3 Common Budgeting Mistakes, Are You Making Them Too?

16 February 2022

3 Common Budgeting Mistakes, Are You Making Them Too?

It's great if you have been consistent in budgeting. However, if budgeting is done wrong, the results will be less than optimal. Too bad right? That's why in this article Jago wants to discuss 3 common budgeting mistakes.

Budgeting, Have You Done It Right?

1. Have you included all your expenses?

Forgetting to include every expense in your budget can have an impact on many things, such as being forced to take a budget from another expense category and delaying the achievement of one of your financial goals.

For example, you forget to set a budget for home insurance because payment is only made once a year. As a result, when the bill comes, you have to take your retirement budget. In that month, you can't put money into retirement savings.

You need to be thorough to not forget. Try to remember and list every expense, especially the important ones like paying bills. Also try to look at your passbook in the last 1 or 2 years.

2. Have you made a realistic budget?

A realistic budget is a budget that fits your current financial situation. If one day your financial situation changes, the budget will need to be adjusted again.

To make a realistic budget, you have to be honest with yourself. No need to compare with other people's budgets. Don’t under budget or over budget.

For example, if your current salary is Rp 10 million per month, having a self-reward budget of Rp 5 million is certainly not realistic. There are monthly obligations that must be paid, daily necessities as well as setting aside money for savings that must be considered.

3. Are you limiting your budget too much?

Although making a realistic and accurate budget is important, you shouldn’t take extreme actions such as limiting the budget too much.

Limiting the budget too much can be analogous to doing extreme diets in everyday life. Over time, you can't stand it and simply get tired.

In the long run, you will end up spending a lot more than you should because of the pressure that has built up for a long time. The longer you are limiting your budget too much, the more the pressure will be.

You can celebrate every achievement related to budgeting and financial goals. For example, if you achieve your monthly savings target, you can celebrate it with something simple or something you like, such as treating yourself to your favorite food.

Practical Budgeting with Jago

So, are you making the above-mentioned budgeting mistakes too? It's okay, Jagoans, as long as you're willing to fix them.

Have you used the Jago application yet for budgeting? It's very fun and practical when budgeting with Jago because you can create up to 40 Pockets for 40 different needs. For your saving needs, you can create Saving Pockets. For spending needs, there is the Spending Pocket feature.

After creating Pockets, all you have to do is allocate the budget into each Pocket. Then, it's time to monitor whether you stick to the budget. You can monitor it at any time, Jagoans. After you complete a transaction, Jago immediately records it.

Let’s put practical budgeting with Jago into practice. If you don't have the Jago application yet, you can download it here.

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