There are many kinds of expenses, Jagoans. You must be aware of this, because almost or even every day you spend money. But, has your money really been used for priority needs? Or do you spend more money on fun? When managing monthly expenses, what expenses should be prioritized?
Managing Monthly Expenses, What Should Be Prioritized?
1. Bills and installments
Recurring bills or bills that you need to pay every month must be prioritized. Some examples of recurring bills? Electricity, water and internet bills. Some people also subscribe to cable TV and buy insurance, for example. Then, there are also the house, car or motorcycle installments and debt payment, if they must be paid every month.
Bills and installments must be a priority to avoid paying fines due to late payments and the money being used for other needs.
2. Daily needs
Daily needs may not come with recurring bills that you need to pay ahead of time, but you need to prioritize them.
Prioritized daily needs include food and transportation, for example. You need to eat every day in order to survive and perform various activities.
For transportation, although you may only need it to go to work and back home, you should prioritize it because you need it on a monthly basis. Do you use public transportation? You can calculate the average expenses per month. If you drive a car or ride a motorbike, you can include the cost of gasoline as a priority expense.
Even though by saving you save money, you need to set aside or spend money for savings. So, savings can also be categorized as an expense. It's not just an expense, it's a priority expense.
Regarding savings, emergency savings and retirement savings are priorities compared to other types of savings. Because it is important, Jago often discusses saving money and savings. Jagoans can read these articles 4 Types of Savings Everyone Should Have and 4 Tips to Help You Stay Motivated to Save Money, for example.
If There’s Still Some Money Left?
This is the long-awaited benefit that you can enjoy if you have prioritized your monthly expenses.
When you have allocated a budget for priority needs and it turns out that there is still some money left, you are free to use it for whatever you like. Whether you want to buy new shoes, pamper your stomach at a fancy restaurant or indulge in facial and body treatments at a spa, it's all up to you. Great, isn't it, Jagoans?
Managing Monthly Expenses with the Jago Application
To be able to manage monthly expenses smartly and practically, you can use the Jago application. As a financial management application, Jago has various innovative features to make your life easier.
The Pocket feature, for example, can be used to separate various needs. There are up to 40 Pockets that you can create. You can have a Bills and Installments Pocket, a Transportation Pocket, an Emergency Fund Pocket and so on. Then, for each Pocket that has been created, you can allocate a budget so that you can easily monitor it.
There is also the Plan Ahead feature to automate bill payments and savings, so you don't have to deal with manual transfers anymore. Especially for savings, there is the Locked Pocket feature that offers higher interest than a usual Saving Pocket.
There are many other exciting features that you can try, such as setting a savings target and linking a Jago Visa Debit Card to a Spending Pocket.
What are you waiting for? Let's start managing monthly expenses with Jago. The Jago application can be downloaded here for those who don't have it yet.