Jagoans, have you been consistent in recording expenses yet? Even though it sounds tedious, keeping track of your expenses or spending is really important. Everyone needs to do it.
Top 3 Reasons to Keep Track of Expenses
1. You have control over your finances
What do you spend your money on in 1 month? How come you suddenly run out of money, even though it doesn't feel like you’ve spent that much? This is because you don’t have control over your finances.
If it happens only once or twice, it is still okay. But if it continues, it must be serious. Your expenses may be greater than your income. Instead of a positive cash flow, you have a negative cash flow.
By recording expenses, you have control over your finances. You know exactly how much money is sitting in your savings and how much you can still use until your next payday.
2. You will understand your spending habits better
Another important reason you need to record expenses is to be more aware of your current spending habits. Are there any money-spending habits that can be changed?
For example, when you look at your expenses, you realize that you've been paying for a gym membership. But, you haven't been to the gym in a long time. Money is wasted. You can save the gym money or you can allocate it for other more important needs.
Slowly but surely, bad habits, such as splurging or spending money on something you don't really need, will change.
3. You can reach your financial goals more easily
Once you know the amount of money you are spending, the opportunity to plan for the future becomes more certain and achieving financial goals becomes easier. It's very important that you have a financial goal. Having a financial goal makes you more excited because you have something real to achieve.
Whatever your financial goal is, be it saving for retirement, having a side business or paying off installments, keeping track of your expenses helps you resist the temptation to overspend. By spending money only for priority needs, the remaining money can be saved to achieve financial goals more easily and quickly.
In addition to the three main reasons above, there are many other reasons it is important to keep track of expenses, such as reducing financial stress, making life easier and boosting financial security.
Not Just a Spending Tracker: the Jago Application Can Analyze Spending
Don't worry, Jagoans. You may feel that it is not fun to record expenses manually, especially if there are a lot of expenses.
To be practical, you can use the Jago application launched by Bank Jago to help you manage your finances smartly and practically.
Every transaction you make will be recorded neatly and in detail by Jago. Whenever you want to see your spending, all you have to do is click the Main Pocket or other Pockets that you use to separate various needs.
In addition to keeping track of your spending, Jago also has the Spend Analysis feature. You can compare your expenses between the current month and the previous month. It is clearly visible whether your expenses are going up or down, in percentage.
Even smarter, because it is supported by machine learning capabilities that are constantly being developed by Jago, Spend Analysis can also categorize your expenses, whether they are bills, social events or top-ups, for example. So, for each category, you can also monitor the increase or decrease.
When you have to make a decision on which spending can be reduced or cut completely, it will be easier.
Analyzing Expenses is also part of the Fintamin formulated by Jago, which can help you achieve financial health and maturity.
Download the Jago application now to better monitor, analyze and manage your spending.