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Money is personal. The ways we handle money tend to be deeply connected to our history, cultural practices, and individual values.
Around the world, people approach their finances in different ways, often shaped by traditions, environments, and societal norms.
Here are a few examples of money practices that you might find interesting or even useful in your own financial journey.
1. Japan: Kakeibo and mottainai
Kakeibo, a Japanese budgeting method, encourages mindful spending the old-school way by writing down every expense in a ledger or notebook.
By taking the time to write things down, this approach teaches you to be fully present as you reflect on how and where you spent your money.
Expenses are sorted into categories such as needs, wants, cultural activities, and unplanned or emergency spending. You’ll also need to track your income and set a savings goal each month.
Since mindfulness is a big part of kakeibo, there are also questions to ask yourself before buying something (ex. Can I live without this?) as well as at the end of each month when you’re reviewing your finances (ex. How can I improve?).
If you enjoy the meditative practice of journaling and would like a more personal approach to budgeting, this method may work for you.
Mottainai is also a Japanese phrase reflecting a philosophy that values conservation. When applied to finance, this emphasizes prudent spending, strategic saving, and responsible resource management.
This belief encourages people to make the most of the things they have instead of throwing them away mindlessly. It involves minimizing waste by repairing or recycling things that are broken or can no longer be used.
2. Germany: "Cash doesn’t stink"
In Germany, "Cash doesn't stink" (or "Geld stinkt nicht" in German) is a popular saying that reflects the heavy preference for cash transactions in the country.
It is a lot like the widely-used phrase “Cash is king,” since both idioms advocate for the use of cash in a world that’s going cashless fast.
There may be different reasons for Germans to favor cash. Some may believe paying with cash allows them to maintain their privacy. Others may want to stay disciplined and avoid spending too much or getting in debt.
Though debt isn’t always bad, it’s wise to be prudent with your spending and only borrow money that you can afford to repay and may contribute to your overall financial health.
For investors, keeping some money in cash can also bring advantages. It can help you manage risks and act on opportunities without having to disrupt your strategy.
3. India: Jugaad
In India, the concept of “jugaad” refers to finding solutions to challenges through creative ways that cost next to nothing.
While it’s not strictly a money belief, jugaad influences how people save, spend, or earn money. This word has no direct English translation, but a way to understand it is to think of “life hacks.”
It involves temporary, out-of-the-box fixes that somehow work, like placing ice in front of a fan to create a makeshift air conditioner or using permanent marker to hide scuffs on leather shoes.
Frugality can be necessary when money is tight, or helpful if you need to boost your savings. However, if you can afford it, you may not need to go to extreme lengths if they leave you feeling deprived of your hard-earned money.
Spending money can sometimes be the wiser call, especially when buying cheap might end up costing more in the long run.
Still, it’s good to leave some room for creativity and improvisation if these can help you stay within your budget and meet long-term financial goals.
