Blog Post --- Published on March 18, 2022 | Last Updated on March 18, 2022

Important to Know When Managing Finances: Personal Finance Glossary

Important to Know When Managing Finances: Personal Finance Glossary Important to Know When Managing Finances: Personal Finance Glossary

Managing personal finances is important not only for now but also for the future. Can you imagine how you will live your retirement life if you don't start saving for your retirement from now? This is just one example. To help, there are some basic terms related to personal finance that you need to know.

Personal Finance Glossary You Need to Know

1. Budget

Budget is an estimate of income and expenses. Budget allocation can be done at the beginning of the month, for example, so you get an idea of how you will use your money and can track whether you spend within the budget. Every need needs to be budgeted for more organized finances.

2. Emergency fund

An emergency fund is an amount of money to be used only when an emergency happens, usually unexpected or unpredictable.

An emergency fund can be used to help cover short-term emergencies such as a broken refrigerator or more long-term ones such as losing your job and not getting a new job for several months.

Also read: Ask Yourself These 3 Questions Before Using Your Emergency Fund

3. Expenses

Expenses are anything you spend money on. Are there electricity, water and internet bills to pay every month? Then all kinds of monthly bills are part of the expenses.

Anything that costs money and no matter how small, such as monthly bank admin fees and interbank transfer fees, also needs to be considered as expenses.

Related article: Having a Jago Account Can Save Money

4. Income

Income is money that you receive regularly, be it every month, every 6 months or every year, for example.

Income can come from various sources. For those who work in an office, the salary received every month is the main source of income. You can also explore other sources of income, such as looking for a side or freelance job, to save for the future.

5. Investment

When investing, you invest money or assets that you have with the aim of getting a profit or return.

Investments can be either short term or long term. In general, short-term investments are made in less than 1 year, for example by saving money in a Locked Pocket.

Meanwhile, long-term investments are usually aimed at securing the future because it takes a long time to be able to enjoy the results. One example of long-term investment is mutual fund investment.

6. Retirement fund

A retirement fund, as the name implies, is a savings that you grow while you are young or are still working in order to be able to live your old age comfortably and free of burden.

By having sufficient retirement savings, you don't need to depend on your children or other family members. Children do not need to be part of the sandwich generation because they have to pay for their parents. You break the chain.

Be Jago at Managing Finances with Jago

Managing finances needs to be done from now on. By getting used to it, you will become jago and more jago at managing finances.

Whether it's for budgeting, saving for emergencies and retirement as well as managing and analyzing expenses, you can do them all easily and practically through the Jago application.

There are Saving Pocket and Spending Pocket features to separate various needs and to budget. Then, there's the Plan Ahead feature to automate saving and help pay bills on time. There are many other features for you to try right away once you have a Jago account.

What are you waiting for? The Jago application can be downloaded here for those who don't have it yet.

You might also like..

Productive Debt vs. Consumer Debt: What's the Difference?

February 23, 2024

Productive Debt vs. Consumer Debt: What's the Difference?

Which type of debt is good and which one should be avoided? Let's find out the difference between productive debt and consumer debt and how to pay off debt the jago way. Read more

How to Save at Bank Jago the Way You Want: Boost Income and Achieve Moneyfesting

February 19, 2024

How to Save at Bank Jago the Way You Want: Boost Income and Achieve Moneyfesting

Who doesn't want their income to increase? By saving at Jago you can also achieve your financial goals. Choose Locked Pocket, Deposit or other saving features as you want. Read more

Unexpected Big Expenses When Renovating or Remodeling a House

February 13, 2024

Unexpected Big Expenses When Renovating or Remodeling a House

Renovating or remodeling the house is necessary to make it more comfortable to live in. Find out how to prepare the budget for expenses that may arise. Read more

Semua jadi Jago

Mulai hidup seutuhnya dengan keluarga dan kerabat.

Download aplikasi Jago, lalu pilih Jago atau Jago Syariah dan daftar akunnya lewat ponsel kamu

download on app store download on google play

Scan Kode QR di bawah ini dengan kamera ponselmu untuk menginstall Jago.