
- Gifts
- Repairs
- Emergencies
- Last-minute purchases
Because categorizing your spending makes it visible, honest, and human. So you stop leaking money and start aligning it with your values. By being more productive.
Step 2: Ask Yourself These 4 Core Questions
— Because financial peace starts with awareness
Before the month begins, write down your answers to these to avoid running out of money too quickly.
- How much money do I have this month?
(Your income after fixed bills and taxes.) - How much would I like to save?
(Set a number. Be bold, but realistic.) - How much am I spending?
(This is where you log and learn.) - Where can I improve or spend less?
(What expenses didn’t bring joy or value?)
Because these questions make budgeting a reflective ritual, not a punishment. So you become an active thinker, not a passive spender.
Step 3: Use the Envelope System — or Its Digital Twin
— Because limits free you, not restrict you
Once you’ve defined your monthly income, savings goal, and spending categories…
➤ Physically or digitally assign money to each category:
- Use 4 envelopes, jars, folders, or budgeting apps
- Label them: Survival, Optional, Culture, Unexpected
- Put the exact amount of money in each — no more, no less
➤ During the month:
- Only spend from the envelope assigned to that category
- Once it’s empty, stop or shift funds intentionally, not impulsively
So this visual, tangible system keeps your spending grounded. You instantly see what you have and feel your progress.
Step 4: Save First — Not Later
— Because your future deserves to be non-negotiable
At the start of each month, transfer your savings goal first, before you spend anything else.
- Open a separate savings account
- Transfer your chosen savings amount (e.g., 10–20%)
- Now budget the rest using Kakeibo
Example:
- Income: $3,000
- Save first: $500
- Budget left: $2,500 → divide into 4 categories
So when you pay yourself first, you flip the script. Savings becomes a priority, not an afterthought.
Can Kakeibo Work in Other Countries to Help Stop Running Out of Money Too Fast?
Yes—it works really well.
- Kakeibo works in any country – Because it’s based on everyday human habits, not on culture or rules.
- It works with your money – No matter what currency you use, Kakeibo still fits.
- You don’t need apps or tech – Just a notebook and a pen are enough.
- It works whether you earn a lot or a little – You just plan based on what you have.
- You can make it fit your lifestyle – Save for what matters in your own life, like school, weddings, or holidays.
- It helps you think before you spend – You ask, “Do I really need this?”
- It’s helpful if your income changes – You can still make a plan even if your money isn’t steady.
- It gets your family on the same page – Everyone can talk and plan money together.
- You still get to enjoy life – It’s not about saying no to everything, just making smarter choices.
- You can save a lot more – People often spend way less just by being more aware.
Final Thoughts
So if you’re tired of living paycheck to paycheck, the best way to avoid running out of money too quickly is to adopt a system that gives you clarity and control. Kakeibo may be old-fashioned, but its wisdom is timeless. So try it for one month—and you may be surprised at how much you save and how empowered you feel.
Related- What might happen if your financial behaviors don’t align with your values?
