Having a high income is a dream of many. However, having a high income does not guarantee a prosperous and happy life. There are many who earn substantially, but at the end of the month their “pockets” “dry up” too.
How come? Usually it’s because they need to upgrade their personal financial management skills. If you have awesome financial management skills, no matter how much you make, all needs can be met properly.
Personal Financial Management Skills You Need to Know
There are several important skills in managing personal finances that will keep your pockets safe when the end of the month comes.
Skill #1: Budgeting
You need to allocate money for various needs, such as short and long-term savings, daily shopping needs, emergency needs and monthly bills. You can also allocate money for some fun stuff. You deserve it after working hard for a month!
Of course, so that you don’t go into debt or only have very little money at the end of the month, the allocation must be right. Spendings and savings, followed by an emergency fund should be your main allocation, rather than your fun fund.
Skill #2: Managing your finances wisely
Managing finances wisely will work when there is such a thing as discipline or control. This second skill is closely related to the first one. If you have decided from the start that you only want to spend IDR 500,000 on movies and snacks, then you must wholeheartedly do it. Do not be easily tempted to allocate more money just for entertainment and snacking.
Skill #3: Having life and health insurance
Until today, many people are still hesitant to buy life and health insurance because they cannot enjoy the benefits right away. The benefits can be enjoyed only when you get sick or pass away (depending on the type of insurance and the policy of each insurance company).
But that mindset must be changed. In fact, we all have to prepare for the worst. If we don’t get sick at all, that’s great, just be grateful. But if it were the other way around, this health insurance would be really helpful. As for life insurance, it is generally intended for the loved ones we leave behind when we are no longer in this world.
Jago Helps You Have Simple but Innovative Personal Financial Management
In this modern era, you don’t need to record your personal expenses and separate various types of expenses and savings manually. A lot of transactions can give you a headache.
Let Jago help you. In the Jago application, you will come across a feature called “Pocket”. This Pocket shows your account balance. Once you have completed your registration, the first thing you’ll see is the Pocket. It sounds simple, but the Pocket is innovative.
Why innovative? The Pocket has two main categories, namely “Saving Pockets” and “Spending Pockets”. For Kenapa inovatif? For Saving Pockets, you can create up to 20 Pockets. Even better, you can name them as you wish. The same applies to Spending Pockets.
And you know what’s cool? You can create 1 Pocket in an instant. With all these Pockets, you can see clearly not only how you spend your money but also for what purposes your money is being saved. You don’t need to have a journal or a book that records your cash flow. Jago also records every transaction to make it easy for you to see the transaction history of a Pocket.
Once you have created your Pockets, you can set the balance for each Pocket. Setting a target is great for a Saving Pocket as you can challenge yourself. If you want to quickly achieve your target, simply save more money.
As for Spending Pockets, you can use them to practice self discipline. After setting some balance in every Spending Pocket (for example, you have Snack Pocket, Girl/Boyfriend Pocket and Travel Pocket), once the balance reaches 0, it means that you can no longer spend money on snacking, buying gifts and traveling. Just wait until next month to start spending again.
What are you waiting for? Start managing your personal finances via the Jago application. Download the app here.