Jakarta, CNBC Indonesia – Being born into the sandwich generation is certainly not an option, because there are challenges in managing finances. This is due to the large burden of living costs which makes it difficult for them to set aside money for their future.
So is it impossible for a sandwich generation person to become rich or at least financially independent? This assumption is not true, because everyone in this world can definitely achieve this life achievement.
What are some smart tips for the sandwich generation in managing finances and investing? Here’s the review.
Have a net cash flow surplus of at least 10% of income
Net cash flow surplus is the result of reducing total income and expenses. The ideal surplus value each month is 10% of income.
Surplus can be obtained from reducing discretionary (consumptive) expenses, or increasing income.
Never reduce spending on mandatory and basic needs, because this can actually reduce the quality of life of those we love.
Emergency fund and protection first
Don’t invest immediately, because your finances are not necessarily safe and protected. Have an emergency fund first, and protect all family members with health insurance or at least BPJS Health.
Investments contain risks, don’t let the funds we have invested have to be withdrawn because someone in our family needs medical expenses.
Help those who really need it
In the family of a sandwich generation, it is possible that there are family members who are actually still at a productive age, but choose to depend on the breadwinner and not work.
The family members you should provide full assistance to are those who are in the dependent phase. This could be because they are still underage or elderly.
Establish good communication with family members who are of productive age, invite them to help you in easing the financial burden you bear.
Invest regularly when your finances are safe
Choose an investment instrument that you know the ins and outs of well. And do it regularly, with the budget you have determined every month.
It’s a good idea if your income increases, also increase the funds that will be set aside for investment.
This is because, the greater the funds set aside, the faster it will be for you to realize your financial goals and become financially independent.
Encourage your dependents to be financially literate
Don’t just be literate and understand finances, your family members must also understand this.
It would be very unfortunate if you had to work hard to provide a living and ensure their future, but instead they adopted a consumerist lifestyle which would burden you financially.
If your dependents are financially literate, then your financial burden will feel lighter and the investments you have planned will not be mere wishful thinking.
[Gambas:Video CNBC]
(aak/aak)