Blog Post --- Published on November 22, 2023 | Last Updated on November 22, 2023

Vulnerable to Getting into Debt, How Can Millennials and Gen Z Manage Their Finances Better?

rentan terlilit utang, gen z dan milenial bisa pakai kantong jago untuk atur uang lebih baik Vulnerable to Getting into Debt, How Can Millennials and Gen Z Manage Their Finances Better?

As can be seen from the visual above, OJK data quoted by DetikFinance shows that Millennials and Gen Z have a very large total amount of online loan debt (pinjol), reaching Rp27.1 trillion in July 2023. Millennials and Gen Z are vulnerable to getting into debt and therefore need to be able to manage their finances better. By being better at managing finances, expenses can be better controlled and debt can stay away from everyday life. Not only that, you can also have savings for peace of mind.

Build Financial Discipline with the Jago Pocket

So that the money you have is not wasted just like that, budgeting is an important factor in controlling expenses. Why can using the Jago Pocket help you build financial discipline more easily and practically?

1. Create a bank account for each need

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By having multiple accounts to manage multiple needs, funds will not mix. The way to have multiple accounts at Bank Jago is to create Pockets in the Jago application. The budget for each need becomes clearer because it is separated directly from the start.

You can start first by creating several Pockets for your priority needs, not your wants. Examples of priority needs are daily or monthly ones such as food, transportation, PLN and PDAM bills. Paying off debt can also be categorized as a major need. Make sure you have funds for all priority needs before using them for other expenses.

The Jago application allows each person to create 20 Spending Pockets for various types of expenses. At the beginning of the month or as soon as you receive your salary, you can immediately allocate money to your Pockets for priority needs.

2. Make sure to also have savings

Before allocating a budget for your wants, make sure you have first allocated some of your income to savings. Emergency savings that can help in unexpected times is one type of savings that everyone must have.

In the Jago application you can have up to 20 savings in your Saving Pockets. Separate emergency fund savings from other savings aimed at meeting future financial goals. The goal is the same, so that savings don't get mixed up and you can more easily monitor progress.

Savings can also be in the form of investments. In the Jago application, you can open a deposit in no time. Save money in the Jago Deposit and choose the period as you want. By saving in the Jago Deposit, you will get higher interest than the Saving Pocket.

3. Set aside money for wants, but don't overdo it

Of course, it's totally fine if you want to buy something fancy or whatever you like to enjoy the results of your hard work. But, wants should come later after needs and savings. Apart from that, don't over-budget for your wants dan live beyond your means so that you end up with debts everywhere. So, be sure to also create a Pocket for wants.

Always remember that the Jago Pocket is always there to help you be disciplined in budgeting and using money. For other Jago features that you can rely on to prevent debt, continue reading until the end.

Reduce or Prevent a Wasteful or Consumptive Lifestyle by Choosing the Right Jago Pocket as a Source of Funds

Apart from being disciplined in budgeting, you also have to be disciplined in using money so that the budgeting you do is not in vain. This is very important, especially when you spend money on wants, not needs.

For example, in the Jago application you already have a Fancy Dinner Pocket with a budget of Rp2,000,000 to use for a whole month. As long as the Rp2,000,000 balance has not been used up, you are free to eat at your favorite fancy restaurant or try a new fancy restaurant.

However, when the balance in the Pocket has run out even though you are only in the second week of the month, you have to be disciplined and control yourself not to add more budget to your Pocket. Don't let pride or addiction leads you to end up in debt to many parties. You could be in trouble if you have a large amount of debts.

Apart from the Jago Pocket, another way to help avoid spending beyond your budget is to avoid shopping using cash. As an alternative to cash, you can use the Jago Visa Debit Card or QRIS Jago, depending on the payment method available at the merchant.

The Jago Visa Debit Card and QRIS Jago can both be linked to your chosen Spending Pocket, just the way you want

The main reason to use these two Jago features is because you can choose any Spending Pocket that suits your needs. When shopping for electronic goods and you have allocated a budget to the Gadget Pocket, you can choose the Gadget Pocket as the source of funds. It is the balance from the Gadget Pocket that will decrease, not the balance in other Pockets.

Regularly Monitor Daily and Monthly Expenses Using the Spend Analysis Feature

To minimize subtle leaks in expenses and consider what expenses can be reduced in the future, you can use the Spend Analysis feature.

Every transaction via the Jago application is categorized automatically. A summary of expenses along with total expenses for each category can be seen through the Spend Analysis feature. If there is a spending category that you feel is not quite right, you can change it to a more suitable category, just the way you want.

From the data presented by the Spend Analysis feature, you can clearly find out your biggest and smallest expenses in a month and compare all spending categories with the previous month. In this way, you can control your expenses better because they can be monitored the way you want and at any time.

Time to no longer be in debt by budgeting and managing expenses using Jago. For those who have never been in debt, you can of course use Jago to manage your finances the way you want.

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