Every culture has its own way of handling money, shaped by history, religion, wars and welfare systems. Some of those habits travel very well. None of them needs a high income or special knowledge — only a decision to start. Here are seven worth borrowing, with a simple way to try each one in an Indian household.
1. Japan: the kakeibo notebook
In 1904 Hani Motoko, one of Japan’s first women journalists, published a household account book called the kakeibo. At the start of each month you write down your income and a savings goal. Through the month you note every expense, grouped into needs, wants, culture and unexpected costs. At the end you answer four questions: How much did I have? How much did I want to save? How much did I spend? How can I improve?
The power is in writing by hand and reflecting, not in the arithmetic. Many people find they cut spending simply because they have to look at it.
Try it: ten minutes on the first Sunday of every month, with a notebook or a simple sheet. Answer the four questions honestly — no app needed.
2. Sweden: look at your future every year
Each year Swedes receive the “orange envelope”, which shows the pension they have built so far and what they can expect at different retirement ages. It turns a vague idea — “I should save for retirement” — into a number you can watch improve.
Try it: once a year, add up your EPF, PPF, NPS and mutual funds, and ask what monthly income they could pay. Our retirement calculator shows how far you are from your target.
3. Germany: avoid consumer debt
Germans have traditionally preferred paying by cash or debit card and use credit cards far less than Americans do. Borrowing to buy things you consume — clothes, gadgets, holidays — is widely seen as a sign of poor planning rather than a convenience.
Try it: pay credit-card bills in full every month. Card interest in India commonly runs at 36–42% a year, which beats any investment return you could hope for. If something you want needs an EMI, treat that as a signal to save for it first.
4. Singapore: make saving compulsory — for yourself
Singapore’s Central Provident Fund takes a fixed share of every salary before it reaches the worker — up to 37% for younger workers, counting the employer’s part. Nobody decides each month whether to save; it simply happens.
Try it: decide your own savings percentage — even 15% is a strong start — and set SIPs to run the day after salary arrives. Spend what is left without guilt.
5. Korea, West Africa, Mexico — and India: save with friends
The Korean gye, West African susu, Mexican tanda and Indian bishi are all saving circles built on trust and peer pressure. Members pay in every month and take turns receiving the pool. People save more when others are watching.
Try it: start a “SIP circle” with friends or colleagues. Each person runs their own SIP in their own name, and you check in on each other once a month. You keep the encouragement and lose the risk of one person holding everyone’s money.
6. China: start children early
At Lunar New Year, children receive money in red envelopes called hongbao, and many families put a large part of it aside for the child’s future. Chinese households save roughly a third of their disposable income, one of the highest rates in the world.
Try it: open a minor’s mutual fund folio for your child and put birthday, Diwali and exam-result gifts into it. Show the child the statement each year; it teaches compounding better than any lecture.
7. United States: pay yourself first, and escalate
Many American employers now enrol staff in retirement plans automatically and raise their contribution by one percentage point every year unless they opt out. In the original “Save More Tomorrow” study by economists Richard Thaler and Shlomo Benartzi, employees who agreed in advance to raise their saving with each pay rise went from saving about 3.5% of pay to about 13.6% within four years.
Try it: a yearly step-up on your SIP does the same job. Raise it by 10% every April, or by half of every increment. At an assumed 12% a year, a ₹10,000 SIP raised 10% each year grows to about ₹1.86 crore in 20 years, against about ₹92 lakh without the step-up.
Your seven-habit starter list
- Buy a notebook and do the four kakeibo questions this month.
- Add up all your retirement savings once, today.
- Set every credit card to auto-pay the full bill.
- Choose a savings percentage and move SIP dates to just after salary day.
- Ask two friends to start a SIP circle with you.
- Open a folio for your child and add the next gift to it.
- Put a yearly SIP step-up in your calendar.
Pick two to start. Habits stick better one or two at a time.
Frequently asked questions
Which habit matters most?
Automatic saving on salary day. Every other habit works better once saving no longer depends on willpower.
Do I need an app for kakeibo?
No. The original was a paper book, and many people find writing by hand makes them notice their spending more.
Explore how countries compare in our World Wealth Atlas, and test a step-up SIP on real fund history in the Fund Simulator.
Figures above are illustrations based on assumed rates of return and are not a promise or guarantee of future returns. Mutual fund investments are subject to market risks, read all scheme related documents carefully. WishWiseWealth is an AMFI-registered Mutual Fund Distributor (ARN-188221).