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Kaizen Budgeting is a financial management strategy that utilizes the approach of making small, sustainable changes. The Kaizen principle emphasizes consistent, incremental, and sustainable changes rather than large, drastic, and unsustainable ones. The main benefit of Kaizen budgeting is that it can reduce the stress caused by drastic changes in financial patterns.
So, to implement Kaizen budgeting, we don't need to cut all expenses we consider wasteful or unnecessary. Instead, eliminate them one by one each month, avoiding an immediate lifestyle change. For example, if we like hanging out at a cafe after work, we can gradually reduce it to twice a week, then once a week, once every two weeks, once a month, and so on.
So, in addition to recording and budgeting, we also need to review each week to see if there are any expenses that can be eliminated or reduced next week.
So, to implement Kaizen budgeting, we don't need to cut all expenses we consider wasteful or unnecessary. Instead, eliminate them one by one each month, avoiding an immediate lifestyle change. For example, if we like hanging out at a cafe after work, we can gradually reduce it to twice a week, then once a week, once every two weeks, once a month, and so on.
So, in addition to recording and budgeting, we also need to review each week to see if there are any expenses that can be eliminated or reduced next week.