Lucky cats have their origins traced all the way back to the later part of the Edo period. While its exact location of origin is disputed (there are arguments for the tradition being from both Tokyo and Kyoto), lucky cats are thought to have been first mentioned in in the Bukō nenpyō (a chronology of Edo) in 1852.
In 1876, during Japan’s Meiji period, the lucky cat was then mentioned again during a newspaper article. There is also evidence of lucky cats appearing in a 1902 advertisements, making clear evidence that they were popular up until the turn of the century.

Cats have a long history of utility within Japanese society. In the old days, Japanese farmers living with cats were said to prosper without crop damage because cats would drive away rats that damage their crops. In addition to this popular use of cats in ancient Japan, there are many other theories as to how lucky cats became a popular cultural icon in Japanese culture.

There are many possible origins of lucky cats proposed throughout Japanese history. One is the following tale; The proprietor of a nearly bankrupt enterprise noticed a stray, hungry cat and then proceeded to share a part of his food with the wandering animal. As a karmic response, the cat brought the owner good fortune, as visitors began to pour into the owner’s business from the cat’s friendly beckon.

Another common legend is the one that claims to have occurred where Gotokuji Temple now stands. The story takes place at a modest temple in the early 1600s, which is also the home a lowly monk. That monk had a cat named Tama with whom he shared his limited food. A wealthy nobleman was returning home from one of his hunting expeditions on a rainy evening and took refuge under a tree. That tree happened to be exactly outside the temple, where Tama was sitting and beckoning him in. A bolt of lightning struck the tree as the nobleman followed the cat into the shrine. The nobleman was so grateful to the cat for inviting him into the temple that he decided to sponsor it, giving this temple, along with the monk and Tama, a great deal of fortune.

The type of business you have determines the best area to place your lucky cat. For businesses, storefronts, and cafes, lucky cats can be placed somewhere visible near the entrance. By placing the lucky cat near the store entrance, this will allow customers can see it when they walk by. It is also common for lucky cats to placed in the north eastern area of establishments as well.

The traditional location for a lucky cat within the house is near the front entrance. This is to attract the best fortune. The reasoning is that the front entrance is the most reasonable spot for people or money to enter a house. Make sure it is  positioned with in a manner that is angled towards the doorway. Placing a lucky cat in a location higher just above height of people is believed to improve its power. You better to avoid putting it in a closet or other area of the house where no one comes and goes. The cat will miss you.