There are many needs in this life, and every need requires money. But, don't overspend. Otherwise, you may only have little money left until the next paycheck. If it only happens once or twice, it’s fine. But, if it continues, it can be dangerous for your finances. Let’s get to know 4 spending habits that can make your finances unhealthy.
These 4 Spending Habits Can Lead to Unhealthy Finances
1. Spending money haphazardly
This spending habit usually arises due to living an undisciplined life. For example, you spend money to buy breakfast because you wake up late.
In fact, if you wake up on time, you can prepare breakfast at home. Making your own breakfast will be more economical.
So, how do you avoid spending haphazardly? There is no other key than to train yourself to be more disciplined.
2. Spending money because other people do too
This spending habit is often influenced by the environment. When you get together with friends, you are ‘forced’ to buy snacks or drinks. Actually, you don't want or don't plan to buy. Your friends may think that you are stingy.
Or, sometimes you buy things because you want to impress your friends. So, you end up having things you don't really need. Relationships are important. But, you need to consider the impact of social overspending in the long term.
To overcome social overspending, you can take the initiative to invite friends to do something at a minimal cost. For example, inviting them to your house to watch movies together.
3. Spending money because of temporary urges
Resisting temptation, particularly shopping temptation, is not an easy thing. There are so many interesting products, especially if they are discounted. You want to buy them right away.
If you are often tempted like this, when you grab that product that you want to buy, just stop for a moment. Ask yourself, do you really need it? Are there other more important needs?
The Jago application simplifies financial management to avoid unhealthy spending habits
One effective way to avoid the habit of buying things due to momentary emotional urges is by setting a clear spending budget. You can utilize the Pocket feature in the Jago application to allocate a specific amount of funds for purchasing discounted items or things you desire.
By having a predetermined budget within a separate Pocket, you'll be more self-aware and think twice before making purchases beyond the set limit, thus keeping expenses controlled and not driven purely by emotion. Of course, this must be accompanied by a strong intention not to add more budget to this Pocket once the money has been fully spent.
4. Spending without keeping track
It’s very dangerous when you don't know for sure where your money goes! You can pay the same bill twice because you forget whether you have paid or not. You have no idea whether you can save more money by eliminating some unimportant expenses.
So, if all this time you have never or rarely kept track of your expenses, you can start doing it regularly. Fret not, you don't need to have a thick book to record everything manually.
Automatic transaction recording and spending analysis in the Jago application
The Jago application can record your incoming and outgoing money in detail, as long as you conduct transactions through the Jago application. Every expense, no matter how small, cannot escape Jago's observation.
You can view the transaction history for each Jago Pocket you have at any time. Whenever there is a new transaction, the transaction history will automatically update.
Furthermore, you can see a visualization of where your money is going through the Spend Analysis feature. With clear and detailed visualizations, you can see a breakdown of transactions that have been automatically categorized, such as for shopping, daily necessities, transportation, entertainment, or bills. This analysis helps identify spending patterns, detect potentially excessive items, and monitor whether expenses are still in line with the budget set for each Jago Pocket, enabling you to take more appropriate steps to manage your finances effectively.
