If you have no idea how to manage money, don’t worry. There is Upi (Usahawan Kopi aka Coffee Entrepreneur) who wants to share how to budget and separate business and personal needs, so that money for each need doesn't get mixed up.
How to Manage Money the Upi Way
For Upi, running a business is not only about making a profit, but also about being good at managing money. If money can be managed properly, there are many benefits. In addition to positive cash flow, the business will run smoothly.
1. Separate money using Jago Pockets
In the past, Upi's money for business and personal needs always got mixed up. Upi didn't know whether the money available was for buying coffee beans or buying something that Upi really wanted as a self-reward. But now it's different.
After using the Jago Pockets to separate money, it is very clear to Upi which money is for business needs and which money is for personal needs. Business bookkeeping is now clear and Upi can easily find out how much cuan Upi’s business generates every month.
Dividing money using the Jago Pockets is super easy. Upi creates a Pocket for each need. For example, to create a cheerful atmosphere, Upi wants to add lighting here and there. That’s why Upi created a Spending Pocket named "Lights for Cafe". Then there is Kang Aji, a loyal employee who always helps Upi. Upi needs to pay Kang Aji's salary every month. So Upi created another Spending Pocket and named it "Kang Aji's Salary". For personal needs, Upi also has a number of pockets.
Then, so that it is clear which Pockets are for business needs and which Pockets are for personal needs, Upi picked different colors. All the Spending Pockets for business needs are beige, while all the Spending Pockets for personal needs are blue.
2. Use the 40:60 formulation to distribute cafe’s cuan
What should the cafe’s cuan be used for? Upi wants to spend it all on personal needs, but it's impossible, because Upi runs a business. So that Upi's cafe business continues to run smoothly, Upi makes sure 60% of the cuan goes to pay operational costs such as employee salaries, buying coffee beans and paying rental fees.
The remaining 40% is for business projections and personal needs. Upi plans to renovate the cafe so that there will be more visitors. In addition, Upi also wants to be able to open branches in other places. What about personal needs? Upi makes sure there is money set aside for emergencies. Upi also has a dream to be able to go to London one day.
3. Take advantage of Jago's Spend Analysis feature
Upi wants more actions after budgeting to check if the expenses are within the budget or Upi accidentally uses the business budget for personal needs.
Therefore, Upi constantly checks out the Spend Analysis feature in the Jago application, so that Upi knows how money has been used. Upi doesn’t want the money for buying coffee beans to be used to buy snacks.
Now you know how Upi manages money and can apply them, Jagoans. For those who don't have the Jago application yet, you can download the application here.
