Budgeting can be both easy and difficult. It's easy when you know what to do, difficult because there are a number of challenges such as consistency and discipline. In this article, Jagomin shares the 4 ways that you can follow to become one step better at budgeting for long-term financial goals.
How to Budget for Long-term Financial Goals
1. Estimate how much money you need to have
In contrast to budgeting for short-term financial goals, creating a long-term budget does require more in-depth research.
Depending on the long-term financial goals you want to achieve, you can look for price ranges in the current market so you can estimate how much money you need to have.
The current market price may not be the same as the market price in the future. But, at least the current market price can be the basis for your calculations.
2. Decide when you want to achieve the goal
After knowing the approximate amount of money that you need to have, the next step is to create a timeline. When do you want to reach your goal? Is it 5 years, 10 years, 15 years from now?
By deciding when, you will be able to know more clearly how much money you have to save every year, or even every month. In addition, it will also be clearer whether the time you set is realistic by looking at your current finances.
3. Choose the right place to put your money
To increase the likelihood of achieving a long-term goal according to target, choosing the right place to save your money is key. And, if possible, you may want to consider putting your money in a place that pays high interest.
You can choose Jago’s Locked Pocket as a place to save money. Why? In addition to providing interest of up to 4% p.a.*, the Locked Pocket is effective in protecting your money from improper use. There are many temptations around you and if you cannot resist them, you may end up dipping into your savings.
It's different when you put your money in the Locked Pocket. One of the main tasks of the Locked Pocket is to lock your money according to the period you choose. The concept is similar to time deposits, but the Locked Pocket offers a flexible locking period.
4. Be flexible
What does it mean? When you can't save for several months because there is an emergency situation that must be addressed, even though you have used all of your emergency savings.
In a situation like the one described, you don't need to be too hard on yourself by drastically reducing your daily food expenses just so that your financial goal can be achieved on time, for example.
There are times when you may not be able to predict your finances. It is times like these that we must be flexible. It is better to delay the achievement of a financial goal than putting your health at stake, still taking the example above.
Jagoans, always believe that you can be a jagoan in budgeting for long-term financial goals. Don't forget to use the Jago application to help you manage finances. If you don't have Jago yet, you can download the application here.
*Interest rate can change at any time in accordance with BI interest rates & LPS policy
