Budgeting is one of the basic keys in managing finances. Every Jagoan needs to know these 7 important tips when budgeting monthly.
7 Important Monthly Budgeting Tips
1. Use basic budget categories as a reference
Although everyone's needs are different, there are a number of needs that most people need to meet. For example, grocery shopping and monthly bill payments. You can read this article that discusses 5 Basic Budget Categories to find out which budget categories apply to most people.
These basic budget categories can be used as a reference not only for Jagoans who have just started budgeting. In general, the needs from month to month are not much different. By having a reference, budgeting becomes faster and more practical.
2. Prioritize important expenses
After you finish creating a monthly budget for important expenses, then you can allocate a budget for non-priority expenses such as dining out weekly, hanging out with friends, etc.
3. Schedule payments for certain expenses
So that you don't miss it or forget it, you can schedule payments for expenses such as paying internet bills, transferring money to parents and buying electricity tokens.
Scheduled expenses are usually routine and can be paid on the same date each month. Another benefit of scheduling payments is having control over your money and knowing exactly what it's used for.
4. Make saving automatic
Savings can grow over time if you save consistently. It takes more than just a monthly budget allocation for savings.
Making saving automatic is an effective way to ensure that there is always money that goes into savings. If you don't want to deal with temptations, you can schedule the automatic transfer of money to your savings account at the beginning of the month or right after getting your paycheck.
5. Record expenses and analyze spending habits
Recording your expenses is important as you can know exactly how much you spend in a month, how money is used and identify where you can reduce expenses.
Keeping track of your spending also helps when you want to analyze your spending habits, especially when you're easily tempted to buy something you don't really need or make last-minute shopping decisions.
6. Be realistic
Becoming a jagoan in budgeting and managing finances won’t happen instantly. Some may take a few weeks, while others may take several months. Budgeting is not an easy thing to do, especially if you are new to it.
Therefore, you need to be realistic. Be realistic in terms of achieving financial goals by making a reasonable budget and be realistic by not giving up or being disappointed in yourself when you make mistakes or overspend. Over time, you will get better and better at budgeting. In the end you can become a jagoan at budgeting.
7. Take advantage of advanced technology
No less important, you can take advantage of advanced technology to help you allocate your monthly budget and manage your finances better, easily and practically.
You can use the Jago application and its various innovative features. The application, which is owned by Bank Jago, has the Jago Pocket feature that makes it easier for you to budget.
You can start budgeting for many needs by separating them into their respective Pockets. For anything related to spending money, you can create Spending Pockets. For setting aside money for savings, you can create Saving Pockets.
Monthly budget allocation for each need can be done by transferring money from the Main Pocket or from another bank account. This is because each Pocket that you create has its own account number. If you create 20 Pockets, this means you have 20 accounts that can all be managed in 1 application.
In addition to Pockets, the Plan Ahead feature can also help you schedule recurring payments and ensure timely payments. This feature is perfect when you apply tip #3 above.
Making saving automatic can also be done in the Jago application. You only need to activate the Autosave feature on the Saving Pockets you want. The money will automatically go to the Savings Pockets in the amount and at the time you specify.
Jago can also make you feel excited in monitoring and analyzing expenses without you needing to record them because there is the Spend Analysis feature.
Every transaction you make through the Jago application is recorded automatically by Jago. What’s more, Jago also provides reports in the form of diagrams and percentages so that it is easy for you to analyze them.
Jagoans, let’s start implementing the 7 important monthly budgeting tips above. The Jago application can be downloaded here if you don't have it yet.