Saving money is the most fundamental step in building a healthy financial foundation. However, simply setting aside money in a single daily account is often not enough. Without clear separation, saved money remains highly vulnerable to being spent on routine expenses or impulsive purchases.
To ensure your financial goals are executed neatly, you need to divide your savings into several categories based on their purpose. Here are the savings types you must have, along with their order of priority:
1. Emergency Fund Savings (Top Priority)
This savings serves as a financial cushion during unexpected situations, such as a health crisis, job loss, or major equipment damage.
-
Ideal Target: A minimum of 3 to 6 times monthly expenses for single individuals, and 6 to 12 times monthly expenses for married couples.
-
Nature of Funds: Must be highly liquid (easily accessible at any time).
2. Routine Needs and Bills Savings
This savings is allocated specifically to pay monthly and annual obligations, such as electricity bills, housing rent, vehicle tax, and insurance premiums. Separating bill money from spending money prevents the risk of late payments at the end of the month.
3. Dream and Short-Term Goal Savings
Everyone has personal plans, such as buying a new laptop, taking an end-of-year vacation, or raising a down payment for education. This type of savings helps you achieve those targets without disturbing your emergency fund or resorting to consumptive debt.
4. Long-Term and Retirement Savings
The future requires thorough preparation from an early age. Long-term savings are aimed at needs several years ahead, such as a home down payment or retirement preparation. The earlier you start, the lighter the monthly contribution required.
Also Important to Consider and Have: Investment and Self-Development Savings
This savings category is set up to increase your asset value or personal capacity. You can use funds from this pool for capital investment in financial instruments, taking certification courses, or buying books that support your career.
Savings Priority Allocation Simulation:
If you have a savings allocation of Rp2,000,000 per month, you can divide it based on a priority scale:
-
Emergency Fund (40%): Rp800,000
-
Dream/Short-Term Savings (30%): Rp600,000
-
Retirement/Long-Term Savings (20%): Rp400,000
-
Self-Development/Investment (10%): Rp200,000
Practical Ways to Manage Multiple Types of Savings Hassle-Free Using the Jago App
Managing multiple savings types across separate accounts in different banks is often difficult due to monthly admin fees. The solution is using a digital budgeted pocket approach within a single app.
1. Use Separate Saving Pockets
Through the Jago app, you can create up to dozens of different Saving Pockets in one account. Each Pocket has its own account number with no monthly admin fees, allowing you to name each Pocket according to its purpose (e.g., "Emergency Fund", "Vacation", or "Education").
2. Lock Funds for Long-Term Savings
For untouchable savings categories like retirement funds or an accumulated emergency fund, you can move them to a Locked Pocket or Jago Term Deposit to earn more optimal yields.
3. Automate Monthly Deposits
Leverage the Auto-Budgeting feature so allocations to each Saving Pocket run automatically every time your salary arrives.
By categorizing your savings according to their function and using the right automation system, you can achieve various financial goals in a structured manner without worrying about budgets getting mixed up.
