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.
With the Jago Pockets, budgeting becomes easier and automatic. You can create various Pockets to allocate funds for different needs, such as daily expenses and savings. The Auto-Budgeting feature allows you to schedule automatic fund transfers to your Jago Pockets according to a predetermined budget, so you no longer need to manually move money and can ensure that every expense category is funded on time.
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.
Setting aside emergency funds in a Bank Jago Term Deposit is a smart choice to secure your finances. Besides offering potentially higher returns compared to regular savings, Bank Jago Term Deposits also allow withdrawal at any time without any charges. By storing your emergency funds in a Bank Jago deposit, you can sleep soundly knowing you have a financial cushion ready for unexpected situations.
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 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.
Beyond emergency funds, a Term Deposit at Bank Jago can also be an appealing option for accumulating retirement savings. With a period that can be adjusted to your estimated retirement age, a Term Deposit helps your pension funds grow steadily. The discipline offered by time deposits also supports your long-term commitment to preparing for a comfortable financial future.
Be Jago at Managing Finances the Way You Want with Bank Jago Application
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 by utilizing various features mentioned above.
