Everyone definitely has something called the latte factor. The latte factor can have a big impact on your personal finances. So, what is the latte factor and what can be done to overcome it?
What is the Latte Factor?
Did a friend ever ask you if you want to buy some snacks or coffee and every time you go along because you don't feel comfortable refusing them? Or have you ever felt that transportation to the office is expensive because you prefer to take a taxi because of the convenience factor?
From the two examples above, you can definitely guess what the latte factor means. Small expenses that are routine but actually not that important, this is what is called the latte factor.
The term latte factor itself was popularized by David Bach who observed the phenomenon of many people buying lattes (reference: Becoming Minimalist). In fact, if the money to buy coffee is saved or invested in the right place, it would be better.
The impact of the latte factor on personal finances
The latte factor in life can be many things, not just coffee, as in the example above. There are many other examples, such as going to the cinema every weekend, subscribing to streaming services that are rarely enjoyed, and buying drinks in bottles at the supermarket when you can drink from the gallon of water provided at the office.
If you have a lot of the latte factor, you can imagine how big your monthly spending is and how it badly impacts personal finances. For example, it becomes difficult for you to have savings because all the money has been spent or you are willing to choose to go into debt just to meet all these needs or to buy comfort, which is actually not a big problem if you don't buy it.
How to Overcome the Latte Factor by Manifesting Financial Dreams and Goals Through Moneyfesting
For those of you who have a lot or a little latte factor and are determined to reduce or even eliminate the latte factor, you can do manifesting. Because it is related to money, manifesting here is manifesting future dreams and financial goals to be achieved in the short, medium and long term.
To make it easier to manifest your financial dreams and goals, you can try Moneyfesting. Moneyfesting is a guideline from Bank Jago that everyone can use to manage their finances more calmly so they can overcome financial anxiety, realize their financial goals and be on a healthy financial path.
You can read a complete guide on how to manifest with Moneyfesting in this article.
Jago at Preventing the Latte Factor by Managing Money the Way You Want Using Jago Pocket
What is the Jago Pocket? How can you use the feature? Keep reading.
1. Spending Pocket, Saving Pocket, Locked Pocket and Deposit Pocket to be better at managing personal finances and having savings
The Jago Pocket is a feature available in the Jago application to help everyone budget well just the way they want. It has the same function as a bank account, although there are many types of Pockets. Each Pocket created has its own account number, be it a Spending Pocket, Saving Pocket, Locked Pocket or Deposit Pocket.
What's different about each Pocket? As the name suggests, a Spending Pocket is a Pocket that makes it easier for you to manage expenses, such as bills, monthly shopping and transportation. By organizing and separating the budget for each need into different Pockets, the latte factor can be prevented.
However, it is important to ensure the budget is allocated taking into account needs vs. wants (comfort) and without adding more budget for wants if it has all been used up. In other words, it doesn't mean you have to sacrifice all your wants or comfort. It's just the budget needs to be managed better.
It is also easier for you to have savings by allocating a budget into a Saving Pocket, Locked Pocket or Deposit Pocket. What is the difference between the three types of pockets that function as savings at Bank Jago? With regular and consistent budgeting, not only can the latte factor be overcome, but it can also ensure that your savings continue to grow.
Read the complete explanation of Saving Pocket vs. Locked Pocket in this article.
To find out the differences between Locked Pocket and Deposit Pocket, click this article.
2. No monthly administration fees even if you have multiple accounts at Bank Jago
Having multiple accounts without monthly admin fees? This must be exactly what you want. No matter how many Jago Pockets you have, there is no monthly fee charged. You can be better at managing expenses, have lots of savings and minimize the latte factor at the same time. Isn’t it just what you want?
Manage Your Expenses Better to Overcome the Latte Factor Using Jago Visa Debit Card and QRIS Jago, Apart from Budgeting with Pockets
Other than easier and more practical budgeting using the Jago Pockets, there are other ways that you can apply to really ensure that you no longer experience the latte factor. Choose the right source of funds when making transactions or payments at restaurants, shops, supermarkets and others.
For example, you still set aside a budget to go to the cinema, which has been reduced from 4 times a month to 1 time a month. When paying for the tickets, make sure you choose the Cinema Pocket, not another Spending Pocket with a larger budget.
Pay using the Jago Visa Debit Card or QRIS Jago, you can choose the right Pocket as a source of funds. Link your Jago Visa Debit Card to the right Spending Pocket before making a payment. For QRIS Jago, you don't need to link anything, but just choose the best Spending Pocket as a source of funds before confirming payment.
So, are you ready to use the above-mentioned ways that are easy, practical and work the way you want to overcome the latte factor? Rely on the Jago application and its features.
