Financial freedom isn’t just about making more money—it’s about how you manage and use what you already have.
And when it comes to smart, sustainable money habits, few cultures do it better than Japan.
Known for their minimalist approach to life and deep respect for resourcefulness, the Japanese have mastered the art of frugality without sacrificing quality or happiness.
Unlike extreme penny-pinching, Japanese frugality is about mindfulness, efficiency, and long-term thinking.
It’s about valuing what truly matters, cutting unnecessary expenses, and making thoughtful financial decisions that lead to stability and independence.
If you’re serious about achieving financial freedom, adopting these seven time-tested Japanese habits could be the smartest move you make.
1. Embrace the art of Kakeibo
Let’s start with Kakeibo, an age-old Japanese practice that’s all about mindfully managing your money.
It’s not about crunching numbers or complex spreadsheets. It’s about jotting down your income, expenses, and savings goals at the beginning of each month.
Sounds simple right? But it’s not just about recording numbers. It’s about understanding how you’re spending your money and where you can cut back.
You see, in Japan, they believe that money has energy. Every time you spend, you’re not just losing cash but also a bit of this energy. So, they treat each expenditure with care and thoughtfulness.
By practicing Kakeibo, you’re not just keeping tabs on your finances, but also cultivating a healthier relationship with money. And trust me, that’s the first step towards achieving financial freedom.
Adopt this habit and watch how it changes your perspective towards money and spending. After all, when it comes to finances, sometimes the simplest habits make the biggest difference.
2. Adopt the minimalist lifestyle of Danshari
After we’ve sorted out our financial tracking with Kakeibo, let’s move onto the next habit – Danshari. It’s all about decluttering and minimalism.
Danshari is a concept that encourages you to discard, refuse, and detach from possessions that don’t provide value to your life. It’s about understanding the difference between ‘want’ and ‘need’, and opting for the latter.
For instance, I used to be a bit of a shopaholic. I loved buying new clothes, gadgets, you name it. But at the end of the day, my home was cluttered with things I hardly used and my wallet was often empty.
One day, I decided to give Danshari a try. I started with my closet, discarding clothes that I hadn’t worn in more than a year. Then, moved onto other items around the house.
It was hard at first, letting go of things that I had spent my hard-earned money on. But as I saw the clutter reducing and my savings increasing, I felt a strange sense of relief and freedom that was indescribable.
The practice of Danshari helps you not just to declutter your home but also your finances. It helps you spend less, save more, and lead a simpler life – all essential in your journey towards financial freedom.
3. Practice the philosophy of Mottainai
Warren Buffett, one of the world’s most successful investors, once said, “Do not save what is left after spending; instead spend what is left after saving.”
This quote perfectly embodies the third Japanese frugal habit we’re going to talk about – Mottainai.
Mottainai is a term used in Japan to express regret over waste. It’s a philosophy that teaches us to value our resources and use them efficiently.
Imagine you’ve just finished eating an apple. Most of us would throw away the core without a second thought. But someone practicing Mottainai would utilize it in some way, maybe compost it or use it to feed birds. It’s about extracting maximum value from every resource.
Translating this to our finances, Mottainai teaches us to be mindful of where every penny goes. It encourages us to save first and then spend what’s left, just like Buffett suggested.
By adopting the Mottainai way of life, we start seeing money as a valuable resource not to be wasted. Even small savings can add up over time and contribute significantly towards our financial freedom. And isn’t that what we’re all striving for?
4. Understand the importance of Kaizen
Next on our list is Kaizen – a concept that’s deeply ingrained in Japanese culture. It’s all about continuous improvement and making small, incremental changes over time.
In Japan, companies like Toyota have used this approach to steadily improve their manufacturing processes and maintain their competitive edge. It’s a testament to the power of small, consistent actions over time.
Now, you might be wondering what this has to do with your finances. Well, you see, achieving financial freedom isn’t a one-time event. It’s a gradual process that requires consistent effort and adjustments.
Let’s say you’re trying to save money. Instead of drastically cutting down on all your expenses at once, which can be overwhelming and unsustainable, Kaizen suggests making small changes.
Maybe you start by cutting out that daily cup of expensive coffee or eating out less. Small savings like these might not seem like much at first, but over time, they can add up to a significant amount.
Every little step counts in our journey towards financial freedom. It’s not about making drastic changes overnight but about making steady progress over time. And that’s a lesson we could all use in managing our finances.
5. Embody the spirit of Wabi-Sabi
Now that we’ve discussed saving, spending, decluttering, and continuous improvement, let’s turn our attention to a concept that helps us appreciate what we already have – Wabi-Sabi.
Wabi-Sabi is a Japanese aesthetic that finds beauty in imperfection and appreciates simplicity. It’s about recognizing the value in our existing possessions instead of always desiring something new or better.
Let’s take our homes for example. We often find ourselves wanting to upgrade furniture, buy the latest gadgets, or renovate to keep up with the trends. But Wabi-Sabi encourages us to find joy and beauty in our existing surroundings.
When translated into financial habits, Wabi-Sabi can help us curb unnecessary spending and appreciate the value of our current assets.
Instead of constantly upgrading our phone, car, or home decor, we learn to find satisfaction in what we already have. This not only saves us money but also brings a sense of contentment.
Adopting the Wabi-Sabi way of life can greatly contribute to our financial freedom journey by helping us reduce spending and appreciate the value in our current lifestyle.
6. Welcome the Shokunin spirit
In Japan, the concept of shokunin refers to a deep dedication to craftsmanship and skill mastery.
While traditionally associated with artisans and tradespeople, this mindset can be applied to everyday life—especially when it comes to saving money.
Instead of immediately replacing broken items or paying for services, many Japanese people take pride in learning how to repair, repurpose, or create things themselves.
Whether it’s sewing a torn shirt, fixing a household appliance, or even cooking from scratch instead of dining out, developing DIY skills can significantly cut costs over time.
Not only does this habit save money, but it also fosters self-sufficiency and a greater appreciation for the things you own. By adopting the shokunin spirit, you’re not just being frugal—you’re investing in skills and a can-do mindset that will serve you for a lifetime.
7. Imbibe the spirit of Ganbaru
Last, but certainly not least, is Ganbaru – a term that means to persevere or do one’s best in challenging situations. It’s a mindset that encourages resilience and determination in the face of obstacles.
Let’s get real, even with the best of habits, achieving financial freedom is no cakewalk. It requires patience, discipline, and a whole lot of perseverance.
There will be times when you might feel overwhelmed, or even consider giving up. That’s when Ganbaru comes into play.
It’s about sticking to your financial plans and goals, even when things get tough.
It’s about making sacrifices today for a more secure tomorrow.
It’s about staying motivated and committed to your financial journey, no matter the obstacles.
For example, you might be tempted to splurge on a luxury item instead of sticking to your savings plan.
But by practicing Ganbaru, you would resist this temptation and continue with your savings plan, knowing that it will contribute to your larger goal of financial freedom.
By incorporating Ganbaru into your financial habits, you’ll be better equipped to navigate the ups and downs of your financial journey. It instills a sense of determination that can make all the difference in achieving your financial goals.
Wrapping up
Achieving financial freedom isn’t just about earning more—it’s about being intentional with how you spend, save, and use your resources.
The Japanese approach to frugality isn’t about deprivation; it’s about mindfulness, efficiency, and valuing quality over excess.
By incorporating the habits on this list, you can create a lifestyle that prioritizes long-term stability over short-term indulgence.
Small, consistent changes add up, and over time, these habits can help you build a more secure and fulfilling financial future—without feeling like you’re constantly sacrificing.
