There are various methods of budgeting for managing finances. One that many people use is the envelope method. What is the envelope method and how do you apply it when you create a budget?
The Envelope Budgeting Method
As the name suggests, the envelope method definitely has something to do with envelopes. When budgeting, you allocate funds for various needs. The envelope is where you keep the money that has been allocated.
How many envelopes are needed? Depends on how many needs need to be met. If in a month you only need to pay monthly bills, shop for groceries and save some money, this means you only need to provide 3 envelopes. But if there are 20 needs that must be met, then you need to provide 20 envelopes.
To make it easier for you to allocate funds and monitor expenses, you can add a name on each envelope with a marker, label sticker or something else. When the money is used, you need to write it down on the outside of the envelope so you know for sure what the money is used for. If you don't take notes, you may not know clearly where the money goes.
Applying the Envelope Method With the Jago Pocket
Although very helpful in managing finances, the application of the envelope method can be very time-consuming when done manually. Sometimes there can also be expenses that you forget to record. What if you lose your receipts? Then, what if you want to purchase something with a debit card? The expenses will be separate from the money that has been allocated to the envelope.
The good news is, you can still apply the envelope method when budgeting. Only its application needs to be adjusted. With the Jago Pocket in the Jago application, you can be one step better at applying the envelope method.
If you need to provide a lot of envelopes when budgeting manually, with Jago you only need to create Jago Pockets.
You can choose to create a Saving Pocket or Spending Pocket, depending on the how you want to use your money. If you want to build an emergency fund and save for retirement at the same time but don't want to mix the funds, you can create 2 Saving Pockets.
The same goes for the Spending Pocket. You can create as many Spending Pockets as you need. Each Pocket can be personalized for easy monitoring.
Then, by budgeting using the Jago Pocket, you are free from the hassle of recording expenses manually. Every transaction you complete through the Jago application will be recorded automatically and you can access it through the transaction history.
And, if you prefer to shop with a debit card, you can link your Jago Visa Debit Card to one of the Spending Pockets that you have created. Transactions via the Jago Visa Debit Card will be recorded in the Jago application. This way, you can relax and monitor your expenses whenever you want.
So, Jagoans, budgeting becomes easy and practical with the Jago Pocket right? The Jago application can be downloaded here for those who don't have it yet.