Reducing Unnecessary Expenses Can Start with These 4 Questions

24 February 2022

Reducing Unnecessary Expenses Can Start with These 4 Questions Reducing Unnecessary Expenses Can Start with These 4 Questions

Jagoans, have you ever experienced a dilemma whether to spend or not to spend? For example, the fan in the house is broken. Then, at the same time you really want to buy a new pair of shoes because you have been saving for it for a long time. What to do? Which one should be prioritized? There is only enough money to buy one.

On the road, when the traffic light turns red, you look to your left, there's a shop that offers big discounts on all the items. You want to buy them because of the discounts offered. Buy, don’t buy. Buy, don’t buy. You keep thinking.

There are many other examples of cases where you are confused about which expenses are necessary and which are actually less necessary or can be postponed for a later date. Fret not, Jagoans, you can start with the 4 questions below.

How to Reduce Unnecessary Expenses

1. Do you really need it?

Take the fan vs. shoes case above, Jagoans. Do you really need to buy new shoes? Or do you actually already have shoes, but just want to add to your shoe collection?

If you really can’t wear your old shoes anymore and the fan is broken, which one do you need more? You can consider the benefits each gives you.

You may need shoes when working and being outside, while a fan is only needed when you feel hot. Depending on what you need more, you can prioritize one and delay the purchase of the other.

2. By spending now, will you save more later?

Tempted by the huge discounts, you want to buy them all. When will there be another opportunity like this? Buying now will definitely save more.

Wait a minute, Jagoans. You really need to consider it. Is it true that you will save more? At home, do you still have stock? If you buy a lot, will they all be used before they expire? If later they are not used or only partially used, the products you buy will be wasted. It doesn’t actually save money, does it?

3. When was the last time you used the thing you are going to buy?

Reducing unnecessary expenses can also be done by remembering the last time you used the thing you are going to buy.

For example, you want to buy new sports equipment. But, at home there is other sports equipment and you haven't used it for a long time to exercise. You don't even remember the last time you used it. If so, why do you buy another new one? The money can be used to build an emergency fund instead, for example.

4. Are you spending money on something useful or valuable?

When you have to choose between saving for retirement and using the money to eat at a fancy restaurant, which one will you choose?

You need to consider the benefits or value of something you are going to spend your money on. Eating at luxury restaurants is just for temporary pleasure, while saving for retirement provides comfort and reduces dependence on others once you retire.

This doesn't mean you can't eat at a fancy restaurant, Jagoans. After making sure that you have saved for retirement or used the money for other useful or valuable needs, you can use the remaining money to eat at luxury restaurants or for other more temporary pleasures.

Smartly Manage Expenses with Jago

So that managing expenses smartly feels easy and practical, you can use the Jago application. You can list various kinds of expenses, ranging from priority to non-priority.

Then, you separate each type of expense by creating lots of Pockets, an innovative feature from Jago. For savings needs, you can create Saving Pockets. Meanwhile, for spending needs, you can create Spending Pockets. After that, you can allocate a budget to each Pocket.

Monitoring expenses can also be done at any time without you needing to make notes because Jago will automatically record every transaction.

Don't have the Jago application yet? Download the Jago application here.

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